annual report 2016 - paramo · 2017-09-26 · annual report year ended march 31, 2016 1-13-25,...
TRANSCRIPT
Challenging Technology-driven Trading Company
Change, Challenge, Jump-up
2016Annual Report
Year ended March 31, 2016
1-13-25, Nishi-Honmachi, Nishi-ku, Osaka, 550-8555, JapanTel. 81-6-6539-2718
http://www.tachibana.co.jp/
Contributing to industry and society as a technology-driven trading company
We help to solve our customers’ problems by providing comprehensive solutions through our range of businesses
Business domains
Tachibana Eletech’sdiamond domain
Factory Automation SystemsSells electrical equipment such as motors
and breakers, FA equipment such as
inverters, PLC, and servos, and industrial
machinery such as electric discharge
machines and laser beam machines.
Semiconductors and Electronic DevicesSells semiconductors and electronic device
products, available as standard designs or
customized to meet customer needs. It also
designs and develops microcomputers and
ASICs.
Building Services SystemsSells lighting, air conditioning, elevators, and
disaster preparedness equipment for factories,
office buildings and stores. It also sells LED
lighting, photovoltaic power generation systems,
and Smart Electrification equipment.
Industrial Device Component SystemsSells industrial devices, networking
equipment such as computers and servers,
and monitoring systems. It also sells various
connectors and information and imaging
equipment.
Solution SystemsSells complex systems for factories and
other facilities that include the elements of
energy conservation, environment, safety,
and efficiency, as well as industrial robot
systems.
Manufacturing ServicesProvides Metal Manufacturing Services
(MMS) used to process and manufacture
metal components for multilevel car parking
towers and railway cars, as well as
Electronics Manufacturing Services (EMS)
that covers the contract design and
production of substrate for electronic
devices to finished products.
Overseas OperationsSells industrial mechatronics products in
Asia, mainly in China and ASEAN countries,
including semiconductors, FA equipment,
electric discharge machines, and laser beam
machines.
The businesses of Tachibana Eletech are comprised of four businesses in the
product category (Factory Automation Systems, Semiconductors and Electronic
Devices, Building Services Systems, and Industrial Device Component Systems), as
well as the solution systems business which proposes and sells complex systems,
the manufacturing services (MS) business which engages in metal processing and
the contract manufacturing of electronic equipment, and the regional business
category of the overseas operations business.
Factory AutomationSystems
OverseasOperations
Building S
ervices
System
s
Industrial D
evice
Component Sys
tems
Sem
icon
duct
ors
and
Ele
ctro
nic
Dev
ices
Manufacturing Services
SolutionSystems
Corporate philosophy
As a technology-driven trading companyfor electrical machinery and electronics,
we contribute to the development ofsociety by delivering outstandingproducts alongside cutting-edge
technology to our customersin the industrial sector.
2TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.1
Contributing to industry and society as a technology-driven trading company
We help to solve our customers’ problems by providing comprehensive solutions through our range of businesses
Business domains
Tachibana Eletech’sdiamond domain
Factory Automation SystemsSells electrical equipment such as motors
and breakers, FA equipment such as
inverters, PLC, and servos, and industrial
machinery such as electric discharge
machines and laser beam machines.
Semiconductors and Electronic DevicesSells semiconductors and electronic device
products, available as standard designs or
customized to meet customer needs. It also
designs and develops microcomputers and
ASICs.
Building Services SystemsSells lighting, air conditioning, elevators, and
disaster preparedness equipment for factories,
office buildings and stores. It also sells LED
lighting, photovoltaic power generation systems,
and Smart Electrification equipment.
Industrial Device Component SystemsSells industrial devices, networking
equipment such as computers and servers,
and monitoring systems. It also sells various
connectors and information and imaging
equipment.
Solution SystemsSells complex systems for factories and
other facilities that include the elements of
energy conservation, environment, safety,
and efficiency, as well as industrial robot
systems.
Manufacturing ServicesProvides Metal Manufacturing Services
(MMS) used to process and manufacture
metal components for multilevel car parking
towers and railway cars, as well as
Electronics Manufacturing Services (EMS)
that covers the contract design and
production of substrate for electronic
devices to finished products.
Overseas OperationsSells industrial mechatronics products in
Asia, mainly in China and ASEAN countries,
including semiconductors, FA equipment,
electric discharge machines, and laser beam
machines.
The businesses of Tachibana Eletech are comprised of four businesses in the
product category (Factory Automation Systems, Semiconductors and Electronic
Devices, Building Services Systems, and Industrial Device Component Systems), as
well as the solution systems business which proposes and sells complex systems,
the manufacturing services (MS) business which engages in metal processing and
the contract manufacturing of electronic equipment, and the regional business
category of the overseas operations business.
Factory AutomationSystems
OverseasOperations
Building S
ervices
System
s
Industrial D
evice
Component Sys
tems
Sem
icon
duct
ors
and
Ele
ctro
nic
Dev
ices
Manufacturing Services
SolutionSystems
Corporate philosophy
As a technology-driven trading companyfor electrical machinery and electronics,
we contribute to the development ofsociety by delivering outstandingproducts alongside cutting-edge
technology to our customersin the industrial sector.
2TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.1
Head Office (Osaka)
TACHIBANA SALES (SINGAPORE) PTE. LTD.
China
Thailand (Bangkok)
Beijing Office
Wuhan Office
Korea (Seoul)
Shanghai
Hong Kong
TaiwanShenzhen Office
FA
FA
FA
FA
FAFA
FA
SESE
SE
SE
SE
SE
SE
SE
SE
SE
SE
SEFA
Indonesia
TACHIBANA OVERSEAS HOLDINGS LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
TACHIBANA SALES (SHANGHAI) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (KOREA) LTD.
Dalian Office
Singapore
FA
FA
Qingdao Office FA
Factory Automation Systems
Semiconductors and Electronic Devices
Corporation
Office
FA
SE
Malaysia Office
PT TACHIBANA SALES (INDONESIA)
TACHIBANA OVERSEAS HOLDINGS LTD.
Singapore Engineering Center at the Malaysia Office
Shenzhen Semiconductor Technology Center
Beijing OfficeShenzhen OfficeFA Showroom at the Wuhan OfficeDalian OfficeQingdao OfficeShanghai Technology Center
Hong Kong
Taiwan
Shanghai
Korea
ThailandIndonesia
We provide services through eight overseas subsidiaries and 14 overseas sales offices
Overseas businesses
The four main subsidiaries contribute to 30% of Group sales
Our main consolidated subsidiaries
StrengthsEngineering technologies and various product lines related to monitoring, measurement, imaging, and sensors
Businesses/ProductsSale of FA equipment, and electronic parts and networking equipment
Net sales: Approx.
JPY 17.6 billion
Net sales: Approx.
JPY 6.5 billion
StrengthsInput/output equipment such as connectors and terminal blocksAbility to market and sell control equipment bundled in systems
Businesses/ProductsSale of FA control equipment, electronic parts, as well as industrial computers and networking equipment
StrengthsProduct lines including LSI for lithium ion batteries, power semiconductors, and telecommunications equipmentTechnologies for fabricating modules and boards by assembling electronic components
Businesses/ProductsSale of semiconductors and electronic parts and production of modules and boards equipped with semiconductor devices
Net sales: Approx.
JPY 19.2 billion
Net sales: Approx.
JPY 5.8 billion
StrengthsEstablishment of technological centers overseas (semiconductor/FA) to respond to local development needsSale of semiconductor devices and FA as standalone products, as well as the solutions business
Businesses/ProductsSale of industrial mechatronics including semiconductors, electronic devices, FA equipment, electric discharge machines, and machine tools.
4TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.3
Head Office (Osaka)
TACHIBANA SALES (SINGAPORE) PTE. LTD.
China
Thailand (Bangkok)
Beijing Office
Wuhan Office
Korea (Seoul)
Shanghai
Hong Kong
TaiwanShenzhen Office
FA
FA
FA
FA
FAFA
FA
SESE
SE
SE
SE
SE
SE
SE
SE
SE
SE
SEFA
Indonesia
TACHIBANA OVERSEAS HOLDINGS LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
TACHIBANA SALES (SHANGHAI) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (KOREA) LTD.
Dalian Office
Singapore
FA
FA
Qingdao Office FA
Factory Automation Systems
Semiconductors and Electronic Devices
Corporation
Office
FA
SE
Malaysia Office
PT TACHIBANA SALES (INDONESIA)
TACHIBANA OVERSEAS HOLDINGS LTD.
Singapore Engineering Center at the Malaysia Office
Shenzhen Semiconductor Technology Center
Beijing OfficeShenzhen OfficeFA Showroom at the Wuhan OfficeDalian OfficeQingdao OfficeShanghai Technology Center
Hong Kong
Taiwan
Shanghai
Korea
ThailandIndonesia
We provide services through eight overseas subsidiaries and 14 overseas sales offices
Overseas businesses
The four main subsidiaries contribute to 30% of Group sales
Our main consolidated subsidiaries
StrengthsEngineering technologies and various product lines related to monitoring, measurement, imaging, and sensors
Businesses/ProductsSale of FA equipment, and electronic parts and networking equipment
Net sales: Approx.
JPY 17.6 billion
Net sales: Approx.
JPY 6.5 billion
StrengthsInput/output equipment such as connectors and terminal blocksAbility to market and sell control equipment bundled in systems
Businesses/ProductsSale of FA control equipment, electronic parts, as well as industrial computers and networking equipment
StrengthsProduct lines including LSI for lithium ion batteries, power semiconductors, and telecommunications equipmentTechnologies for fabricating modules and boards by assembling electronic components
Businesses/ProductsSale of semiconductors and electronic parts and production of modules and boards equipped with semiconductor devices
Net sales: Approx.
JPY 19.2 billion
Net sales: Approx.
JPY 5.8 billion
StrengthsEstablishment of technological centers overseas (semiconductor/FA) to respond to local development needsSale of semiconductor devices and FA as standalone products, as well as the solutions business
Businesses/ProductsSale of industrial mechatronics including semiconductors, electronic devices, FA equipment, electric discharge machines, and machine tools.
4TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.3
6TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.5
123457
1113-18
19-20
21-23
24-28
29-33
34-61
6264
TOPICSThis section provides information about the business topics for the Tachibana Eletech Group for the period ended March 31, 2016 (April 1, 2015–March 31, 2016).
Taking a further leap forward through change and challenge Announcement of the medium- to long-term management plan, “C.C.J 2200”We have announced our medium- to long-term management plan, “C.C.J 2200” ending in 2021, which also marks the 100th anniversary of the founding of Tachibana Eletech. With the goal of becoming a “leading technology-driven trading company for electrical machinery and electronics with a solid foundation,” the title “C.C.J 2200” represents, through “changes” and “challenges,” taking a greater “jump” upward to achieve consolidated net sales of JPY220 billion.
May 2015
Acquisition of own shares, and increase in dividendsTo enable the flexible execution of capital policy corresponding to the business management environment, Tachibana Eletech acquired its own shares in February and March. The total number of shares acquired was 457,100 (1.76% of the total number of issued shares), valued at JPY527 million. The year-end dividend was also increased by JPY2 yen per share to JPY14 yen per share, bringing the annual dividend to JPY26 yen per share.
February and March 2016
Permanent display of robots from the three key companies in the showroom on the first floor of the head office
November 2015
Efforts to boost mid-career recruitmentPublication of advertisement in Nihon Keizai Shimbun (Nikkei)As part of our efforts to secure human resources in order to achieve the goals we have set out in “C.C.J 2200,” we published a recruitment advertisement in Nihon Keizai Shimbun (Nikkei) on 30 August. The President of Tachibana Eletech was featured in the advertisement, and delivered a clear message of the company’s intention, as a “technology-driven trading company,” to recruit capable human resources regardless of age. Other initiatives to boost mid-career recruitment include the start of the utilization of online head-hunting services.
August 2015
Medium- to long-term management plan, “C.C.J 2200”Changes, Challenges, Jump-upward: Consolidated Net Sales of JPY220 billion
capital investment decisions. Tachibana Eletech held its first briefing session on subsidies by the Ministry of Economy, Trade and Industry (METI) in February, at the 9F hall of the head office. A representative from METI provided an explanation on the details of the system to an audience of about 140 people. In March, a briefing session on energy-saving subsidies was also held at the Tokyo office for Tachibana Eletech’s sales representatives.
The double-armed SCARA robot manufactured by Kawasaki Heavy Industries, Ltd., and the 14-axis lightweight double-armed robot manufactured by ABB Ltd., were displayed in the showroom on the first floor of the head office in November and February respectively. This completed the line-up of our display of robots from the three key companies – Mitsubishi Electric Corporation, Kawasaki Heavy Industries, Ltd., and ABB Ltd. Visitors can view these alongside with the multi-functional robots and parallel-link robots that excel in high-speed picking, produced by Mitsubishi Electric Corporation, and observe the movements of these robots.
Inviting employees from overseas subsidiaries to JapanImplementation of TOH Japan Tour 2015
November 2015
The TOH Japan Tour 2015 was held from 23 to 26 November. This was the first attempt to organize an incentive trip by inviting to Japan local employees who have worked for more than 10 years at the companies under Tachibana Overseas Holdings Ltd. (TOH), which is our overseas holdings company. During the tour, these employees visited the head office (with demonstrations of industrial robots and proprietary technology of Tachibana Eletech) and Risshikan (Training Center), and also enjoyed sightseeing in Osaka and Kobe. (Refer to p.26 for details.)
Briefing sessions for individual investors held at various securities companies
June and September 2015, March 2016
To enhance the understanding of individual investors toward Tachibana Eletech, we participated in successive company briefing sessions organized by securities companies. About 400 people attended our sessions held at Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. in June 2015, Nomura Securities Co., Ltd. in September 2015, and SMBC Nikko Securities Inc. in March 2016. During these sessions, Tachibana Eletech’s representatives spoke about the company’s history and achievements, and introduced our medium- to long-term management plan, “C.C.J 2200.”
Explanation by a representative from the Ministry of Economy, Trade and IndustryFirst briefing session on subsidies held
February 2016
The availability of information on the government subsidy for monozukuri and energy-saving has a significant impact on customers’
ContentsCorporate philosophy
Business domains
Our main consolidated subsidiaries
Overseas businesses
TOPICS
President’s Statement
Medium- to long-term management plan “C.C.J 2200”
At the conclusion of the first fiscal year
Overview of Business by Segment Factory Automation Systems 13 Semiconductors and Electronic Devices 14
Building Services Systems 15 Solution Systems 16
Manufacturing Services 17 Overseas Operations 18 CSR CSR Structure and Initiatives 19 Topics 20Environment Environmental Conservation Initiatives 21
Increasing Sales of Environmentally Friendly Products 23Social Together with Employees 24 Topics 26 Engagement with Clients and Suppliers 27
Symbiosis with local communities and society 28Governance Corporate Governance Structure and Initiatives 29 Board of Directors and Auditors 30
Relationship with Shareholders and the Investment Community 31 Compliance and Risk Management Structure and Initiatives 32 Financial Information Financial Overview 35 Consolidated Balance Sheets 37
Consolidated Statement of Income 39 Consolidated Statement of Comprehensive Income 39
Consolidated Statement of Changes in Equity 40 Consolidated Statement of Cash Flows 41
Notes to Consolidated Financial Statements 42 INDEPENDENT AUDITORS’ REPORT 61 Company Data
Investor Information
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6TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.5
123457
1113-18
19-20
21-23
24-28
29-33
34-61
6264
TOPICSThis section provides information about the business topics for the Tachibana Eletech Group for the period ended March 31, 2016 (April 1, 2015–March 31, 2016).
Taking a further leap forward through change and challenge Announcement of the medium- to long-term management plan, “C.C.J 2200”We have announced our medium- to long-term management plan, “C.C.J 2200” ending in 2021, which also marks the 100th anniversary of the founding of Tachibana Eletech. With the goal of becoming a “leading technology-driven trading company for electrical machinery and electronics with a solid foundation,” the title “C.C.J 2200” represents, through “changes” and “challenges,” taking a greater “jump” upward to achieve consolidated net sales of JPY220 billion.
May 2015
Acquisition of own shares, and increase in dividendsTo enable the flexible execution of capital policy corresponding to the business management environment, Tachibana Eletech acquired its own shares in February and March. The total number of shares acquired was 457,100 (1.76% of the total number of issued shares), valued at JPY527 million. The year-end dividend was also increased by JPY2 yen per share to JPY14 yen per share, bringing the annual dividend to JPY26 yen per share.
February and March 2016
Permanent display of robots from the three key companies in the showroom on the first floor of the head office
November 2015
Efforts to boost mid-career recruitmentPublication of advertisement in Nihon Keizai Shimbun (Nikkei)As part of our efforts to secure human resources in order to achieve the goals we have set out in “C.C.J 2200,” we published a recruitment advertisement in Nihon Keizai Shimbun (Nikkei) on 30 August. The President of Tachibana Eletech was featured in the advertisement, and delivered a clear message of the company’s intention, as a “technology-driven trading company,” to recruit capable human resources regardless of age. Other initiatives to boost mid-career recruitment include the start of the utilization of online head-hunting services.
August 2015
Medium- to long-term management plan, “C.C.J 2200”Changes, Challenges, Jump-upward: Consolidated Net Sales of JPY220 billion
capital investment decisions. Tachibana Eletech held its first briefing session on subsidies by the Ministry of Economy, Trade and Industry (METI) in February, at the 9F hall of the head office. A representative from METI provided an explanation on the details of the system to an audience of about 140 people. In March, a briefing session on energy-saving subsidies was also held at the Tokyo office for Tachibana Eletech’s sales representatives.
The double-armed SCARA robot manufactured by Kawasaki Heavy Industries, Ltd., and the 14-axis lightweight double-armed robot manufactured by ABB Ltd., were displayed in the showroom on the first floor of the head office in November and February respectively. This completed the line-up of our display of robots from the three key companies – Mitsubishi Electric Corporation, Kawasaki Heavy Industries, Ltd., and ABB Ltd. Visitors can view these alongside with the multi-functional robots and parallel-link robots that excel in high-speed picking, produced by Mitsubishi Electric Corporation, and observe the movements of these robots.
Inviting employees from overseas subsidiaries to JapanImplementation of TOH Japan Tour 2015
November 2015
The TOH Japan Tour 2015 was held from 23 to 26 November. This was the first attempt to organize an incentive trip by inviting to Japan local employees who have worked for more than 10 years at the companies under Tachibana Overseas Holdings Ltd. (TOH), which is our overseas holdings company. During the tour, these employees visited the head office (with demonstrations of industrial robots and proprietary technology of Tachibana Eletech) and Risshikan (Training Center), and also enjoyed sightseeing in Osaka and Kobe. (Refer to p.26 for details.)
Briefing sessions for individual investors held at various securities companies
June and September 2015, March 2016
To enhance the understanding of individual investors toward Tachibana Eletech, we participated in successive company briefing sessions organized by securities companies. About 400 people attended our sessions held at Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. in June 2015, Nomura Securities Co., Ltd. in September 2015, and SMBC Nikko Securities Inc. in March 2016. During these sessions, Tachibana Eletech’s representatives spoke about the company’s history and achievements, and introduced our medium- to long-term management plan, “C.C.J 2200.”
Explanation by a representative from the Ministry of Economy, Trade and IndustryFirst briefing session on subsidies held
February 2016
The availability of information on the government subsidy for monozukuri and energy-saving has a significant impact on customers’
ContentsCorporate philosophy
Business domains
Our main consolidated subsidiaries
Overseas businesses
TOPICS
President’s Statement
Medium- to long-term management plan “C.C.J 2200”
At the conclusion of the first fiscal year
Overview of Business by Segment Factory Automation Systems 13 Semiconductors and Electronic Devices 14
Building Services Systems 15 Solution Systems 16
Manufacturing Services 17 Overseas Operations 18 CSR CSR Structure and Initiatives 19 Topics 20Environment Environmental Conservation Initiatives 21
Increasing Sales of Environmentally Friendly Products 23Social Together with Employees 24 Topics 26 Engagement with Clients and Suppliers 27
Symbiosis with local communities and society 28Governance Corporate Governance Structure and Initiatives 29 Board of Directors and Auditors 30
Relationship with Shareholders and the Investment Community 31 Compliance and Risk Management Structure and Initiatives 32 Financial Information Financial Overview 35 Consolidated Balance Sheets 37
Consolidated Statement of Income 39 Consolidated Statement of Comprehensive Income 39
Consolidated Statement of Changes in Equity 40 Consolidated Statement of Cash Flows 41
Notes to Consolidated Financial Statements 42 INDEPENDENT AUDITORS’ REPORT 61 Company Data
Investor Information
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I would like to extend my sympathies to all who have been
affected by the Kumamoto Earhquake that struck in April 2016.
Although the production plant of one of our major
manufacturing suppliers was damaged in the earhquake,
Tachibana Eletech demonstrated it’s trading company functions
by working hand-in-hand with suppliers and customers, and
contributing wherever possible towards assisting early recovery
and reconstruction in the aftermath of the earthquake.
This fiscal year marked the first year of our six-year medium
to long-term management plan “C.C.J 2200” formulated with
the aim of achieving further growth as we approach our 100th
anniversary in 2021.
To secure the human resource necessary to build
foundations for the plan, we have put much effort to
recruiting experienced mid-career personnel.
To promote the development of the Systems
Solution business we have focused on
robotics, centered around the production
The strong performance by FA Systems, a core business, together with the conversion of Takagi Co., Ltd. in to a consolidated subsidiary, contributed to the healthy results, and enabled the beginning of building solid foundations for the medium and long-term plan.
of industrial robots. Dealership agreements were entered in to
not only with our primary supplier, Mitsubishi Electric
Corporation, but also with the leading robotics companies
Kawasaki Heavy Industries and ABB in Switzerland.
Attention has also been focused to strengthening our pool
of engineers skilled in the area of robotics development, so as
to establish a system able to meet the diverse needs of
industrial users.
In the year under review net sales of JPY162.143 billion
were recorded showing a 10% growth year on year, while
operating income at JPY5.617 billion increased 15.6% on the
prior year.
Overseas, the economic slowdown in China and emerging
economies contributed to the decline in sales in the
semiconductor sector. However, the strong performance of
small and medium size investments in the domestic market,
particularly in the manufacturing sector. The “tailwinds” of the
government’s subsidy policy, and the conversion of Takagi Co.,
Ltd. to a consolidated subsidiary, contributed significantly to
the growth in FA Systems.
The continuing “C.A.P. UP 1500” project initiative made a
good contribution towards the increased profitability, with
operating income growing 15.6% year on year. Furthermore,
Review 2016
JPY509 million of non-operating income was generated
through the acquisition of shares in DAIDENSHA Co., Ltd. and
Takagi Co., Ltd. in the prior fiscal year, while extraordinary
income of JPY1.599 billion was recorded in relation to the
conversion of both companies in to consolidated subsidiaries.
As a result, net income grew marginally to JPY5.74 billion,
while net income attributable to shareholders in the parent
company fell to JPY3.715 billion. However, if the extraordinary
factors of the consolidated subsidiaries are not taken account
of, earning power for the year under review is considered to be
on par with, or higher than in the prior year.
The Group regards all of our investors as being valuable
partners, and aims to provide long-term stable returns to
shareholders.
A 1:1.2 stock split was implemented on 1 April 2015, and
an acquisition of our own shares was completed in February
and March 2016, resulting in the acquisition of 457,100 new
stock, representing 1.76% of the total issued stocks.
In light of the steady business growth the final dividend for
the year under review was increased by JPY2 yen to JPY14
yen per share. Together with the interim dividend of JPY12 yen
per share already paid, the full year dividend amounted to
JPY26 yen per share.
8TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.7 TACHIBANA ELET
Having achieved record highs in operating and ordinary income, we are making the transition from building systems to execution in the next fiscal year, as we work toward attaining the goals set out in our medium- to long-term management plan.
Takeo Watanabe President, CEO & COO
Forward-Looking StatementsProjections of operating results and changes in the business environment provided in this report are based on information available to the management as of the date the report was prepared. As such, these projections are exposed to uncertainties and potential risks that may affect the projections should they materialize. Readers are therefore cautioned that actual operating results and the business environment in the future may differ materially from the projections provided herein.
Note on financial figuresFinancial figures in this annual report are presented by rounding figures less than a full unit.
Results and Target (¥100 Million)
1,621
56
Net Sales
2,200 (Target)
Operating Income
75(Target)
2016201520142013 2021(100th
anniversary)
(FY)2014 / 32013 / 32012 / 3
Millions of yen
For the Year:
Net Sales
Operating Income
Net Income Attributable to Owners of the Parent
At Year-End:
Shareholders’ Equity
Total Assets
Per Share Data:
Net Assets per Share (Yen/U.S. Dollars)
Net Income per Share (Yen/U.S. Dollars)
Financial Index:
Equity Ratio (%)
Return on Equity (%)
2015 / 3 2016 / 32016 / 3
¥ 123,792
2,853
2,796
¥ 40,088
82,674
1,925.77
134.60
48.4
7.3
¥ 123,599
3,483
2,468
¥ 37,004
78,860
1,777.51
118.78
46.8
6.8
¥ 147,421
4,861
5,441
¥ 54,962
100,560
2,056.96
209.09
53.2
10.9
¥ 141,884
4,367
3,830
¥ 46,280
88,233
2,130.80
183.76
52.4
8.9
$ 1,434,89449,70832,876
$ 501,646875,168
$ 19.111.27
55.86.8
Consolidated Financial Highlights
¥ 162,1435,6173,715
¥ 56,68698,894
¥ 2,159.10143.12
55.86.8
Thousands ofU.S. dollars
Notes: 1. Sales figures do not include consumption tax.2. U.S. dollar amounts are provided solely for convenience at the rate of ¥113 = US$1, the approximate exchange rate as at March 31, 2016.
Amount and Percentage of Net Sales by Segments
134
111
(4.2%)
(50.6%)
488
68
820
(30.1%)
(8.3%)
(6.8%)
(Yen) (¥100 Million)
(¥100 Million)
(%)
2015 20162014 (FY)
0
10
20
30
40
50
0
20.0
40.0
60.0
23
38.3
23
54.4
2637.2
2015 201620140
4.0
8.0
12.0 10.9
8.9
6.8
Return on EquityDividend per Share and Net Income Attributable to Owners of the Parent
Dividends Net IncomeSemiconductors and Electronic DevicesFA Systems
Industrial Device Component SystemsBuilding Services Systems
etc.
(FY)
1,621(¥million)
FY2016Net Sales
President’s Statement
I would like to extend my sympathies to all who have been
affected by the Kumamoto Earhquake that struck in April 2016.
Although the production plant of one of our major
manufacturing suppliers was damaged in the earhquake,
Tachibana Eletech demonstrated it’s trading company functions
by working hand-in-hand with suppliers and customers, and
contributing wherever possible towards assisting early recovery
and reconstruction in the aftermath of the earthquake.
This fiscal year marked the first year of our six-year medium
to long-term management plan “C.C.J 2200” formulated with
the aim of achieving further growth as we approach our 100th
anniversary in 2021.
To secure the human resource necessary to build
foundations for the plan, we have put much effort to
recruiting experienced mid-career personnel.
To promote the development of the Systems
Solution business we have focused on
robotics, centered around the production
The strong performance by FA Systems, a core business, together with the conversion of Takagi Co., Ltd. in to a consolidated subsidiary, contributed to the healthy results, and enabled the beginning of building solid foundations for the medium and long-term plan.
of industrial robots. Dealership agreements were entered in to
not only with our primary supplier, Mitsubishi Electric
Corporation, but also with the leading robotics companies
Kawasaki Heavy Industries and ABB in Switzerland.
Attention has also been focused to strengthening our pool
of engineers skilled in the area of robotics development, so as
to establish a system able to meet the diverse needs of
industrial users.
In the year under review net sales of JPY162.143 billion
were recorded showing a 10% growth year on year, while
operating income at JPY5.617 billion increased 15.6% on the
prior year.
Overseas, the economic slowdown in China and emerging
economies contributed to the decline in sales in the
semiconductor sector. However, the strong performance of
small and medium size investments in the domestic market,
particularly in the manufacturing sector. The “tailwinds” of the
government’s subsidy policy, and the conversion of Takagi Co.,
Ltd. to a consolidated subsidiary, contributed significantly to
the growth in FA Systems.
The continuing “C.A.P. UP 1500” project initiative made a
good contribution towards the increased profitability, with
operating income growing 15.6% year on year. Furthermore,
Review 2016
JPY509 million of non-operating income was generated
through the acquisition of shares in DAIDENSHA Co., Ltd. and
Takagi Co., Ltd. in the prior fiscal year, while extraordinary
income of JPY1.599 billion was recorded in relation to the
conversion of both companies in to consolidated subsidiaries.
As a result, net income grew marginally to JPY5.74 billion,
while net income attributable to shareholders in the parent
company fell to JPY3.715 billion. However, if the extraordinary
factors of the consolidated subsidiaries are not taken account
of, earning power for the year under review is considered to be
on par with, or higher than in the prior year.
The Group regards all of our investors as being valuable
partners, and aims to provide long-term stable returns to
shareholders.
A 1:1.2 stock split was implemented on 1 April 2015, and
an acquisition of our own shares was completed in February
and March 2016, resulting in the acquisition of 457,100 new
stock, representing 1.76% of the total issued stocks.
In light of the steady business growth the final dividend for
the year under review was increased by JPY2 yen to JPY14
yen per share. Together with the interim dividend of JPY12 yen
per share already paid, the full year dividend amounted to
JPY26 yen per share.
8TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.7 TACHIBANA ELET
Having achieved record highs in operating and ordinary income, we are making the transition from building systems to execution in the next fiscal year, as we work toward attaining the goals set out in our medium- to long-term management plan.
Takeo Watanabe President, CEO & COO
Forward-Looking StatementsProjections of operating results and changes in the business environment provided in this report are based on information available to the management as of the date the report was prepared. As such, these projections are exposed to uncertainties and potential risks that may affect the projections should they materialize. Readers are therefore cautioned that actual operating results and the business environment in the future may differ materially from the projections provided herein.
Note on financial figuresFinancial figures in this annual report are presented by rounding figures less than a full unit.
Results and Target (¥100 Million)
1,621
56
Net Sales
2,200 (Target)
Operating Income
75(Target)
2016201520142013 2021(100th
anniversary)
(FY)2014 / 32013 / 32012 / 3
Millions of yen
For the Year:
Net Sales
Operating Income
Net Income Attributable to Owners of the Parent
At Year-End:
Shareholders’ Equity
Total Assets
Per Share Data:
Net Assets per Share (Yen/U.S. Dollars)
Net Income per Share (Yen/U.S. Dollars)
Financial Index:
Equity Ratio (%)
Return on Equity (%)
2015 / 3 2016 / 32016 / 3
¥ 123,792
2,853
2,796
¥ 40,088
82,674
1,925.77
134.60
48.4
7.3
¥ 123,599
3,483
2,468
¥ 37,004
78,860
1,777.51
118.78
46.8
6.8
¥ 147,421
4,861
5,441
¥ 54,962
100,560
2,056.96
209.09
53.2
10.9
¥ 141,884
4,367
3,830
¥ 46,280
88,233
2,130.80
183.76
52.4
8.9
$ 1,434,89449,70832,876
$ 501,646875,168
$ 19.111.27
55.86.8
Consolidated Financial Highlights
¥ 162,1435,6173,715
¥ 56,68698,894
¥ 2,159.10143.12
55.86.8
Thousands ofU.S. dollars
Notes: 1. Sales figures do not include consumption tax.2. U.S. dollar amounts are provided solely for convenience at the rate of ¥113 = US$1, the approximate exchange rate as at March 31, 2016.
Amount and Percentage of Net Sales by Segments
134
111
(4.2%)
(50.6%)
488
68
820
(30.1%)
(8.3%)
(6.8%)
(Yen) (¥100 Million)
(¥100 Million)
(%)
2015 20162014 (FY)
0
10
20
30
40
50
0
20.0
40.0
60.0
23
38.3
23
54.4
2637.2
2015 201620140
4.0
8.0
12.0 10.9
8.9
6.8
Return on EquityDividend per Share and Net Income Attributable to Owners of the Parent
Dividends Net IncomeSemiconductors and Electronic DevicesFA Systems
Industrial Device Component SystemsBuilding Services Systems
etc.
(FY)
1,621(¥million)
FY2016Net Sales
President’s Statement
The successes of the “C.A.P. 1500” initiative can be clearly
seen in the excellent business results of the 2016 year, and this
initiative will continue.
The medium-long term plan continues the focus on being
a “leading technology-driven trading company” with a solid
foundation in electrical machinery and electronics.
Currently, the ratio of sales in the Tokyo and Nagoya
regions is low, while around 90% of our Building Services
business is from sales generated from Osaka.
In an effort to rectify this situation we are standardizing
service levels across regions, by transferring key personnel
from Osaka to Tokyo and Nagoya to assist and provide a
higher level of sales and technical support.
Domestic manufacturing sector continuing to relocate
overseas, and domestic demand tapers as a result of a
declining birth rate and the aging of society. Nevertheless, we
expect to see growth in the energy and environment sectors.
In the industrial robot business the delivery of palletizing
robots to food production plants is steadily producing results.
Engineering skills in the area of robot development are
being strengthened, and through such measures we will
position industrial robots as a core of System Solutions
business.
The medium-long term plan “C.C.J 2200” is represented by
“C.C.” meaning “Change” and “Challenge”, while “J” represents
a great “Jump” forward into the future.
We have established the concrete goal of achieving net
sales of JPY220 billion at the year end March 2021, which
marks our 100th anniversary.
We are also ready to put our sights to mutually beneficial
M&A activity.
It is of the highest importance to recognize that the
success of the management plan is in the hands of our people.
We have, therefore, established the philosophy of “people
oriented management” and will be working hard towards
creating the environment where our staff are motivated, and
able to demonstrate their respective capabilities and achieve
personal growth.
I wish to add that we are also in the process of
strengthening our Asia region businesses, with the aim of
becoming the leading technology driven trading company in
electrical machinery and electronics in the markets in which we
operate.
With the focus to China and ASEAN there is still much
potential for growth, and we are targeting expansion in sales of
semiconductor devices and FA Systems.
The next fiscal year has been positioned as the second half of
the first stage in our journey toward realizing the “C.C.J 2200,”
and we will continue to further strengthen our efforts in building
the foundations. While we are steadily mapping our route to
growth through measures to enhance our human resources
and open up the Tokyo and Nagoya markets, it is the individual
capabilities of each individual employee that has enabled us to
transform the results of our efforts into actual statistical figures.
By innovating ourselves and tackling new challenges, I am
confident that we will be able to take a greater leap forward into
the future.
Outlook 2017
Building the foundation toward the achievement of the goals set forth in our medium- to long-term management plan
People-oriented management— Through “C.A.P.UP 1500” and the “Human Training Hall” initiatives
10TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.9
The Company promoted “people-oriented management”
as its management goal, which places the greatest value
on bringing happiness to employees. A company that
employees are happy to work in is a place that employees
are motivated to work in, and where they can experience
personal growth. What can we do to bring happiness to
employees? The way to do that is to create an
environment where employees are confronted by
successive challenging difficulties, and where they are able
to grow and experience a sense of joy and achievement
when they overcome these difficulties. To that end, we
have continued to implement the “C.A.P.UP 1500” and
“Human Training Hall” initiatives, which seek to create
an environment that can heighten the personal growth
of each and every employee.
“C.A.P.UP 1500” is a structural reform project that
aims to strengthen the abilities of each individual
employee to execute and realize plans, and in doing so,
maximize the fundamental selling capabilities that a
trading company should possess. As a part of this
project, measures are put in place to improve the product
knowledge, technical knowledge, and construction ability
of each employee. At the same time, they are also
equipped with the awareness and ability to put creative
effort into all areas of work, including sales activities, work
processes, and organizational administration,
The “Human Training Hall” was established at a
training center named Risshikan, which was opened in
2008. It functions as a “training hall” (dojo in Japanese)
for fostering “wisdom” in interpersonal communication
and sales, as well as for comprehensive human
resource development. Going forward, we will continue
to develop each individual, and to promote
“people-oriented management” that will be the driving
force for the Company’s growth.
Despite the postponement of a consumption tax hike there is
a sense of stagnation in consumer spending, and a cautious
attitude observed in capital investment by manufacturing
industries.
A state of uncertainty is expected to continue in the global
economy, brought about by factors which include the
slowdown in China and other emerging economies in Asia.
However, demand in the energy and environment sectors,
plus areas to improve efficiency and production plant energy
conservation are expected to continue to show steady growth.
With our Group companies being engaged in the markets
related to these broad-based industries, the challenge will be to
innovate and implement the management plan “C.C.J 2200”.
In the year to 31 March 2017 we forecast to achieve net
sales of JPY167 billion, an operating income of JPY5.5 billion,
and ordinary income of JPY5.6 billion, with net income
attributable to the owners of shares in the parent company of
JPY3.75 billion.
The measures being put in place to achieve the year end
March 2017 forecast results are based on seven basic
strategies, with focus continuing to be placed on the following
three initiatives.
The implementation and success of “C.C.J 2200” demands
that we continue to recruit and develop quality staff in
balanced numbers. Much effort was put in to achieving this
throughout the past year and, as can be seen in the respective
divisional forward plans, staff recruitment will continue to be of
a high importance throughout the 2017 year, so as to attract
both mid-career executives and new graduates.
In the specific aspect of quality, the “C.A.P. 1500” structural
reform project aimed at strengthening and further developing
the abilities of staff members was implemented close to ten
years ago. Over that period of time it has been of great help to
our staff in developing individual abilities, and confidence
building to identify and resolve problem issues.
The challenging new journey towards greater growth begins...
1. Recruitment of both experienced mid-career executives and new graduates.
2. Standardization of regional service.
3. Achieve full-scale development in our System Solution business.
Toward becoming a leading company that can contribute to customer satisfaction in the electrical machinery and electronics sectors
C.A.P.UP 1500
C: Capability (Capability to act)
A: Ability (Ability to get things done)
P: Power (Power to put into practice)
1500: Towards the target of JPY150 billion non-consolidated
net sales
Human Training Hall
President’s Statement
The successes of the “C.A.P. 1500” initiative can be clearly
seen in the excellent business results of the 2016 year, and this
initiative will continue.
The medium-long term plan continues the focus on being
a “leading technology-driven trading company” with a solid
foundation in electrical machinery and electronics.
Currently, the ratio of sales in the Tokyo and Nagoya
regions is low, while around 90% of our Building Services
business is from sales generated from Osaka.
In an effort to rectify this situation we are standardizing
service levels across regions, by transferring key personnel
from Osaka to Tokyo and Nagoya to assist and provide a
higher level of sales and technical support.
Domestic manufacturing sector continuing to relocate
overseas, and domestic demand tapers as a result of a
declining birth rate and the aging of society. Nevertheless, we
expect to see growth in the energy and environment sectors.
In the industrial robot business the delivery of palletizing
robots to food production plants is steadily producing results.
Engineering skills in the area of robot development are
being strengthened, and through such measures we will
position industrial robots as a core of System Solutions
business.
The medium-long term plan “C.C.J 2200” is represented by
“C.C.” meaning “Change” and “Challenge”, while “J” represents
a great “Jump” forward into the future.
We have established the concrete goal of achieving net
sales of JPY220 billion at the year end March 2021, which
marks our 100th anniversary.
We are also ready to put our sights to mutually beneficial
M&A activity.
It is of the highest importance to recognize that the
success of the management plan is in the hands of our people.
We have, therefore, established the philosophy of “people
oriented management” and will be working hard towards
creating the environment where our staff are motivated, and
able to demonstrate their respective capabilities and achieve
personal growth.
I wish to add that we are also in the process of
strengthening our Asia region businesses, with the aim of
becoming the leading technology driven trading company in
electrical machinery and electronics in the markets in which we
operate.
With the focus to China and ASEAN there is still much
potential for growth, and we are targeting expansion in sales of
semiconductor devices and FA Systems.
The next fiscal year has been positioned as the second half of
the first stage in our journey toward realizing the “C.C.J 2200,”
and we will continue to further strengthen our efforts in building
the foundations. While we are steadily mapping our route to
growth through measures to enhance our human resources
and open up the Tokyo and Nagoya markets, it is the individual
capabilities of each individual employee that has enabled us to
transform the results of our efforts into actual statistical figures.
By innovating ourselves and tackling new challenges, I am
confident that we will be able to take a greater leap forward into
the future.
Outlook 2017
Building the foundation toward the achievement of the goals set forth in our medium- to long-term management plan
People-oriented management— Through “C.A.P.UP 1500” and the “Human Training Hall” initiatives
10TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.9
The Company promoted “people-oriented management”
as its management goal, which places the greatest value
on bringing happiness to employees. A company that
employees are happy to work in is a place that employees
are motivated to work in, and where they can experience
personal growth. What can we do to bring happiness to
employees? The way to do that is to create an
environment where employees are confronted by
successive challenging difficulties, and where they are able
to grow and experience a sense of joy and achievement
when they overcome these difficulties. To that end, we
have continued to implement the “C.A.P.UP 1500” and
“Human Training Hall” initiatives, which seek to create
an environment that can heighten the personal growth
of each and every employee.
“C.A.P.UP 1500” is a structural reform project that
aims to strengthen the abilities of each individual
employee to execute and realize plans, and in doing so,
maximize the fundamental selling capabilities that a
trading company should possess. As a part of this
project, measures are put in place to improve the product
knowledge, technical knowledge, and construction ability
of each employee. At the same time, they are also
equipped with the awareness and ability to put creative
effort into all areas of work, including sales activities, work
processes, and organizational administration,
The “Human Training Hall” was established at a
training center named Risshikan, which was opened in
2008. It functions as a “training hall” (dojo in Japanese)
for fostering “wisdom” in interpersonal communication
and sales, as well as for comprehensive human
resource development. Going forward, we will continue
to develop each individual, and to promote
“people-oriented management” that will be the driving
force for the Company’s growth.
Despite the postponement of a consumption tax hike there is
a sense of stagnation in consumer spending, and a cautious
attitude observed in capital investment by manufacturing
industries.
A state of uncertainty is expected to continue in the global
economy, brought about by factors which include the
slowdown in China and other emerging economies in Asia.
However, demand in the energy and environment sectors,
plus areas to improve efficiency and production plant energy
conservation are expected to continue to show steady growth.
With our Group companies being engaged in the markets
related to these broad-based industries, the challenge will be to
innovate and implement the management plan “C.C.J 2200”.
In the year to 31 March 2017 we forecast to achieve net
sales of JPY167 billion, an operating income of JPY5.5 billion,
and ordinary income of JPY5.6 billion, with net income
attributable to the owners of shares in the parent company of
JPY3.75 billion.
The measures being put in place to achieve the year end
March 2017 forecast results are based on seven basic
strategies, with focus continuing to be placed on the following
three initiatives.
The implementation and success of “C.C.J 2200” demands
that we continue to recruit and develop quality staff in
balanced numbers. Much effort was put in to achieving this
throughout the past year and, as can be seen in the respective
divisional forward plans, staff recruitment will continue to be of
a high importance throughout the 2017 year, so as to attract
both mid-career executives and new graduates.
In the specific aspect of quality, the “C.A.P. 1500” structural
reform project aimed at strengthening and further developing
the abilities of staff members was implemented close to ten
years ago. Over that period of time it has been of great help to
our staff in developing individual abilities, and confidence
building to identify and resolve problem issues.
The challenging new journey towards greater growth begins...
1. Recruitment of both experienced mid-career executives and new graduates.
2. Standardization of regional service.
3. Achieve full-scale development in our System Solution business.
Toward becoming a leading company that can contribute to customer satisfaction in the electrical machinery and electronics sectors
C.A.P.UP 1500
C: Capability (Capability to act)
A: Ability (Ability to get things done)
P: Power (Power to put into practice)
1500: Towards the target of JPY150 billion non-consolidated
net sales
Human Training Hall
President’s Statement
12TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.11
Medium- to long-term management plan “C.C.J 2200”At the conclusion of the first fiscal year Foundation of the strategies
Injected effort into securing human resources such as experienced mid-career personnel
As part of the concrete initiatives implemented in order to achieve the goals set forth in
“C.C.J 2200”, we injected effort into securing the human resources necessary for creating
that foundation.
We employed 26 fresh graduates in FY2015, and 35 in FY2016. In addition, through the
recruitment of mid-career personnel, we also secured human resources with a wealth of
experience who can be immediately effective in the workplace. To that end, we placed
advertisements and articles in newspapers, and the President delivered a clear message that
Tachibana Eletech, as a technology-driven trading company, seeks capable human
resources regardless of age. At the same time, as a part of our mid-career personnel
recruitment drive, we also utilized online headhunting services. The number of personnel
employed in FY2015 under “C.C.J 2200” was 44 across the entire corporate Group,
including 30 new mid-career employees. The amount invested into these efforts was
JPY272 million. We have continued to actively promote mid-career recruitment in this fiscal
year and aim to employ 30 motivated employees with a spirit of challenging ourselves.
1Progress
We put effort into unifying service levels across the regions, which has been positioned as
a priority issue that is vital to the achievement of the goals set forth in “C.C.J 2200.”
In order to raise the level of services that can be provided by the Tokyo and Nagoya
Branch Offices to the level of the head office, we identified the potential business sectors in
each area, aligned the targets, and injected our management resources into these sectors.
In the Tokyo region, in anticipation of the Tokyo Olympics, we poured effort into expanding
sales in highly potential sectors such as building services systems and the industrial
machinery. In the Nagoya region, we put effort into making the transition from the sale of
standalone FA equipment, to the sale of systems under contract, which includes the sale
and installation of set products. In order to strengthen the personnel pool that we need in
order to implement these initiatives, our best personnel were transferred from the head office
to the Tokyo and Nagoya Branch Offices. At the same time, we also actively promoted
mid-career recruitment. Furthermore, we reviewed the systems at the bases and moved
from the previous system of affiliation to a business division, to one of affiliation to the
company under the management of a Director overseeing the base. Directors were
appointed to take extensive charge of the products in the four businesses—FA systems,
semiconductors and electronic devices, building services systems, and industrial device
component systems. The aim was to enhance our presence in the regions.
Strengthened sales organization of our primary bases—the Tokyo and Nagoya Branch Offices2Progress
In promoting the solution systems business through the accumulation of proprietary
technology, we injected effort into industrial robots as a key component of this initiative. We
established a system that can contribute to the development of a wide range of robot
businesses, from compact precision robots for industrial use (production and manufacturing)
to medium-scale robot systems.
In addition to our existing relationship with Mitsubishi Electric Corporation, we also
concluded new dealership agreements with Kawasaki Heavy Industries, Ltd., and ABB Ltd.,
thereby expanding our line-up of products. Other than organizing exhibitions such as the
Robot Fair, we have also set up a permanent display of four robots from these three key
robot manufacturers in our head office showroom. In this way, we have created an
environment for testing operations and authenticating systems during the robot installation.
Alongside with exploring and selecting peripheral devices and equipment, we have also
strengthened our pool of engineers with expertise in the robot sector who are able to build
systems and develop software, thereby developing a system that is able to respond to the
diverse needs of industrial users.
Established a system to expand sale and inject effort into the industrial robot business3Progress
Creating a frameworkfor growth
<Year ended March 31, 2016>
<Year ending March 31, 2017 – Year ending March 31, 2018>
<Year ending March 31, 2019 – Year ending March 31, 2021>
Investing in human resources <Securing human resources>
We continually strive to invest in human resources and invest flexibly
Promotion of “people-oriented management”Development and recruitment of human resources through the continuous promotion of “C.A.P.UP” and “Human Training Hall”
Injecting effort into unifying service levels across the regions
Responding to the needs of industrial robot users
Promotion of “C.A.P.UP” and “Human Training Hall”
•Conclusion of dealership agreements with Mitsubishi Electric Corporation, Kawasaki Heavy Industries, Ltd., and ABB Ltd., and permanent display of robots•Enhancing the pool of engineers in the robots sector
<Securing personnel and establishing systems>
First stage
Year ended March 31, 2016No. of mid-career recruits: 30*Total no. of personnel employed: 44
Year ended March 31, 2015Launch of the robot project
Equipping ourselves with sales capabilityStarting from 2008
Promoting the seven basic strategies
Second stage
Examples of mid-career recruits
Katsuhisa OtaJoined the company in 2014.
System Department, Solution Systems BusinessExperience: Mechanical design engineer at the production line of a leading manufacturer
Sales ratio by region in Japan
Yusuke TakeuchiJoined the company in 2015.
EMS Department, MS businessExperience: Design/production site management and quality management for industrial machinery for a machinery manufacturer
Chubu region
Kanto region
25% 12%
60%
Kansai region
Tokyo Branch Office
Head Office (Osaka)
Nagoya Branch Office
In order to steadily promote our basic strategies with the aim of achieving our goals by 2021,
we especially focused on securing human resources and strengthening our bases and sales organizations
this fiscal year. We also put effort into creating a foundation for the establishment of a robot sale system.
Net sales of JPY162.1 billion
Sales targetJPY220 billion
Steady implementation of plans ~ Acceleration of growth ~ Sustainable growth
Tokyo Expansion of building services systems and industrial machinery salesNagoya From the sale of standalone FA equipment to the sale of systems
Expansion of the solution systems business with industrial robots as the core of the business
Proposing comprehensive solutions from structural design to control and systems buildingStrengthening of cooperative system with Sler in Japan and ChinaCreating packaged robot systems for specific industries
Injecting effort into the expansion of overseas sales (Expansion in the sale of semiconductor devices and FA systems centered on China and ASEAN)
Promoting localization and strengthening local support capabilities
(1) Standardization of regional service levelsCapture potential demand in the Kanto and Chubu regions, where significant growth is anticipated in the future, by improving the product capabilities and services provided at the Tokyo and Nagoya offices to be at the same level of the head office. In particular, inject management resources, including shifting human resources, in order to enable the company to put effort into areas such as facility and industrial mechatronics.
(2) Strengthen the Semiconductors and Electronic Devices business as a global businessIn the future, there will be further advancements in globalization as a result of greater overseas shifts in the domestic semiconductor market. Hence, promote thorough localization, particularly overseas, through an integrated organization structure in Japan and overseas.
(3) Strengthen the system solution business by building up in-house technologyIn order to be a technology-driven trading company in both name and reality, strive to build up in-house technology and develop system products, and evolve toward becoming an innovative technology-driven trading company that specializes in the sale of next-generation systems such as robots.
(4) Develop the Building Services System business into a main business, as the third pillar of the companyIn the Building Services System business at the Tokyo and Nagoya offices, which are responsible for the Kanto and Chubu regions where future growth is anticipated, take proactive steps to inject human resources and raise the level of sales capability, and develop the business to become the third pillar of the company.
(5) Enhancing the synergistic effect with subsidiariesConduct mutual verification for products, technology, and customers, and enhance the synergistic effect of the entire corporate group.
(6) Strengthen overseas businessShift the focus from the previous base expansion policy to one for enhancing the existing bases. Increase the number of local salespeople and further enhance the Semiconductor Technology Center, as well as establish and enhance the FA Technology Center.
(7) Promote CSR managementAs the social mission of the company, CSR initiatives take the top priority. Respond to the trust given to the company by society, with thorough compliance, strengthening of governance, and business activities that also contribute to the environment. Head Office Showroom
12TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.11
Medium- to long-term management plan “C.C.J 2200”At the conclusion of the first fiscal year Foundation of the strategies
Injected effort into securing human resources such as experienced mid-career personnel
As part of the concrete initiatives implemented in order to achieve the goals set forth in
“C.C.J 2200”, we injected effort into securing the human resources necessary for creating
that foundation.
We employed 26 fresh graduates in FY2015, and 35 in FY2016. In addition, through the
recruitment of mid-career personnel, we also secured human resources with a wealth of
experience who can be immediately effective in the workplace. To that end, we placed
advertisements and articles in newspapers, and the President delivered a clear message that
Tachibana Eletech, as a technology-driven trading company, seeks capable human
resources regardless of age. At the same time, as a part of our mid-career personnel
recruitment drive, we also utilized online headhunting services. The number of personnel
employed in FY2015 under “C.C.J 2200” was 44 across the entire corporate Group,
including 30 new mid-career employees. The amount invested into these efforts was
JPY272 million. We have continued to actively promote mid-career recruitment in this fiscal
year and aim to employ 30 motivated employees with a spirit of challenging ourselves.
1Progress
We put effort into unifying service levels across the regions, which has been positioned as
a priority issue that is vital to the achievement of the goals set forth in “C.C.J 2200.”
In order to raise the level of services that can be provided by the Tokyo and Nagoya
Branch Offices to the level of the head office, we identified the potential business sectors in
each area, aligned the targets, and injected our management resources into these sectors.
In the Tokyo region, in anticipation of the Tokyo Olympics, we poured effort into expanding
sales in highly potential sectors such as building services systems and the industrial
machinery. In the Nagoya region, we put effort into making the transition from the sale of
standalone FA equipment, to the sale of systems under contract, which includes the sale
and installation of set products. In order to strengthen the personnel pool that we need in
order to implement these initiatives, our best personnel were transferred from the head office
to the Tokyo and Nagoya Branch Offices. At the same time, we also actively promoted
mid-career recruitment. Furthermore, we reviewed the systems at the bases and moved
from the previous system of affiliation to a business division, to one of affiliation to the
company under the management of a Director overseeing the base. Directors were
appointed to take extensive charge of the products in the four businesses—FA systems,
semiconductors and electronic devices, building services systems, and industrial device
component systems. The aim was to enhance our presence in the regions.
Strengthened sales organization of our primary bases—the Tokyo and Nagoya Branch Offices2Progress
In promoting the solution systems business through the accumulation of proprietary
technology, we injected effort into industrial robots as a key component of this initiative. We
established a system that can contribute to the development of a wide range of robot
businesses, from compact precision robots for industrial use (production and manufacturing)
to medium-scale robot systems.
In addition to our existing relationship with Mitsubishi Electric Corporation, we also
concluded new dealership agreements with Kawasaki Heavy Industries, Ltd., and ABB Ltd.,
thereby expanding our line-up of products. Other than organizing exhibitions such as the
Robot Fair, we have also set up a permanent display of four robots from these three key
robot manufacturers in our head office showroom. In this way, we have created an
environment for testing operations and authenticating systems during the robot installation.
Alongside with exploring and selecting peripheral devices and equipment, we have also
strengthened our pool of engineers with expertise in the robot sector who are able to build
systems and develop software, thereby developing a system that is able to respond to the
diverse needs of industrial users.
Established a system to expand sale and inject effort into the industrial robot business3Progress
Creating a frameworkfor growth
<Year ended March 31, 2016>
<Year ending March 31, 2017 – Year ending March 31, 2018>
<Year ending March 31, 2019 – Year ending March 31, 2021>
Investing in human resources <Securing human resources>
We continually strive to invest in human resources and invest flexibly
Promotion of “people-oriented management”Development and recruitment of human resources through the continuous promotion of “C.A.P.UP” and “Human Training Hall”
Injecting effort into unifying service levels across the regions
Responding to the needs of industrial robot users
Promotion of “C.A.P.UP” and “Human Training Hall”
•Conclusion of dealership agreements with Mitsubishi Electric Corporation, Kawasaki Heavy Industries, Ltd., and ABB Ltd., and permanent display of robots•Enhancing the pool of engineers in the robots sector
<Securing personnel and establishing systems>
First stage
Year ended March 31, 2016No. of mid-career recruits: 30*Total no. of personnel employed: 44
Year ended March 31, 2015Launch of the robot project
Equipping ourselves with sales capabilityStarting from 2008
Promoting the seven basic strategies
Second stage
Examples of mid-career recruits
Katsuhisa OtaJoined the company in 2014.
System Department, Solution Systems BusinessExperience: Mechanical design engineer at the production line of a leading manufacturer
Sales ratio by region in Japan
Yusuke TakeuchiJoined the company in 2015.
EMS Department, MS businessExperience: Design/production site management and quality management for industrial machinery for a machinery manufacturer
Chubu region
Kanto region
25% 12%
60%
Kansai region
Tokyo Branch Office
Head Office (Osaka)
Nagoya Branch Office
In order to steadily promote our basic strategies with the aim of achieving our goals by 2021,
we especially focused on securing human resources and strengthening our bases and sales organizations
this fiscal year. We also put effort into creating a foundation for the establishment of a robot sale system.
Net sales of JPY162.1 billion
Sales targetJPY220 billion
Steady implementation of plans ~ Acceleration of growth ~ Sustainable growth
Tokyo Expansion of building services systems and industrial machinery salesNagoya From the sale of standalone FA equipment to the sale of systems
Expansion of the solution systems business with industrial robots as the core of the business
Proposing comprehensive solutions from structural design to control and systems buildingStrengthening of cooperative system with Sler in Japan and ChinaCreating packaged robot systems for specific industries
Injecting effort into the expansion of overseas sales (Expansion in the sale of semiconductor devices and FA systems centered on China and ASEAN)
Promoting localization and strengthening local support capabilities
(1) Standardization of regional service levelsCapture potential demand in the Kanto and Chubu regions, where significant growth is anticipated in the future, by improving the product capabilities and services provided at the Tokyo and Nagoya offices to be at the same level of the head office. In particular, inject management resources, including shifting human resources, in order to enable the company to put effort into areas such as facility and industrial mechatronics.
(2) Strengthen the Semiconductors and Electronic Devices business as a global businessIn the future, there will be further advancements in globalization as a result of greater overseas shifts in the domestic semiconductor market. Hence, promote thorough localization, particularly overseas, through an integrated organization structure in Japan and overseas.
(3) Strengthen the system solution business by building up in-house technologyIn order to be a technology-driven trading company in both name and reality, strive to build up in-house technology and develop system products, and evolve toward becoming an innovative technology-driven trading company that specializes in the sale of next-generation systems such as robots.
(4) Develop the Building Services System business into a main business, as the third pillar of the companyIn the Building Services System business at the Tokyo and Nagoya offices, which are responsible for the Kanto and Chubu regions where future growth is anticipated, take proactive steps to inject human resources and raise the level of sales capability, and develop the business to become the third pillar of the company.
(5) Enhancing the synergistic effect with subsidiariesConduct mutual verification for products, technology, and customers, and enhance the synergistic effect of the entire corporate group.
(6) Strengthen overseas businessShift the focus from the previous base expansion policy to one for enhancing the existing bases. Increase the number of local salespeople and further enhance the Semiconductor Technology Center, as well as establish and enhance the FA Technology Center.
(7) Promote CSR managementAs the social mission of the company, CSR initiatives take the top priority. Respond to the trust given to the company by society, with thorough compliance, strengthening of governance, and business activities that also contribute to the environment. Head Office Showroom
Review 2016 Review 2016 Outlook 2017
Main productsProgrammable controllers, inverters, AC servos, various types of motors, power distribution control equipment and control devices, industrial robots, electric discharge machines, laser beam machines
Main productsSemiconductors (microcomputers, ASICs, power devices, memory modules, analog ICs, logic ICs) Electronic devices (memory cards, contact image sensors, liquid crystals)
Factory Automation Systems
Hitoshi Yamaguchi Director
Managing Operating Officer
Sadayuki Takami Director
Managing Operating Officer
Net Sales/Operating Income
Year ended March 31, 201650.6%
850
800
750
700
650
0
(¥100 Million)
45.0
30.0
15.0
0
(¥100 Million)
Net Sales
820 41.5
717
33.4
668
25.7
Operating Income
Composition of Net Sales
Year endedMarch 31
2014 2015 2016
600
400
200
0
(¥100 Million)
30.0
20.0
10.0
0
(¥100 Million)
488
11.6
518
13.6
534
12.8
30.1%
Net Sales/Operating Income Composition of Net Sales
Year endedMarch 31
Net Sales Operating Income
Year ended March 31, 2016
2014 2015 2016
Flagship products including automobile-related and liquid
crystal-related manufacturing equipment for export, programmable
controllers, inverters, and AC servos for manufacturers, plus
rotating equipment for motors, etc. all continued to perform well.
Power distribution control equipment such as circuit breakers and
earth leakage circuit breakers also delivered steady results.
In the industrial machinery segment, sales of wire-cut electrical
discharge machinery, laser beam machines, and machine tools
increased significantly. This was achieved through initiatives in
obtaining public offering information on the government’s
energy-saving subsidy program in Japan and applying the
information to our sales activities, as well as careful sales
development activity to customers in China and other regional
markets. Furthermore, the conversion of Takagi Co., Ltd. to
becoming a consolidated subsidiary added to the sale of
control-related equipment.
For the full year to March 2016 it was pleasing to report record
highs for both net sales and profit, with net sales of JPY82.045
billion and operating income of JPY4.154 billion, representing
increases of 18.4% and 27.1% respectively over the previous year.
Record sales and profits achieved through astute and careful planned sales development.
Sales of power modules, a core product in the consumer sector in
Japan, remained strong. Despite a decline in the sale of logic ICs
for microcomputers and OA equipment, a marginal increase in
domestic sales was recorded as a result of significant growth in
the sale of analog ICs for high value-added foreign
semiconductors, which are essential to industrial equipment. On
the other hand, overseas sales declined due to the impact of
economic slowdown in China. In the electronic devices business,
growth was recorded for liquid-crystal panels and contact image
sensors. Furthermore, the advanced technological support
prowess of our company has been highly rated, and that has
contributed to significant expansion of the memory business,
covering products such as SD cards and SSD.
As a result, despite a strong performance for
non-consolidated sales and profits, the weaker performance of
overseas subsidiaries led to a JPY5.1% decline in consolidated net
sales to JPY 48.802 billion, and a 2.0% decline in operating
income to JPY 1.16 billion.
Despite a steady performance in the domestic market, we experienced declining sales overseas.
We are launching eight projects under the Group businesses,
based on the medium-long-term management plan, “C.C.J 2200.”
Of these, five projects are related to newly developed products,
with a representative example being the project aimed to expand
sales of liquid-crystal products. We are steadily developing and
supplying liquid-crystal modules and panels to a diverse range of
customers in the consumer, industrial, and medical fields.
In the project aimed at development of semiconductor
technologies, we are customizing and proposing five systems—
motor control solutions, wireless communications, contactless
sensors, image recognition, and battery-less remote controls to
each customer, and contributing fully to sales during the 2017
year.
An achievement of special note is the success in winning
orders for car safety modules. The recognition of our capability in
the design and production of important automobile parts is
expected to help us gain momentum in sales development.
The production plants of both Mitsubishi Electric Corporation
and Renesas Electronics Corporation were damaged during the
Kumamoto earthquake, and raised concerns for the impact on
production of microcomputers, power devices, and liquid-crystal
modules. Despite the circumstances, we are striving to exert the
capabilities of a trading company to the fullest, in order to minimize
the impact on our customers.
Targeting growth in orders for important vehicle parts, and taking a major step forward towards the next generation through new projects.
Outlook 2017
Last year we strengthened sensor-related and robot-related
businesses, and launched our proposal for the automation of
manufacturing industries. Specific action was taken to increase the
number of skilled staff to strengthen our pool of sales engineers.
Additionally, all sales staff in the robotics sector were required to
attend sales engineer (SE) qualification courses to enhance their
knowledge and skills.
Dealership Agreements were concluded with Mitsubishi
Electric Corporation and two leading robot companies, namely
Kawasaki Heavy Industries Ltd. and ABB Ltd. in Switzerland), to
strengthen the line-up of double-arm and parallel-link robots.
Throughout the year much effort will be put to providing
“factory-wide solutions”covering aspects from the building of
automation systems with robots as the core product, to the safety,
monitoring, and visualization functions that we have always
excelled in.
We are implementing measures to further strengthen
cooperative relationships with DAIDENSHA Co., Ltd. and Takagi
Co., Ltd., to further grow our respective businesses. Furthermore,
we are utilizing KENDEN INDUSTRY Co., Ltd., a company skilled
in the development and replacement of motors, to provide a key
advantage to the Tachibana Eletech Group.
Through the foregoing initiatives we aim to further strengthen
our position in both domestic and regional markets and place
Tachibana Eletech at the forefront as the representative brand for
Factory Automation Systems, with sights being set to achieving
consolidated sales in excess of JPY100 billion by the year ending
March 2021, which marks the 100th anniversary of our founding.
Injecting effort into“factory-wide solutions”with robots as the core product
We have received orders for 3D printers made in Germany from a
medical equipment manufacturer based in Ibaraki Prefecture. The appeal
of the printer lies in the fact that manufacturers can produce products
such as surgical forceps in small lots by creating molds, and to carry out
production directly using the 3D printers. It is well received from the
perspective of its ability to reduce costs in the long-term. As a result, we
have received the highest amount
of orders we have ever received
for 3D printers. The sale of 3D
printers is robust not only at the
head office, but also for
customers located in the Kanto
and Chubu regions. We are
putting effort into developing
them as product that can
contribute to enhancing
Tachibana Eletech’s brand power.
Receiving orders for our proprietary 3D printers from a medical equipment manufacturer
In 2016, the global semiconductor market stagnated as a result of the
economic slowdown in China and other factors. However, it is expected
to recover gradually.
Trends in the global semiconductor market
Programmable controllers (PLC) Industrial robots Power and optical devices Microcomputers
400,000
300,000
200,000
100,000
0
($ Million)
335,168335,843 327,180 333,708 340,938
U.S.
EuropeJapan
Asia-Pacific
2016(Estimate)
20152014 2017(Estimate)
2018(Estimate)
(Year)
References: World Semiconductor Trade Statistics (WSTS) Semiconductor Market Forecast Spring 2016
Semiconductors and Electronic Devices
14TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.13
Review 2016 Review 2016 Outlook 2017
Main productsProgrammable controllers, inverters, AC servos, various types of motors, power distribution control equipment and control devices, industrial robots, electric discharge machines, laser beam machines
Main productsSemiconductors (microcomputers, ASICs, power devices, memory modules, analog ICs, logic ICs) Electronic devices (memory cards, contact image sensors, liquid crystals)
Factory Automation Systems
Hitoshi Yamaguchi Director
Managing Operating Officer
Sadayuki Takami Director
Managing Operating Officer
Net Sales/Operating Income
Year ended March 31, 201650.6%
850
800
750
700
650
0
(¥100 Million)
45.0
30.0
15.0
0
(¥100 Million)
Net Sales
820 41.5
717
33.4
668
25.7
Operating Income
Composition of Net Sales
Year endedMarch 31
2014 2015 2016
600
400
200
0
(¥100 Million)
30.0
20.0
10.0
0
(¥100 Million)
488
11.6
518
13.6
534
12.8
30.1%
Net Sales/Operating Income Composition of Net Sales
Year endedMarch 31
Net Sales Operating Income
Year ended March 31, 2016
2014 2015 2016
Flagship products including automobile-related and liquid
crystal-related manufacturing equipment for export, programmable
controllers, inverters, and AC servos for manufacturers, plus
rotating equipment for motors, etc. all continued to perform well.
Power distribution control equipment such as circuit breakers and
earth leakage circuit breakers also delivered steady results.
In the industrial machinery segment, sales of wire-cut electrical
discharge machinery, laser beam machines, and machine tools
increased significantly. This was achieved through initiatives in
obtaining public offering information on the government’s
energy-saving subsidy program in Japan and applying the
information to our sales activities, as well as careful sales
development activity to customers in China and other regional
markets. Furthermore, the conversion of Takagi Co., Ltd. to
becoming a consolidated subsidiary added to the sale of
control-related equipment.
For the full year to March 2016 it was pleasing to report record
highs for both net sales and profit, with net sales of JPY82.045
billion and operating income of JPY4.154 billion, representing
increases of 18.4% and 27.1% respectively over the previous year.
Record sales and profits achieved through astute and careful planned sales development.
Sales of power modules, a core product in the consumer sector in
Japan, remained strong. Despite a decline in the sale of logic ICs
for microcomputers and OA equipment, a marginal increase in
domestic sales was recorded as a result of significant growth in
the sale of analog ICs for high value-added foreign
semiconductors, which are essential to industrial equipment. On
the other hand, overseas sales declined due to the impact of
economic slowdown in China. In the electronic devices business,
growth was recorded for liquid-crystal panels and contact image
sensors. Furthermore, the advanced technological support
prowess of our company has been highly rated, and that has
contributed to significant expansion of the memory business,
covering products such as SD cards and SSD.
As a result, despite a strong performance for
non-consolidated sales and profits, the weaker performance of
overseas subsidiaries led to a JPY5.1% decline in consolidated net
sales to JPY 48.802 billion, and a 2.0% decline in operating
income to JPY 1.16 billion.
Despite a steady performance in the domestic market, we experienced declining sales overseas.
We are launching eight projects under the Group businesses,
based on the medium-long-term management plan, “C.C.J 2200.”
Of these, five projects are related to newly developed products,
with a representative example being the project aimed to expand
sales of liquid-crystal products. We are steadily developing and
supplying liquid-crystal modules and panels to a diverse range of
customers in the consumer, industrial, and medical fields.
In the project aimed at development of semiconductor
technologies, we are customizing and proposing five systems—
motor control solutions, wireless communications, contactless
sensors, image recognition, and battery-less remote controls to
each customer, and contributing fully to sales during the 2017
year.
An achievement of special note is the success in winning
orders for car safety modules. The recognition of our capability in
the design and production of important automobile parts is
expected to help us gain momentum in sales development.
The production plants of both Mitsubishi Electric Corporation
and Renesas Electronics Corporation were damaged during the
Kumamoto earthquake, and raised concerns for the impact on
production of microcomputers, power devices, and liquid-crystal
modules. Despite the circumstances, we are striving to exert the
capabilities of a trading company to the fullest, in order to minimize
the impact on our customers.
Targeting growth in orders for important vehicle parts, and taking a major step forward towards the next generation through new projects.
Outlook 2017
Last year we strengthened sensor-related and robot-related
businesses, and launched our proposal for the automation of
manufacturing industries. Specific action was taken to increase the
number of skilled staff to strengthen our pool of sales engineers.
Additionally, all sales staff in the robotics sector were required to
attend sales engineer (SE) qualification courses to enhance their
knowledge and skills.
Dealership Agreements were concluded with Mitsubishi
Electric Corporation and two leading robot companies, namely
Kawasaki Heavy Industries Ltd. and ABB Ltd. in Switzerland), to
strengthen the line-up of double-arm and parallel-link robots.
Throughout the year much effort will be put to providing
“factory-wide solutions”covering aspects from the building of
automation systems with robots as the core product, to the safety,
monitoring, and visualization functions that we have always
excelled in.
We are implementing measures to further strengthen
cooperative relationships with DAIDENSHA Co., Ltd. and Takagi
Co., Ltd., to further grow our respective businesses. Furthermore,
we are utilizing KENDEN INDUSTRY Co., Ltd., a company skilled
in the development and replacement of motors, to provide a key
advantage to the Tachibana Eletech Group.
Through the foregoing initiatives we aim to further strengthen
our position in both domestic and regional markets and place
Tachibana Eletech at the forefront as the representative brand for
Factory Automation Systems, with sights being set to achieving
consolidated sales in excess of JPY100 billion by the year ending
March 2021, which marks the 100th anniversary of our founding.
Injecting effort into“factory-wide solutions”with robots as the core product
We have received orders for 3D printers made in Germany from a
medical equipment manufacturer based in Ibaraki Prefecture. The appeal
of the printer lies in the fact that manufacturers can produce products
such as surgical forceps in small lots by creating molds, and to carry out
production directly using the 3D printers. It is well received from the
perspective of its ability to reduce costs in the long-term. As a result, we
have received the highest amount
of orders we have ever received
for 3D printers. The sale of 3D
printers is robust not only at the
head office, but also for
customers located in the Kanto
and Chubu regions. We are
putting effort into developing
them as product that can
contribute to enhancing
Tachibana Eletech’s brand power.
Receiving orders for our proprietary 3D printers from a medical equipment manufacturer
In 2016, the global semiconductor market stagnated as a result of the
economic slowdown in China and other factors. However, it is expected
to recover gradually.
Trends in the global semiconductor market
Programmable controllers (PLC) Industrial robots Power and optical devices Microcomputers
400,000
300,000
200,000
100,000
0
($ Million)
335,168335,843 327,180 333,708 340,938
U.S.
EuropeJapan
Asia-Pacific
2016(Estimate)
20152014 2017(Estimate)
2018(Estimate)
(Year)
References: World Semiconductor Trade Statistics (WSTS) Semiconductor Market Forecast Spring 2016
Semiconductors and Electronic Devices
14TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.13
Main productsPackage air-conditioners and other air-conditioning equipment, equipment for all-electric housing (Eco Cute, IH cooking heaters), room air-conditioners, power receiving/transformation equipment, monitoring and controlling equipment
Main productsProposal of photovoltaic power generation systems and other complex systems spanning our business segments with the themes of energy-saving, environment, safety and efficiency, and provision of solutions required by production sites
Review 2016
Outlook 2017
Review 2016
Outlook 2017
Investigation
Proposal
In building services systems there was a significant decline for
multi-air conditioners and elevator systems as a result of the
reduction in the number of large-scale construction projects in the
Kansai region. On the other hand, in the area of industrial heating
and cooling systems where we have continuously injected effort,
we saw a rise in the number of distribution warehousing projects
that require strict temperature and humidity control, particularly in
the food and pharmaceutical product sectors, which contributed to
the growth in the low-temperature equipment sector, including
refrigeration systems.
The improvement in the number of construction starts for
housing projects contributed to a steady increase in orders from
local customers in the wholesale building materials sector. As a
result, we recorded strong performance for products such as
package air-conditioners and room air-conditioners, as well as
ventilating fans for use in shops.
We also received orders for a large-scale project for power
distribution equipment in the Kansai region, resulting achieving a
record high in net sales for the entire business, rising 6.0%
The strong performance in industrial heating and cooling systems led to record high sales being achieved. However, the on-going investment in human resource led to a decline in profit.
In the medium-long-term management plan,“C.C.J 2200, our aim
to establish Building Services Systems as a core business and to
position it as the “third pillar” of Tachibana Eletech.
We believe the path toward achieving that lies in the expansion
of our business in Tokyo and Nagoya, where many key
redevelopment projects for the 2020 Olympics are taking place. Staff
recruitment in both cities will, therefore, continue to be a priority.
A new Facility Lighting Division under Tokyo branch
management was established in April of this year to focus on LED
products for production plants and warehouses, and which boast
a strong product appeal of Mitsubishi Electric Corporation brands.
In cooperation with FA Systems we will take a proactive
stance to establish a solid track record in the sale of LED lighting
products, and enhance our presence by positioning this sector as
the entry point into the Tokyo metropolitan market. Sales activities
in Nagoya will also be steadily progressed.
We have recorded increases in orders for large-scale projects
in Tokyo and Osaka, and after completion of these projects we are
holding back on the delivery of large-scale imaging equipment and
photovoltaic power generation systems from next year.
As mentioned earlier, the future of Building Services Systems
hinges on securing projects in Tokyo, by far the largest market in
Japan. As Deputy Director of the Tokyo office I will take charge of
spearheading efforts to increase the customer base, and the
transaction volume, to transform the growing demand in the Tokyo
metropolitan region to sales growth through mutual outreach to all
customers of the Tokyo office.
Sales expansion in the Tokyo and Nagoya markets. Achieving a breakthrough in the LED sector toward establishing the building services systems business as the third pillar of our company
The mission of Solution Systems is to provide systems based on
proprietary technology to meet the four major needs of customers
in the manufacturing industry - energy conservation, environment,
safety, and efficiency.
During the year under review the equipment control sector
centered on PLC and servos, and the instrumental control sector
that covers monitoring, measurement, and control systems for
equipment, saw an increase in the number of new customers,
which resulted in significant sales growth. Furthermore, in the
production information technology sector, which provides solutions
to enable the visualization of production lines anytime and
anywhere, electronic SOP (standard operating procedures)
management systems performed particularly well.
These contributed to a record high in sales for the three sectors.
The “visualization” of manufacturing processes is one of the major
trends in the manufacturing industry. Within the solution systems
business, the technological field that involves the keywords “IoT”
and “M2M” (Internet of Things, Machine-to-Machine) has been
positioned as a business that will continue to show grow in the
future. To circumvent risks in quality management in the
manufacturing industry, it is vital to monitor production processes
being in line with the SOP, and to be managed by retaining records
on computers.
Tachibana Eletech has received favorable responses in its
participation in fairs and events for the food product and
automobile industries, which are particularly sensitive to safety, and
we are engaged in the urgent task of developing engineers with
the capability to harness a diverse range of information terminals
and equipment.
We also view robot systems which cover equipment driving
systems encompassing mechanical systems, as well as peripheral
equipment, as core products for the future, and to that end the
important engineering resources needed are being strengthened.
BLE (Bluetooth low energy) is another potential field for the
future. Here, short-range wireless technology is utilized to develop
applications for recording and analyzing the trajectories and flow
lines of workers and forklifts.
As Tachibana Eletech is a“technology-driven trading company
for electrical machinery and electronics,” it is vital for us to further
improve and build as many proprietary technologies as possible.
To that end, there is a need to implement human resource
recruitment, development, and evaluation measures that are more
precise than in the past. Last year, we drew up standards for the
implementation of these measures, and by enforcing these
standards, we aim to secure quantity and quality of engineers,
further diversify and achieve greater sophistication for our
proprietary technologies, and vigorously promote the medium-
long-term management plan, “C.C.J 2200.”
Growth in orders achieved in the equipment control, instrumentation control, and production information technology sectors.
Together with other divisions of the group we are targeting to recruit additional experienced engineers to achieve diversification and greater sophistication of proprietary technologies
Hiroshi Yoneda Operating Officer
Kinya Kawahara Operating Officer
We will be delivering Mitsubishi Electric Corporation’s HEMS (Home
Energy Management System) to condominium apartments in Itami, Hyogo
Prefecture. This is the first time in Japan that HEMS has been adopted in
all units in a condominium development, enabling homeowners to control
air-conditioners and the filling of bathtubs
with hot water from outside their homes,
through their smartphones, and to capture
information on electricity consumption. This
condominium development is scheduled to
acquire certification based on the Low
Carbon City Promotion Act, which offers
incentives in the aspects of taxes and loans.
Going forward, Tachibana Eletech will
continue to put effort into expanding the
sale of HEMS in order to contribute to the
development of low-carbon cities.
Delivery of HEMS, which contributes to the development of low-carbon cities, to condominium apartments
We held an exhibition at the System Control Fair 2015, which was held at
Tokyo Big Sight from 2 to 4 December 2015. At our two booths, we
conducted demonstrations of our solution for preventing the erroneous
injection of raw materials through an electronic
SOP (standard operating procedures) system that
utilizes system monitoring software, as well as our
remote monitoring system for manufacturing
equipment, which is a part of the demonstration
experiment project titled “Industry 4.1J.” This fair
is a large-scale exhibition for FA and measuring
equipment, held once every two years, and
welcomed a total of 50,000 visitors in 2015.
Exhibiting in the System Control Fair 2015, a large-scale exhibition for FA and measuring equipment
LED lighting, low-temperature equipment for industrial use, and air-conditioners for facilities, buildings, and shops
year-on-year to JPY 13.426 billion.
However our investment in people, which includes the
increases in Tokyo and Nagoya offices required to standardize
service levels across regions, led to a 16.4% decline in operating
income to JPY 175 million.
System design /fabrication
Preventivemaintenance /maintenance
On-site coordination
Variousconstruction design /
construction
Hardware design /fabrication
Software design /fabrication
We provide total support through our integrated strengths
in marketing and technology based on a wide array of
achievements.
8.3%
Net Sales/Operating Income Composition of Net Sales
Year endedMarch 31
2014 2015 2016
Year ended March 31, 2016
150
100
50
0
(¥100 Million)
6.0
4.0
2.0
0
(¥100 Million)
Net Sales
134
1.8
127
2.1
131
2.8
Operating Income
Building Services Systems Solution Systems
16TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.15
Main productsPackage air-conditioners and other air-conditioning equipment, equipment for all-electric housing (Eco Cute, IH cooking heaters), room air-conditioners, power receiving/transformation equipment, monitoring and controlling equipment
Main productsProposal of photovoltaic power generation systems and other complex systems spanning our business segments with the themes of energy-saving, environment, safety and efficiency, and provision of solutions required by production sites
Review 2016
Outlook 2017
Review 2016
Outlook 2017
Investigation
Proposal
In building services systems there was a significant decline for
multi-air conditioners and elevator systems as a result of the
reduction in the number of large-scale construction projects in the
Kansai region. On the other hand, in the area of industrial heating
and cooling systems where we have continuously injected effort,
we saw a rise in the number of distribution warehousing projects
that require strict temperature and humidity control, particularly in
the food and pharmaceutical product sectors, which contributed to
the growth in the low-temperature equipment sector, including
refrigeration systems.
The improvement in the number of construction starts for
housing projects contributed to a steady increase in orders from
local customers in the wholesale building materials sector. As a
result, we recorded strong performance for products such as
package air-conditioners and room air-conditioners, as well as
ventilating fans for use in shops.
We also received orders for a large-scale project for power
distribution equipment in the Kansai region, resulting achieving a
record high in net sales for the entire business, rising 6.0%
The strong performance in industrial heating and cooling systems led to record high sales being achieved. However, the on-going investment in human resource led to a decline in profit.
In the medium-long-term management plan,“C.C.J 2200, our aim
to establish Building Services Systems as a core business and to
position it as the “third pillar” of Tachibana Eletech.
We believe the path toward achieving that lies in the expansion
of our business in Tokyo and Nagoya, where many key
redevelopment projects for the 2020 Olympics are taking place. Staff
recruitment in both cities will, therefore, continue to be a priority.
A new Facility Lighting Division under Tokyo branch
management was established in April of this year to focus on LED
products for production plants and warehouses, and which boast
a strong product appeal of Mitsubishi Electric Corporation brands.
In cooperation with FA Systems we will take a proactive
stance to establish a solid track record in the sale of LED lighting
products, and enhance our presence by positioning this sector as
the entry point into the Tokyo metropolitan market. Sales activities
in Nagoya will also be steadily progressed.
We have recorded increases in orders for large-scale projects
in Tokyo and Osaka, and after completion of these projects we are
holding back on the delivery of large-scale imaging equipment and
photovoltaic power generation systems from next year.
As mentioned earlier, the future of Building Services Systems
hinges on securing projects in Tokyo, by far the largest market in
Japan. As Deputy Director of the Tokyo office I will take charge of
spearheading efforts to increase the customer base, and the
transaction volume, to transform the growing demand in the Tokyo
metropolitan region to sales growth through mutual outreach to all
customers of the Tokyo office.
Sales expansion in the Tokyo and Nagoya markets. Achieving a breakthrough in the LED sector toward establishing the building services systems business as the third pillar of our company
The mission of Solution Systems is to provide systems based on
proprietary technology to meet the four major needs of customers
in the manufacturing industry - energy conservation, environment,
safety, and efficiency.
During the year under review the equipment control sector
centered on PLC and servos, and the instrumental control sector
that covers monitoring, measurement, and control systems for
equipment, saw an increase in the number of new customers,
which resulted in significant sales growth. Furthermore, in the
production information technology sector, which provides solutions
to enable the visualization of production lines anytime and
anywhere, electronic SOP (standard operating procedures)
management systems performed particularly well.
These contributed to a record high in sales for the three sectors.
The “visualization” of manufacturing processes is one of the major
trends in the manufacturing industry. Within the solution systems
business, the technological field that involves the keywords “IoT”
and “M2M” (Internet of Things, Machine-to-Machine) has been
positioned as a business that will continue to show grow in the
future. To circumvent risks in quality management in the
manufacturing industry, it is vital to monitor production processes
being in line with the SOP, and to be managed by retaining records
on computers.
Tachibana Eletech has received favorable responses in its
participation in fairs and events for the food product and
automobile industries, which are particularly sensitive to safety, and
we are engaged in the urgent task of developing engineers with
the capability to harness a diverse range of information terminals
and equipment.
We also view robot systems which cover equipment driving
systems encompassing mechanical systems, as well as peripheral
equipment, as core products for the future, and to that end the
important engineering resources needed are being strengthened.
BLE (Bluetooth low energy) is another potential field for the
future. Here, short-range wireless technology is utilized to develop
applications for recording and analyzing the trajectories and flow
lines of workers and forklifts.
As Tachibana Eletech is a“technology-driven trading company
for electrical machinery and electronics,” it is vital for us to further
improve and build as many proprietary technologies as possible.
To that end, there is a need to implement human resource
recruitment, development, and evaluation measures that are more
precise than in the past. Last year, we drew up standards for the
implementation of these measures, and by enforcing these
standards, we aim to secure quantity and quality of engineers,
further diversify and achieve greater sophistication for our
proprietary technologies, and vigorously promote the medium-
long-term management plan, “C.C.J 2200.”
Growth in orders achieved in the equipment control, instrumentation control, and production information technology sectors.
Together with other divisions of the group we are targeting to recruit additional experienced engineers to achieve diversification and greater sophistication of proprietary technologies
Hiroshi Yoneda Operating Officer
Kinya Kawahara Operating Officer
We will be delivering Mitsubishi Electric Corporation’s HEMS (Home
Energy Management System) to condominium apartments in Itami, Hyogo
Prefecture. This is the first time in Japan that HEMS has been adopted in
all units in a condominium development, enabling homeowners to control
air-conditioners and the filling of bathtubs
with hot water from outside their homes,
through their smartphones, and to capture
information on electricity consumption. This
condominium development is scheduled to
acquire certification based on the Low
Carbon City Promotion Act, which offers
incentives in the aspects of taxes and loans.
Going forward, Tachibana Eletech will
continue to put effort into expanding the
sale of HEMS in order to contribute to the
development of low-carbon cities.
Delivery of HEMS, which contributes to the development of low-carbon cities, to condominium apartments
We held an exhibition at the System Control Fair 2015, which was held at
Tokyo Big Sight from 2 to 4 December 2015. At our two booths, we
conducted demonstrations of our solution for preventing the erroneous
injection of raw materials through an electronic
SOP (standard operating procedures) system that
utilizes system monitoring software, as well as our
remote monitoring system for manufacturing
equipment, which is a part of the demonstration
experiment project titled “Industry 4.1J.” This fair
is a large-scale exhibition for FA and measuring
equipment, held once every two years, and
welcomed a total of 50,000 visitors in 2015.
Exhibiting in the System Control Fair 2015, a large-scale exhibition for FA and measuring equipment
LED lighting, low-temperature equipment for industrial use, and air-conditioners for facilities, buildings, and shops
year-on-year to JPY 13.426 billion.
However our investment in people, which includes the
increases in Tokyo and Nagoya offices required to standardize
service levels across regions, led to a 16.4% decline in operating
income to JPY 175 million.
System design /fabrication
Preventivemaintenance /maintenance
On-site coordination
Variousconstruction design /
construction
Hardware design /fabrication
Software design /fabrication
We provide total support through our integrated strengths
in marketing and technology based on a wide array of
achievements.
8.3%
Net Sales/Operating Income Composition of Net Sales
Year endedMarch 31
2014 2015 2016
Year ended March 31, 2016
150
100
50
0
(¥100 Million)
6.0
4.0
2.0
0
(¥100 Million)
Net Sales
134
1.8
127
2.1
131
2.8
Operating Income
Building Services Systems Solution Systems
16TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.15
Review 2016 Review 2016 Outlook 2017
Main productsSales of industrial mechatronics products, including semiconductors, electronic devices, FA equipment, and electric discharge machines
Main productsMetal Manufacturing Service (MMS)
Structural members and pallets for multilevel car parking towers, piping members for ships
Electronics Manufacturing Service (EMS)Controllers for water heaters, remote controllers for air-conditioners, etc., passenger car trunk closures
In view of the future development potential of the company, we have developed this business based on the expectation that the demand for processing parts will grow in the future. We provide contract manufacturing services that only a technology-driven trading company with knowledge of design and manufacturing partners can offer. Having both MMS and EMS, we can offer comprehensive services from substrates to finished products, including exterior packaging.
Since the opening of a representative office in Singapore in 1982, we have steadily expanded overseas operations, and in 2012, we established Tachibana Overseas Holdings Ltd. (TOH) in Hong Kong, a holding company to supervise overseas subsidiaries. We are proactively undertaking the FA, Semiconductors and Electronic Devices and other businesses in East Asia and major Southeast Asian countries, including China and Singapore.
Outlook 2017
In the Metal Manufacturing Services (MMS) sector, which involves
contracted work for metal processing work, despite a decline in
the number of multilevel car parking tower projects, we performed
well in the area of train cabin parts. The replacement of train
cabins is under way with the approach of the Tokyo Olympics, and
we recorded an increase in the number of deliveries for our core
products, including pole-related products such as handrails in the
train cabins, and air-conditioner ducts.
In the Electronics Manufacturing Services (EMS) sector, which
involves contracted work for the production of electronics and parts,
there was a steady stream of contracts for the production of
electronic equipment for industrial use, as well as growth in the
commissioned production of electronic equipment for beds used for
nursing care and housing equipment. With regard to the latter in
particular, we received a consolidated contract for the production of
television sets for use in bathrooms, resulting in sales growth.
In the current year, the trial production and delivery of a wide range
of new products has proceeded smoothly. In the MMS sector, we
are in the prototype phase for subway car parts bound for Qatar,
and are scheduled to enter mass production in the near future.
Among the new products, there are high expectations for
quake-free pedestals for rooftop facilities. As a part of measures to
strengthen the quake-resistance of buildings, it is necessary to
reinforce the quake-resistance of large-scale equipment placed on
building rooftops, such as air-conditioners. Tachibana Eletech has
cooperative production plants in China that are able to produce
zinc plates with strong resistance to corrosion for large-scale
equipment, and therefore excels at the production of outdoor
structures such as quake-free pedestals, which have to be
exposed to weather elements. After the completion of trial
production, the quake-free pedestals are scheduled to be
delivered starting the latter half of next fiscal year, and we will
continue to actively develop applications for other large-scale
building materials going forward.
In the EMS sector, we are moving forward on the trial
production of charging and discharging equipment for PHEV. A
high level of technological prowess is demanded in the production
of automobile equipment, which calls for adherence to stringent
safety standards. However, we expect to receive large order values
as we will be supplying the completed product. We have also
commenced the production and delivery of headphone hearing
aids with noise-cancelling functions for care facilities.
Even as we actively utilize our cooperative plants in China, the
group continues to realize a high level of quality that is on par with
that of our production plants in Japan. Last fiscal year, we
increased the number of expatriates to Shanghai and developed a
system at our two bases in Shanghai and Tianjin for conducting
checks of the processes by full-time staff to ensure quality
standards are met at the stage of product shipment.
The overall divisional aim is to further enhance our products in
both quality and technology, and by so doing generate net sales in
the range of JPY12 billion to achieve the medium-long-term
management plan objectives.
Despite a decline in multilevel car parking tower projects, growth was achieved in the train cabins/housing facilities sector.
In 2015, despite the gradual recovery of the American economy,
the overall outlook for the global economy remained uncertain,
particularly in the emerging economies in Asia, including China.
As a part of the initiative to establish a system that is both
flexible and responsive to local development needs we increased
the number of engineers at our Semiconductor Technology
Centers in Shenzhen and Shanghai. We also continued to develop
local companies, and increased the numbers of local sales
personnel.
However, net sales from the overseas businesses were
impacted by the economic slowdown in China, with the
semiconductor sectors, particularly in Hong Kong and Shanghai
suffering a decline.
On the other hand, in tandem with a growing demand for
high-precision processing and productivity improvements, the
industrial machinery sector in both Shanghai and Thailand
continued to experience demand for Japanese manufactured
high-end equipment, and this contributed to a significant growth in
industrial machinery, and particularly electric discharge machines.
At the year end March 2016 the overseas operations recorded
sales of JPY25.744 billion, a decline of 6% on the previous year. At
that level, total overseas sales represented 15.9% of Tachibana
Eletech Group sales.
Amid a time of economic slowdown, sales growth of industrial machinery was achieved.
In the medium-long-term management plan, we are putting in
place measures to achieve significant expansion in overseas sales.
China has been positioned as the priority market, with its overseas
sales ratio of 85%. Based on the keywords of “energy
conservation,” “environment,” and “ecological,” we are also
implementing aggressive sales activities. Specifically, we will be
focusing to expansion measures to enhance existing bases of
operation and are working strongly towards localization,
homogenization, and the advancement of technological
development capabilities.
Firstly, we aim to increase the sales composition of local
Chinese customers to 25% (16% in FY2014), and to increase local
sales personnel to 120 (80 in FY2014). Additionally, we are
planning to achieve standardization in all aspects, from the sales
composition of all overseas bases to management, sales
capability, and the handling ability for products.
To strengthen technological development capability we are
working to enhance the Semiconductor Technology Centers in
Shenzhen, Shanghai, and Malaysia, which were established under the
overseas technology center of TOH. At the same time, we have also
established a new FA Technology Center. Through these initiatives, we
aim to make a dynamic shift from the previous sales of individual
products toward the establishment of value-added solutions
businesses for both semiconductor devices and FA systems.
Through the abovementioned initiatives, we aim to achieve a
4.9% growth in net sales to JPY 27 billion for the period ending March
2017, and meet the overall Tachibana Eletech medium- to long-term
management plan by achieving total overseas sales of JPY44 billion.
Continuing to build on technology developments and our localization policy, with total overseas sales targeted at JPY27 billion for the year ending March 2017.
Expansion in trial production and orders for new products such as large-scale building materials and automobile equipment
Hirokazu Ueda Operating Officer
Hisanobu Nunoyama Director
Managing Operating Officer
In the MMS sector, we have received orders for contracted work for the
production of completed and semi-completed metal products. The main
manufacturing subcontractors are located in China, and Tachibana
Eletech provides services that are woven into
the manufacturing processes, covering process
management to quality management. Through
this, we have won the trust of our customers.
Since 2003, we have begun receiving orders
for multilevel car parking towers, one of our
flagship products, and are currently expanding
our work to tower car parks.
Contracted work for production of processed metal products such as multilevel parking car towers
Tachibana Sales (Hong Kong) Ltd., one of
our overseas subsidiaries, was recognized
by C.G. Development Ltd. (Hong Kong), the
world’s largest OEM of remote control
products, as “Best Suppliers 2015.” This
marks the eighth consecutive year we have
been recognized, the most of any of CG’s
suppliers. We have been doing business
with CG for about two decades and CG
represents one of our largest locally owned
overseas customers.
CG, the world’s leading OEM of remote control products, commends Tachibana Sales (Hong Kong) for the eighth consecutive year
An example of EMS An example of MMS
300
200
100
0
30.0
20.0
10.0
0
Net sales for overseas businesses / Sales ratio for overseas businesses
(¥100 Million) (%)Net sales for overseas businesses
Sales ratio for overseas businesses
257
15.915.9
181
14.714.7
195
15.715.7
261
18.418.4
273
18.618.6
2012 2013 2014 2015 2016 Year endedMarch 31
Manufacturing Services Overseas Operations
18TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.17
Review 2016 Review 2016 Outlook 2017
Main productsSales of industrial mechatronics products, including semiconductors, electronic devices, FA equipment, and electric discharge machines
Main productsMetal Manufacturing Service (MMS)
Structural members and pallets for multilevel car parking towers, piping members for ships
Electronics Manufacturing Service (EMS)Controllers for water heaters, remote controllers for air-conditioners, etc., passenger car trunk closures
In view of the future development potential of the company, we have developed this business based on the expectation that the demand for processing parts will grow in the future. We provide contract manufacturing services that only a technology-driven trading company with knowledge of design and manufacturing partners can offer. Having both MMS and EMS, we can offer comprehensive services from substrates to finished products, including exterior packaging.
Since the opening of a representative office in Singapore in 1982, we have steadily expanded overseas operations, and in 2012, we established Tachibana Overseas Holdings Ltd. (TOH) in Hong Kong, a holding company to supervise overseas subsidiaries. We are proactively undertaking the FA, Semiconductors and Electronic Devices and other businesses in East Asia and major Southeast Asian countries, including China and Singapore.
Outlook 2017
In the Metal Manufacturing Services (MMS) sector, which involves
contracted work for metal processing work, despite a decline in
the number of multilevel car parking tower projects, we performed
well in the area of train cabin parts. The replacement of train
cabins is under way with the approach of the Tokyo Olympics, and
we recorded an increase in the number of deliveries for our core
products, including pole-related products such as handrails in the
train cabins, and air-conditioner ducts.
In the Electronics Manufacturing Services (EMS) sector, which
involves contracted work for the production of electronics and parts,
there was a steady stream of contracts for the production of
electronic equipment for industrial use, as well as growth in the
commissioned production of electronic equipment for beds used for
nursing care and housing equipment. With regard to the latter in
particular, we received a consolidated contract for the production of
television sets for use in bathrooms, resulting in sales growth.
In the current year, the trial production and delivery of a wide range
of new products has proceeded smoothly. In the MMS sector, we
are in the prototype phase for subway car parts bound for Qatar,
and are scheduled to enter mass production in the near future.
Among the new products, there are high expectations for
quake-free pedestals for rooftop facilities. As a part of measures to
strengthen the quake-resistance of buildings, it is necessary to
reinforce the quake-resistance of large-scale equipment placed on
building rooftops, such as air-conditioners. Tachibana Eletech has
cooperative production plants in China that are able to produce
zinc plates with strong resistance to corrosion for large-scale
equipment, and therefore excels at the production of outdoor
structures such as quake-free pedestals, which have to be
exposed to weather elements. After the completion of trial
production, the quake-free pedestals are scheduled to be
delivered starting the latter half of next fiscal year, and we will
continue to actively develop applications for other large-scale
building materials going forward.
In the EMS sector, we are moving forward on the trial
production of charging and discharging equipment for PHEV. A
high level of technological prowess is demanded in the production
of automobile equipment, which calls for adherence to stringent
safety standards. However, we expect to receive large order values
as we will be supplying the completed product. We have also
commenced the production and delivery of headphone hearing
aids with noise-cancelling functions for care facilities.
Even as we actively utilize our cooperative plants in China, the
group continues to realize a high level of quality that is on par with
that of our production plants in Japan. Last fiscal year, we
increased the number of expatriates to Shanghai and developed a
system at our two bases in Shanghai and Tianjin for conducting
checks of the processes by full-time staff to ensure quality
standards are met at the stage of product shipment.
The overall divisional aim is to further enhance our products in
both quality and technology, and by so doing generate net sales in
the range of JPY12 billion to achieve the medium-long-term
management plan objectives.
Despite a decline in multilevel car parking tower projects, growth was achieved in the train cabins/housing facilities sector.
In 2015, despite the gradual recovery of the American economy,
the overall outlook for the global economy remained uncertain,
particularly in the emerging economies in Asia, including China.
As a part of the initiative to establish a system that is both
flexible and responsive to local development needs we increased
the number of engineers at our Semiconductor Technology
Centers in Shenzhen and Shanghai. We also continued to develop
local companies, and increased the numbers of local sales
personnel.
However, net sales from the overseas businesses were
impacted by the economic slowdown in China, with the
semiconductor sectors, particularly in Hong Kong and Shanghai
suffering a decline.
On the other hand, in tandem with a growing demand for
high-precision processing and productivity improvements, the
industrial machinery sector in both Shanghai and Thailand
continued to experience demand for Japanese manufactured
high-end equipment, and this contributed to a significant growth in
industrial machinery, and particularly electric discharge machines.
At the year end March 2016 the overseas operations recorded
sales of JPY25.744 billion, a decline of 6% on the previous year. At
that level, total overseas sales represented 15.9% of Tachibana
Eletech Group sales.
Amid a time of economic slowdown, sales growth of industrial machinery was achieved.
In the medium-long-term management plan, we are putting in
place measures to achieve significant expansion in overseas sales.
China has been positioned as the priority market, with its overseas
sales ratio of 85%. Based on the keywords of “energy
conservation,” “environment,” and “ecological,” we are also
implementing aggressive sales activities. Specifically, we will be
focusing to expansion measures to enhance existing bases of
operation and are working strongly towards localization,
homogenization, and the advancement of technological
development capabilities.
Firstly, we aim to increase the sales composition of local
Chinese customers to 25% (16% in FY2014), and to increase local
sales personnel to 120 (80 in FY2014). Additionally, we are
planning to achieve standardization in all aspects, from the sales
composition of all overseas bases to management, sales
capability, and the handling ability for products.
To strengthen technological development capability we are
working to enhance the Semiconductor Technology Centers in
Shenzhen, Shanghai, and Malaysia, which were established under the
overseas technology center of TOH. At the same time, we have also
established a new FA Technology Center. Through these initiatives, we
aim to make a dynamic shift from the previous sales of individual
products toward the establishment of value-added solutions
businesses for both semiconductor devices and FA systems.
Through the abovementioned initiatives, we aim to achieve a
4.9% growth in net sales to JPY 27 billion for the period ending March
2017, and meet the overall Tachibana Eletech medium- to long-term
management plan by achieving total overseas sales of JPY44 billion.
Continuing to build on technology developments and our localization policy, with total overseas sales targeted at JPY27 billion for the year ending March 2017.
Expansion in trial production and orders for new products such as large-scale building materials and automobile equipment
Hirokazu Ueda Operating Officer
Hisanobu Nunoyama Director
Managing Operating Officer
In the MMS sector, we have received orders for contracted work for the
production of completed and semi-completed metal products. The main
manufacturing subcontractors are located in China, and Tachibana
Eletech provides services that are woven into
the manufacturing processes, covering process
management to quality management. Through
this, we have won the trust of our customers.
Since 2003, we have begun receiving orders
for multilevel car parking towers, one of our
flagship products, and are currently expanding
our work to tower car parks.
Contracted work for production of processed metal products such as multilevel parking car towers
Tachibana Sales (Hong Kong) Ltd., one of
our overseas subsidiaries, was recognized
by C.G. Development Ltd. (Hong Kong), the
world’s largest OEM of remote control
products, as “Best Suppliers 2015.” This
marks the eighth consecutive year we have
been recognized, the most of any of CG’s
suppliers. We have been doing business
with CG for about two decades and CG
represents one of our largest locally owned
overseas customers.
CG, the world’s leading OEM of remote control products, commends Tachibana Sales (Hong Kong) for the eighth consecutive year
An example of EMS An example of MMS
300
200
100
0
30.0
20.0
10.0
0
Net sales for overseas businesses / Sales ratio for overseas businesses
(¥100 Million) (%)Net sales for overseas businesses
Sales ratio for overseas businesses
257
15.915.9
181
14.714.7
195
15.715.7
261
18.418.4
273
18.618.6
2012 2013 2014 2015 2016 Year endedMarch 31
Manufacturing Services Overseas Operations
18TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.17
CSR Structure and Initiatives Establishing continuous improvements in our priority CSR issues through ISO management
Our basic policy on CSR is to encourage, in recognition of our
social responsibilities, sound management practices by steadily
realizing our management vision, corporate philosophy, and code
of conduct.
We also take a proactive stance in promoting CSR based on
the pillars of compliance, risk management,
quality/safety/environmental management, and social contribution
founded on corporate governance.
1. Strengthen risk managementManagement risks facing companies today have become
larger and more diverse than ever before. This is why thorough
risk management is essential for the continuity of business
operations and enhancing corporate value. Our goal is to
achieve management that is well respected by society
because of its proper risk management, enhancements to
corporate value and securing of talented human resources.
2. Develop talented human resources We will move forward with a plan that enables each and every
employee to think and act in order to fulfill our corporate social
responsibilities through our CSR initiatives.
3. Enhance corporate brand value We will promote our image as a company that fulfills its social
responsibilities and will strive to enhance our corporate brand
value as a company that is trusted by customers and investors.
4. Make contributions to society In addition to economic contributions, we will strive to
contribute to society by carrying out initiatives to reduce the
burden on the environment, including the reduction of
pollutants and CO2 mitigation, and our involvement in
immediate community activities.
5. Procurement considerate of CSRWe will build partnerships with our business partners through
fair transactions that comply with CSR and related laws and
regulations, such as various labor laws and regulations,
regulations on management of contained chemical
substances, and regulations on conflict minerals.
6. Disclosure We will strive to proactively disclose information directly at
exhibitions, investor briefings, and investor relations
presentations, and indirectly to the general public using tools
such as our corporate website and paper-based media.
With our fundamental goal to contribute to society through sound
business activities, we will pursue CSR on a daily basis under the
leadership of CSR Development Officer and directed by the
Compliance Office and Quality, Safety and Environmental Control
Office.
Certification body
Date of certification
Expiration date
Acquisition status of affiliates
Business location certified
Certification body
Date of certification
Expiration date
Business location certified
Acquisition status
of affiliates
Japan Quality Assurance Organization (JQA)
June 29, 2001
September 14, 2017
All domestic business sites
Japan Quality Assurance Organization (JQA)
August 8, 2003
September 14, 2017
Tachibana Device Component Co., Ltd.
Tachibana Device Component Co., Ltd.
Head office
Branches (Tokyo/Nagoya), offices (Kobe/Kyusyu),
Tohoku Sales Office
Engineering Safety andSanitation Control Officer
Chemical Control Officer
Quality and Factory Auditing Officer
Intellectual Property Officer
ISO Promotion Officer
Export Administration officerCSR Development Officer
Quality, Safety andEnvironmental Control Office
Compliance Office
CSR Policy CSR Implementation Structure
As part of our CSR activities, we have acquired ISO14001
certification for our environmental management system, ISO9001
certification for quality control and customer satisfaction, and
ISO27001 for our information security management system.
Acquisition of ISO Certification
CSR Implementation Structure Diagram
ISO14001 (Environmental Management System)
ISO9001 (Quality Control and Customer Satisfaction)
Certification body
Date of certification
Expiration date
Business location certified
BSI Group Japan K.K. (BSI)
November 2, 2006
November 1, 2018
Head office
Branches (Tokyo/Nagoya), offices (Hokuriku/Kobe)
Kyushu Office, Tohoku Sales Office
ISO27001 (Information Security Management System)
Third-party checks on environmental, quality, and information security conditions
Topics
The Tachibana Eletech Group conducts proper checks on the environment, quality, and information
security, which we have positioned as our priority CSR issues, through ISO (International Standards
Organization) assessments conducted from the perspective of external parties.
Each office establishes its own goals, and takes continuous steps to improve while
implementing the PDCA cycle. Internal audits are also conducted. In addition, effective
improvements are made through the implementation of regular assessments by external
institutions.
During the past year, we underwent assessments for three management system
certifications—ISO14001, ISO9001, and ISO27001. The following is a report of the assessments.
Assessment for renewal of ISO14001 certification (June 2016)The ISO14001 certification not only covers reduction in the
environmental burden generated by the company, but also includes
environmental conservation initiatives through our products.
The Tachibana Eletech Group has been awarded the
ISO14001 across the entire company (32 departments), and is
putting in company-wide efforts to promote the initiatives. The
assessment for the renewal of the certification was carried out from
June 6 to June 9, 2016, at the Head Office, Tokyo Branch Office,
Nagoya Branch Office, East Kanto Office, Kanagawa Office,
Mikawa Office, Hokuriku Office, Mie Office, Himeji Office, Hiroshima
Office, and Shikoku Office.
As a result of the assessment, the company was highly appraised
for the strength of its “Business expansion and the environmental
goals that comprise a part of this expansion = Activities to expand the
sale of environmentally-conscious products.”
Renewal assessment for ISO27001 (September 2015)
Continuous improvements
PDCA cycle
CheckDo
Plan
Act
Periodic ISO9001 assessment (June 2016)The ISO9001 certification not only covers quality management that
ensures that the company does not produce defective products or
services, but also includes company-wide initiatives to enhance
customer satisfaction.
The Tachibana Eletech Group underwent periodic assessment by
the Japan Quality Assurance Organization (JQA) from June 6 to June
9, 2016. During this period, the Head Office, Tokyo Branch Office,
and Nagoya Branch Office were assessed.
Continuous company-wide efforts in initiatives toward improving
quality and customer satisfaction, in order to achieve the goals set
forth in the ongoing medium- to long-term management plan “C.C.J
2200,” were highly appraised. There were no items that we were
requested to improve on.
The ISO27001 certification ensures that information security
measures for the information resources that serve as the foundation
of Tachibana Eletech as a technology-driven trading company are
properly implemented by the Group.
The renewal assessment was conducted from September 8 to
September 11, 2015, at the Head Office, Tokyo Branch Office,
Nagoya Branch Office, and Kobe Office. No major problems were
pointed out, and the decision was made to recommend the company
for the third renewal of its certification. The periodic assessment has
been scheduled to take place in September 2016. (Head Office,
Tokyo Branch Office, Kyushu Office, Tohoku Sales Office)
AuditorsAuditors
CSR
20TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.19
CSR Structure and Initiatives Establishing continuous improvements in our priority CSR issues through ISO management
Our basic policy on CSR is to encourage, in recognition of our
social responsibilities, sound management practices by steadily
realizing our management vision, corporate philosophy, and code
of conduct.
We also take a proactive stance in promoting CSR based on
the pillars of compliance, risk management,
quality/safety/environmental management, and social contribution
founded on corporate governance.
1. Strengthen risk managementManagement risks facing companies today have become
larger and more diverse than ever before. This is why thorough
risk management is essential for the continuity of business
operations and enhancing corporate value. Our goal is to
achieve management that is well respected by society
because of its proper risk management, enhancements to
corporate value and securing of talented human resources.
2. Develop talented human resources We will move forward with a plan that enables each and every
employee to think and act in order to fulfill our corporate social
responsibilities through our CSR initiatives.
3. Enhance corporate brand value We will promote our image as a company that fulfills its social
responsibilities and will strive to enhance our corporate brand
value as a company that is trusted by customers and investors.
4. Make contributions to society In addition to economic contributions, we will strive to
contribute to society by carrying out initiatives to reduce the
burden on the environment, including the reduction of
pollutants and CO2 mitigation, and our involvement in
immediate community activities.
5. Procurement considerate of CSRWe will build partnerships with our business partners through
fair transactions that comply with CSR and related laws and
regulations, such as various labor laws and regulations,
regulations on management of contained chemical
substances, and regulations on conflict minerals.
6. Disclosure We will strive to proactively disclose information directly at
exhibitions, investor briefings, and investor relations
presentations, and indirectly to the general public using tools
such as our corporate website and paper-based media.
With our fundamental goal to contribute to society through sound
business activities, we will pursue CSR on a daily basis under the
leadership of CSR Development Officer and directed by the
Compliance Office and Quality, Safety and Environmental Control
Office.
Certification body
Date of certification
Expiration date
Acquisition status of affiliates
Business location certified
Certification body
Date of certification
Expiration date
Business location certified
Acquisition status
of affiliates
Japan Quality Assurance Organization (JQA)
June 29, 2001
September 14, 2017
All domestic business sites
Japan Quality Assurance Organization (JQA)
August 8, 2003
September 14, 2017
Tachibana Device Component Co., Ltd.
Tachibana Device Component Co., Ltd.
Head office
Branches (Tokyo/Nagoya), offices (Kobe/Kyusyu),
Tohoku Sales Office
Engineering Safety andSanitation Control Officer
Chemical Control Officer
Quality and Factory Auditing Officer
Intellectual Property Officer
ISO Promotion Officer
Export Administration officerCSR Development Officer
Quality, Safety andEnvironmental Control Office
Compliance Office
CSR Policy CSR Implementation Structure
As part of our CSR activities, we have acquired ISO14001
certification for our environmental management system, ISO9001
certification for quality control and customer satisfaction, and
ISO27001 for our information security management system.
Acquisition of ISO Certification
CSR Implementation Structure Diagram
ISO14001 (Environmental Management System)
ISO9001 (Quality Control and Customer Satisfaction)
Certification body
Date of certification
Expiration date
Business location certified
BSI Group Japan K.K. (BSI)
November 2, 2006
November 1, 2018
Head office
Branches (Tokyo/Nagoya), offices (Hokuriku/Kobe)
Kyushu Office, Tohoku Sales Office
ISO27001 (Information Security Management System)
Third-party checks on environmental, quality, and information security conditions
Topics
The Tachibana Eletech Group conducts proper checks on the environment, quality, and information
security, which we have positioned as our priority CSR issues, through ISO (International Standards
Organization) assessments conducted from the perspective of external parties.
Each office establishes its own goals, and takes continuous steps to improve while
implementing the PDCA cycle. Internal audits are also conducted. In addition, effective
improvements are made through the implementation of regular assessments by external
institutions.
During the past year, we underwent assessments for three management system
certifications—ISO14001, ISO9001, and ISO27001. The following is a report of the assessments.
Assessment for renewal of ISO14001 certification (June 2016)The ISO14001 certification not only covers reduction in the
environmental burden generated by the company, but also includes
environmental conservation initiatives through our products.
The Tachibana Eletech Group has been awarded the
ISO14001 across the entire company (32 departments), and is
putting in company-wide efforts to promote the initiatives. The
assessment for the renewal of the certification was carried out from
June 6 to June 9, 2016, at the Head Office, Tokyo Branch Office,
Nagoya Branch Office, East Kanto Office, Kanagawa Office,
Mikawa Office, Hokuriku Office, Mie Office, Himeji Office, Hiroshima
Office, and Shikoku Office.
As a result of the assessment, the company was highly appraised
for the strength of its “Business expansion and the environmental
goals that comprise a part of this expansion = Activities to expand the
sale of environmentally-conscious products.”
Renewal assessment for ISO27001 (September 2015)
Continuous improvements
PDCA cycle
CheckDo
Plan
Act
Periodic ISO9001 assessment (June 2016)The ISO9001 certification not only covers quality management that
ensures that the company does not produce defective products or
services, but also includes company-wide initiatives to enhance
customer satisfaction.
The Tachibana Eletech Group underwent periodic assessment by
the Japan Quality Assurance Organization (JQA) from June 6 to June
9, 2016. During this period, the Head Office, Tokyo Branch Office,
and Nagoya Branch Office were assessed.
Continuous company-wide efforts in initiatives toward improving
quality and customer satisfaction, in order to achieve the goals set
forth in the ongoing medium- to long-term management plan “C.C.J
2200,” were highly appraised. There were no items that we were
requested to improve on.
The ISO27001 certification ensures that information security
measures for the information resources that serve as the foundation
of Tachibana Eletech as a technology-driven trading company are
properly implemented by the Group.
The renewal assessment was conducted from September 8 to
September 11, 2015, at the Head Office, Tokyo Branch Office,
Nagoya Branch Office, and Kobe Office. No major problems were
pointed out, and the decision was made to recommend the company
for the third renewal of its certification. The periodic assessment has
been scheduled to take place in September 2016. (Head Office,
Tokyo Branch Office, Kyushu Office, Tohoku Sales Office)
AuditorsAuditors
CSR
20TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.19
Basic Philosophy Tachibana Eletech recognizes that environmental issues are
spreading around the globe and represent a long-term problem
that will affect our future. This is why we are working to achieve
sustainable development that enables the coexistence of
socioeconomic development and the earth’s environment
through sound business activities.
Increasing Sales of Environmentally-Conscious Products Under the policy of giving back to society by promoting the
effective use of resources and energy, and increasing sales of
environmentally-conscious products, we have expanded our lineup
of environmentally-conscious products effective at protecting the
environment, such as photovoltaic power generation systems,
LED lighting, high efficiency industrial equipment, air conditioning,
and building facilities. We are currently working to increase sales of
these products. In 2015, sales declined as a result of the drop in
sales of photovoltaic panel products.
Photovoltaic Panels: Contributing to a Clean Energy Society with Energy Creation In addition to energy-saving efforts, society has shown stronger
interest and expectations in proactive approaches to energy
creation. Photovoltaic power generation systems, which do not
produce CO2 when in operation, are spreading for both general
homes and industry boosted by Japan’s feed-in tariff system for
renewable energy which was launched in July 2012. Tachibana
Eletech was among the first in the industry to set up a dedicated
team covering photovoltaic power generation systems, and in
July 2013 we made our first delivery of photovoltaic panels to a
mega solar power plant. Going forward, we are committed to
contributing to the realization of a clean energy society through
the popularization and increased use of photovoltaic power
generation systems.
LED lighting: Promoting the expanded use of LED lighting internally and externallyLED lighting is not only economical because it uses less power
and has a long life, but also has unique traits such as the fact
that it does not give off heat, does not contain hazardous
materials, and does not attract insects. Tachibana Eletech has
launched the LED Lighting Sales Promotion Project and has
since continued to help a number of customers to save power
and reduce their electricity costs. We are also actively changing
lighting over to LED lighting at our offices and the offices of our
Group companies, and working to expand these initiatives both
inside and outside the company.
Initiatives for the Management of Chemical Substances We support customers in their environmental responsiveness
through the provision of accurate information. The QSE Control
Office is responsible for integrated management of information
about chemical substances contained in the products we handle.
When we receive inquiries from customers about chemical
substances in any of our products, we provide them with all
information obtained from suppliers and approve products that have
been verified as meeting the requirements of customers. 95% of the
products we are dealing with meet the RoHS (Restriction of the Use
of Certain Hazardous Substances in Electrical and Electronic
Equipment) Directive issued to draw attention to the effects of
substances on human health. Customers request non-RoHS
products as well, which represents the maximum cut off. The QSE
Control Office is engaged in appropriate administration and
promotion of the chemical substance management system in
accordance with in-house rules for the management of contained
chemical substances and makes a self-declaration of conformance
based on Guidelines for the Management of Chemical Substances
in Products (provided by JAMP).
It also serves as the contact point for acceptance of
chemical substance management audits requested by
customers. Internally, it is investing effort into the continuous
implementation of various training and education programs on
the management of chemical substances. Starting in the year
ending March 2012, the Office has been providing support for
establishment and administration of the chemical substance
management systems of overseas subsidiaries.
Furthermore, conflict mineral investigations have begun in
earnest with the enforcement of the U.S. Dodd-Frank Act.
Tachibana Eletech agrees with the measures and policies laid out
in the act, carries out investigations into the use of conflict
minerals contained in the products we handle and reports the
results to customers.
Energy Conservation at OfficesWe have been contributing to power saving and carbon dioxide
(CO2) emission reductions for customers by proactively lining up
equipment and systems that support their energy-saving efforts
and offering a combination of products and energy-saving
technologies. We are also making all-out efforts of our own to
save on energy consumption and are introducing power-saving
LED lighting in our office buildings.
We completed the replacement of all lighting in the head
office building with LED equipment in September 2012, helping
significantly reduce overall building power consumption. In 2015,
our power consumption increased as a result of the relocation of
the Tokyo Branch into our own office building.
We have acquired ISO14001 certification for all of our business
sites in Japan as well as some other locations since 2001 and
we continue to make efforts toward environmental conservation.
The following diagram provides a breakdown of our environmental
management system, which is led by the President. The entire
company also carries out improvements using the PDCA cycle
based on annual plans, as part of our spiral-up efforts.
President
Environmental ManagementAdministrator
Internal EnvironmentalAuditing Committee
QSE Control Office
Environment Committee
West Japan
Implementation segments
East Japan Central Japan
Power Saving Business: Proposing Various Power Saving SolutionsAs a power saving expert in electricity conservation, we propose
a number of power saving solutions to our customers. This lineup
of solutions includes LED lighting and photovoltaic power
generation systems as well as other solutions proposed from a
variety of angles, ranging from cleaning and sprinkling of
air-conditioner compressor units, application of thermal insulating
paint for rooftops, on-demand control to upgrading servers to
more power saving models, based on detailed inspections and
analysis of offices, buildings, and various equipment. These
power saving measures are compiled into small publications
such as “Key to Power Saving” that are provided to customers to
help achieve a society that uses less power.
TEM Solution: Visualizing Energy UsageThe TEM Solution, which is our proprietary energy management
system, monitors air conditioning and lighting use in real time,
enabling the visualization of energy. When we switched the entire
Tachibana Eletech head office building to LED lighting in 2012,
we measured data using the TEM Solution and verified energy
saving effects. Based on these results, we now propose the TEM
Solution to customers, which enables us to help to create a
society with reduced power consumption.
Lithium Ion Batteries: Actively Proposing Energy Storing SolutionsLithium ion storage batteries have superior traits such as being
compact and lightweight and for this reason, they are used in
mobile phones, laptop computers, and electric vehicles, among
others. Using lithium ion batteries together with a photovoltaic
power generation system makes it possible to use energy more
efficiently, by storing energy generated with an energy creating
apparatus. Examples include storing generated surplus power and
providing power from a storage battery during times of the day
when little power is generated. A system that can store energy is
also effective in preparing for power outages resulting from
disasters or other emergencies. We are making efforts to achieve
an energy-saving society through the sale of storage batteries.
Corporate Principles
1. Effective use of resources and energyGiven the limited nature of resources and energy, we will
strive to both use them effectively and make contributions
to society through our business activities.
2. Compliance with environmental laws and regulationsWe will comply with environmental laws and regulations as
well as other requirements we agree upon during the
execution of our business activities in order to prevent
environmental pollution.
3. Enhancement and improvement of our environmental management system
Following this environmental policy, we will set
environmental objectives and targets, carry out initiatives,
regularly review these initiatives and strive to make
continual improvements.
4. Promotion and publication of environmental policyWe will make this environmental policy known to all
employees and also publish it outside of the company as well.
Environmental Management System Diagram
Storage battery
Solar cell
In case of power outage
Charge/discharge controller
Charge with nighttime power in normal times
DOWN
In case of natural disaster/emergency (specific load)
Peak cut (general load)
Power conditioner
Charge with full (surplus) power in normal times
Commercial system
Commercial system
Photovoltaic Power Generation System + Lithium Ion Storage Battery System
2,023,485
2015
2,062,6771,898,780 1,838,868 1,876,016
2011 2012 2013 2014
Electricity usage (kWh)
(Year)
E nvironment
Net sales of environmentally-conscious products
(millions of yen)
(Year)
15,607
2015
12,17213,394
16,999 16,772
2011 2012 2013 2014
20,000
15,000
10,000
5,000
0
22TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.21
Environmental Policy Environmentally-Conscious ProductsReducing Environmental Impacts from Businesses
Environmental Management System
Environmental Initiatives Environmental Conservation InitiativesInitiatives for Reducing Environmental Impacts
Basic Philosophy Tachibana Eletech recognizes that environmental issues are
spreading around the globe and represent a long-term problem
that will affect our future. This is why we are working to achieve
sustainable development that enables the coexistence of
socioeconomic development and the earth’s environment
through sound business activities.
Increasing Sales of Environmentally-Conscious Products Under the policy of giving back to society by promoting the
effective use of resources and energy, and increasing sales of
environmentally-conscious products, we have expanded our lineup
of environmentally-conscious products effective at protecting the
environment, such as photovoltaic power generation systems,
LED lighting, high efficiency industrial equipment, air conditioning,
and building facilities. We are currently working to increase sales of
these products. In 2015, sales declined as a result of the drop in
sales of photovoltaic panel products.
Photovoltaic Panels: Contributing to a Clean Energy Society with Energy Creation In addition to energy-saving efforts, society has shown stronger
interest and expectations in proactive approaches to energy
creation. Photovoltaic power generation systems, which do not
produce CO2 when in operation, are spreading for both general
homes and industry boosted by Japan’s feed-in tariff system for
renewable energy which was launched in July 2012. Tachibana
Eletech was among the first in the industry to set up a dedicated
team covering photovoltaic power generation systems, and in
July 2013 we made our first delivery of photovoltaic panels to a
mega solar power plant. Going forward, we are committed to
contributing to the realization of a clean energy society through
the popularization and increased use of photovoltaic power
generation systems.
LED lighting: Promoting the expanded use of LED lighting internally and externallyLED lighting is not only economical because it uses less power
and has a long life, but also has unique traits such as the fact
that it does not give off heat, does not contain hazardous
materials, and does not attract insects. Tachibana Eletech has
launched the LED Lighting Sales Promotion Project and has
since continued to help a number of customers to save power
and reduce their electricity costs. We are also actively changing
lighting over to LED lighting at our offices and the offices of our
Group companies, and working to expand these initiatives both
inside and outside the company.
Initiatives for the Management of Chemical Substances We support customers in their environmental responsiveness
through the provision of accurate information. The QSE Control
Office is responsible for integrated management of information
about chemical substances contained in the products we handle.
When we receive inquiries from customers about chemical
substances in any of our products, we provide them with all
information obtained from suppliers and approve products that have
been verified as meeting the requirements of customers. 95% of the
products we are dealing with meet the RoHS (Restriction of the Use
of Certain Hazardous Substances in Electrical and Electronic
Equipment) Directive issued to draw attention to the effects of
substances on human health. Customers request non-RoHS
products as well, which represents the maximum cut off. The QSE
Control Office is engaged in appropriate administration and
promotion of the chemical substance management system in
accordance with in-house rules for the management of contained
chemical substances and makes a self-declaration of conformance
based on Guidelines for the Management of Chemical Substances
in Products (provided by JAMP).
It also serves as the contact point for acceptance of
chemical substance management audits requested by
customers. Internally, it is investing effort into the continuous
implementation of various training and education programs on
the management of chemical substances. Starting in the year
ending March 2012, the Office has been providing support for
establishment and administration of the chemical substance
management systems of overseas subsidiaries.
Furthermore, conflict mineral investigations have begun in
earnest with the enforcement of the U.S. Dodd-Frank Act.
Tachibana Eletech agrees with the measures and policies laid out
in the act, carries out investigations into the use of conflict
minerals contained in the products we handle and reports the
results to customers.
Energy Conservation at OfficesWe have been contributing to power saving and carbon dioxide
(CO2) emission reductions for customers by proactively lining up
equipment and systems that support their energy-saving efforts
and offering a combination of products and energy-saving
technologies. We are also making all-out efforts of our own to
save on energy consumption and are introducing power-saving
LED lighting in our office buildings.
We completed the replacement of all lighting in the head
office building with LED equipment in September 2012, helping
significantly reduce overall building power consumption. In 2015,
our power consumption increased as a result of the relocation of
the Tokyo Branch into our own office building.
We have acquired ISO14001 certification for all of our business
sites in Japan as well as some other locations since 2001 and
we continue to make efforts toward environmental conservation.
The following diagram provides a breakdown of our environmental
management system, which is led by the President. The entire
company also carries out improvements using the PDCA cycle
based on annual plans, as part of our spiral-up efforts.
President
Environmental ManagementAdministrator
Internal EnvironmentalAuditing Committee
QSE Control Office
Environment Committee
West Japan
Implementation segments
East Japan Central Japan
Power Saving Business: Proposing Various Power Saving SolutionsAs a power saving expert in electricity conservation, we propose
a number of power saving solutions to our customers. This lineup
of solutions includes LED lighting and photovoltaic power
generation systems as well as other solutions proposed from a
variety of angles, ranging from cleaning and sprinkling of
air-conditioner compressor units, application of thermal insulating
paint for rooftops, on-demand control to upgrading servers to
more power saving models, based on detailed inspections and
analysis of offices, buildings, and various equipment. These
power saving measures are compiled into small publications
such as “Key to Power Saving” that are provided to customers to
help achieve a society that uses less power.
TEM Solution: Visualizing Energy UsageThe TEM Solution, which is our proprietary energy management
system, monitors air conditioning and lighting use in real time,
enabling the visualization of energy. When we switched the entire
Tachibana Eletech head office building to LED lighting in 2012,
we measured data using the TEM Solution and verified energy
saving effects. Based on these results, we now propose the TEM
Solution to customers, which enables us to help to create a
society with reduced power consumption.
Lithium Ion Batteries: Actively Proposing Energy Storing SolutionsLithium ion storage batteries have superior traits such as being
compact and lightweight and for this reason, they are used in
mobile phones, laptop computers, and electric vehicles, among
others. Using lithium ion batteries together with a photovoltaic
power generation system makes it possible to use energy more
efficiently, by storing energy generated with an energy creating
apparatus. Examples include storing generated surplus power and
providing power from a storage battery during times of the day
when little power is generated. A system that can store energy is
also effective in preparing for power outages resulting from
disasters or other emergencies. We are making efforts to achieve
an energy-saving society through the sale of storage batteries.
Corporate Principles
1. Effective use of resources and energyGiven the limited nature of resources and energy, we will
strive to both use them effectively and make contributions
to society through our business activities.
2. Compliance with environmental laws and regulationsWe will comply with environmental laws and regulations as
well as other requirements we agree upon during the
execution of our business activities in order to prevent
environmental pollution.
3. Enhancement and improvement of our environmental management system
Following this environmental policy, we will set
environmental objectives and targets, carry out initiatives,
regularly review these initiatives and strive to make
continual improvements.
4. Promotion and publication of environmental policyWe will make this environmental policy known to all
employees and also publish it outside of the company as well.
Environmental Management System Diagram
Storage battery
Solar cell
In case of power outage
Charge/discharge controller
Charge with nighttime power in normal times
DOWN
In case of natural disaster/emergency (specific load)
Peak cut (general load)
Power conditioner
Charge with full (surplus) power in normal times
Commercial system
Commercial system
Photovoltaic Power Generation System + Lithium Ion Storage Battery System
2,023,485
2015
2,062,6771,898,780 1,838,868 1,876,016
2011 2012 2013 2014
Electricity usage (kWh)
(Year)
E nvironment
Net sales of environmentally-conscious products
(millions of yen)
(Year)
15,607
2015
12,17213,394
16,999 16,772
2011 2012 2013 2014
20,000
15,000
10,000
5,000
0
22TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.21
Environmental Policy Environmentally-Conscious ProductsReducing Environmental Impacts from Businesses
Environmental Management System
Environmental Initiatives Environmental Conservation InitiativesInitiatives for Reducing Environmental Impacts
S ocialE nvironment
Rank-based training
Skill improvement training
Basic training
Specialist training
Basic language training
Workplace training
Personal development
New employee training, career design training, and management training, etc.
Presentation skills training and business flow training, etc.
Basic job duties and basic technical knowledge, etc.
Training provided by manufacturers, etc.
OJT and new product/new technology training, etc.
Various distance learning courses, etc.
English conversation (beginner/intermediate) and Chinese (beginner/intermediate)
Line-up of training courses
24TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.23
Tachibana Eletech respects the diverse values of its employees
and aspires to achieve a balance between employee
self-realization and the growth of the company. To achieve this
balance, we make efforts to address issues such as human
resource development, work-life balance, diversity, harassment
prevention, respect for human rights, and childcare assistance.
Our goal is to create an environment where employees can grow
and find a sense of fulfillment.
We have created employee-friendly workplace environments
where workers can balance their professional and personal lives,
and we have established various action plans to fully harness the
skills and talents of our workforce.
For example, we have standardized, streamlined, and
leveled business processes, and eliminated our dependence on
individual expertise for certain business processes. We have also
created an environment that encourages eligible employees to
take childcare leave, and which makes it easier for them to return
to work after leave.
Since 2015, we have launched a partnership with Kenden
Industry Co., Ltd., our subsidiary that is engaged in the work of
replacing and repairing large motors.
As a result of the partnership, we
reached a record high in the number of
orders received for FY2015. Going
forward, we aim to continue increasing
the volume of orders for motor
replacement systems, and to
contribute to customers’ efforts to
conserve energy and improve
production efficiency.
Energy-saving inverters
Energy-saving datacollection servers
High-efficiency motors
High-efficiency transformers
Servomotor
Providing comprehensive support for energy conservation at factories
Tachibana Eletech offers a rich line-up of equipment and systems
to support energy conservation efforts and help reduce
environmental burden at production plants. By providing
“products + energy conservation technology,” we contribute to
helping customers conserve power and reduce CO2 emissions.
For example, the energy measurement unit and energy-saving
data collection server automatically collect information on energy
consumption and production yield, and assist in the visualization
of the utilization status of the facility. By doing so, they enable the
detection of energy loss, and further, allow for the visualization of
such data anytime and anywhere through the Internet.
In addition to these equipment and systems that support
energy conservation efforts, we also design and provide
comprehensive energy conservation plans by combining power
distribution equipment that minimizes energy loss, high-efficiency
transformers, high-efficiency motors, energy-saving inverter
control panels, and other systems. Of course, by proposing
solutions from the perspective of “energy conservation
professionals” who understand factories, such as enhancing the
maintenance and operation capabilities of systems or expediting
delivery through modular systems, we provide strong support to
our customers in their energy conservation activities.
Contributing to energy conservation through the use of LED lighting for high ceilings
Lighting systems for high ceilings, which are installed on the
ceilings of large-scale facilities such as factories, warehouses,
and stadiums, require large amounts of light. While mercury
lamps had traditionally been used for such lighting systems,
switching to LED lighting can provide significant energy savings.
LED not only consumes less power, but enables the instant
lighting or relighting that could not be achieved using
conventional light sources. Further energy savings can be
achieved through dimming controls that combine frequent on-off
switches with human sensors. As LED has a long lifespan,
maintenance costs can also be reduced.
Tachibana Eletech has built up a track record for replacing
lighting systems at the high ceilings of many factories, using as
our main product the “My Series” LED from Mitsubishi Electric
Lighting Co., Ltd., which offers a rich line-up of products that are
easy to install. We have even replaced 400 lighting units at one
go at a factory, where stable operations are a priority. By
harnessing the construction know-how that we have built up to
date, Tachibana Eletech will strive to meet the demand for LED
lighting works for high ceilings, which is anticipated to continue
growing in the
future, and to
contribute to energy
conservation efforts
at large-scale
facilities such as
factories and
warehouses across
Japan.
Realizing significant energy savings through motor replacement
It is said that much of the electricity consumed by factories is
consumed through motors. Hence, upgrading the motors to the
latest models not only improves production efficiency, but also
contributes to significant energy savings for the factory.
Tachibana Eletech has been engaged in the work of
replacing motors since 2012. The replacement of motors on the
automation line (servomotors) involves not only the replacement
of the motor inside the device, but also calls for skills and
know-how covering the “hardware” and “software” aspects, such
as remodeling and adjusting the peripheral equipment that is
connected to the motor. Tachibana Eletech has established
system technology that enables simultaneous motor replacement
and upgrade of the programmable controller (PLC) that is vital to
the automation line, and we position this as one of our strengths.
LED lighting for high ceilings
Basic Policy
Tachibana Eletech has established an education system aimed at
promoting the growth of individual employees and the
development of the organization.
Training Policy
Initiatives for Work-Life Balance
Tachibana Eletech has established a Code of Conduct for
employees that requires all officers and employees to thoroughly
comply with relevant laws during all their daily business activities,
as well as conform to social norms. We carry out compliance
training as necessary to ensure the faithful execution of these
practices. In May 2015, a training session was conducted based
on the case study of an incident that took place in another
company, which involved suspicions of bribery in the form of
favors for the top management of Japan Freight Railway
Company. This training session was also broadcast to the
respective branch offices and stores, and approximately 260
employees attended the training. Tachibana Eletech also
provides products and services to government offices, and
bribery is a problem that we are familiar with. This training helped
to raise awareness among the participants about their own
actions and conduct.
Compliance Training
In order to expand employment opportunities for the disabled,
we strive to promote the hiring of persons with disabilities and to
provide a working environment that is friendly to persons with
disabilities.
Employment of Persons with Disabilities
Mental HealthcareTachibana Eletech provides mental health check-ups at a
specialist institution for all employees every year.
Additionally, we have introduced the Advantage EAP, a private
sector service that supports workplace mental health mainly
through access to physicians. These services can be used at any
time to help solve problems faced by employees or their families.
Dissemination of Health NewsEvery month, we publish and disseminate information on diet
and health for the benefit of our employees.
“Human Training Hall” –Fostering Human CompetenceThe training facility named Risshikan, located in Sakai, Osaka,
comes with a Japanese-style room that is the size of 24 tatami
mats, called the “Human Training Hall.”
Here, amidst an atmosphere that is completely different from
the atmosphere at a classroom training, participants exchange
views in the style of a roundtable conference, and the food and
beverages are provided at the cost of the company in order to
encourage the active use of the facility. This training serves to
revitalize exchange among employees of different seniority levels
and different divisions, who normally do not have any interaction
with one another.
The aim for this venue for exchange is to reflect on the
situations Tachibana Eletech has overcome up to the present
day, with senior employees giving presentations about their
experiences to pass Tachibana Eletech DNA down to younger
employees.
By combining training that aims to enhance product and
technical knowledge, with the “Human Training Hall” training
conducted in the style of a roundtable conference, we strive to
improving the capabilities of each individual employee, and to
strengthening their sales and development capabilities.
Promoting Employee Health
177
12 1330
70
91
125
156180
120
60
0
60
40
20
0
Units OrdersNo. of units No. of orders
4242
34342929
25251919
993322
No. of orders for motor replacement works, and no. of units (cumulative)
84th fiscalperiod
First half
84th fiscalperiod
Second half
85th fiscalperiod
First half
85th fiscalperiod
Second half
86th fiscalperiod
First half
86th fiscalperiod
Second half
87th fiscalperiod
First half
87th fiscalperiod
Second half
Increasing Sales of Environmentally-Conscious Products Together with Employees
S ocialE nvironment
Rank-based training
Skill improvement training
Basic training
Specialist training
Basic language training
Workplace training
Personal development
New employee training, career design training, and management training, etc.
Presentation skills training and business flow training, etc.
Basic job duties and basic technical knowledge, etc.
Training provided by manufacturers, etc.
OJT and new product/new technology training, etc.
Various distance learning courses, etc.
English conversation (beginner/intermediate) and Chinese (beginner/intermediate)
Line-up of training courses
24TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.23
Tachibana Eletech respects the diverse values of its employees
and aspires to achieve a balance between employee
self-realization and the growth of the company. To achieve this
balance, we make efforts to address issues such as human
resource development, work-life balance, diversity, harassment
prevention, respect for human rights, and childcare assistance.
Our goal is to create an environment where employees can grow
and find a sense of fulfillment.
We have created employee-friendly workplace environments
where workers can balance their professional and personal lives,
and we have established various action plans to fully harness the
skills and talents of our workforce.
For example, we have standardized, streamlined, and
leveled business processes, and eliminated our dependence on
individual expertise for certain business processes. We have also
created an environment that encourages eligible employees to
take childcare leave, and which makes it easier for them to return
to work after leave.
Since 2015, we have launched a partnership with Kenden
Industry Co., Ltd., our subsidiary that is engaged in the work of
replacing and repairing large motors.
As a result of the partnership, we
reached a record high in the number of
orders received for FY2015. Going
forward, we aim to continue increasing
the volume of orders for motor
replacement systems, and to
contribute to customers’ efforts to
conserve energy and improve
production efficiency.
Energy-saving inverters
Energy-saving datacollection servers
High-efficiency motors
High-efficiency transformers
Servomotor
Providing comprehensive support for energy conservation at factories
Tachibana Eletech offers a rich line-up of equipment and systems
to support energy conservation efforts and help reduce
environmental burden at production plants. By providing
“products + energy conservation technology,” we contribute to
helping customers conserve power and reduce CO2 emissions.
For example, the energy measurement unit and energy-saving
data collection server automatically collect information on energy
consumption and production yield, and assist in the visualization
of the utilization status of the facility. By doing so, they enable the
detection of energy loss, and further, allow for the visualization of
such data anytime and anywhere through the Internet.
In addition to these equipment and systems that support
energy conservation efforts, we also design and provide
comprehensive energy conservation plans by combining power
distribution equipment that minimizes energy loss, high-efficiency
transformers, high-efficiency motors, energy-saving inverter
control panels, and other systems. Of course, by proposing
solutions from the perspective of “energy conservation
professionals” who understand factories, such as enhancing the
maintenance and operation capabilities of systems or expediting
delivery through modular systems, we provide strong support to
our customers in their energy conservation activities.
Contributing to energy conservation through the use of LED lighting for high ceilings
Lighting systems for high ceilings, which are installed on the
ceilings of large-scale facilities such as factories, warehouses,
and stadiums, require large amounts of light. While mercury
lamps had traditionally been used for such lighting systems,
switching to LED lighting can provide significant energy savings.
LED not only consumes less power, but enables the instant
lighting or relighting that could not be achieved using
conventional light sources. Further energy savings can be
achieved through dimming controls that combine frequent on-off
switches with human sensors. As LED has a long lifespan,
maintenance costs can also be reduced.
Tachibana Eletech has built up a track record for replacing
lighting systems at the high ceilings of many factories, using as
our main product the “My Series” LED from Mitsubishi Electric
Lighting Co., Ltd., which offers a rich line-up of products that are
easy to install. We have even replaced 400 lighting units at one
go at a factory, where stable operations are a priority. By
harnessing the construction know-how that we have built up to
date, Tachibana Eletech will strive to meet the demand for LED
lighting works for high ceilings, which is anticipated to continue
growing in the
future, and to
contribute to energy
conservation efforts
at large-scale
facilities such as
factories and
warehouses across
Japan.
Realizing significant energy savings through motor replacement
It is said that much of the electricity consumed by factories is
consumed through motors. Hence, upgrading the motors to the
latest models not only improves production efficiency, but also
contributes to significant energy savings for the factory.
Tachibana Eletech has been engaged in the work of
replacing motors since 2012. The replacement of motors on the
automation line (servomotors) involves not only the replacement
of the motor inside the device, but also calls for skills and
know-how covering the “hardware” and “software” aspects, such
as remodeling and adjusting the peripheral equipment that is
connected to the motor. Tachibana Eletech has established
system technology that enables simultaneous motor replacement
and upgrade of the programmable controller (PLC) that is vital to
the automation line, and we position this as one of our strengths.
LED lighting for high ceilings
Basic Policy
Tachibana Eletech has established an education system aimed at
promoting the growth of individual employees and the
development of the organization.
Training Policy
Initiatives for Work-Life Balance
Tachibana Eletech has established a Code of Conduct for
employees that requires all officers and employees to thoroughly
comply with relevant laws during all their daily business activities,
as well as conform to social norms. We carry out compliance
training as necessary to ensure the faithful execution of these
practices. In May 2015, a training session was conducted based
on the case study of an incident that took place in another
company, which involved suspicions of bribery in the form of
favors for the top management of Japan Freight Railway
Company. This training session was also broadcast to the
respective branch offices and stores, and approximately 260
employees attended the training. Tachibana Eletech also
provides products and services to government offices, and
bribery is a problem that we are familiar with. This training helped
to raise awareness among the participants about their own
actions and conduct.
Compliance Training
In order to expand employment opportunities for the disabled,
we strive to promote the hiring of persons with disabilities and to
provide a working environment that is friendly to persons with
disabilities.
Employment of Persons with Disabilities
Mental HealthcareTachibana Eletech provides mental health check-ups at a
specialist institution for all employees every year.
Additionally, we have introduced the Advantage EAP, a private
sector service that supports workplace mental health mainly
through access to physicians. These services can be used at any
time to help solve problems faced by employees or their families.
Dissemination of Health NewsEvery month, we publish and disseminate information on diet
and health for the benefit of our employees.
“Human Training Hall” –Fostering Human CompetenceThe training facility named Risshikan, located in Sakai, Osaka,
comes with a Japanese-style room that is the size of 24 tatami
mats, called the “Human Training Hall.”
Here, amidst an atmosphere that is completely different from
the atmosphere at a classroom training, participants exchange
views in the style of a roundtable conference, and the food and
beverages are provided at the cost of the company in order to
encourage the active use of the facility. This training serves to
revitalize exchange among employees of different seniority levels
and different divisions, who normally do not have any interaction
with one another.
The aim for this venue for exchange is to reflect on the
situations Tachibana Eletech has overcome up to the present
day, with senior employees giving presentations about their
experiences to pass Tachibana Eletech DNA down to younger
employees.
By combining training that aims to enhance product and
technical knowledge, with the “Human Training Hall” training
conducted in the style of a roundtable conference, we strive to
improving the capabilities of each individual employee, and to
strengthening their sales and development capabilities.
Promoting Employee Health
177
12 1330
70
91
125
156180
120
60
0
60
40
20
0
Units OrdersNo. of units No. of orders
4242
34342929
25251919
993322
No. of orders for motor replacement works, and no. of units (cumulative)
84th fiscalperiod
First half
84th fiscalperiod
Second half
85th fiscalperiod
First half
85th fiscalperiod
Second half
86th fiscalperiod
First half
86th fiscalperiod
Second half
87th fiscalperiod
First half
87th fiscalperiod
Second half
Increasing Sales of Environmentally-Conscious Products Together with Employees
S ocial
First training program held for the directors of company bases
First intensive training program held for mid-career recruits
Training for supervisors/employees in charge of safety and health
Together with employees – Expanding our initiatives in rank-based training
President Watanabe explaining that TOH’s performance is the key to achieving the goals set forth in “C.C.J 2200”
Welcoming participants with a sign
In November 2015, employees working in the
respective companies under Tachibana Overseas
Holdings Ltd. (TOH), which oversees the Group’s
overseas strategy, visited the head office and
Risshikan (Training Center) as part of the TOH
Japan Tour 2015. This was the first such tour
organized by the Tachibana Eletech Group and
involved a total of 28 participants including the
top management of each company.
The visit to the head office was a fruitful
one. In addition to exchanges with each
business division, participants watched
demonstrations of the company’s proprietary
technology and gained an in-depth
understanding of the system engineering
business through the company’s proprietary
technology.
Participants laughing at jokes made by the top management of the business divisionsby the top management of the business divisions
At the social gathering event, participants performed a dance and other items, and friendships were forged.
The role of the managerial staff is important in ensuring that
employees on site are able to reach their full potential. To that
end, the company puts effort into providing training aimed at
fostering interpersonal and management skills of managers. Over
two days, on May 1 and 2, 2015, the FY2015 training for newly
appointed managers was held. 13 employees participated in this
training program, where they learned the requisite practical skills
that managers should have, including the fundamentals of the
company’s operating status and the profit and loss for each
department, CSR, credit management, and employment and
personnel
regulations. During
the annual “Human
Training Hall,” the
President delivered a
lecture on the “ideal
image of a manager”
that the company
needs.
Training for newly appointed managers
A new policy for company bases was drawn up by the Corporate
Executive Committee and Board of Directors on March 11, 2016.
While each company base has been affiliated with a division
of the company up to this point, they will now be taken charge of
by an executive officer, and be affiliated directly to the company.
On top of that, the strengthening of the Tachibana Eletech brand
has been established as the role of the company bases; they will
handle all the products and services of the four business divisions
(FA Systems, Semiconductors and Electronic Devices, Building
Services Systems, and Industrial Device Component Systems),
and they have been tasked with the mission of enhancing the
value of the company’s presence in their respective local regions.
Employees of each base will be required to acquire sales
capabilities for the products of these four businesses, while the
directors of the bases will be required to improve their
management abilities through the management of the bases.
Ahead of the reform of the company base policy, the first
training program for the directors of company bases was held on
February 26 and 27, 2016. The top 14 personnel of the branches
and sales offices as of April 1, 2016, attended the training, while
about 20 personnel including the Managing Operating Officer of
the FA Systems were present as observers. Through the training,
the directors of the bases gained a clearer understanding of their
mission and expectations of their roles from the company.
Tachibana Eletech is increasing its number of mid-career recruits
with the aim of strengthening our sales and technological
capabilities toward the achievement of the goals set forth in our
medium- to long-term management plan, “C.C.J 2200.” While we
anticipate that mid-career recruits will be immediately effective in
the workforce, it is also vital for them to share the philosophy and
awareness of the goals of Tachibana Eletech in order for them to
develop true capabilities that are linked directly with the growth of
the company. Hence, it is necessary to provide them with the
adequate training.
In light of that, an intensive training program, alongside with
Tachibana Eletech’s unique “Human Training Hall,” were held for
mid-career recruits of FY2015 on January 15 and 16, 2016. A total
of 21 employees participated in this training program, including three
general staff. At the “Human Training Hall,” the President delivered a
lecture, while the Managing Operating Officers of each business
division were also involved in the program that sought to foster a
sense of unity among the employees as members of Tachibana
Eletech, and to strengthen their motivation. Although individual
training for mid-career recruits has been conducted to date, this was
the first attempt to organize an intensive training program. Going
forward, there are
plans to conduct
such intensive
training once
every three to four
months.
Tachibana Eletech has established the position of
supervisors/employees in charge of safety and health in
accordance with the regulations for occupational safety and
health set forth in the company regulations. Training is provided
for these supervisors/employees in charge of safety and health,
and retraining is carried out once every five years. In addition,
since FY2014, due to the growth in demand for construction
projects, we have been conducting regular training for
supervisors/employees in charge of safety and health based on
the Industrial Safety and Health Act.
In FY2015, on November 13 and 14, 2015, this training
program was held at Tachibana Eletech’s training facility, Risshikan.
The number of applicants significantly exceeded the number that
was recruited (20 persons), so this session was attended by 27
employees from FA Systems, Building Services Systems, Solution
Systems, and
Management. Going
forward, we will continue to
hold such training
programs, and increase the
training opportunities
offered to
supervisors/employees in
charge of safety and health.
Nurturing human resources overseas and facilitating exchange through TOH Japan Tour 2015
Topics
Commemorative photograph taken upon arrival at the head office
26TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.25
S ocial
First training program held for the directors of company bases
First intensive training program held for mid-career recruits
Training for supervisors/employees in charge of safety and health
Together with employees – Expanding our initiatives in rank-based training
President Watanabe explaining that TOH’s performance is the key to achieving the goals set forth in “C.C.J 2200”
Welcoming participants with a sign
In November 2015, employees working in the
respective companies under Tachibana Overseas
Holdings Ltd. (TOH), which oversees the Group’s
overseas strategy, visited the head office and
Risshikan (Training Center) as part of the TOH
Japan Tour 2015. This was the first such tour
organized by the Tachibana Eletech Group and
involved a total of 28 participants including the
top management of each company.
The visit to the head office was a fruitful
one. In addition to exchanges with each
business division, participants watched
demonstrations of the company’s proprietary
technology and gained an in-depth
understanding of the system engineering
business through the company’s proprietary
technology.
Participants laughing at jokes made by the top management of the business divisionsby the top management of the business divisions
At the social gathering event, participants performed a dance and other items, and friendships were forged.
The role of the managerial staff is important in ensuring that
employees on site are able to reach their full potential. To that
end, the company puts effort into providing training aimed at
fostering interpersonal and management skills of managers. Over
two days, on May 1 and 2, 2015, the FY2015 training for newly
appointed managers was held. 13 employees participated in this
training program, where they learned the requisite practical skills
that managers should have, including the fundamentals of the
company’s operating status and the profit and loss for each
department, CSR, credit management, and employment and
personnel
regulations. During
the annual “Human
Training Hall,” the
President delivered a
lecture on the “ideal
image of a manager”
that the company
needs.
Training for newly appointed managers
A new policy for company bases was drawn up by the Corporate
Executive Committee and Board of Directors on March 11, 2016.
While each company base has been affiliated with a division
of the company up to this point, they will now be taken charge of
by an executive officer, and be affiliated directly to the company.
On top of that, the strengthening of the Tachibana Eletech brand
has been established as the role of the company bases; they will
handle all the products and services of the four business divisions
(FA Systems, Semiconductors and Electronic Devices, Building
Services Systems, and Industrial Device Component Systems),
and they have been tasked with the mission of enhancing the
value of the company’s presence in their respective local regions.
Employees of each base will be required to acquire sales
capabilities for the products of these four businesses, while the
directors of the bases will be required to improve their
management abilities through the management of the bases.
Ahead of the reform of the company base policy, the first
training program for the directors of company bases was held on
February 26 and 27, 2016. The top 14 personnel of the branches
and sales offices as of April 1, 2016, attended the training, while
about 20 personnel including the Managing Operating Officer of
the FA Systems were present as observers. Through the training,
the directors of the bases gained a clearer understanding of their
mission and expectations of their roles from the company.
Tachibana Eletech is increasing its number of mid-career recruits
with the aim of strengthening our sales and technological
capabilities toward the achievement of the goals set forth in our
medium- to long-term management plan, “C.C.J 2200.” While we
anticipate that mid-career recruits will be immediately effective in
the workforce, it is also vital for them to share the philosophy and
awareness of the goals of Tachibana Eletech in order for them to
develop true capabilities that are linked directly with the growth of
the company. Hence, it is necessary to provide them with the
adequate training.
In light of that, an intensive training program, alongside with
Tachibana Eletech’s unique “Human Training Hall,” were held for
mid-career recruits of FY2015 on January 15 and 16, 2016. A total
of 21 employees participated in this training program, including three
general staff. At the “Human Training Hall,” the President delivered a
lecture, while the Managing Operating Officers of each business
division were also involved in the program that sought to foster a
sense of unity among the employees as members of Tachibana
Eletech, and to strengthen their motivation. Although individual
training for mid-career recruits has been conducted to date, this was
the first attempt to organize an intensive training program. Going
forward, there are
plans to conduct
such intensive
training once
every three to four
months.
Tachibana Eletech has established the position of
supervisors/employees in charge of safety and health in
accordance with the regulations for occupational safety and
health set forth in the company regulations. Training is provided
for these supervisors/employees in charge of safety and health,
and retraining is carried out once every five years. In addition,
since FY2014, due to the growth in demand for construction
projects, we have been conducting regular training for
supervisors/employees in charge of safety and health based on
the Industrial Safety and Health Act.
In FY2015, on November 13 and 14, 2015, this training
program was held at Tachibana Eletech’s training facility, Risshikan.
The number of applicants significantly exceeded the number that
was recruited (20 persons), so this session was attended by 27
employees from FA Systems, Building Services Systems, Solution
Systems, and
Management. Going
forward, we will continue to
hold such training
programs, and increase the
training opportunities
offered to
supervisors/employees in
charge of safety and health.
Nurturing human resources overseas and facilitating exchange through TOH Japan Tour 2015
Topics
Commemorative photograph taken upon arrival at the head office
26TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.25
S ocial
Company-wide qualitymanagement manager
Quality, Safety andEnvironmental Control Office
Business executive officer
Business executive officer
(Quality Committee)
(Management review)
(Management review)
(Management review) (Quality Committee)
(Quality Committee)
(Management)
Business executive officer
President
While the design, development, and contract manufacturing
divisions (Technology Headquarters, Semiconductor Technology
Headquarters, MS Headquarters), which are engaged in the work
of manufacturing, have previously acquired ISO9001
accreditation for quality management systems, all divisions
engaged in the semiconductors and electronic devices business
(sales, planning, technological support, and quality management)
Quality Management System
Engagement with Clients and Suppliers Symbiosis with local communities and society
began taking steps toward the acquisition of the certification in
October 2014. In August 2015, it acquired the certification.
Efforts are underway to implement activities to improve the
quality of products and services with the aim of raising
awareness on quality management among all employees in the
semiconductors and electronic devices business, and to improve
customer satisfaction.
Quality Management System Diagram
Quality Internal AuditCommittee
Semiconductors andElectronic Devices
Business quality management manager
Solution SystemsBusiness quality management manager
Manufacturing ServicesBusiness quality management manager
Sales divisionRespective sales headquartersTechnological support divisionsQuality management divisions
Semiconductor TechnologyDivision (development)
Technology Division
MS Division
Donation of the disaster prevention equipment, Seismic Relay, to an Important Cultural Property
The Seismic Relay equipment sold by Tachibana Eletech is used
to prevent fires arising from the recovery of the power supply after
an earthquake strikes. The Annual Convention of the Kinki
Chapter of the Japan Institute of Architects, pertaining to the
planning and commercialization of this equipment, was held on
November 13, 2015 in Nara City. This Convention was held at the
Nara Episcopal Church (built in 1930), which is renowned as a
church built in a Japanese architectural style. It was designated
as an Important Cultural Property in July last year. Tachibana
Eletech promoted the importance of
the Seismic Relay equipment at the
concurrently held Nara Prefecture
Disaster Prevention Symposium, and
also donated and installed six Seismic
Relay units to the church jointly with
the Japan Institute of Architects.
Participation as volunteers in the repair of World Heritage structures
On November 22, 2015, 14 employees of Tachibana Eletech and
11 members of their families, making a total of 25 people,
participated in the Pilgrimage Route Environmental Conservation
Activity for 100,000 People (organized by Wakayama Prefecture),
which works on repairing the World Heritage, “Sacred Sites and
Pilgrimage Routes in the Kii Mountain Range” so as to pass them
on to future generations in good condition. The work involved
strengthening the mountain trails by transporting approximately 1
ton of earth for about 100 meters, and all the participants worked
enthusiastically despite becoming drenched in sweat. We also
participated as Road Repair
Volunteers at Mount Koya in
2013, as part of the company’s
social contribution activities. This
activity, which was held for the
second time, was featured on
the website of Wakayama
Prefecture.
Implementation of regular blood donation drives in the company as an accessible social contribution
In the summer and winter seasons, there is a particular shortage
of the supply of blood for transfusions, which is needed for
patients who are ill or who have met with an accident. In view of
this, Tachibana Eletech, in cooperation with the Japanese Red
Cross Society, carries out a blood donation drive twice a year at
the head office. This was implemented twice in FY2015, in
August and March of the following year. Blood was collected
from 45 people over the two
days. Tachibana Eletech has
positioned blood donation as
an accessible social
contribution activity and has
been implementing the
activity in the company on a
regular basis since 2013.
Cooperating on fund-raising activities to support the training of guide dogs
Tachibana Eletech has been engaged in
ongoing fund-raising activities aimed at
providing support for the training of guide
dogs. The training of guide dogs, who serve
as “eyes” and friends to the visually-impaired,
costs more than 5 million yen per dog. In
order to support the Guide Dog Associations
in various parts of Japan, Tachibana Eletech
has set up collection boxes on the 7F
cafeteria at the head office to collect funds
from employees. In July 2015, the company
received a Letter of Appreciation from the
Hyogo Guide Dogs for the Blind Association
to thank the company for its efforts.
Letter of appreciation for conducting visiting environmental classes at elementary schools
Tachibana Eletech conducts visiting environmental classes at
elementary schools around Japan. These classes are conducted
several times a year and have been an ongoing initiative by the
company. In 2015, employees of Tachibana Eletech and our
partner companies took on the role of lecturers in this program
and visited three schools including Kyoto Municipal Kamikawa
Elementary School to conduct environmental classes. During the
classes, they explained to the children about the energy-saving
functions of LED lighting, the mechanisms of wind and solar power
generation, and other topics. In June
2015, Miyako Agenda 21 Forum, an
environmental activity organization,
presented a letter of appreciation to
Tachibana Eletech for the second time
in commendation of this initiative.
Implementation of regular cleanup activities in the local community
On October 16, 2015, Tachibana Eletech participated in the Osaka
Marathon “Cleanup Campaign” (organized by Osaka City). Before
the start of the work day, 33 volunteers participated in the mass
cleaning of the areas near the head office. This was the sixth time
that we have participated in the event, and the number of
participants was at a record high. The mass cleanup activity by new
employees was also carried out as in previous years. In addition,
triggered by reviews of the ISO14001 Environmental Management
System, the Hokuriku Branch
commenced cleanup activities in the
vicinity of its offices from October and
has been cleaning up fallen leaves from
trees by the roadside almost every day.
The cleanup activities in the local
community have become established
as an annual event for the company.
As semiconductors make up a very large share of the products
we carry, we have established a Semiconductor Quality Control
Office as a dedicated department for strengthening quality
control. The Office has the following main responsibilities:
(1) Deal with defects in semiconductor products: When
defects are discovered in delivered products, the Office works
with the supplier to identify the cause and come up with
countermeasures.
(2) Manage environmental chemicals in semiconductor products: In response to customer requests, the Office examines
whether or not there are hazardous substances contained in
products and prepares reports on the quantities.
(3) Audit new suppliers: The Office conducts advanced
investigations into whether or not new suppliers can deliver the
required quality.
In the year ended March 2014, the Office increased its specialist staff
in order to accommodate a recent increase in the number of
requests for environmental chemical investigations and conflict
mineral resource investigations made by customers.
The Office is currently pursuing quality enhancement efforts on
such themes as the strengthening of the logistics management
system, quality control education programs for sales representatives,
and the creation of a database of environmental chemicals.
In the year ended March 2016, we received about 300 inquiries
related to product quality and about 9,000 inquiries related to
environmental issues.
Quality Management System for Semiconductorsproducts and cheaper prices. With consideration to the
subsequent broadening of the scope of suppliers, we have a
Factory Auditing Officer in the Quality, Safety & Environmental
Control Office (QSE) in order to ensure the quality control of
products procured. The Factory Auditing Officer regularly checks
plants, technologies, and production systems of suppliers from
the perspective of quality control, and requests improvements
when problems are identified. We thus provide products to
customers in a manner where we can take responsibility for the
quality and delivery of products at all times.
In the year ended March 2016, we audited a total of 14
plants (12 of which are located overseas). Of these plants, we
sought improvements for four and remedial measures were
subsequently taken for all of them.
In addition, we joined the Kyoto Implementation Technology
Study Group with the aim of learning about the latest
technologies and improving the skills of our electrical and
electronics technical staff. Staff improved their soldering skills
and learned about the latest implementation technology, took
leadership in contract manufacturing, and worked toward
speedily analyzing the causes of defective products.
We have been seeking out new suppliers both in Japan and
overseas in response to customers’ calls for higher-quality
Audits Covering the Plants of Suppliers
Tachibana Eletech created a policy on the environment and CSR
procurement as part of its commitment to strengthen its CSR
activities and maintain its fair business practices, based on the
development of long-term and productive relationships with its
suppliers. All procurement activities must maintain fairness and
the decision to begin or continue a business relationship is
determined based on a comprehensive evaluation of the
supplier’s compliance with laws and social norms and its
consideration for the environment.
Policy on the Environment and CSR Procurement
28TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.27
S ocial
Company-wide qualitymanagement manager
Quality, Safety andEnvironmental Control Office
Business executive officer
Business executive officer
(Quality Committee)
(Management review)
(Management review)
(Management review) (Quality Committee)
(Quality Committee)
(Management)
Business executive officer
President
While the design, development, and contract manufacturing
divisions (Technology Headquarters, Semiconductor Technology
Headquarters, MS Headquarters), which are engaged in the work
of manufacturing, have previously acquired ISO9001
accreditation for quality management systems, all divisions
engaged in the semiconductors and electronic devices business
(sales, planning, technological support, and quality management)
Quality Management System
Engagement with Clients and Suppliers Symbiosis with local communities and society
began taking steps toward the acquisition of the certification in
October 2014. In August 2015, it acquired the certification.
Efforts are underway to implement activities to improve the
quality of products and services with the aim of raising
awareness on quality management among all employees in the
semiconductors and electronic devices business, and to improve
customer satisfaction.
Quality Management System Diagram
Quality Internal AuditCommittee
Semiconductors andElectronic Devices
Business quality management manager
Solution SystemsBusiness quality management manager
Manufacturing ServicesBusiness quality management manager
Sales divisionRespective sales headquartersTechnological support divisionsQuality management divisions
Semiconductor TechnologyDivision (development)
Technology Division
MS Division
Donation of the disaster prevention equipment, Seismic Relay, to an Important Cultural Property
The Seismic Relay equipment sold by Tachibana Eletech is used
to prevent fires arising from the recovery of the power supply after
an earthquake strikes. The Annual Convention of the Kinki
Chapter of the Japan Institute of Architects, pertaining to the
planning and commercialization of this equipment, was held on
November 13, 2015 in Nara City. This Convention was held at the
Nara Episcopal Church (built in 1930), which is renowned as a
church built in a Japanese architectural style. It was designated
as an Important Cultural Property in July last year. Tachibana
Eletech promoted the importance of
the Seismic Relay equipment at the
concurrently held Nara Prefecture
Disaster Prevention Symposium, and
also donated and installed six Seismic
Relay units to the church jointly with
the Japan Institute of Architects.
Participation as volunteers in the repair of World Heritage structures
On November 22, 2015, 14 employees of Tachibana Eletech and
11 members of their families, making a total of 25 people,
participated in the Pilgrimage Route Environmental Conservation
Activity for 100,000 People (organized by Wakayama Prefecture),
which works on repairing the World Heritage, “Sacred Sites and
Pilgrimage Routes in the Kii Mountain Range” so as to pass them
on to future generations in good condition. The work involved
strengthening the mountain trails by transporting approximately 1
ton of earth for about 100 meters, and all the participants worked
enthusiastically despite becoming drenched in sweat. We also
participated as Road Repair
Volunteers at Mount Koya in
2013, as part of the company’s
social contribution activities. This
activity, which was held for the
second time, was featured on
the website of Wakayama
Prefecture.
Implementation of regular blood donation drives in the company as an accessible social contribution
In the summer and winter seasons, there is a particular shortage
of the supply of blood for transfusions, which is needed for
patients who are ill or who have met with an accident. In view of
this, Tachibana Eletech, in cooperation with the Japanese Red
Cross Society, carries out a blood donation drive twice a year at
the head office. This was implemented twice in FY2015, in
August and March of the following year. Blood was collected
from 45 people over the two
days. Tachibana Eletech has
positioned blood donation as
an accessible social
contribution activity and has
been implementing the
activity in the company on a
regular basis since 2013.
Cooperating on fund-raising activities to support the training of guide dogs
Tachibana Eletech has been engaged in
ongoing fund-raising activities aimed at
providing support for the training of guide
dogs. The training of guide dogs, who serve
as “eyes” and friends to the visually-impaired,
costs more than 5 million yen per dog. In
order to support the Guide Dog Associations
in various parts of Japan, Tachibana Eletech
has set up collection boxes on the 7F
cafeteria at the head office to collect funds
from employees. In July 2015, the company
received a Letter of Appreciation from the
Hyogo Guide Dogs for the Blind Association
to thank the company for its efforts.
Letter of appreciation for conducting visiting environmental classes at elementary schools
Tachibana Eletech conducts visiting environmental classes at
elementary schools around Japan. These classes are conducted
several times a year and have been an ongoing initiative by the
company. In 2015, employees of Tachibana Eletech and our
partner companies took on the role of lecturers in this program
and visited three schools including Kyoto Municipal Kamikawa
Elementary School to conduct environmental classes. During the
classes, they explained to the children about the energy-saving
functions of LED lighting, the mechanisms of wind and solar power
generation, and other topics. In June
2015, Miyako Agenda 21 Forum, an
environmental activity organization,
presented a letter of appreciation to
Tachibana Eletech for the second time
in commendation of this initiative.
Implementation of regular cleanup activities in the local community
On October 16, 2015, Tachibana Eletech participated in the Osaka
Marathon “Cleanup Campaign” (organized by Osaka City). Before
the start of the work day, 33 volunteers participated in the mass
cleaning of the areas near the head office. This was the sixth time
that we have participated in the event, and the number of
participants was at a record high. The mass cleanup activity by new
employees was also carried out as in previous years. In addition,
triggered by reviews of the ISO14001 Environmental Management
System, the Hokuriku Branch
commenced cleanup activities in the
vicinity of its offices from October and
has been cleaning up fallen leaves from
trees by the roadside almost every day.
The cleanup activities in the local
community have become established
as an annual event for the company.
As semiconductors make up a very large share of the products
we carry, we have established a Semiconductor Quality Control
Office as a dedicated department for strengthening quality
control. The Office has the following main responsibilities:
(1) Deal with defects in semiconductor products: When
defects are discovered in delivered products, the Office works
with the supplier to identify the cause and come up with
countermeasures.
(2) Manage environmental chemicals in semiconductor products: In response to customer requests, the Office examines
whether or not there are hazardous substances contained in
products and prepares reports on the quantities.
(3) Audit new suppliers: The Office conducts advanced
investigations into whether or not new suppliers can deliver the
required quality.
In the year ended March 2014, the Office increased its specialist staff
in order to accommodate a recent increase in the number of
requests for environmental chemical investigations and conflict
mineral resource investigations made by customers.
The Office is currently pursuing quality enhancement efforts on
such themes as the strengthening of the logistics management
system, quality control education programs for sales representatives,
and the creation of a database of environmental chemicals.
In the year ended March 2016, we received about 300 inquiries
related to product quality and about 9,000 inquiries related to
environmental issues.
Quality Management System for Semiconductorsproducts and cheaper prices. With consideration to the
subsequent broadening of the scope of suppliers, we have a
Factory Auditing Officer in the Quality, Safety & Environmental
Control Office (QSE) in order to ensure the quality control of
products procured. The Factory Auditing Officer regularly checks
plants, technologies, and production systems of suppliers from
the perspective of quality control, and requests improvements
when problems are identified. We thus provide products to
customers in a manner where we can take responsibility for the
quality and delivery of products at all times.
In the year ended March 2016, we audited a total of 14
plants (12 of which are located overseas). Of these plants, we
sought improvements for four and remedial measures were
subsequently taken for all of them.
In addition, we joined the Kyoto Implementation Technology
Study Group with the aim of learning about the latest
technologies and improving the skills of our electrical and
electronics technical staff. Staff improved their soldering skills
and learned about the latest implementation technology, took
leadership in contract manufacturing, and worked toward
speedily analyzing the causes of defective products.
We have been seeking out new suppliers both in Japan and
overseas in response to customers’ calls for higher-quality
Audits Covering the Plants of Suppliers
Tachibana Eletech created a policy on the environment and CSR
procurement as part of its commitment to strengthen its CSR
activities and maintain its fair business practices, based on the
development of long-term and productive relationships with its
suppliers. All procurement activities must maintain fairness and
the decision to begin or continue a business relationship is
determined based on a comprehensive evaluation of the
supplier’s compliance with laws and social norms and its
consideration for the environment.
Policy on the Environment and CSR Procurement
28TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.27
S
Tachibana Eletech recognizes the strengthening of corporate governance as an important management issue and promotes the
enhancement of our internal control system. At the same time, we have established the basic policy of enhancing our corporate value by
continuing to carry out our business activities under a management system that is sound and transparent.
Appointment & Dismissal
Report
Appointment & Dismissal
Appointment & DismissalCollaboration
Collaboration
lnternal Audit
Collaboration
Report Instruction & Supervision
Appointment &Dismissal
Execution of business operations
Instruction
Cooperation & Guidance
Appointment & Dismissal
Monitoring & Control
Audit
(Determination of adequacy)
President Corporate ExecutiveCommittee
General Meeting of SharehoIders
Acco
untingA
udito
r
Finance & Administration Headquarters
Corporate StrategyOffice
Each department/Branch Office and Office/Group company
Whistle-blowing
Corporate Governance Structure
Board of Directors13
5 4
6
Monitoring & Report
Board of Auditors
Auditors’ Office
CSR Development Officer
2
Compliance Office
Quality, Safety & Environmental Control Office
Financial Audit Department
Board of DirectorsThe Board of Directors comprises six members and meets every
month in regular meetings and also in extraordinary meetings
convened when necessary. Two of the six directors are outside
directors, and we aim to strengthen the oversight of
management by improving the transparency and reliability of the
Board of Directors, as well as making meetings more dynamic
through the opinions, advice and checks of those outside
directors. Meetings of the Board of Directors were convened 13
times in the fiscal year under review, where active discussions
were held on resolutions and reports.
Board of AuditorsThe Board of Auditors formulates and implements audit policies,
audit plans, audit methods, allocation of audit operations, etc.,
and exchanges opinions with an independent auditing company.
Meetings of the Board of Auditors were convened seven times
during the fiscal year under review. Two of the three corporate
auditors are outside auditors who serve as independent officers.
Accounting AuditorDeloitte Touche Tohmatsu LLC has been contracted to serve as
our accounting auditor in order to perform accounting audits in
accordance with the Companies Act and the Financial
Instruments and Exchange Act. There are no special vested
interests that exist between Tachibana Eletech and Deloitte
Touche Tohmatsu and their audit engagement partners that
perform audits for us.
Corporate Executive CommitteeThe Corporate Executive Committee is comprised of 15
operating officers selected by the Board of Directors. The
operating officers carry out duties quickly and pertinently based
on management policy decided upon at meetings of the Board of
Directors and accommodate sudden changes in management
environment in an agile and appropriate manner, under the
supervision of the Board of Directors. Meetings of the Corporate
Executive Committee were convened 15 times in the fiscal year
under review.
Auditors’ OfficeThe Auditors’ Office is an independent organization that directly
reports to the President that is responsible for carrying out
internal audits. The office strives to improve the company’s
internal control by investigating the management of operations
and assets in accordance with the Internal Audit Rules stipulated
by the company.
Compliance OfficeThe Compliance Office requests that related departments
prepare manuals such as practical sales manuals and individual
rules related to accounting matters to facilitate risk management
and internal audit activities. The Compliance Office also makes
the importance of the internal audit known to the entire company.
A structure has been put in place so that the President, Directors
in Charge and the Board of Directors can quickly ascertain the
situation when the risk of business losses is detected.
1 4
5
6
2
3
Corporate Governance Structure and Initiatives Board of Directors and Auditors (as of June 29, 2016)
Hitoshi YamaguchiAs a Managing Operating Officer, Mr. Yamaguchi oversees the FA
Systems Business Division. Since joining Tachibana Eletech, he has
been engaged in sales and planning work in the factory automation
equipment sector. To date, he has built up a track record in
activities that look toward the future of the FA Systems Business
Division, such as establishing a retail store organization that serves
as the foundation for the growth of the FA equipment sector. As the
Managing Operating Officer in charge of the FA Systems Business
Division, which is a core business of the company, he possesses a
wide range of know-how and experience to enable him to resolve
diverse issues confidently and achieve growth for the sector to a
level exceeding net sales of JPY60 billion.
Sadayuki TakamiAs a Managing Operating Officer, Mr. Takami oversees the
Semiconductors and Electronic Devices Business Division. Since
joining Tachibana Eletech, he has been engaged in the sale of
semiconductors and electronic devices, and has also gained rich
experience in Japan and overseas, serving as the Director of the
representative office in Singapore. The semiconductor industry
faces rapid and intense changes in the business environment, but
Mr. Takami possesses strategic thinking abilities that enable him to
overcome adversity in such an environment, and is fully capable of
leading the management of this business and increasing the
procurement of overseas semiconductors, etc.
Hisanobu NunoyamaAs a Managing Operating Officer, Mr. Nunoyama oversees the
Tokyo Branch Office and overseas operations. After engaging in
the sale of semiconductors in Japan, he went on to focus on the
sale of semiconductors and industrial mechatronic products in
China and Southeast Asia, and significantly expanded the
overseas operations and bases. From April 2007 to March 2016,
he served as the Managing Director of the holdings company,
TACHIBANA OVERSEAS HOLDINGS LTD., which manages the
overseas subsidiaries of the Group. During this time, he looked
after eight subsidiaries and 14 bases overseas and contributed to
their growth, which reached a level exceeding net sales of JPY23
billion. He has demonstrated his capabilities not only in sales but
also in the management of the subsidiary companies.
Yoichi AikawaSince joining Mitsubishi Electric Corporation, Mr. Aikawa has taken
charge of the electric and energy sectors. He currently serves as
the Vice President of the Kansai Office, and his expertise and
powers of discernment will certainly contribute to his ability to
provide Tachibana Eletech with advice and recommendations on
management going forward.
Introduction to newly appointed Directors
Takeo WatanabePresident,
CEO & COO
President and CEO
Hitoshi YamaguchiDirector
Managing Operating OfficerIn charge of the FA Systems and Head Office bases, and head of the Robot Systems Strategy Office
Sadayuki TakamiDirector
Managing Operating OfficerIn charge of the Semiconductors and Electronics Devices
Hisanobu NunoyamaDirector
Managing Operating OfficerDirector of the Tokyo Branch Office, in charge of Tokyo Branch Office bases and the Overseas Operations
Yoichi AikawaExternal Director
Vice President of the Kansai Branch and General Manager of the Business Promotion Division, Mitsubishi Electric Corporation
Masato TsujikawaExternal Director
Kansai Law & Patent OfficeStaff attorney
Genichi MasudaStanding Auditor
Yasuhiro OtaniExternal Auditor
Certified Public AccountantRepresentative employee of KVI LicensedTax Accountant Corporation
Hiroumi ShiojiExternal Auditor
Attorney at lawDirector of Shioji Law Office
Governance
30TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.29
S
Tachibana Eletech recognizes the strengthening of corporate governance as an important management issue and promotes the
enhancement of our internal control system. At the same time, we have established the basic policy of enhancing our corporate value by
continuing to carry out our business activities under a management system that is sound and transparent.
Appointment & Dismissal
Report
Appointment & Dismissal
Appointment & DismissalCollaboration
Collaboration
lnternal Audit
Collaboration
Report Instruction & Supervision
Appointment &Dismissal
Execution of business operations
Instruction
Cooperation & Guidance
Appointment & Dismissal
Monitoring & Control
Audit
(Determination of adequacy)
President Corporate ExecutiveCommittee
General Meeting of SharehoIders
Acco
untingA
udito
r
Finance & Administration Headquarters
Corporate StrategyOffice
Each department/Branch Office and Office/Group company
Whistle-blowing
Corporate Governance Structure
Board of Directors13
5 4
6
Monitoring & Report
Board of Auditors
Auditors’ Office
CSR Development Officer
2
Compliance Office
Quality, Safety & Environmental Control Office
Financial Audit Department
Board of DirectorsThe Board of Directors comprises six members and meets every
month in regular meetings and also in extraordinary meetings
convened when necessary. Two of the six directors are outside
directors, and we aim to strengthen the oversight of
management by improving the transparency and reliability of the
Board of Directors, as well as making meetings more dynamic
through the opinions, advice and checks of those outside
directors. Meetings of the Board of Directors were convened 13
times in the fiscal year under review, where active discussions
were held on resolutions and reports.
Board of AuditorsThe Board of Auditors formulates and implements audit policies,
audit plans, audit methods, allocation of audit operations, etc.,
and exchanges opinions with an independent auditing company.
Meetings of the Board of Auditors were convened seven times
during the fiscal year under review. Two of the three corporate
auditors are outside auditors who serve as independent officers.
Accounting AuditorDeloitte Touche Tohmatsu LLC has been contracted to serve as
our accounting auditor in order to perform accounting audits in
accordance with the Companies Act and the Financial
Instruments and Exchange Act. There are no special vested
interests that exist between Tachibana Eletech and Deloitte
Touche Tohmatsu and their audit engagement partners that
perform audits for us.
Corporate Executive CommitteeThe Corporate Executive Committee is comprised of 15
operating officers selected by the Board of Directors. The
operating officers carry out duties quickly and pertinently based
on management policy decided upon at meetings of the Board of
Directors and accommodate sudden changes in management
environment in an agile and appropriate manner, under the
supervision of the Board of Directors. Meetings of the Corporate
Executive Committee were convened 15 times in the fiscal year
under review.
Auditors’ OfficeThe Auditors’ Office is an independent organization that directly
reports to the President that is responsible for carrying out
internal audits. The office strives to improve the company’s
internal control by investigating the management of operations
and assets in accordance with the Internal Audit Rules stipulated
by the company.
Compliance OfficeThe Compliance Office requests that related departments
prepare manuals such as practical sales manuals and individual
rules related to accounting matters to facilitate risk management
and internal audit activities. The Compliance Office also makes
the importance of the internal audit known to the entire company.
A structure has been put in place so that the President, Directors
in Charge and the Board of Directors can quickly ascertain the
situation when the risk of business losses is detected.
1 4
5
6
2
3
Corporate Governance Structure and Initiatives Board of Directors and Auditors (as of June 29, 2016)
Hitoshi YamaguchiAs a Managing Operating Officer, Mr. Yamaguchi oversees the FA
Systems Business Division. Since joining Tachibana Eletech, he has
been engaged in sales and planning work in the factory automation
equipment sector. To date, he has built up a track record in
activities that look toward the future of the FA Systems Business
Division, such as establishing a retail store organization that serves
as the foundation for the growth of the FA equipment sector. As the
Managing Operating Officer in charge of the FA Systems Business
Division, which is a core business of the company, he possesses a
wide range of know-how and experience to enable him to resolve
diverse issues confidently and achieve growth for the sector to a
level exceeding net sales of JPY60 billion.
Sadayuki TakamiAs a Managing Operating Officer, Mr. Takami oversees the
Semiconductors and Electronic Devices Business Division. Since
joining Tachibana Eletech, he has been engaged in the sale of
semiconductors and electronic devices, and has also gained rich
experience in Japan and overseas, serving as the Director of the
representative office in Singapore. The semiconductor industry
faces rapid and intense changes in the business environment, but
Mr. Takami possesses strategic thinking abilities that enable him to
overcome adversity in such an environment, and is fully capable of
leading the management of this business and increasing the
procurement of overseas semiconductors, etc.
Hisanobu NunoyamaAs a Managing Operating Officer, Mr. Nunoyama oversees the
Tokyo Branch Office and overseas operations. After engaging in
the sale of semiconductors in Japan, he went on to focus on the
sale of semiconductors and industrial mechatronic products in
China and Southeast Asia, and significantly expanded the
overseas operations and bases. From April 2007 to March 2016,
he served as the Managing Director of the holdings company,
TACHIBANA OVERSEAS HOLDINGS LTD., which manages the
overseas subsidiaries of the Group. During this time, he looked
after eight subsidiaries and 14 bases overseas and contributed to
their growth, which reached a level exceeding net sales of JPY23
billion. He has demonstrated his capabilities not only in sales but
also in the management of the subsidiary companies.
Yoichi AikawaSince joining Mitsubishi Electric Corporation, Mr. Aikawa has taken
charge of the electric and energy sectors. He currently serves as
the Vice President of the Kansai Office, and his expertise and
powers of discernment will certainly contribute to his ability to
provide Tachibana Eletech with advice and recommendations on
management going forward.
Introduction to newly appointed Directors
Takeo WatanabePresident,
CEO & COO
President and CEO
Hitoshi YamaguchiDirector
Managing Operating OfficerIn charge of the FA Systems and Head Office bases, and head of the Robot Systems Strategy Office
Sadayuki TakamiDirector
Managing Operating OfficerIn charge of the Semiconductors and Electronics Devices
Hisanobu NunoyamaDirector
Managing Operating OfficerDirector of the Tokyo Branch Office, in charge of Tokyo Branch Office bases and the Overseas Operations
Yoichi AikawaExternal Director
Vice President of the Kansai Branch and General Manager of the Business Promotion Division, Mitsubishi Electric Corporation
Masato TsujikawaExternal Director
Kansai Law & Patent OfficeStaff attorney
Genichi MasudaStanding Auditor
Yasuhiro OtaniExternal Auditor
Certified Public AccountantRepresentative employee of KVI LicensedTax Accountant Corporation
Hiroumi ShiojiExternal Auditor
Attorney at lawDirector of Shioji Law Office
Governance
30TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.29
Our Initiatives
Portable Disaster Preparedness Sheet
Relationship with Shareholders and the Investment Community Compliance and Risk Management Structure and Initiatives
Company Briefings for Individual InvestorsWe participate in joint IR presentations for individual investors
and also hold our own company briefings for individual investors
in order to broaden knowledge about our businesses and
business policy among larger numbers of individual investors.
In the fiscal year under review, we held company briefing
sessions for individual investors at the Osaka branches of
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. in June,
Nomura Securities Co., Ltd. in September, and SMBC Nikko
Securities Inc. in March. All the sessions were attended by large
audiences.
We will continue to further promote an understanding of our
company in order to improve our visibility and recognition.
The Tachibana Eletech Group complies with all relevant laws and
ordinances while also respecting social norms. We strive to act
as responsible and independent members of society with a
sound conscious and all Tachibana Eletech Group employees
carefully abide by our Compliance Management Regulations that
contain guidelines on standards of conduct.
Individual briefing sessions for institutional investorsWe hold individual briefings for institutional investors with the
goal of increasing our market cap through improved corporate
value and achieving of a fair stock price.
During the fiscal year under review, these briefings were held
on more than 30 occasions, where we strived to promote an
understanding of institutional investors about our unique qualities
and strength as a company.
As the highest decision-making organ, shareholders’ meetings
make decisions on important matters and hear reports on the
auditing results of consolidated financial statements.
Shareholders can now exercise their voting rights over the
Internet using their computer or smartphone.
Additionally, a more informal gathering is held after the
shareholders’ meeting to deepen communication with
shareholders and help them to further understand the company.
Measures for Shareholders’ Meetings
We offer a rich collection of IR tools to help educate shareholders
and the investment community about our company and its
business performance.
• Annual report
• Shareholder newsletter
• Datasheet (5 years of consolidated financial statements)
• Stock Voice – an Internet TV show for individual investors
• Corporate ads in IR magazines
• IR section of our corporate website
Rich IR Media
Enhancing Corporate Value through Investor Relations Activities
Standards of DisclosureTo achieve honest and highly transparent management, we
comply with all applicable laws and carry out business activities
according to highly esteemed corporate ethics, and we strive to
provide information to shareholders and the investment
community in a timely manner. Our disclosures are fully in line
with the timely disclosure rules set by the securities exchange
and other related laws, such as the Companies Act and Financial
Instruments and Exchange Act.
Earnings Presentations for Institutional Investors and Securities AnalystsWe hold earnings presentations for securities analysts and
institutional investors twice a year in Tokyo—once for full-year
business results and another for interim results. Earnings
presentation materials are published on our corporate website in
a downloadable PDF format.
Additionally, we hold company briefings for sales
representatives of securities companies from time to time based
on the expected future increase in shareholders.
Company briefing session for individual investors held at SMBC Nikko Securities Inc.
IR section of our corporate website Internet TV show Stock Voice
We have established a hotline for employees to report and
receive consultation on compliance violations. This hotline is
made known to all employees and is run appropriately to ensure
that employees reporting a violation are not subjected to unfair
treatment. This ensures the early detection of issues.
Compliance Hotline
As a technology-driven specialized trading company, we have
established a dedicated department for the management of
intellectual properties that responds to disputes concerning the
intellectual properties and the protection of rights. Additionally,
we have a system in play to compensate for employees’
inventions, which has heightened motivation in inventions.
Management of Intellectual Properties
In order to ensure the safety of employees and continuation of
business activities in preparation for major disasters, we have
defined our response protocol at the time of disasters, while
stockpiling emergency rations and training employees. We
believe that safeguarding the lives of our employees and
contributing to the continuity of our customers’ businesses
represents one aspect of our corporate social responsibilities,
and have established a business continuity plan to respond to
unpredictable situations.
Business Continuity Plan (BCP)
Operational risks are constantly evolving and their impacts may
also change. We prevent crises by identifying risks every year and
analyzing, assessing and addressing these risks. If such risks
emerge, our goal is to minimize damages to every extent possible.
Risk Management System
We handle the personal information of customers and information
related to products and services according to a contract.
Therefore, we are seeking to strengthen our information security
system and maintain and manage it at a high level, from various
security system implementations to conducting awareness
education for employees, in order to protect myriad information
assets handed from customers in a more rigorous manner.
• Stepped up security with installation of a building access
system that uses RFID
• Preventing data leakages with thin client PCs
• Security management and maintenance of records when
company-owned PCs are taken offsite
• Set BIOS* passwords
• Installed encryption software for hard disk drive
• Encryption of e-mail attachments
Information Security System
The following basic policy has been established in response to
anti-social forces. Both officers and employees alike comply with
this policy to ensure the security and the appropriateness of our
operations.
1. Response as an organization
2. Coordination with external specialist institutions
3. Shutting off all relationships, including transactional ones
4. Civil and criminal legislative response for any incidents
5. Prohibition of backdoor trade and the provision of funds
Basic Policy on Anti-Social Forces
* BIOS (Basic Input Output System): Refers to a basic program that controls devices connected to a PC, such as disk drives, keyboards, and graphics, etc.
Risk Management System Diagram
Stakeholders
CorporationLawyer
Directors/Auditors
Head of ResponseHeadquarters (President)
Whistleblower ofAccident or Incident
Emergency ResponseHeadquarters
Departmentsin Charge
In-house Reporting/Consultations
(Compliance Office)
RelatedDepartments
Reporting
ReportingReporting
Reporting
Instructions
Reporting
Reporting
Instructions
Instructions
Instructions
Disclosure
Reporting/Consultation
Reporting/Consultation
Compliance and Risk ManagementG overnance
32TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.31
Our Initiatives
Portable Disaster Preparedness Sheet
Relationship with Shareholders and the Investment Community Compliance and Risk Management Structure and Initiatives
Company Briefings for Individual InvestorsWe participate in joint IR presentations for individual investors
and also hold our own company briefings for individual investors
in order to broaden knowledge about our businesses and
business policy among larger numbers of individual investors.
In the fiscal year under review, we held company briefing
sessions for individual investors at the Osaka branches of
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. in June,
Nomura Securities Co., Ltd. in September, and SMBC Nikko
Securities Inc. in March. All the sessions were attended by large
audiences.
We will continue to further promote an understanding of our
company in order to improve our visibility and recognition.
The Tachibana Eletech Group complies with all relevant laws and
ordinances while also respecting social norms. We strive to act
as responsible and independent members of society with a
sound conscious and all Tachibana Eletech Group employees
carefully abide by our Compliance Management Regulations that
contain guidelines on standards of conduct.
Individual briefing sessions for institutional investorsWe hold individual briefings for institutional investors with the
goal of increasing our market cap through improved corporate
value and achieving of a fair stock price.
During the fiscal year under review, these briefings were held
on more than 30 occasions, where we strived to promote an
understanding of institutional investors about our unique qualities
and strength as a company.
As the highest decision-making organ, shareholders’ meetings
make decisions on important matters and hear reports on the
auditing results of consolidated financial statements.
Shareholders can now exercise their voting rights over the
Internet using their computer or smartphone.
Additionally, a more informal gathering is held after the
shareholders’ meeting to deepen communication with
shareholders and help them to further understand the company.
Measures for Shareholders’ Meetings
We offer a rich collection of IR tools to help educate shareholders
and the investment community about our company and its
business performance.
• Annual report
• Shareholder newsletter
• Datasheet (5 years of consolidated financial statements)
• Stock Voice – an Internet TV show for individual investors
• Corporate ads in IR magazines
• IR section of our corporate website
Rich IR Media
Enhancing Corporate Value through Investor Relations Activities
Standards of DisclosureTo achieve honest and highly transparent management, we
comply with all applicable laws and carry out business activities
according to highly esteemed corporate ethics, and we strive to
provide information to shareholders and the investment
community in a timely manner. Our disclosures are fully in line
with the timely disclosure rules set by the securities exchange
and other related laws, such as the Companies Act and Financial
Instruments and Exchange Act.
Earnings Presentations for Institutional Investors and Securities AnalystsWe hold earnings presentations for securities analysts and
institutional investors twice a year in Tokyo—once for full-year
business results and another for interim results. Earnings
presentation materials are published on our corporate website in
a downloadable PDF format.
Additionally, we hold company briefings for sales
representatives of securities companies from time to time based
on the expected future increase in shareholders.
Company briefing session for individual investors held at SMBC Nikko Securities Inc.
IR section of our corporate website Internet TV show Stock Voice
We have established a hotline for employees to report and
receive consultation on compliance violations. This hotline is
made known to all employees and is run appropriately to ensure
that employees reporting a violation are not subjected to unfair
treatment. This ensures the early detection of issues.
Compliance Hotline
As a technology-driven specialized trading company, we have
established a dedicated department for the management of
intellectual properties that responds to disputes concerning the
intellectual properties and the protection of rights. Additionally,
we have a system in play to compensate for employees’
inventions, which has heightened motivation in inventions.
Management of Intellectual Properties
In order to ensure the safety of employees and continuation of
business activities in preparation for major disasters, we have
defined our response protocol at the time of disasters, while
stockpiling emergency rations and training employees. We
believe that safeguarding the lives of our employees and
contributing to the continuity of our customers’ businesses
represents one aspect of our corporate social responsibilities,
and have established a business continuity plan to respond to
unpredictable situations.
Business Continuity Plan (BCP)
Operational risks are constantly evolving and their impacts may
also change. We prevent crises by identifying risks every year and
analyzing, assessing and addressing these risks. If such risks
emerge, our goal is to minimize damages to every extent possible.
Risk Management System
We handle the personal information of customers and information
related to products and services according to a contract.
Therefore, we are seeking to strengthen our information security
system and maintain and manage it at a high level, from various
security system implementations to conducting awareness
education for employees, in order to protect myriad information
assets handed from customers in a more rigorous manner.
• Stepped up security with installation of a building access
system that uses RFID
• Preventing data leakages with thin client PCs
• Security management and maintenance of records when
company-owned PCs are taken offsite
• Set BIOS* passwords
• Installed encryption software for hard disk drive
• Encryption of e-mail attachments
Information Security System
The following basic policy has been established in response to
anti-social forces. Both officers and employees alike comply with
this policy to ensure the security and the appropriateness of our
operations.
1. Response as an organization
2. Coordination with external specialist institutions
3. Shutting off all relationships, including transactional ones
4. Civil and criminal legislative response for any incidents
5. Prohibition of backdoor trade and the provision of funds
Basic Policy on Anti-Social Forces
* BIOS (Basic Input Output System): Refers to a basic program that controls devices connected to a PC, such as disk drives, keyboards, and graphics, etc.
Risk Management System Diagram
Stakeholders
CorporationLawyer
Directors/Auditors
Head of ResponseHeadquarters (President)
Whistleblower ofAccident or Incident
Emergency ResponseHeadquarters
Departmentsin Charge
In-house Reporting/Consultations
(Compliance Office)
RelatedDepartments
Reporting
ReportingReporting
Reporting
Instructions
Reporting
Reporting
Instructions
Instructions
Instructions
Disclosure
Reporting/Consultation
Reporting/Consultation
Compliance and Risk ManagementG overnance
32TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.31
Financial Information
Financial Information
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
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35
37
39
39
40
41
42
61
Financial Overview
Consolidated Balance Sheets
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
INDEPENDENT AUDITORS’ REPORT
Risks which may affect the Tachibana Eletech Group’s
business performance, financial position, etc. include, but are
not limited to, the following.
Forward-looking statements in this report are based on the
Group’s judgment as of the end of the fiscal year under review
(March 31, 2015).
(1) Changes in Economic ClimateThe Tachibana Eletech Group is engaged primarily in the
business of selling electronic and information equipment and
products as well as semiconductor device products. While its
customers are mainly in the manufacturing industry, they
are wide-ranging in terms of business type. As the
circumstances of each customer are susceptible to a fall in
demand in the industry in which it operates and a reduction
in capital investment attributable to changes in the
economic climate, the Group’s business performance and
financial position could also be affected.
(2) Relationship with Major CustomersThe Tachibana Eletech Group mainly deals in FA equipment
and products, such as inverters, servos and programmable
controllers, and semiconductor products, including memory
chips, microcomputers, ASICs, which are primarily supplied by
Mitsubishi Electric Corporation and Renesas Technology Sales
Co., Ltd. Accordingly, the Group’s business performance and
financial position could be affected by the business strategies,
etc. of these major suppliers. Likewise the Group could also
be affected by trends in the market strategies and product
strategies of its major clients to which the products are
supplied.
(3) Product Quality and LiabilityThe Tachibana Eletech Group outsources some of the
tasks involved in the production process of the systems it sells
and its proprietary software. For the quality control of products,
we have established a division specializing in quality
assurance and are endeavoring to maintain quality assurance
for customers. However, in the event that there are problems
such as defects in the products or services provided, the
Group could be liable for the resulting damages.
(4) Occurrence of Natural DisastersThe Tachibana Eletech Group’s business performance and
financial position could be affected in the event of occurrence
of major earthquakes and other natural disasters because of
the deterioration of the business environment due to the
damage to company buildings, shutdown of the Head Office
function as well as logistics and marketing functions, electric
power outage and shutoff of transportation networks that
could cause problems in the sale of our products.
(5) Collection of ReceivablesThe Tachibana Eletech Group pays due attention to credit
management, including investigating and analyzing customers
on a regular basis.
However, the Group could incur a loss from bad debt if
receivables become uncollectible in the event of the rapid
deterioration in cash flows of customers, bankruptcy of
customers, etc.
(6) Fluctuations in Foreign Exchange RatesThe Tachibana Eletech Group’s business operations include
selling products to overseas customers as well as
procurement from overseas suppliers. Local currency-quoted
items in each region, including net sales, costs and assets,
are converted into yen in the consolidated balance sheet.
Values for these items when converted into yen, even if
they remain unchanged in local currencies, could be affected
by fluctuations in foreign exchange rates at the time of
conversion.
In order to mitigate risks of exchange rate fluctuations, the
Tachibana Eletech Group is striving to minimize the impact of
exchange rate fluctuations among major currencies, including
the US dollar and the Japanese yen, by utilizing currency
hedge transactions such as forward exchange contracts.
However, the Group’s earnings performance and financial
position could still be affected by the timing of concluding
forward exchange contracts and rapid exchange rate
fluctuations.
(7) Financial StructureThe Tachibana Eletech Group’s turnover cycle of trade payables
is shorter than trade receivables. Therefore, as the demand
for operating funds arises in line with the increase in sales, its
financial structure requires that such operating funds be raised
from financial institutions and other sources outside the
Group. Accordingly, the Group’s business performance and
financial position could be affected by the Group’s sales trends,
trends in interest rates in the financial markets, and changes in
financial institutions’ propensity to lend in the future.
(8) Retirement Benefit ObligationsThe Tachibana Eletech Group’s employee retirement benefit
expenses and obligations are calculated on the basis of
assumptions set in actuarial calculations, such as the discount
rate and the expected rate of return of pension assets.
Retirement benefit expenses could increase due to a
reduction in the discount rate and changes in investment
yields in the future.
Statement of Business Risks and Other Risks
34TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.33
Financial Information
Financial Information
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . .
. . . . . . . . . . . . . . . .
35
37
39
39
40
41
42
61
Financial Overview
Consolidated Balance Sheets
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
INDEPENDENT AUDITORS’ REPORT
Risks which may affect the Tachibana Eletech Group’s
business performance, financial position, etc. include, but are
not limited to, the following.
Forward-looking statements in this report are based on the
Group’s judgment as of the end of the fiscal year under review
(March 31, 2015).
(1) Changes in Economic ClimateThe Tachibana Eletech Group is engaged primarily in the
business of selling electronic and information equipment and
products as well as semiconductor device products. While its
customers are mainly in the manufacturing industry, they
are wide-ranging in terms of business type. As the
circumstances of each customer are susceptible to a fall in
demand in the industry in which it operates and a reduction
in capital investment attributable to changes in the
economic climate, the Group’s business performance and
financial position could also be affected.
(2) Relationship with Major CustomersThe Tachibana Eletech Group mainly deals in FA equipment
and products, such as inverters, servos and programmable
controllers, and semiconductor products, including memory
chips, microcomputers, ASICs, which are primarily supplied by
Mitsubishi Electric Corporation and Renesas Technology Sales
Co., Ltd. Accordingly, the Group’s business performance and
financial position could be affected by the business strategies,
etc. of these major suppliers. Likewise the Group could also
be affected by trends in the market strategies and product
strategies of its major clients to which the products are
supplied.
(3) Product Quality and LiabilityThe Tachibana Eletech Group outsources some of the
tasks involved in the production process of the systems it sells
and its proprietary software. For the quality control of products,
we have established a division specializing in quality
assurance and are endeavoring to maintain quality assurance
for customers. However, in the event that there are problems
such as defects in the products or services provided, the
Group could be liable for the resulting damages.
(4) Occurrence of Natural DisastersThe Tachibana Eletech Group’s business performance and
financial position could be affected in the event of occurrence
of major earthquakes and other natural disasters because of
the deterioration of the business environment due to the
damage to company buildings, shutdown of the Head Office
function as well as logistics and marketing functions, electric
power outage and shutoff of transportation networks that
could cause problems in the sale of our products.
(5) Collection of ReceivablesThe Tachibana Eletech Group pays due attention to credit
management, including investigating and analyzing customers
on a regular basis.
However, the Group could incur a loss from bad debt if
receivables become uncollectible in the event of the rapid
deterioration in cash flows of customers, bankruptcy of
customers, etc.
(6) Fluctuations in Foreign Exchange RatesThe Tachibana Eletech Group’s business operations include
selling products to overseas customers as well as
procurement from overseas suppliers. Local currency-quoted
items in each region, including net sales, costs and assets,
are converted into yen in the consolidated balance sheet.
Values for these items when converted into yen, even if
they remain unchanged in local currencies, could be affected
by fluctuations in foreign exchange rates at the time of
conversion.
In order to mitigate risks of exchange rate fluctuations, the
Tachibana Eletech Group is striving to minimize the impact of
exchange rate fluctuations among major currencies, including
the US dollar and the Japanese yen, by utilizing currency
hedge transactions such as forward exchange contracts.
However, the Group’s earnings performance and financial
position could still be affected by the timing of concluding
forward exchange contracts and rapid exchange rate
fluctuations.
(7) Financial StructureThe Tachibana Eletech Group’s turnover cycle of trade payables
is shorter than trade receivables. Therefore, as the demand
for operating funds arises in line with the increase in sales, its
financial structure requires that such operating funds be raised
from financial institutions and other sources outside the
Group. Accordingly, the Group’s business performance and
financial position could be affected by the Group’s sales trends,
trends in interest rates in the financial markets, and changes in
financial institutions’ propensity to lend in the future.
(8) Retirement Benefit ObligationsThe Tachibana Eletech Group’s employee retirement benefit
expenses and obligations are calculated on the basis of
assumptions set in actuarial calculations, such as the discount
rate and the expected rate of return of pension assets.
Retirement benefit expenses could increase due to a
reduction in the discount rate and changes in investment
yields in the future.
Statement of Business Risks and Other Risks
34TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.33
Financial Overview (Year Ended March 31, 2016)
36TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.35
In the fiscal year ended March 31, 2016, total assets decreased
by JPY1.666 billion year-on-year to JPY98.894 billion.
Current assets decreased by JPY1.695 billion year-on-year
to JPY77.108 billion. This was primarily due to a decrease in
trade notes and trade accounts of JPY1.715 billion.
Fixed assets increased by JPY29 million year-on-year to
JPY21.785 billion. This was mainly attributed to an increase in
investment securities of JPY457 million and a decrease in
buildings and structures of JPY207 million.
In the fiscal year ended March 31, 2016, total liabilities
decreased by JPY3.39 billion year-on-year to JPY42.207 billion.
Current liabilities decreased by JPY3.063 billion year-on-year
to JPY39.664 billion, mainly due to a decrease in trade notes and
trade accounts of JPY3.429 billion.
Long-term liabilities decreased by JPY327 million
year-on-year to JPY2.544 billion. This was primarily due to a
decrease in deferred tax liabilities of JPY431 million.
In the fiscal year ended March 31, 2016, total equity
increased by JPY1.724 billion year-on-year to JPY56.686 billion.
This was mainly due to an increase of JPY3.142 billion in retained
earnings, and a decrease of JPY813 million in unrealized gains
on available-for-sale securities.
1) Net salesNet sales in the fiscal year ended March 31, 2016 amounted to
JPY162.143 billion, an increase of JPY14.721 billion, or 10%,
over the previous fiscal year. Amid gradual overall recovery of the
economic environment as a result of strong corporate capital
investment achieved through improvements in corporate
earnings and the employment situation, the core Factory
Automation systems business enjoyed steady and significant
(1) Analysis of financial position in the fiscal year under review
(2) Analysis of management results in the fiscal year under review
(3) Analysis of sources of capital and liquidity of funds
growth. In the Factory Automation equipment sector, sales
remained strong for the flagship products of programmable
controllers and inverters as well as AC servos, oriented mainly
toward the various manufacturing equipment manufacturers in
the automobile and liquid crystal sectors. In the industrial
machinery sector, through the utilization of energy-saving
subsidies, sales increased significantly for wire-cut electrical
discharge machinery, laser beam machines, and machine tools.
In addition, the conversion of Takagi Co., Ltd. to a consolidated
subsidiary in December the year before last meant that its sales
contributed to the Group’s performance, resulting in 18.4%
year-on-year growth for the overall business. Furthermore, in the
industrial device component systems business, there was a
build-up in the sale of connectors and computer-related
equipment accompanying the conversion of Takagi Co., Ltd. into
a consolidated subsidiary. Net sales increased significantly by
62.8% year-on-year across the whole business division. On the
other hand, the semiconductors and electronic devices business
recorded a 5.1% drop in sales year-on-year as a result of
significant decline in the semiconductor sector, due to the impact
of the slowdown in the Chinese economy.
2) Cost of sales, and selling, general and administrative expenses
Cost of sales was JPY140.603 billion, increasing by JPY12.084
billion, or 9.4%, year-on-year in tandem with the increase in net
sales. The ratio of cost of sales to net sales fell by 0.5
percentage points to 86.7%, reflecting an improvement in the
profit margin.
Selling, general and administrative expenses increased by
JPY1.881 billion, or 13.4%, year-on-year to JPY15.923 billion.
Although expenses incurred in the purchase of the company
building in Tokyo during the last fiscal year had decreased, an
increase was recorded for expenses related to the recruitment of
experienced mid-career employees aimed at achieving the goals
set forth in “C.C.J 2200,” as well as to the conversion of Takagi
Co., Ltd. to a consolidated subsidiary of Tachibana Eletech.
3) Non-operating income/lossNon-operating income decreased by JPY633 million year-on-year
to JPY483 million. On the other hand, non-operating expenses
increased by JPY120 million year-on-year to JPY359 million.
A JPY753 million decrease in income, as compared to the
previous year, was recorded for non-operating income/loss,
resulting in income of JPY123 million. This can mainly be
attributed to a drop of JPY 375 million due to the conclusion of
negative goodwill amortization as a result of the incorporation of
DAIDENSHA Co., Ltd. as a consolidated subsidiary, as well as
the change in business relations with Takagi Co., Ltd. from an
affiliate company accounted for by the equity-method to a
consolidated subsidiary, which resulted in a decline of JPY 133
million in returns from investment based on the equity method. A
decrease in gains from exchange rates of JPY297 million
accompanying the rapid appreciation of the Japanese yen from
February this year also contributed to the decline in
non-operating income.
Ordinary income increased marginally by JPY2 million from the
previous fiscal year to JPY5.74 billion. The ratio of ordinary income
to net sales fell by 0.4 percentage points year-on-year to 3.5%.
4) Extraordinary income/loss Extraordinary income fell significantly by JPY1.604 billion
year-on-year to JPY1 million. This was primarily due to the impact
of JPY1.599 billion in gain (loss) on acquisition of subsidiary
related to the conversion of Takagi Co., Ltd. into a consolidated
subsidiary through the additional acquisition of shares last fiscal
year, which had formerly been an equity-method affiliate.
Extraordinary loss increased by JPY7 million year-on-year to
JPY16 million.
5) Net income attributable to shareholders of the parent company
Net income attributable to shareholders of the parent company
fell by JPY1.726 billion, or 31.7%, year-on-year to JPY3.715
billion.
1) Status of cash flowsThe Tachibana Eletech Group’s balance of cash and cash
equivalents on March 31, 2016 was JPY10.863 billion, JPY2.072
billion less than the previous fiscal year.
The status and breakdown of cash flows in the fiscal year under
review are described below:
(Cash flow from operating activities)Net cash provided by operating activities was JPY2.732 billion,
against net cash earned of JPY2.193 billion in the previous fiscal
year. This mainly arose from an increase of JPY5.726 billion in net
income before income taxes, a decrease in trade accounts
receivable of JPY1.666 billion, a decrease in trade accounts
payable of JPY3.160 billion, and a decrease in income taxes paid
of JPY1.897 billion.
(Cash flow from investing activities)Net cash used in investing activities amounted to JPY3.525
billion, against net cash used of JPY3.07 billion in the previous
fiscal year. This was primarily due to outlays of JPY1.613 billion
arising from net change in time deposits, and of JPY2.233 billion
for purchases of investment securities.
(Cash flow from financing activities)Net cash provided by financing activities amounted to JPY1.194
billion, against net cash used of JPY897 million in the previous
fiscal year. This was mainly attributed to outlays of JPY532
million from the purchase of treasury stock, and of JPY573
million for the dividends paid.
2) Funding demandThe Tachibana Eletech Group’s demand for operational funds
was mainly driven by cash advances made between payment for
purchases and collection of payment for sales, as well as
operating expenses such as selling, general and administrative
expenses.
Financial Overview
Financial Overview (Year Ended March 31, 2016)
36TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.35
In the fiscal year ended March 31, 2016, total assets decreased
by JPY1.666 billion year-on-year to JPY98.894 billion.
Current assets decreased by JPY1.695 billion year-on-year
to JPY77.108 billion. This was primarily due to a decrease in
trade notes and trade accounts of JPY1.715 billion.
Fixed assets increased by JPY29 million year-on-year to
JPY21.785 billion. This was mainly attributed to an increase in
investment securities of JPY457 million and a decrease in
buildings and structures of JPY207 million.
In the fiscal year ended March 31, 2016, total liabilities
decreased by JPY3.39 billion year-on-year to JPY42.207 billion.
Current liabilities decreased by JPY3.063 billion year-on-year
to JPY39.664 billion, mainly due to a decrease in trade notes and
trade accounts of JPY3.429 billion.
Long-term liabilities decreased by JPY327 million
year-on-year to JPY2.544 billion. This was primarily due to a
decrease in deferred tax liabilities of JPY431 million.
In the fiscal year ended March 31, 2016, total equity
increased by JPY1.724 billion year-on-year to JPY56.686 billion.
This was mainly due to an increase of JPY3.142 billion in retained
earnings, and a decrease of JPY813 million in unrealized gains
on available-for-sale securities.
1) Net salesNet sales in the fiscal year ended March 31, 2016 amounted to
JPY162.143 billion, an increase of JPY14.721 billion, or 10%,
over the previous fiscal year. Amid gradual overall recovery of the
economic environment as a result of strong corporate capital
investment achieved through improvements in corporate
earnings and the employment situation, the core Factory
Automation systems business enjoyed steady and significant
(1) Analysis of financial position in the fiscal year under review
(2) Analysis of management results in the fiscal year under review
(3) Analysis of sources of capital and liquidity of funds
growth. In the Factory Automation equipment sector, sales
remained strong for the flagship products of programmable
controllers and inverters as well as AC servos, oriented mainly
toward the various manufacturing equipment manufacturers in
the automobile and liquid crystal sectors. In the industrial
machinery sector, through the utilization of energy-saving
subsidies, sales increased significantly for wire-cut electrical
discharge machinery, laser beam machines, and machine tools.
In addition, the conversion of Takagi Co., Ltd. to a consolidated
subsidiary in December the year before last meant that its sales
contributed to the Group’s performance, resulting in 18.4%
year-on-year growth for the overall business. Furthermore, in the
industrial device component systems business, there was a
build-up in the sale of connectors and computer-related
equipment accompanying the conversion of Takagi Co., Ltd. into
a consolidated subsidiary. Net sales increased significantly by
62.8% year-on-year across the whole business division. On the
other hand, the semiconductors and electronic devices business
recorded a 5.1% drop in sales year-on-year as a result of
significant decline in the semiconductor sector, due to the impact
of the slowdown in the Chinese economy.
2) Cost of sales, and selling, general and administrative expenses
Cost of sales was JPY140.603 billion, increasing by JPY12.084
billion, or 9.4%, year-on-year in tandem with the increase in net
sales. The ratio of cost of sales to net sales fell by 0.5
percentage points to 86.7%, reflecting an improvement in the
profit margin.
Selling, general and administrative expenses increased by
JPY1.881 billion, or 13.4%, year-on-year to JPY15.923 billion.
Although expenses incurred in the purchase of the company
building in Tokyo during the last fiscal year had decreased, an
increase was recorded for expenses related to the recruitment of
experienced mid-career employees aimed at achieving the goals
set forth in “C.C.J 2200,” as well as to the conversion of Takagi
Co., Ltd. to a consolidated subsidiary of Tachibana Eletech.
3) Non-operating income/lossNon-operating income decreased by JPY633 million year-on-year
to JPY483 million. On the other hand, non-operating expenses
increased by JPY120 million year-on-year to JPY359 million.
A JPY753 million decrease in income, as compared to the
previous year, was recorded for non-operating income/loss,
resulting in income of JPY123 million. This can mainly be
attributed to a drop of JPY 375 million due to the conclusion of
negative goodwill amortization as a result of the incorporation of
DAIDENSHA Co., Ltd. as a consolidated subsidiary, as well as
the change in business relations with Takagi Co., Ltd. from an
affiliate company accounted for by the equity-method to a
consolidated subsidiary, which resulted in a decline of JPY 133
million in returns from investment based on the equity method. A
decrease in gains from exchange rates of JPY297 million
accompanying the rapid appreciation of the Japanese yen from
February this year also contributed to the decline in
non-operating income.
Ordinary income increased marginally by JPY2 million from the
previous fiscal year to JPY5.74 billion. The ratio of ordinary income
to net sales fell by 0.4 percentage points year-on-year to 3.5%.
4) Extraordinary income/loss Extraordinary income fell significantly by JPY1.604 billion
year-on-year to JPY1 million. This was primarily due to the impact
of JPY1.599 billion in gain (loss) on acquisition of subsidiary
related to the conversion of Takagi Co., Ltd. into a consolidated
subsidiary through the additional acquisition of shares last fiscal
year, which had formerly been an equity-method affiliate.
Extraordinary loss increased by JPY7 million year-on-year to
JPY16 million.
5) Net income attributable to shareholders of the parent company
Net income attributable to shareholders of the parent company
fell by JPY1.726 billion, or 31.7%, year-on-year to JPY3.715
billion.
1) Status of cash flowsThe Tachibana Eletech Group’s balance of cash and cash
equivalents on March 31, 2016 was JPY10.863 billion, JPY2.072
billion less than the previous fiscal year.
The status and breakdown of cash flows in the fiscal year under
review are described below:
(Cash flow from operating activities)Net cash provided by operating activities was JPY2.732 billion,
against net cash earned of JPY2.193 billion in the previous fiscal
year. This mainly arose from an increase of JPY5.726 billion in net
income before income taxes, a decrease in trade accounts
receivable of JPY1.666 billion, a decrease in trade accounts
payable of JPY3.160 billion, and a decrease in income taxes paid
of JPY1.897 billion.
(Cash flow from investing activities)Net cash used in investing activities amounted to JPY3.525
billion, against net cash used of JPY3.07 billion in the previous
fiscal year. This was primarily due to outlays of JPY1.613 billion
arising from net change in time deposits, and of JPY2.233 billion
for purchases of investment securities.
(Cash flow from financing activities)Net cash provided by financing activities amounted to JPY1.194
billion, against net cash used of JPY897 million in the previous
fiscal year. This was mainly attributed to outlays of JPY532
million from the purchase of treasury stock, and of JPY573
million for the dividends paid.
2) Funding demandThe Tachibana Eletech Group’s demand for operational funds
was mainly driven by cash advances made between payment for
purchases and collection of payment for sales, as well as
operating expenses such as selling, general and administrative
expenses.
Financial Overview
¥ 10,863
2,708
14,896
36,267
1,657
(47)
9,411
599
754
77,108
2,768
7,920
67
1,094
8
38
11,895
(6,058)
5,837
14,556
9
10
1,374
15,949
¥ 98,894
$ 96,133
23,965
131,823
320,947
14,663
(416)
83,283
5,301
6,673
682,372
24,495
70,088
593
9,681
71
336
105,264
(53,610)
51,654
128,814
80
88
12,160
141,142
$ 875,168
¥ 12,935
843
13,649
39,229
1,586
(60)
9,096
560
966
78,804
2,784
8,037
68
1,065
2
11,956
(5,914)
6,042
14,093
14
11
1,596
15,714
¥ 100,560
¥ 1,618
55
7,881
24,238
1,065
1,037
1,470
2,300
39,664
124
87
813
1,380
140
2,544
5,874
5,972
39,759
(536)
3,260
(1)
646
212
55,186
1,500
56,686
¥ 98,894
$ 14,319
487
69,743
214,496
9,425
9,177
13,009
20,353
351,009
1,097
770
7,195
12,212
1,239
22,513
51,982
52,850
351,849
(4,743)
28,850
(9)
5,717
1,876
488,372
13,274
501,646
$ 875,168
¥ 1,641
114
3,977
31,572
978
942
1,310
2,193
42,727
88
87
762
1,812
122
2,871
5,874
5,972
36,616
(4)
4,074
0
712
278
53,522
1,440
54,962
¥ 100,560
CURRENT LIABILITIES:
Short-term bank loans (Notes 5 and 12)
Current portion of long-term debt (Notes 5 and 12)
Payables (Note 12):
Trade notes
Trade accounts
Other
Income taxes payable
Accrued expenses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Long-term debt (Notes 5 and 12)
Long-term accounts payable
Liability for retirement benefits (Note 6)
Deferred tax liabilities (Note 8)
Other long-term liabilities
Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES (Notes 10 and 12)
EQUITY (Notes 7 and 14):
Common stock - authorized, 96,000,000 shares;
issued, 26,025,242 shares in 2016 and 2015*
Capital surplus
Retained earnings
Treasury stock - at cost, 465,354 shares in 2016 and 5,216 shares
in 2015*
Accumulated other comprehensive income (loss):
Unrealized gains on available-for-sale securities
Deferred gains on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Noncontrolling interests
Total equity
TOTAL
See notes to consolidated financial statements.
2015 20162016 2015 20162016LIABILITIES AND EQUITYASSETS
Consolidated Balance Sheets
* Shares have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
Millions of YenThousands of
U.S. Dollars (Note 1) Millions of YenThousands of
U.S. Dollars (Note 1)
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
March 31, 2016 and 2015
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Short-term investments (Notes 3, 5, and 11)
Receivables (Note 11):
Trade notes
Trade accounts
Other
Allowance for doubtful receivables
Inventories (Note 4)
Deferred tax assets (Note 8)
Prepaid expenses and other current assets (Notes 11 and 12)
Total current assets
PROPERTY AND EQUIPMENT:
Land (Note 5)
Buildings and structures (Note 5)
Machinery and equipment
Furniture and fixtures
Construction in progress
Lease assets
Total
Accumulated depreciation
Net property and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 11)
Investments in associated company
Deferred tax assets (Note 8)
Other assets
Total investments and other assets
TOTAL
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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38TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.37
¥ 10,863
2,708
14,896
36,267
1,657
(47)
9,411
599
754
77,108
2,768
7,920
67
1,094
8
38
11,895
(6,058)
5,837
14,556
9
10
1,374
15,949
¥ 98,894
$ 96,133
23,965
131,823
320,947
14,663
(416)
83,283
5,301
6,673
682,372
24,495
70,088
593
9,681
71
336
105,264
(53,610)
51,654
128,814
80
88
12,160
141,142
$ 875,168
¥ 12,935
843
13,649
39,229
1,586
(60)
9,096
560
966
78,804
2,784
8,037
68
1,065
2
11,956
(5,914)
6,042
14,093
14
11
1,596
15,714
¥ 100,560
¥ 1,618
55
7,881
24,238
1,065
1,037
1,470
2,300
39,664
124
87
813
1,380
140
2,544
5,874
5,972
39,759
(536)
3,260
(1)
646
212
55,186
1,500
56,686
¥ 98,894
$ 14,319
487
69,743
214,496
9,425
9,177
13,009
20,353
351,009
1,097
770
7,195
12,212
1,239
22,513
51,982
52,850
351,849
(4,743)
28,850
(9)
5,717
1,876
488,372
13,274
501,646
$ 875,168
¥ 1,641
114
3,977
31,572
978
942
1,310
2,193
42,727
88
87
762
1,812
122
2,871
5,874
5,972
36,616
(4)
4,074
0
712
278
53,522
1,440
54,962
¥ 100,560
CURRENT LIABILITIES:
Short-term bank loans (Notes 5 and 12)
Current portion of long-term debt (Notes 5 and 12)
Payables (Note 12):
Trade notes
Trade accounts
Other
Income taxes payable
Accrued expenses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Long-term debt (Notes 5 and 12)
Long-term accounts payable
Liability for retirement benefits (Note 6)
Deferred tax liabilities (Note 8)
Other long-term liabilities
Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES (Notes 10 and 12)
EQUITY (Notes 7 and 14):
Common stock - authorized, 96,000,000 shares;
issued, 26,025,242 shares in 2016 and 2015*
Capital surplus
Retained earnings
Treasury stock - at cost, 465,354 shares in 2016 and 5,216 shares
in 2015*
Accumulated other comprehensive income (loss):
Unrealized gains on available-for-sale securities
Deferred gains on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Noncontrolling interests
Total equity
TOTAL
See notes to consolidated financial statements.
2015 20162016 2015 20162016LIABILITIES AND EQUITYASSETS
Consolidated Balance Sheets
* Shares have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
Millions of YenThousands of
U.S. Dollars (Note 1) Millions of YenThousands of
U.S. Dollars (Note 1)
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
March 31, 2016 and 2015
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Short-term investments (Notes 3, 5, and 11)
Receivables (Note 11):
Trade notes
Trade accounts
Other
Allowance for doubtful receivables
Inventories (Note 4)
Deferred tax assets (Note 8)
Prepaid expenses and other current assets (Notes 11 and 12)
Total current assets
PROPERTY AND EQUIPMENT:
Land (Note 5)
Buildings and structures (Note 5)
Machinery and equipment
Furniture and fixtures
Construction in progress
Lease assets
Total
Accumulated depreciation
Net property and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 11)
Investments in associated company
Deferred tax assets (Note 8)
Other assets
Total investments and other assets
TOTAL
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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38TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.37
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
. . . . . .
2015 20162016
2015 20162016
See notes to consolidated financial statements.
¥ 162,143140,603
21,540
15,9235,617
289(22)(99)
(59)109
5,726
1,948(7)
1,9413,785
70¥ 3,715
$ 1,434,8941,244,274
190,620
140,91249,708
2,558(876)(195)
(522)965
50,673
17,239(62)
17,17733,496
620$ 32,876
¥ 147,421
128,518
18,903
14,042
4,861
226
(27)
199
376
1,600
100
2,474
7,335
1,711
156
1,867
5,468
27
¥ 5,441
NET SALES (Note 16)COST OF SALES
Gross profit
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES(Notes 6 and 10) Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Foreign exchange profit (loss)
Amortization of negative goodwill
Gain (loss) on acquisition of subsidiary (Note 9)
Other - net
Other income - net
INCOME BEFORE INCOME TAXESINCOME TAXES (Note 8):
Current
Deferred
Total income taxes
NET INCOMENET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTSNET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT
¥ 143.1226.00
$ 1.270.23
¥ 209.09
19.00
PER SHARE OF COMMON STOCK (Note 14):Basic net income*
Cash dividends applicable to the year*
* Shares and per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BALANCE, APRIL 1, 2014 (as previously reported)
Cumulative effect of accounting change
BALANCE, APRIL 1, 2014 (as restated)
Net income attributable to owners of the parentCash dividends, ¥19 per share*Purchase of treasury stockDisposal of treasury stock Net change in the year
BALANCE, APRIL 1, 2015
Net income attributable to owners of the parentCash dividends, ¥26 per share*Purchase of treasury stockDisposal of treasury stock Net change in the year
BALANCE, MARCH 31, 2016
BALANCE, APRIL 1, 2015
Net income attributable to owners of
the parent
Cash dividends, $0.23 per share*
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2016
Consolidated Statements of Income Consolidated Statement of Changes in Equity
2015 20162016
$ 33,496
(7,230)(9)
(584)(584)
(8,407)$ 25,809
$ 24,496593
¥ 3,785
(817)(1)
(66)(66)
(950)¥ 2,835
¥ 2,76867
¥ 5,468
1,738
(2)
507
315
2,558
¥ 8,026
¥ 7,999
27
NET INCOMEOTHER COMPREHENSIVE INCOME (LOSS) (Note 13):
Unrealized gain (loss) on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plan
Total other comprehensive income
COMPREHENSIVE INCOME (Note 13)TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (Note 13):
Owners of the parent
Noncontrolling interests
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Millions of YenThousands of
U.S. Dollars (Note 1)
Millions of YenThousands of
U.S. Dollars (Note 1)
Thousands Millions of Yen
Number of Shares of Common
Stock Outstanding*
CommonStock
CapitalSurplus
RetainedEarnings
Unrealized Gain(Loss) onAvailable-for-sale
Securities
Deferred Gain on
Derivatives under Hedge Accounting
Foreign Currency
Translation Adjustments
DefinedRetirement
Benefit PlansTreasury
Stock TotalNoncontrolling
InterestsTotalEquity
Accumulated Other Comprehensive Income (Loss)
Yen U.S. Dollars (Note 1)
Diluted net income per share is not disclosed because the Company has no dilutive securities.
* Per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
See notes to consolidated financial statements.
See notes to consolidated financial statements.
26,021
26,021
(1)
0
26,020
(460)
0
25,560
¥ 5,874
5,874
5,874
¥ 5,874
¥ 5,971
5,971
1
5,972
0
¥ 5,972
¥ 31,856
(160)
31,696
5,441
(521)
36,616
3,715
(572)
¥ 39,759
¥ 2,336
2,336
1,738
4,074
(814)
¥ 3,260
¥ 2
2
(2)
0
(1)
¥ (1)
¥ 205
205
507
712
(66)
¥ 646
¥ (37)
(37)
315
278
(66)
¥ 212
¥ (3)
(3)
(1)
0
(4)
(532)
0
¥ (536)
¥ 46,204
(160)
46,044
5,441
(521)
(1)
1
2,558
53,222
3,715
(572)
(532)
0
(947)
¥ 55,186
¥ 76
76
1,364
1,440
60
¥ 1,500
¥ 46,280
(160)
46,120
5,441
(521)
(1)
1
3,922
54,962
3,715
(572)
(532)
0
(887)
¥ 56,686
$ 51,982
$ 51,982
$ 52,850
0
$ 52,850
$ 324,035
32,876
(5,062)
$ 351,849
$ 6,301
(584)
$ 5,717
$ 2,460
(584)
$ 1,876
$ 473,645
32,876
(5,062)
(4,708)
1
(8,380)
$ 488,372
$ 12,743
531
$ 13,274
$ 486,388
32,876
(5,062)
(4,708)
1
(7,849)
$ 501,646
$ (36)
(4,708)
1
$ (4,743)
$ 36,053
(7,203)
$ 28,850
$ (9)
$ (9)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
Accumulated Other Comprehensive Income (Loss)
CommonStock
CapitalSurplus
RetainedEarnings
Unrealized Gain(Loss) onAvailable-for-sale
SecuritiesTreasury
Stock
Deferred Gain on
Derivatives under Hedge Accounting
Foreign Currency
Translation Adjustments Total
NoncontrollingInterests
TotalEquity
Thousands of U.S. Dollars (Note 1)
DefinedRetirement
Benefit Plans
40TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.39
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Consolidated Statement of Income
Consolidated Statement of Comprehensive IncomeYear Ended March 31, 2016
. . . .
. . . . . . . .
. . . . . . . . . . . . . . . . . .
. . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. .
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. .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
. . . . . .
2015 20162016
2015 20162016
See notes to consolidated financial statements.
¥ 162,143140,603
21,540
15,9235,617
289(22)(99)
(59)109
5,726
1,948(7)
1,9413,785
70¥ 3,715
$ 1,434,8941,244,274
190,620
140,91249,708
2,558(876)(195)
(522)965
50,673
17,239(62)
17,17733,496
620$ 32,876
¥ 147,421
128,518
18,903
14,042
4,861
226
(27)
199
376
1,600
100
2,474
7,335
1,711
156
1,867
5,468
27
¥ 5,441
NET SALES (Note 16)COST OF SALES
Gross profit
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES(Notes 6 and 10) Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Foreign exchange profit (loss)
Amortization of negative goodwill
Gain (loss) on acquisition of subsidiary (Note 9)
Other - net
Other income - net
INCOME BEFORE INCOME TAXESINCOME TAXES (Note 8):
Current
Deferred
Total income taxes
NET INCOMENET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTSNET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT
¥ 143.1226.00
$ 1.270.23
¥ 209.09
19.00
PER SHARE OF COMMON STOCK (Note 14):Basic net income*
Cash dividends applicable to the year*
* Shares and per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BALANCE, APRIL 1, 2014 (as previously reported)
Cumulative effect of accounting change
BALANCE, APRIL 1, 2014 (as restated)
Net income attributable to owners of the parentCash dividends, ¥19 per share*Purchase of treasury stockDisposal of treasury stock Net change in the year
BALANCE, APRIL 1, 2015
Net income attributable to owners of the parentCash dividends, ¥26 per share*Purchase of treasury stockDisposal of treasury stock Net change in the year
BALANCE, MARCH 31, 2016
BALANCE, APRIL 1, 2015
Net income attributable to owners of
the parent
Cash dividends, $0.23 per share*
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2016
Consolidated Statements of Income Consolidated Statement of Changes in Equity
2015 20162016
$ 33,496
(7,230)(9)
(584)(584)
(8,407)$ 25,809
$ 24,496593
¥ 3,785
(817)(1)
(66)(66)
(950)¥ 2,835
¥ 2,76867
¥ 5,468
1,738
(2)
507
315
2,558
¥ 8,026
¥ 7,999
27
NET INCOMEOTHER COMPREHENSIVE INCOME (LOSS) (Note 13):
Unrealized gain (loss) on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plan
Total other comprehensive income
COMPREHENSIVE INCOME (Note 13)TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (Note 13):
Owners of the parent
Noncontrolling interests
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Millions of YenThousands of
U.S. Dollars (Note 1)
Millions of YenThousands of
U.S. Dollars (Note 1)
Thousands Millions of Yen
Number of Shares of Common
Stock Outstanding*
CommonStock
CapitalSurplus
RetainedEarnings
Unrealized Gain(Loss) onAvailable-for-sale
Securities
Deferred Gain on
Derivatives under Hedge Accounting
Foreign Currency
Translation Adjustments
DefinedRetirement
Benefit PlansTreasury
Stock TotalNoncontrolling
InterestsTotalEquity
Accumulated Other Comprehensive Income (Loss)
Yen U.S. Dollars (Note 1)
Diluted net income per share is not disclosed because the Company has no dilutive securities.
* Per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
See notes to consolidated financial statements.
See notes to consolidated financial statements.
26,021
26,021
(1)
0
26,020
(460)
0
25,560
¥ 5,874
5,874
5,874
¥ 5,874
¥ 5,971
5,971
1
5,972
0
¥ 5,972
¥ 31,856
(160)
31,696
5,441
(521)
36,616
3,715
(572)
¥ 39,759
¥ 2,336
2,336
1,738
4,074
(814)
¥ 3,260
¥ 2
2
(2)
0
(1)
¥ (1)
¥ 205
205
507
712
(66)
¥ 646
¥ (37)
(37)
315
278
(66)
¥ 212
¥ (3)
(3)
(1)
0
(4)
(532)
0
¥ (536)
¥ 46,204
(160)
46,044
5,441
(521)
(1)
1
2,558
53,222
3,715
(572)
(532)
0
(947)
¥ 55,186
¥ 76
76
1,364
1,440
60
¥ 1,500
¥ 46,280
(160)
46,120
5,441
(521)
(1)
1
3,922
54,962
3,715
(572)
(532)
0
(887)
¥ 56,686
$ 51,982
$ 51,982
$ 52,850
0
$ 52,850
$ 324,035
32,876
(5,062)
$ 351,849
$ 6,301
(584)
$ 5,717
$ 2,460
(584)
$ 1,876
$ 473,645
32,876
(5,062)
(4,708)
1
(8,380)
$ 488,372
$ 12,743
531
$ 13,274
$ 486,388
32,876
(5,062)
(4,708)
1
(7,849)
$ 501,646
$ (36)
(4,708)
1
$ (4,743)
$ 36,053
(7,203)
$ 28,850
$ (9)
$ (9)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
Accumulated Other Comprehensive Income (Loss)
CommonStock
CapitalSurplus
RetainedEarnings
Unrealized Gain(Loss) onAvailable-for-sale
SecuritiesTreasury
Stock
Deferred Gain on
Derivatives under Hedge Accounting
Foreign Currency
Translation Adjustments Total
NoncontrollingInterests
TotalEquity
Thousands of U.S. Dollars (Note 1)
DefinedRetirement
Benefit Plans
40TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.39
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Consolidated Statement of Income
Consolidated Statement of Comprehensive IncomeYear Ended March 31, 2016
2015 20162016
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes - paid
Gain (loss) on acquisition of subsidiary
Depreciation and amortization
Provision for doubtful receivables
Equity in earnings of unconsolidated subsidiaries and
associated companies
Changes in assets and liabilities, net of effects:
Decrease in receivables - trade
(Increase) decrease in account receivables - other
Increase in inventories
(Increase) decrease in trade payables
Increase (decrease) in provision for employee bonuses
Increase (decrease) in liability for retirement benefits
Other - net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Net change in time deposits
Purchases of property and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales and redemptions of investment securities
Purchases of short-term investments
Proceeds from redemptions of short-term investments
Proceeds from sales of property and equipment
Payment for purchase of Takagi Co., Ltd., net of cash acquired
Other - net
Net cash used in investing activities
FINANCING ACTIVITIES:
Net change in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Net change in treasury stock
Dividends paid
Other - net
Net cash (used in) provided by financing activities
EFFECT OF FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
¥ 5,726
(1,897)
41058
1,666(55)
(337)(3,160)
154(54)221
(2,994)2,732
(1,613)(108)(110)
(2,233)203
(100)15036
250(3,525)
(20)50
(110)(532)(573)
(9)(1,194)
(86)(2,073)12,936
¥ 10,863
¥ 7,335
(2,018)
(1,600)
(21)
(17)
(134)
740
76
(198)
(1,480)
(116)
(47)
(326)
(5,141)
2,194
(106)
(1,804)
(124)
(1,534)
120
680
12
(500)
185
(3,071)
5
50
(427)
(1)
(520)
(4)
(897)
630
(1,144)
14,079
¥ 12,935
$ 50,673
(16,788)
3,628513
14,743(487)
(2,982)(27,965)
1,363(478)
1,957(26,496)24,177
(14,274)(956)(973)
(19,761)1,796(885)
1,327319
2,212(31,195)
(177)442
(973)(4,708)(5,071)
(79)(10,566)
(761)(18,345)114,478
$ 96,133
Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
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 accordance with accounting principles generally accepted in Japan
(“Japanese GAAP”), which are different in certain respects as to the
application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically in order to present them in a
form which is more familiar to readers outside Japan. In addition, certain
reclassifications have been made in the 2015 consolidated financial
statements to conform to the classifications used in 2016.
The consolidated financial statements are stated in Japanese yen, the
currency of the country in which TACHIBANA ELETECH CO., LTD. (the
“Company”) is incorporated and operates. The translations of Japanese
yen amounts into U.S. dollar amounts are included solely for the
convenience of readers outside Japan and have been made at the rate of
¥113 to $1, the approximate rate of exchange at March 31, 2016. Such
translations should not be construed as representations that the
Japanese yen amounts could be converted into U.S. dollars at that or any
other rate.
1. BASIS OF PRESENTING OF CONSOLIDATED FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Consolidation - The consolidated financial statements as of March 31,
2016 and 2015 include the accounts of the Company and its 14 (15 in
2015) significant subsidiaries (together, the “Group”). Consolidation of
the remaining subsidiaries would not have a material effect on the
accompanying consolidated financial statements.
DAIDENSHA CO., LTD. (consolidated subsidiary) merged with TAIYO
SHOKAI CO., LTD. (consolidated subsidiary) on April 1, 2015.
Under the control and influence concepts, those companies in
which the Company, directly or indirectly, is able to exercise control
over operations are fully consolidated, and those companies over which
the Group has the ability to exercise significant influence are accounted
for by the equity method.
Investments in the remaining unconsolidated subsidiaries and
associated companies are stated at cost. If the equity method of
accounting had been applied to the investments in these companies,
the effect on the accompanying consolidated financial statements
would not be material.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in
assets resulting from transactions within the Group is also eliminated.
b.Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements - In May 2006, the
Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ
Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for
the Consolidated Financial Statements” which was subsequently
revised in February 2010 and March 2015 to reflect revisions of the
relevant Japanese GAAP or accounting standards in other jurisdictions.
PITF No. 18 prescribes that the accounting policies and procedures
applied to a parent company and its subsidiaries for similar
transactions and events under similar circumstances should in principle
be unified for the preparation of the consolidated financial statements.
However, financial statements prepared by foreign subsidiaries in
accordance with either International Financial Reporting Standards or
generally accepted accounting principles in the United States of
America (Financial Accounting Standards Board Accounting Standards
Codification—“FASB ASC”) tentatively may be used for the
consolidation process, except for the following items that should be
adjusted in the consolidation process so that net income is accounted
for in accordance with Japanese GAAP, unless they are not material: (a)
amortization of goodwill; (b) scheduled amortization of actuarial gain or
loss of pensions that has been recorded in equity through other
comprehensive income; (c) expensing capitalized development costs of
R&D; and (d) cancellation of the fair value model of accounting for
property, plant and equipment and investment properties and
incorporation of the cost model of accounting.
c. Business Combinations - In October 2003, the Business Accounting
Council issued a Statement of Opinion, “Accounting for Business
Combinations,” and in December 2005, the ASBJ issued ASBJ
Statement No. 7, “Accounting Standard for Business Divestitures” and
ASBJ Guidance No. 10, “Guidance for Accounting Standard for
Business Combinations and Business Divestitures.”
In December 2008, the ASBJ issued a revised accounting standard
for business combinations, ASBJ Statement No. 21, “Accounting
Standard for Business Combinations.” Major accounting changes
under the revised accounting standard are as follows: (1) The revised
standard requires accounting for business combinations only by the
purchase method. As a result, the pooling-of-interests method of
accounting is no longer allowed. (2) The previous accounting standard
required research and development costs to be charged to income as
incurred. Under the revised standard, in-process research and
development costs (IPR&D) acquired in the business combination are
capitalized as an intangible asset. (3) The previous accounting
standard provided for a bargain purchase gain (negative goodwill) to be
systematically amortized over a period not exceeding 20 years. Under
the revised standard, the acquirer recognizes the bargain purchase gain
in profit or loss immediately on the acquisition date after reassessing
and confirming that all of the assets acquired and all of the liabilities
assumed have been identified after a review of the procedures used in
the purchase price allocation. The revised standard was applicable to
business combinations undertaken on or after April 1, 2010.
In September 2013, the ASBJ issued revised ASBJ Statement No.
21, “Accounting Standard for Business Combinations,” revised ASBJ
Guidance No. 10, “Guidance on Accounting Standards for Business
Combinations and Business Divestitures,” and revised ASBJ Statement
No. 22, “Accounting Standard for Consolidated Financial Statements.”
Major accounting changes are as follows:
(a) Transactions with noncontrolling interest - A parent’s ownership
interest in a subsidiary might change if the parent purchases or sells
ownership interests in its subsidiary. The carrying amount of
noncontrolling interest is adjusted to reflect the change in the parent’s
ownership interest in its subsidiary while the parent retains its
controlling interest in its subsidiary. Under the previous accounting
standard, any difference between the fair value of the consideration
received or paid and the amount by which the noncontrolling interest is
adjusted is accounted for as an adjustment of goodwill or as profit or
loss in the consolidated statement of income. Under the revised
accounting standard, such difference is accounted for as capital
surplus as long as the parent retains control over its subsidiary.
(b) Presentation of the consolidated balance sheet - In the consolidated
balance sheet, “minority interest” under the previous accounting
standard is changed to “noncontrolling interest” under the revised
accounting standard.
(c) Presentation of the consolidated statement of income - In the
consolidated statement of income, “income before minority interest”
under the previous accounting standard is changed to “net income”
under the revised accounting standard, and “net income” under the
previous accounting standard is changed to “net income attributable to
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Millions of YenThousands of
U.S. Dollars (Note 1)
See notes to consolidated financial statements.
42TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.41
2015 20162016
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes - paid
Gain (loss) on acquisition of subsidiary
Depreciation and amortization
Provision for doubtful receivables
Equity in earnings of unconsolidated subsidiaries and
associated companies
Changes in assets and liabilities, net of effects:
Decrease in receivables - trade
(Increase) decrease in account receivables - other
Increase in inventories
(Increase) decrease in trade payables
Increase (decrease) in provision for employee bonuses
Increase (decrease) in liability for retirement benefits
Other - net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Net change in time deposits
Purchases of property and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales and redemptions of investment securities
Purchases of short-term investments
Proceeds from redemptions of short-term investments
Proceeds from sales of property and equipment
Payment for purchase of Takagi Co., Ltd., net of cash acquired
Other - net
Net cash used in investing activities
FINANCING ACTIVITIES:
Net change in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Net change in treasury stock
Dividends paid
Other - net
Net cash (used in) provided by financing activities
EFFECT OF FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
¥ 5,726
(1,897)
41058
1,666(55)
(337)(3,160)
154(54)221
(2,994)2,732
(1,613)(108)(110)
(2,233)203
(100)15036
250(3,525)
(20)50
(110)(532)(573)
(9)(1,194)
(86)(2,073)12,936
¥ 10,863
¥ 7,335
(2,018)
(1,600)
(21)
(17)
(134)
740
76
(198)
(1,480)
(116)
(47)
(326)
(5,141)
2,194
(106)
(1,804)
(124)
(1,534)
120
680
12
(500)
185
(3,071)
5
50
(427)
(1)
(520)
(4)
(897)
630
(1,144)
14,079
¥ 12,935
$ 50,673
(16,788)
3,628513
14,743(487)
(2,982)(27,965)
1,363(478)
1,957(26,496)24,177
(14,274)(956)(973)
(19,761)1,796(885)
1,327319
2,212(31,195)
(177)442
(973)(4,708)(5,071)
(79)(10,566)
(761)(18,345)114,478
$ 96,133
Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
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 accordance with accounting principles generally accepted in Japan
(“Japanese GAAP”), which are different in certain respects as to the
application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically in order to present them in a
form which is more familiar to readers outside Japan. In addition, certain
reclassifications have been made in the 2015 consolidated financial
statements to conform to the classifications used in 2016.
The consolidated financial statements are stated in Japanese yen, the
currency of the country in which TACHIBANA ELETECH CO., LTD. (the
“Company”) is incorporated and operates. The translations of Japanese
yen amounts into U.S. dollar amounts are included solely for the
convenience of readers outside Japan and have been made at the rate of
¥113 to $1, the approximate rate of exchange at March 31, 2016. Such
translations should not be construed as representations that the
Japanese yen amounts could be converted into U.S. dollars at that or any
other rate.
1. BASIS OF PRESENTING OF CONSOLIDATED FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Consolidation - The consolidated financial statements as of March 31,
2016 and 2015 include the accounts of the Company and its 14 (15 in
2015) significant subsidiaries (together, the “Group”). Consolidation of
the remaining subsidiaries would not have a material effect on the
accompanying consolidated financial statements.
DAIDENSHA CO., LTD. (consolidated subsidiary) merged with TAIYO
SHOKAI CO., LTD. (consolidated subsidiary) on April 1, 2015.
Under the control and influence concepts, those companies in
which the Company, directly or indirectly, is able to exercise control
over operations are fully consolidated, and those companies over which
the Group has the ability to exercise significant influence are accounted
for by the equity method.
Investments in the remaining unconsolidated subsidiaries and
associated companies are stated at cost. If the equity method of
accounting had been applied to the investments in these companies,
the effect on the accompanying consolidated financial statements
would not be material.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in
assets resulting from transactions within the Group is also eliminated.
b.Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements - In May 2006, the
Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ
Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for
the Consolidated Financial Statements” which was subsequently
revised in February 2010 and March 2015 to reflect revisions of the
relevant Japanese GAAP or accounting standards in other jurisdictions.
PITF No. 18 prescribes that the accounting policies and procedures
applied to a parent company and its subsidiaries for similar
transactions and events under similar circumstances should in principle
be unified for the preparation of the consolidated financial statements.
However, financial statements prepared by foreign subsidiaries in
accordance with either International Financial Reporting Standards or
generally accepted accounting principles in the United States of
America (Financial Accounting Standards Board Accounting Standards
Codification—“FASB ASC”) tentatively may be used for the
consolidation process, except for the following items that should be
adjusted in the consolidation process so that net income is accounted
for in accordance with Japanese GAAP, unless they are not material: (a)
amortization of goodwill; (b) scheduled amortization of actuarial gain or
loss of pensions that has been recorded in equity through other
comprehensive income; (c) expensing capitalized development costs of
R&D; and (d) cancellation of the fair value model of accounting for
property, plant and equipment and investment properties and
incorporation of the cost model of accounting.
c. Business Combinations - In October 2003, the Business Accounting
Council issued a Statement of Opinion, “Accounting for Business
Combinations,” and in December 2005, the ASBJ issued ASBJ
Statement No. 7, “Accounting Standard for Business Divestitures” and
ASBJ Guidance No. 10, “Guidance for Accounting Standard for
Business Combinations and Business Divestitures.”
In December 2008, the ASBJ issued a revised accounting standard
for business combinations, ASBJ Statement No. 21, “Accounting
Standard for Business Combinations.” Major accounting changes
under the revised accounting standard are as follows: (1) The revised
standard requires accounting for business combinations only by the
purchase method. As a result, the pooling-of-interests method of
accounting is no longer allowed. (2) The previous accounting standard
required research and development costs to be charged to income as
incurred. Under the revised standard, in-process research and
development costs (IPR&D) acquired in the business combination are
capitalized as an intangible asset. (3) The previous accounting
standard provided for a bargain purchase gain (negative goodwill) to be
systematically amortized over a period not exceeding 20 years. Under
the revised standard, the acquirer recognizes the bargain purchase gain
in profit or loss immediately on the acquisition date after reassessing
and confirming that all of the assets acquired and all of the liabilities
assumed have been identified after a review of the procedures used in
the purchase price allocation. The revised standard was applicable to
business combinations undertaken on or after April 1, 2010.
In September 2013, the ASBJ issued revised ASBJ Statement No.
21, “Accounting Standard for Business Combinations,” revised ASBJ
Guidance No. 10, “Guidance on Accounting Standards for Business
Combinations and Business Divestitures,” and revised ASBJ Statement
No. 22, “Accounting Standard for Consolidated Financial Statements.”
Major accounting changes are as follows:
(a) Transactions with noncontrolling interest - A parent’s ownership
interest in a subsidiary might change if the parent purchases or sells
ownership interests in its subsidiary. The carrying amount of
noncontrolling interest is adjusted to reflect the change in the parent’s
ownership interest in its subsidiary while the parent retains its
controlling interest in its subsidiary. Under the previous accounting
standard, any difference between the fair value of the consideration
received or paid and the amount by which the noncontrolling interest is
adjusted is accounted for as an adjustment of goodwill or as profit or
loss in the consolidated statement of income. Under the revised
accounting standard, such difference is accounted for as capital
surplus as long as the parent retains control over its subsidiary.
(b) Presentation of the consolidated balance sheet - In the consolidated
balance sheet, “minority interest” under the previous accounting
standard is changed to “noncontrolling interest” under the revised
accounting standard.
(c) Presentation of the consolidated statement of income - In the
consolidated statement of income, “income before minority interest”
under the previous accounting standard is changed to “net income”
under the revised accounting standard, and “net income” under the
previous accounting standard is changed to “net income attributable to
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Millions of YenThousands of
U.S. Dollars (Note 1)
See notes to consolidated financial statements.
42TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.41
owners of the parent” under the revised accounting standard.
(d) Provisional accounting treatments for a business combination - If the
initial accounting for a business combination is incomplete by the end
of the reporting period in which the business combination occurs, an
acquirer shall report in its financial statements provisional amounts for
the items for which the accounting is incomplete. Under the previous
accounting standard guidance, the impact of adjustments to provisional
amounts recorded in a business combination on profit or loss is
recognized as profit or loss in the year in which the measurement is
completed. Under the revised accounting standard guidance, during
the measurement period, which shall not exceed one year from the
acquisition, the acquirer shall retrospectively adjust the provisional
amounts recognized at the acquisition date to reflect new information
obtained about facts and circumstances that existed as of the
acquisition date and that would have affected the measurement of the
amounts recognized as of that date. Such adjustments shall be
recognized as if the accounting for the business combination had been
completed at the acquisition date.
(e) Acquisition-related costs - Acquisition-related costs are costs, such as
advisory fees or professional fees, which an acquirer incurs to effect a
business combination. Under the previous accounting standard, the
acquirer accounts for acquisition-related costs by including them in the
acquisition costs of the investment. Under the revised accounting
standard, acquisition-related costs shall be accounted for as expenses
in the periods in which the costs are incurred.
The above accounting standards and guidance for (a) transactions
with noncontrolling interest, (b) presentation of the consolidated
balance sheet, (c) presentation of the consolidated statement of
income, and (e) acquisition-related costs are effective for the beginning
of annual periods beginning on or after April 1, 2015. Earlier application
is permitted from the beginning of annual periods beginning on or after
April 1, 2014, except for (b) presentation of the consolidated balance
sheet and (c) presentation of the consolidated statement of income. In
the case of earlier application, all accounting standards and guidance
above, except for (b) presentation of the consolidated balance sheet
and (c) presentation of the consolidated statement of income, should
be applied simultaneously.
Either retrospective or prospective application of the revised
accounting standards and guidance for (a) transactions with
noncontrolling interest and (e) acquisition-related costs is permitted. In
retrospective application of the revised standards and guidance, the
accumulated effects of retrospective adjustments for all (a) transactions
with noncontrolling interest and (e) acquisition-related costs which
occurred in the past shall be reflected as adjustments to the beginning
balance of capital surplus and retained earnings for the year of the
first-time application. In prospective application, the new standards
and guidance shall be applied prospectively from the beginning of the
year of the first-time application.
The revised accounting standards and guidance for (b) presentation
of the consolidated balance sheet and (c) presentation of the
consolidated statement of income shall be applied to all periods
presented in financial statements containing the first-time application of
the revised standards and guidance.
The revised standards and guidance for (d) provisional accounting
treatments for a business combination are effective for a business
combination which occurs on or after the beginning of annual periods
beginning on or after April 1, 2015. Earlier application is permitted for a
business combination which occurs on or after the beginning of annual
periods beginning on or after April 1, 2014.
The Company applied the revised accounting standards and
guidance for (a) transactions with noncontrolling interest, (b)
presentation of the consolidated balance sheet, (c) presentation of the
consolidated statement of income, and (e) acquisition-related costs
above, effective April 1, 2015, and (d) provisional accounting treatments
for a business combination above for a business combination which
occurred on or after April 1, 2015. The revised accounting standards
and guidance for (a) transactions with noncontrolling interest and (e)
acquisition-related costs were applied retrospectively for all applicable
transactions which occurred in the prospectively.
With respect to (b) presentation of the consolidated balance sheet
and (c) presentation of the consolidated statement of income, the
applicable line items in the 2015 consolidated financial statements have
been accordingly reclassified and presented in line with those in 2016.
d. Cash Equivalents - Cash equivalents are short-term investments that
are readily convertible into cash and that are exposed to insignificant
risk of changes in value.
Cash equivalents include time deposits, all of which mature within three
months of the date of acquisition.
e. Allowance for Doubtful Receivables - The allowance for doubtful
accounts is stated in amounts considered to be appropriate based on
the Group’s past credit loss experience and an evaluation of potential
losses in the receivables outstanding.
f. Inventories - Inventories are stated at the lower of cost, principally
determined by the average cost method, or net selling value.
g. Short-term Investments and Investment Securities - Securities
included in short-term investments and investment securities are
classified and accounted for, depending on management’s intent, as
follows: (1) held-to-maturity debt securities, for which there is the
positive intent and ability to hold to maturity are reported at amortized
cost; and (2) available-for-sale securities, which are not classified as
either of the aforementioned securities, are reported at fair value with
unrealized gains and losses, net of applicable taxes, reported in a
separate component of equity. The cost of securities sold is
determined based on the moving-average method.
Nonmarketable available-for-sale securities are stated at cost
determined by the moving-average method. For other-than-temporary
declines in fair value, securities are reduced to net realizable value by a
charge to income.
h. Property and Equipment - Property and equipment are stated at cost.
Depreciation is computed primarily by the declining-balance method
while the straight-line method is applied to buildings acquired after April
1, 1998. The range of useful lives is principally from 3 to 50 years for
buildings and structures, from 4 to 12 years for machinery and
equipment, and from 2 to 20 years for furniture and fixtures.
i. Long-Lived Assets - The Group reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate the
carrying amount of an asset or asset group may not be recoverable. An
impairment loss is recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of
the asset or asset group. The impairment loss would be measured as
the amount by which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the discounted cash flows
from the continued use and eventual disposition of the asset or the net
selling price at disposition.
j. Retirement and Pension Plans - The Company participates in defined
benefit pension plans. The Company and certain consolidated
subsidiaries participate in welfare pension plans.
Effective April 1, 2000, the Company adopted a new accounting
standard for retirement benefits and accounted for the liability for
retirement benefits based on the projected benefit obligations and plan
assets at the consolidated balance sheet date. The projected benefit
obligations are attributed to periods on a straight-line basis. Actuarial
gains and losses are amortized on a straight-line basis over 10 years
within the average remaining service period. Past service costs are
amortized on a straight-line basis over 10 years within the average
remaining service period.
In May 2012, the ASBJ issued ASBJ Statement No. 26, “Accounting
Standard for Retirement Benefits” and ASBJ Guidance No. 25,
“Guidance on Accounting Standard for Retirement Benefits,” which
replaced the accounting standard for retirement benefits that had been
issued by the Business Accounting Council in 1998 with an effective
date of April 1, 2000, and the other related practical guidance, and were
followed by partial amendments from time to time through 2009.
(a) Under the revised accounting standard, actuarial gains and losses and
past service costs that are yet to be recognized in profit or loss are
recognized within accumulated other comprehensive income, after
adjusting for tax effects, and any resulting deficit or surplus is recognized
as a liability for retirement benefits or asset for retirement benefits.
(b) The revised accounting standard does not change how to recognize
actuarial gains and losses and past service costs in profit or loss. Those
amounts are recognized in profit or loss over a certain period no longer
than the expected average remaining service period of the employees.
However, actuarial gains and losses and past service costs that arose in
the current period and have not yet been recognized in profit or loss are
included in other comprehensive income, and actuarial gains and losses
and past service costs that were recognized in other comprehensive
income in prior periods and then recognized in profit or loss in the
current period shall be treated as reclassification adjustments.
(c) The revised accounting standard also made certain amendments
relating to the method of attributing expected benefit to periods and
relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (a) and (b) above are
effective for the end of annual periods beginning on or after April 1,
2013, and for (c) above are effective for the beginning of annual periods
beginning on or after April 1, 2014, or for the beginning of annual
periods beginning on or after April 1, 2015, subject to certain disclosure
in March 2015, both with earlier application being permitted from the
beginning of annual periods beginning on or after April 1, 2013.
However, no retrospective application of this accounting standard to
consolidated financial statements in prior periods is required.
The Company applied the revised accounting standard and
guidance for retirement benefits for (a) and (b) above, effective March
31, 2014, and for (c) above, effective April 1, 2014.
With respect to (c) above, the Company changed the method of
determining the discount rate from using the period which
approximates the expected average remaining service period to using a
single weighted-average discount rate reflecting the estimated timing
and amount of benefit payment and recorded the effect of (c) above as
of April 1, 2014, in retained earnings. As a result, retained earnings as
of April 1, 2014, decreased by ¥160 million.
k. Asset Retirement Obligations - In March 2008, the ASBJ published
ASBJ Statement No. 18, “Accounting Standard for Asset Retirement
Obligations” and ASBJ Guidance No. 21 “Guidance on Accounting
Standard for Asset Retirement Obligations.” Under this accounting
standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition,
construction, development, and normal operation of a tangible fixed
asset and is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the
discounted cash flows required for the future asset retirement and is
recorded in the period in which the obligation is incurred if a reasonable
estimate can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement obligation
is incurred, the liability should be recognized when a reasonable
estimate of asset retirement obligation can be made. Upon initial
recognition of a liability for an asset retirement obligation, an asset
retirement cost is capitalized by increasing the carrying amount of the
related fixed asset by the amount of the liability. The asset retirement
cost is subsequently allocated to expense through depreciation over the
remaining useful life of the asset. Over time, the liability is accreted to its
present value each period. Any subsequent revisions to the timing or
the amount of the original estimate of undiscounted cash flows are
reflected as an increase or a decrease in the carrying amount of the
liability and the capitalized amount of the related asset retirement cost.
l. Leases - In March 2007, the ASBJ issued ASBJ Statement No. 13,
“Accounting Standard for Lease Transactions,” which revised the
previous accounting standard for lease transactions issued in June
1993. The revised accounting standard for lease transactions was
effective for fiscal years beginning on or after April 1, 2008.
Under the previous accounting standard, finance leases that were
deemed to transfer ownership of the leased property to the lessee were
capitalized. However, other finance leases were permitted to be
accounted for as operating lease transactions if certain “as if
capitalized” information was disclosed in the note to the lessee’s
financial statements. The revised accounting standard requires that all
finance lease transactions should be capitalized by recognizing lease
assets and lease obligations in the balance sheet. In addition, the
accounting standard permits leases that existed at the transition date
and do not transfer ownership of the leased property to the lessee to be
accounted for as operating lease transactions.
The Group applied the revised accounting standard effective April 1,
2008. In addition, the Group accounted for leases that existed at the
transition date and do not transfer ownership of the leased property to
the lessee as operating lease transactions.
m. Construction Contracts - In December 2007, the ASBJ issued ASBJ
Statement No. 15, “Accounting Standard for Construction Contracts,”
and ASBJ Guidance No. 18, “Guidance on Accounting Standard for
Construction Contracts.” Under this accounting standard, the
construction revenue and construction costs should be recognized by
the percentage-of-completion method if the outcome of a construction
contract can be estimated reliably. When total construction revenue,
total construction costs, and the stage of completion of the contract at
the balance sheet date can be reliably measured, the outcome of a
construction contract can be estimated reliably. If the outcome of a
construction contract cannot be reliably estimated, the
completed-contract method should be applied. When it is probable
that the total construction costs will exceed total construction revenue,
an estimated loss on the contract should be immediately recognized by
providing for a loss on construction contracts.
n. Income Taxes - The provision for income taxes is computed based on
the pretax income included in the consolidated statement of income.
The asset and liability approach is used to recognize deferred tax
assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases
of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
o. Foreign Currency Transactions - Both short-term and long-term
monetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the
consolidated balance sheet date. The foreign exchange gains and losses
from translation are recognized in the consolidated statement of income
to the extent that they are not hedged by forward exchange contracts.
However, short-term and long-term receivables and payables
covered by forward exchange contracts are translated at the contract
rates. Any differences between the foreign exchange contract rates
and historical rates resulting from the translation of receivables and
payables are recognized as income or expense over the lives of the
related contracts.
p. Foreign Currency Financial Statements - The balance sheet
accounts of the consolidated foreign subsidiaries are translated into
Japanese yen at the current exchange rate as of the consolidated
balance sheet date except for equity, which is translated at the
historical rate. Differences arising from such translations are shown as
“Foreign currency translation adjustments” under accumulated other
comprehensive income in a separate component of equity. Revenue
and expense accounts of consolidated foreign subsidiaries are
translated into Japanese yen at the current exchange rate.
q. Derivatives and Hedging Activities - The Group uses derivative
financial instruments to manage its exposures to fluctuations in foreign
exchange and interest rates. Foreign exchange forward contracts and
interest rate swaps are utilized by the Group to reduce foreign currency
exchange and interest rate risks. The Group does not enter into
derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions
are classified and accounted for as follows: (1) all derivatives are
recognized as either assets or liabilities and measured at fair value, and
gains or losses on derivative transactions recognized in the
consolidated statement of income and (2) for derivatives used for
hedging purposes, if such derivatives qualify for hedge accounting
because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on the derivatives
Notes to Consolidated Financial Statements
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
44TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.43
owners of the parent” under the revised accounting standard.
(d) Provisional accounting treatments for a business combination - If the
initial accounting for a business combination is incomplete by the end
of the reporting period in which the business combination occurs, an
acquirer shall report in its financial statements provisional amounts for
the items for which the accounting is incomplete. Under the previous
accounting standard guidance, the impact of adjustments to provisional
amounts recorded in a business combination on profit or loss is
recognized as profit or loss in the year in which the measurement is
completed. Under the revised accounting standard guidance, during
the measurement period, which shall not exceed one year from the
acquisition, the acquirer shall retrospectively adjust the provisional
amounts recognized at the acquisition date to reflect new information
obtained about facts and circumstances that existed as of the
acquisition date and that would have affected the measurement of the
amounts recognized as of that date. Such adjustments shall be
recognized as if the accounting for the business combination had been
completed at the acquisition date.
(e) Acquisition-related costs - Acquisition-related costs are costs, such as
advisory fees or professional fees, which an acquirer incurs to effect a
business combination. Under the previous accounting standard, the
acquirer accounts for acquisition-related costs by including them in the
acquisition costs of the investment. Under the revised accounting
standard, acquisition-related costs shall be accounted for as expenses
in the periods in which the costs are incurred.
The above accounting standards and guidance for (a) transactions
with noncontrolling interest, (b) presentation of the consolidated
balance sheet, (c) presentation of the consolidated statement of
income, and (e) acquisition-related costs are effective for the beginning
of annual periods beginning on or after April 1, 2015. Earlier application
is permitted from the beginning of annual periods beginning on or after
April 1, 2014, except for (b) presentation of the consolidated balance
sheet and (c) presentation of the consolidated statement of income. In
the case of earlier application, all accounting standards and guidance
above, except for (b) presentation of the consolidated balance sheet
and (c) presentation of the consolidated statement of income, should
be applied simultaneously.
Either retrospective or prospective application of the revised
accounting standards and guidance for (a) transactions with
noncontrolling interest and (e) acquisition-related costs is permitted. In
retrospective application of the revised standards and guidance, the
accumulated effects of retrospective adjustments for all (a) transactions
with noncontrolling interest and (e) acquisition-related costs which
occurred in the past shall be reflected as adjustments to the beginning
balance of capital surplus and retained earnings for the year of the
first-time application. In prospective application, the new standards
and guidance shall be applied prospectively from the beginning of the
year of the first-time application.
The revised accounting standards and guidance for (b) presentation
of the consolidated balance sheet and (c) presentation of the
consolidated statement of income shall be applied to all periods
presented in financial statements containing the first-time application of
the revised standards and guidance.
The revised standards and guidance for (d) provisional accounting
treatments for a business combination are effective for a business
combination which occurs on or after the beginning of annual periods
beginning on or after April 1, 2015. Earlier application is permitted for a
business combination which occurs on or after the beginning of annual
periods beginning on or after April 1, 2014.
The Company applied the revised accounting standards and
guidance for (a) transactions with noncontrolling interest, (b)
presentation of the consolidated balance sheet, (c) presentation of the
consolidated statement of income, and (e) acquisition-related costs
above, effective April 1, 2015, and (d) provisional accounting treatments
for a business combination above for a business combination which
occurred on or after April 1, 2015. The revised accounting standards
and guidance for (a) transactions with noncontrolling interest and (e)
acquisition-related costs were applied retrospectively for all applicable
transactions which occurred in the prospectively.
With respect to (b) presentation of the consolidated balance sheet
and (c) presentation of the consolidated statement of income, the
applicable line items in the 2015 consolidated financial statements have
been accordingly reclassified and presented in line with those in 2016.
d. Cash Equivalents - Cash equivalents are short-term investments that
are readily convertible into cash and that are exposed to insignificant
risk of changes in value.
Cash equivalents include time deposits, all of which mature within three
months of the date of acquisition.
e. Allowance for Doubtful Receivables - The allowance for doubtful
accounts is stated in amounts considered to be appropriate based on
the Group’s past credit loss experience and an evaluation of potential
losses in the receivables outstanding.
f. Inventories - Inventories are stated at the lower of cost, principally
determined by the average cost method, or net selling value.
g. Short-term Investments and Investment Securities - Securities
included in short-term investments and investment securities are
classified and accounted for, depending on management’s intent, as
follows: (1) held-to-maturity debt securities, for which there is the
positive intent and ability to hold to maturity are reported at amortized
cost; and (2) available-for-sale securities, which are not classified as
either of the aforementioned securities, are reported at fair value with
unrealized gains and losses, net of applicable taxes, reported in a
separate component of equity. The cost of securities sold is
determined based on the moving-average method.
Nonmarketable available-for-sale securities are stated at cost
determined by the moving-average method. For other-than-temporary
declines in fair value, securities are reduced to net realizable value by a
charge to income.
h. Property and Equipment - Property and equipment are stated at cost.
Depreciation is computed primarily by the declining-balance method
while the straight-line method is applied to buildings acquired after April
1, 1998. The range of useful lives is principally from 3 to 50 years for
buildings and structures, from 4 to 12 years for machinery and
equipment, and from 2 to 20 years for furniture and fixtures.
i. Long-Lived Assets - The Group reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate the
carrying amount of an asset or asset group may not be recoverable. An
impairment loss is recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of
the asset or asset group. The impairment loss would be measured as
the amount by which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the discounted cash flows
from the continued use and eventual disposition of the asset or the net
selling price at disposition.
j. Retirement and Pension Plans - The Company participates in defined
benefit pension plans. The Company and certain consolidated
subsidiaries participate in welfare pension plans.
Effective April 1, 2000, the Company adopted a new accounting
standard for retirement benefits and accounted for the liability for
retirement benefits based on the projected benefit obligations and plan
assets at the consolidated balance sheet date. The projected benefit
obligations are attributed to periods on a straight-line basis. Actuarial
gains and losses are amortized on a straight-line basis over 10 years
within the average remaining service period. Past service costs are
amortized on a straight-line basis over 10 years within the average
remaining service period.
In May 2012, the ASBJ issued ASBJ Statement No. 26, “Accounting
Standard for Retirement Benefits” and ASBJ Guidance No. 25,
“Guidance on Accounting Standard for Retirement Benefits,” which
replaced the accounting standard for retirement benefits that had been
issued by the Business Accounting Council in 1998 with an effective
date of April 1, 2000, and the other related practical guidance, and were
followed by partial amendments from time to time through 2009.
(a) Under the revised accounting standard, actuarial gains and losses and
past service costs that are yet to be recognized in profit or loss are
recognized within accumulated other comprehensive income, after
adjusting for tax effects, and any resulting deficit or surplus is recognized
as a liability for retirement benefits or asset for retirement benefits.
(b) The revised accounting standard does not change how to recognize
actuarial gains and losses and past service costs in profit or loss. Those
amounts are recognized in profit or loss over a certain period no longer
than the expected average remaining service period of the employees.
However, actuarial gains and losses and past service costs that arose in
the current period and have not yet been recognized in profit or loss are
included in other comprehensive income, and actuarial gains and losses
and past service costs that were recognized in other comprehensive
income in prior periods and then recognized in profit or loss in the
current period shall be treated as reclassification adjustments.
(c) The revised accounting standard also made certain amendments
relating to the method of attributing expected benefit to periods and
relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (a) and (b) above are
effective for the end of annual periods beginning on or after April 1,
2013, and for (c) above are effective for the beginning of annual periods
beginning on or after April 1, 2014, or for the beginning of annual
periods beginning on or after April 1, 2015, subject to certain disclosure
in March 2015, both with earlier application being permitted from the
beginning of annual periods beginning on or after April 1, 2013.
However, no retrospective application of this accounting standard to
consolidated financial statements in prior periods is required.
The Company applied the revised accounting standard and
guidance for retirement benefits for (a) and (b) above, effective March
31, 2014, and for (c) above, effective April 1, 2014.
With respect to (c) above, the Company changed the method of
determining the discount rate from using the period which
approximates the expected average remaining service period to using a
single weighted-average discount rate reflecting the estimated timing
and amount of benefit payment and recorded the effect of (c) above as
of April 1, 2014, in retained earnings. As a result, retained earnings as
of April 1, 2014, decreased by ¥160 million.
k. Asset Retirement Obligations - In March 2008, the ASBJ published
ASBJ Statement No. 18, “Accounting Standard for Asset Retirement
Obligations” and ASBJ Guidance No. 21 “Guidance on Accounting
Standard for Asset Retirement Obligations.” Under this accounting
standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition,
construction, development, and normal operation of a tangible fixed
asset and is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the
discounted cash flows required for the future asset retirement and is
recorded in the period in which the obligation is incurred if a reasonable
estimate can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement obligation
is incurred, the liability should be recognized when a reasonable
estimate of asset retirement obligation can be made. Upon initial
recognition of a liability for an asset retirement obligation, an asset
retirement cost is capitalized by increasing the carrying amount of the
related fixed asset by the amount of the liability. The asset retirement
cost is subsequently allocated to expense through depreciation over the
remaining useful life of the asset. Over time, the liability is accreted to its
present value each period. Any subsequent revisions to the timing or
the amount of the original estimate of undiscounted cash flows are
reflected as an increase or a decrease in the carrying amount of the
liability and the capitalized amount of the related asset retirement cost.
l. Leases - In March 2007, the ASBJ issued ASBJ Statement No. 13,
“Accounting Standard for Lease Transactions,” which revised the
previous accounting standard for lease transactions issued in June
1993. The revised accounting standard for lease transactions was
effective for fiscal years beginning on or after April 1, 2008.
Under the previous accounting standard, finance leases that were
deemed to transfer ownership of the leased property to the lessee were
capitalized. However, other finance leases were permitted to be
accounted for as operating lease transactions if certain “as if
capitalized” information was disclosed in the note to the lessee’s
financial statements. The revised accounting standard requires that all
finance lease transactions should be capitalized by recognizing lease
assets and lease obligations in the balance sheet. In addition, the
accounting standard permits leases that existed at the transition date
and do not transfer ownership of the leased property to the lessee to be
accounted for as operating lease transactions.
The Group applied the revised accounting standard effective April 1,
2008. In addition, the Group accounted for leases that existed at the
transition date and do not transfer ownership of the leased property to
the lessee as operating lease transactions.
m. Construction Contracts - In December 2007, the ASBJ issued ASBJ
Statement No. 15, “Accounting Standard for Construction Contracts,”
and ASBJ Guidance No. 18, “Guidance on Accounting Standard for
Construction Contracts.” Under this accounting standard, the
construction revenue and construction costs should be recognized by
the percentage-of-completion method if the outcome of a construction
contract can be estimated reliably. When total construction revenue,
total construction costs, and the stage of completion of the contract at
the balance sheet date can be reliably measured, the outcome of a
construction contract can be estimated reliably. If the outcome of a
construction contract cannot be reliably estimated, the
completed-contract method should be applied. When it is probable
that the total construction costs will exceed total construction revenue,
an estimated loss on the contract should be immediately recognized by
providing for a loss on construction contracts.
n. Income Taxes - The provision for income taxes is computed based on
the pretax income included in the consolidated statement of income.
The asset and liability approach is used to recognize deferred tax
assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases
of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
o. Foreign Currency Transactions - Both short-term and long-term
monetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the
consolidated balance sheet date. The foreign exchange gains and losses
from translation are recognized in the consolidated statement of income
to the extent that they are not hedged by forward exchange contracts.
However, short-term and long-term receivables and payables
covered by forward exchange contracts are translated at the contract
rates. Any differences between the foreign exchange contract rates
and historical rates resulting from the translation of receivables and
payables are recognized as income or expense over the lives of the
related contracts.
p. Foreign Currency Financial Statements - The balance sheet
accounts of the consolidated foreign subsidiaries are translated into
Japanese yen at the current exchange rate as of the consolidated
balance sheet date except for equity, which is translated at the
historical rate. Differences arising from such translations are shown as
“Foreign currency translation adjustments” under accumulated other
comprehensive income in a separate component of equity. Revenue
and expense accounts of consolidated foreign subsidiaries are
translated into Japanese yen at the current exchange rate.
q. Derivatives and Hedging Activities - The Group uses derivative
financial instruments to manage its exposures to fluctuations in foreign
exchange and interest rates. Foreign exchange forward contracts and
interest rate swaps are utilized by the Group to reduce foreign currency
exchange and interest rate risks. The Group does not enter into
derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions
are classified and accounted for as follows: (1) all derivatives are
recognized as either assets or liabilities and measured at fair value, and
gains or losses on derivative transactions recognized in the
consolidated statement of income and (2) for derivatives used for
hedging purposes, if such derivatives qualify for hedge accounting
because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on the derivatives
Notes to Consolidated Financial Statements
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
44TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.43
are deferred until maturity of the hedged transactions.
Foreign currency forward contracts are employed to hedge foreign
currency exposures to the procurement of products from overseas
suppliers. Forward contracts applied for forecasted (or committed)
transactions are measured at fair value and the unrealized gains/losses
are deferred until the underlying transactions are completed.
r. Per Share Information - Basic net income per share is computed by
dividing net income available to common shareholders by the
weighted-average number of common shares outstanding for the period.
Diluted net income per share is not disclosed because the Company
has no dilutive securities.
Cash dividends per share presented in the accompanying
consolidated statement of income are dividends applicable to the
respective years, including dividends to be paid after the end of the year.
On April 1, 2015, the Company effected a 1.2-for-1 stock split by
way of a free share distribution based on the resolution of the Board of
Directors meeting held on December 12, 2014. All prior year share and
per share figures have been restated to reflect the impact of the stock
split, and to provide data on a basis comparable to the year ended
March 31, 2016. Such restatements include calculations regarding the
Company’s weighted-average number of common shares, basic net
income per share, and cash dividends per share.
s. Accounting Changes and Error Corrections - In December 2009, the
ASBJ issued ASBJ Statement No. 24, “Accounting Standard for
Accounting Changes and Error Corrections,” and ASBJ Guidance No.
24, “Guidance on Accounting Standard for Accounting Changes and
Error Corrections.” Accounting treatments under this standard and
guidance are as follows: (1) Changes in Accounting Policies - When a
new accounting policy is applied following revision of an accounting
standard, the new policy is applied retrospectively unless the revised
accounting standard includes specific transitional provisions, in which
case the entity shall comply with the specific transitional provisions. (2)
Changes in Presentation - When the presentation of financial
statements is changed, prior-period financial statements are
reclassified in accordance with the new presentation. (3) Changes in
Accounting Estimates - A change in an accounting estimate is
Notes to Consolidated Financial Statements
accounted for in the period of the change if the change affects that
period only, and is accounted for prospectively if the change affects
both the period of the change and future periods. (4) Corrections of
Prior-Period Errors - When an error in prior-period financial statements
is discovered, those statements are restated.
t. New Accounting PronouncementsTax Effect Accounting - On December 28, 2015, the ASBJ issued
ASBJ Guidance No. 26, “Guidance on Recoverability of Deferred Tax
Assets,” which included certain revisions of the previous accounting
and auditing guidance issued by the Japanese Institute of Certified
Public Accountants and revised them on March 28, 2016. While the
new guidance continues to follow the basic framework of the previous
guidance, it provides new guidance for the application of judgment in
assessing the recoverability of deferred tax assets.
The previous guidance provided a basic framework which included
certain specific restrictions on recognizing deferred tax assets
depending on the company’s classification in respect of its profitability,
taxable profit and temporary differences, etc.
The new guidance does not change such basic framework but, in
limited cases, allows companies to recognize deferred tax assets even
for a deductible temporary difference for which it was specifically
prohibited to recognize a deferred tax asset under the previous
guidance, if the company can justify, with reasonable grounds, that it is
probable that the deductible temporary difference will be utilized
against future taxable profit in some future period.
The new guidance is effective for the beginning of annual periods
beginning on or after April 1, 2016. Earlier application is permitted for
annual periods ending on or after March 31, 2016. The new guidance
shall not be applied retrospectively and any adjustments from the
application of the new guidance at the beginning of the reporting period
shall be reflected within retained earnings or accumulated other
comprehensive income at the beginning of the reporting period.
The Company expects to apply the new guidance on recoverability
of deferred tax assets effective April 1, 2016, and is in the process of
measuring the effects of applying the new guidance in future applicable
periods.
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
2015 20162016
3. SHORT-TERM INVESTMENTS AND INVESTMENT SECURITIES
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 20,407
3,558
$ 23,965
$ 86,283
40,770
442
1,319
$ 128,814
¥ 693
150
¥ 843
¥ 11,005
2,877
50
161
¥ 14,093
Short-term investments:
Time deposits other than cash equivalents
Government and corporate bonds
Total
Investment securities:
Marketable equity securities
Government and corporate bonds
Nonmarketable equity securities
Others
Total
¥ 2,306
402
¥ 2,708
¥ 9,750
4,607
50
149
¥ 14,556
¥ 5,106
4,961
124
¥ 10,191
¥ 4,737
69
25
¥ 4,831
¥ 93
21
¥ 114
¥ 9,750
5,009
149
¥ 14,908
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 5,085
3,020
130
¥ 8,235
¥ 5,932
24
31
¥ 5,987
¥ 12
17
¥ 29
¥ 11,005
3,027
161
¥ 14,193
March 31, 2016
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2015
$ 45,186
43,903
1,097
$ 90,186
$ 41,920
611
221
$ 42,752
$ 823
186
$ 1,009
$ 86,283
44,328
1,318
$ 131,929
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2016
2015 20162016
4. INVENTORIES
Inventories at March 31, 2016 and 2015, consisted of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 9,406
4
1
¥ 9,411
$ 83,239
35
9
$ 83,283
¥ 9,067
27
2
¥ 9,096
Merchandise
Work in process
Raw materials
Total
Short-term investments and investment securities as of March 31, 2016 and 2015, consisted of the following:
Millions of YenThousands of
U.S. Dollars
The costs and aggregate fair value of investment securities classified as available-for-sale at March 31, 2016 and 2015, were as follows:
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Millions of Yen
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Millions of Yen
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Thousands of U.S. Dollars
Millions of YenThousands of
U.S. Dollars
46TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.45
are deferred until maturity of the hedged transactions.
Foreign currency forward contracts are employed to hedge foreign
currency exposures to the procurement of products from overseas
suppliers. Forward contracts applied for forecasted (or committed)
transactions are measured at fair value and the unrealized gains/losses
are deferred until the underlying transactions are completed.
r. Per Share Information - Basic net income per share is computed by
dividing net income available to common shareholders by the
weighted-average number of common shares outstanding for the period.
Diluted net income per share is not disclosed because the Company
has no dilutive securities.
Cash dividends per share presented in the accompanying
consolidated statement of income are dividends applicable to the
respective years, including dividends to be paid after the end of the year.
On April 1, 2015, the Company effected a 1.2-for-1 stock split by
way of a free share distribution based on the resolution of the Board of
Directors meeting held on December 12, 2014. All prior year share and
per share figures have been restated to reflect the impact of the stock
split, and to provide data on a basis comparable to the year ended
March 31, 2016. Such restatements include calculations regarding the
Company’s weighted-average number of common shares, basic net
income per share, and cash dividends per share.
s. Accounting Changes and Error Corrections - In December 2009, the
ASBJ issued ASBJ Statement No. 24, “Accounting Standard for
Accounting Changes and Error Corrections,” and ASBJ Guidance No.
24, “Guidance on Accounting Standard for Accounting Changes and
Error Corrections.” Accounting treatments under this standard and
guidance are as follows: (1) Changes in Accounting Policies - When a
new accounting policy is applied following revision of an accounting
standard, the new policy is applied retrospectively unless the revised
accounting standard includes specific transitional provisions, in which
case the entity shall comply with the specific transitional provisions. (2)
Changes in Presentation - When the presentation of financial
statements is changed, prior-period financial statements are
reclassified in accordance with the new presentation. (3) Changes in
Accounting Estimates - A change in an accounting estimate is
Notes to Consolidated Financial Statements
accounted for in the period of the change if the change affects that
period only, and is accounted for prospectively if the change affects
both the period of the change and future periods. (4) Corrections of
Prior-Period Errors - When an error in prior-period financial statements
is discovered, those statements are restated.
t. New Accounting PronouncementsTax Effect Accounting - On December 28, 2015, the ASBJ issued
ASBJ Guidance No. 26, “Guidance on Recoverability of Deferred Tax
Assets,” which included certain revisions of the previous accounting
and auditing guidance issued by the Japanese Institute of Certified
Public Accountants and revised them on March 28, 2016. While the
new guidance continues to follow the basic framework of the previous
guidance, it provides new guidance for the application of judgment in
assessing the recoverability of deferred tax assets.
The previous guidance provided a basic framework which included
certain specific restrictions on recognizing deferred tax assets
depending on the company’s classification in respect of its profitability,
taxable profit and temporary differences, etc.
The new guidance does not change such basic framework but, in
limited cases, allows companies to recognize deferred tax assets even
for a deductible temporary difference for which it was specifically
prohibited to recognize a deferred tax asset under the previous
guidance, if the company can justify, with reasonable grounds, that it is
probable that the deductible temporary difference will be utilized
against future taxable profit in some future period.
The new guidance is effective for the beginning of annual periods
beginning on or after April 1, 2016. Earlier application is permitted for
annual periods ending on or after March 31, 2016. The new guidance
shall not be applied retrospectively and any adjustments from the
application of the new guidance at the beginning of the reporting period
shall be reflected within retained earnings or accumulated other
comprehensive income at the beginning of the reporting period.
The Company expects to apply the new guidance on recoverability
of deferred tax assets effective April 1, 2016, and is in the process of
measuring the effects of applying the new guidance in future applicable
periods.
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
2015 20162016
3. SHORT-TERM INVESTMENTS AND INVESTMENT SECURITIES
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 20,407
3,558
$ 23,965
$ 86,283
40,770
442
1,319
$ 128,814
¥ 693
150
¥ 843
¥ 11,005
2,877
50
161
¥ 14,093
Short-term investments:
Time deposits other than cash equivalents
Government and corporate bonds
Total
Investment securities:
Marketable equity securities
Government and corporate bonds
Nonmarketable equity securities
Others
Total
¥ 2,306
402
¥ 2,708
¥ 9,750
4,607
50
149
¥ 14,556
¥ 5,106
4,961
124
¥ 10,191
¥ 4,737
69
25
¥ 4,831
¥ 93
21
¥ 114
¥ 9,750
5,009
149
¥ 14,908
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 5,085
3,020
130
¥ 8,235
¥ 5,932
24
31
¥ 5,987
¥ 12
17
¥ 29
¥ 11,005
3,027
161
¥ 14,193
March 31, 2016
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2015
$ 45,186
43,903
1,097
$ 90,186
$ 41,920
611
221
$ 42,752
$ 823
186
$ 1,009
$ 86,283
44,328
1,318
$ 131,929
Equity securities
Government and corporate bonds
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2016
2015 20162016
4. INVENTORIES
Inventories at March 31, 2016 and 2015, consisted of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 9,406
4
1
¥ 9,411
$ 83,239
35
9
$ 83,283
¥ 9,067
27
2
¥ 9,096
Merchandise
Work in process
Raw materials
Total
Short-term investments and investment securities as of March 31, 2016 and 2015, consisted of the following:
Millions of YenThousands of
U.S. Dollars
The costs and aggregate fair value of investment securities classified as available-for-sale at March 31, 2016 and 2015, were as follows:
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Millions of Yen
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Millions of Yen
UnrealizedGains
UnrealizedLossesCost
Fair
Value
Thousands of U.S. Dollars
Millions of YenThousands of
U.S. Dollars
46TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.45
2015 20162016
5. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 43
85
51
179
55
¥ 124
$ 381
752
451
1,584
487
$ 1,097
¥ 73
115
14
202
114
¥ 88
Loans from banks and other financial institutions, due
serially to 2018 with interest rates ranging from 1.20% to 1.60%
(2016) and 1.31% to 1.675% (2015):
Collateralized
Unsecured
Obligation under finance leases
Total
Less current portion
Long-term debt, less current portion
Annual maturities of long-term debt at March 31, 2016, were as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 55
89
18
9
8
¥ 179
$ 487
787
159
80
71
$ 1,584
2017
2018
2019
2020
2021
2022 and thereafter
Total
Year Ending March 31
The carrying amounts of assets pledged as collateral for the above secured and collateralized long-term debt at March 31, 2016, were as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 157
96
7
¥ 260
$ 1,389
850
62
$ 2,301
Time deposits included in short-term investments
Land
Buildings and structures - net of accumulated depreciation
Total
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. RETIREMENT AND PENSION PLANS
Balance at beginning of year (as previously reported)
Cumulative effect of accounting change
Balance at beginning of year (as restated)
Current service cost
Interest cost
Actuarial (gains) losses
Benefits paid
Balance at end of year
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The changes in plan assets for the years ended March 31, 2016 and 2015 were as follows:
Balance at beginning of year
Expected return on plan assets
Actuarial (gains) losses
Contributions from the employer
Benefits paid
Balance at end of year
(3) The schedule of the net defined benefit liability accounted for by the simplified method for the years ended March 31, 2016 and 2015 were
as follows:
Balance at beginning of year
Increase by new consolidation
Periodic benefit cost
Benefit paid
Contributions to the pension plans
Balance at end of year
2015 20162016
¥ 4,366
4,3662334322
(210)¥ 4,454
$ 38,637
38,6372,062
381195
(1,858)$ 39,417
¥ 4,055
248
4,303
228
43
(68)
(140)
¥ 4,366
2015 20162016
¥ 4,19442
(122)276
(179)¥ 4,211
$ 37,115372
(1,080)2,442
(1,584)$ 37,265
¥ 3,602
36
429
267
(140)
¥ 4,194
2015 20162016
¥ 590
53(69)(4)
¥ 570
$ 5,221
469(612)(35)
$ 5,043
¥ 215
361
32
(14)
(4)
¥ 590
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Long-term debt at March 31, 2016 and 2015, consisted of the following:
Short-term bank loans at March 31, 2016 and 2015, included bank overdrafts. The annual interest rates applicable to the short-term
bank loans ranged from 0.52% to 1.74% and 0.58% to 1.62% at March 31, 2016 and 2015, respectively.
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
The Company participates in defined benefit pension plans, and the Company has a retirement benefit trust. For defined benefit pension plans and
unfunded lump-sum payment plans, which some consolidated subsidiaries of the Company adopted, the liability for retirement benefits and
periodic benefit costs is computed by the simplified method.
The Company and its domestic consolidated subsidiaries participate in a contributory multiemployer pension plan, which is accounted for in the
same way as defined contribution pension plans.
(1) The changes in defined benefit obligation for the years ended March 31, 2016 and 2015 were as follows:
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
48TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.47
2015 20162016
5. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 43
85
51
179
55
¥ 124
$ 381
752
451
1,584
487
$ 1,097
¥ 73
115
14
202
114
¥ 88
Loans from banks and other financial institutions, due
serially to 2018 with interest rates ranging from 1.20% to 1.60%
(2016) and 1.31% to 1.675% (2015):
Collateralized
Unsecured
Obligation under finance leases
Total
Less current portion
Long-term debt, less current portion
Annual maturities of long-term debt at March 31, 2016, were as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 55
89
18
9
8
¥ 179
$ 487
787
159
80
71
$ 1,584
2017
2018
2019
2020
2021
2022 and thereafter
Total
Year Ending March 31
The carrying amounts of assets pledged as collateral for the above secured and collateralized long-term debt at March 31, 2016, were as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 157
96
7
¥ 260
$ 1,389
850
62
$ 2,301
Time deposits included in short-term investments
Land
Buildings and structures - net of accumulated depreciation
Total
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. RETIREMENT AND PENSION PLANS
Balance at beginning of year (as previously reported)
Cumulative effect of accounting change
Balance at beginning of year (as restated)
Current service cost
Interest cost
Actuarial (gains) losses
Benefits paid
Balance at end of year
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The changes in plan assets for the years ended March 31, 2016 and 2015 were as follows:
Balance at beginning of year
Expected return on plan assets
Actuarial (gains) losses
Contributions from the employer
Benefits paid
Balance at end of year
(3) The schedule of the net defined benefit liability accounted for by the simplified method for the years ended March 31, 2016 and 2015 were
as follows:
Balance at beginning of year
Increase by new consolidation
Periodic benefit cost
Benefit paid
Contributions to the pension plans
Balance at end of year
2015 20162016
¥ 4,366
4,3662334322
(210)¥ 4,454
$ 38,637
38,6372,062
381195
(1,858)$ 39,417
¥ 4,055
248
4,303
228
43
(68)
(140)
¥ 4,366
2015 20162016
¥ 4,19442
(122)276
(179)¥ 4,211
$ 37,115372
(1,080)2,442
(1,584)$ 37,265
¥ 3,602
36
429
267
(140)
¥ 4,194
2015 20162016
¥ 590
53(69)(4)
¥ 570
$ 5,221
469(612)(35)
$ 5,043
¥ 215
361
32
(14)
(4)
¥ 590
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Long-term debt at March 31, 2016 and 2015, consisted of the following:
Short-term bank loans at March 31, 2016 and 2015, included bank overdrafts. The annual interest rates applicable to the short-term
bank loans ranged from 0.52% to 1.74% and 0.58% to 1.62% at March 31, 2016 and 2015, respectively.
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
The Company participates in defined benefit pension plans, and the Company has a retirement benefit trust. For defined benefit pension plans and
unfunded lump-sum payment plans, which some consolidated subsidiaries of the Company adopted, the liability for retirement benefits and
periodic benefit costs is computed by the simplified method.
The Company and its domestic consolidated subsidiaries participate in a contributory multiemployer pension plan, which is accounted for in the
same way as defined contribution pension plans.
(1) The changes in defined benefit obligation for the years ended March 31, 2016 and 2015 were as follows:
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
48TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.47
Notes to Consolidated Financial Statements
(4) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets
Funded defined benefit obligation
Plan assets
Unfunded defined benefit obligation
Net liability arising from defined benefit obligation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(5) The components of net periodic benefit costs for the years ended March 31, 2016 and 2015, were as follows:
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial (gains) losses
Periodic benefit cost in simplified method
Net periodic benefit costs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized prior service cost
Unrecognized actuarial (gains) losses
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 20162016
¥ 4,733(4,270)
463350
¥ 813
$ 41,885(37,788)
4,0973,098
$ 7,195
¥ 5,005
(4,249)
756
6
¥ 762
2015 20162016
¥ 23243
(42)40(1)53
¥ 325
$ 2,053381
(372)354
(9)469
$ 2,876
¥ 228
43
(36)
(27)
(1)
32
¥ 239
Prior service cost
Actuarial (gains) losses
Total
2015 20162016
¥ (1)(104)
¥ (105)
$ (9)(920)
$ (929)
¥ (1)
469
¥ 468
2015 20162016
¥ 11(317)
¥ (306)
$ 97(2,805)
$ (2,708)
¥ 10
(421)
¥ (411)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Plan assets
(9) Assumptions used for the years ended March 31, 2016 and 2015, are set forth as follows:
Debt investments
Equity investments
General account
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discount rate
Expected rate of return on plan assets
Expected rate of salary increase
b. Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return which are expected currently and in the future
from the various components of the plan assets.
(10) The funded status of the multi-employer plan as of March 31, 2016 and 2015, was as follows:
20152016
16%37434
100%
15%
40
41
4
100%
20152016
1.0%1.0%4.7%
1.0%
1.0%
4.7%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Group’s share of the contribution to the fund for the years ended March 31, 2016 and 2015, was as follows:
The contribution ratio of the Group in the multi-employer plan
20152016
6.7% 6.6%. . . . . . . . . .
Pension fund assets
Sum of actuarial liabilities of pension plan and minimum actuarial
reserve
Net balance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The balance consists of past service liabilities of ¥11,345 million ($100,399 thousand) for 2016 and ¥12,179 million for 2015, and reserve carried
forward of ¥8,264 million ($73,133 thousand) for 2016 and ¥5,027 million for 2015.
2015 20162016
¥ 87,500
90,581¥ (3,081)
$ 774,336
801,602$ (27,266)
¥ 77,624
84,777
¥ (7,153)
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
(6) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans for the years
ended March 31, 2016 and 2015
(7) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement benefit plans
as of March 31, 2016 and 2015
a. Components of plan assets
Plan assets as of March 31, 2016 and 2015, consisted of the following:
50TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.49
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
(4) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets
Funded defined benefit obligation
Plan assets
Unfunded defined benefit obligation
Net liability arising from defined benefit obligation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
(5) The components of net periodic benefit costs for the years ended March 31, 2016 and 2015, were as follows:
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial (gains) losses
Periodic benefit cost in simplified method
Net periodic benefit costs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized prior service cost
Unrecognized actuarial (gains) losses
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 20162016
¥ 4,733(4,270)
463350
¥ 813
$ 41,885(37,788)
4,0973,098
$ 7,195
¥ 5,005
(4,249)
756
6
¥ 762
2015 20162016
¥ 23243
(42)40(1)53
¥ 325
$ 2,053381
(372)354
(9)469
$ 2,876
¥ 228
43
(36)
(27)
(1)
32
¥ 239
Prior service cost
Actuarial (gains) losses
Total
2015 20162016
¥ (1)(104)
¥ (105)
$ (9)(920)
$ (929)
¥ (1)
469
¥ 468
2015 20162016
¥ 11(317)
¥ (306)
$ 97(2,805)
$ (2,708)
¥ 10
(421)
¥ (411)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Plan assets
(9) Assumptions used for the years ended March 31, 2016 and 2015, are set forth as follows:
Debt investments
Equity investments
General account
Others
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discount rate
Expected rate of return on plan assets
Expected rate of salary increase
b. Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return which are expected currently and in the future
from the various components of the plan assets.
(10) The funded status of the multi-employer plan as of March 31, 2016 and 2015, was as follows:
20152016
16%37434
100%
15%
40
41
4
100%
20152016
1.0%1.0%4.7%
1.0%
1.0%
4.7%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Group’s share of the contribution to the fund for the years ended March 31, 2016 and 2015, was as follows:
The contribution ratio of the Group in the multi-employer plan
20152016
6.7% 6.6%. . . . . . . . . .
Pension fund assets
Sum of actuarial liabilities of pension plan and minimum actuarial
reserve
Net balance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The balance consists of past service liabilities of ¥11,345 million ($100,399 thousand) for 2016 and ¥12,179 million for 2015, and reserve carried
forward of ¥8,264 million ($73,133 thousand) for 2016 and ¥5,027 million for 2015.
2015 20162016
¥ 87,500
90,581¥ (3,081)
$ 774,336
801,602$ (27,266)
¥ 77,624
84,777
¥ (7,153)
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
(6) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans for the years
ended March 31, 2016 and 2015
(7) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement benefit plans
as of March 31, 2016 and 2015
a. Components of plan assets
Plan assets as of March 31, 2016 and 2015, consisted of the following:
50TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.49
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
7. EQUITY
2015 20162016
8. INCOME TAXES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 39
354
75
118
296
72
180
274
1,408
(573)
¥ 835
¥ 98
1,385
123
1,606
¥ (771)
$ 345
3,133
664
1,044
2,619
637
1,593
2,425
12,460
(5,071)
$ 7,389
$ 867
12,257
1,088
14,212
$ (6,823)
¥ 22
328
73
294
115
61
218
264
1,375
(577)
¥ 798
¥ 90
1,809
140
2,039
¥ (1,241)
Deferred tax assets:
Allowance for doubtful receivables
Accrued bonuses
Enterprise tax
Valuation loss on investment securities
Liability for retirement benefits
Loss on devaluation of stock
Tax loss carryforwards
Other
Total gross deferred tax assets
Less valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Undistributed earnings of overseas subsidiaries
Unrealized gains on available-for-sale securities
Other
Total gross deferred tax liabilities
Net deferred tax assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 599
10
(1,380)
¥ (771)
$ 5,301
88
(12,212)
$ (6,823)
¥ 560
11
(1,812)
¥ (1,241)
Deferred tax assets (current)
Deferred tax assets (noncurrent)
Deferred tax liabilities (noncurrent)
Net deferred tax assets
2015 20162016
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the Companies Act that affect financial
and accounting matters are summarized below:
(a) DividendsUnder the Companies Act, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon
resolution at the shareholders’ meeting. For companies that meet
certain criteria such as (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit and Supervisory Board, and
(4) the term of service of the directors being prescribed as one year
rather than the normal two-year term by its articles of incorporation, the
Board of Directors may declare dividends (except for dividends-in-kind)
at any time during the fiscal year if the company has prescribed so in its
articles of incorporation. The Company meets all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind
(noncash assets) to shareholders subject to certain limitations and
additional requirements.
Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation of the
company so stipulate. The Companies Act provides certain limitations
on the amounts available for dividends or the purchase of treasury
stock. The limitation is defined as the amount available for distribution
to the shareholders, but the amount of net assets after dividends must
be maintained at no less than ¥3 million.
(b) Increases/Decreases and Transfer of Common Stock, Reserve, and SurplusThe Companies Act requires that an amount equal to 10% of dividends
must be appropriated as a legal reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital
surplus) depending on the equity account charged upon the payment of
such dividends until the total of the aggregate amount of the legal
reserve and additional paid-in capital equals 25% of common stock.
Under the Companies Act, the total amount of additional paid-in capital
and legal reserve may be reversed without limitation. The Companies
Act also provides that common stock, legal reserve, additional paid-in
capital, other capital surplus, and retained earnings can be transferred
among the accounts within equity under certain conditions upon
resolution of the shareholders.
(c) Treasury Stock and Treasury Stock Acquisition RightsThe Companies Act also provides for companies to purchase treasury
stock and dispose of such treasury stock by resolution of the Board of
Directors. The amount of treasury stock purchased cannot exceed the
amount available for distribution to the shareholders, which is
determined by a specific formula. Under the Companies Act, stock
acquisition rights, which were previously presented as a liability, are
now presented as a separate component of equity. The Companies
Act also provides that companies can purchase both treasury stock
acquisition rights and treasury stock. Such treasury stock acquisition
rights are presented as a separate component of equity or deducted
directly from stock acquisition rights.
On April 1, 2015, the Company effected a 1.2-for-1 stock split by
way of a free share distribution based on the resolution of the Board of
Directors meeting held on December 12, 2014.
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a
normal effective statutory tax rate of approximately 33.0% and 35.6% for the years ended March 31, 2016 and 2015, respectively. Foreign
subsidiaries are subject to income taxes of the countries in which they operate.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31,
2016 and 2015, are as follows:
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Net deferred tax assets and liabilities at March 31, 2016 and 2015, are reflected in the accompanying consolidated balance sheet under the
following captions:
52TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.51
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
7. EQUITY
2015 20162016
8. INCOME TAXES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 39
354
75
118
296
72
180
274
1,408
(573)
¥ 835
¥ 98
1,385
123
1,606
¥ (771)
$ 345
3,133
664
1,044
2,619
637
1,593
2,425
12,460
(5,071)
$ 7,389
$ 867
12,257
1,088
14,212
$ (6,823)
¥ 22
328
73
294
115
61
218
264
1,375
(577)
¥ 798
¥ 90
1,809
140
2,039
¥ (1,241)
Deferred tax assets:
Allowance for doubtful receivables
Accrued bonuses
Enterprise tax
Valuation loss on investment securities
Liability for retirement benefits
Loss on devaluation of stock
Tax loss carryforwards
Other
Total gross deferred tax assets
Less valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Undistributed earnings of overseas subsidiaries
Unrealized gains on available-for-sale securities
Other
Total gross deferred tax liabilities
Net deferred tax assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 599
10
(1,380)
¥ (771)
$ 5,301
88
(12,212)
$ (6,823)
¥ 560
11
(1,812)
¥ (1,241)
Deferred tax assets (current)
Deferred tax assets (noncurrent)
Deferred tax liabilities (noncurrent)
Net deferred tax assets
2015 20162016
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the Companies Act that affect financial
and accounting matters are summarized below:
(a) DividendsUnder the Companies Act, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon
resolution at the shareholders’ meeting. For companies that meet
certain criteria such as (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit and Supervisory Board, and
(4) the term of service of the directors being prescribed as one year
rather than the normal two-year term by its articles of incorporation, the
Board of Directors may declare dividends (except for dividends-in-kind)
at any time during the fiscal year if the company has prescribed so in its
articles of incorporation. The Company meets all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind
(noncash assets) to shareholders subject to certain limitations and
additional requirements.
Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation of the
company so stipulate. The Companies Act provides certain limitations
on the amounts available for dividends or the purchase of treasury
stock. The limitation is defined as the amount available for distribution
to the shareholders, but the amount of net assets after dividends must
be maintained at no less than ¥3 million.
(b) Increases/Decreases and Transfer of Common Stock, Reserve, and SurplusThe Companies Act requires that an amount equal to 10% of dividends
must be appropriated as a legal reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital
surplus) depending on the equity account charged upon the payment of
such dividends until the total of the aggregate amount of the legal
reserve and additional paid-in capital equals 25% of common stock.
Under the Companies Act, the total amount of additional paid-in capital
and legal reserve may be reversed without limitation. The Companies
Act also provides that common stock, legal reserve, additional paid-in
capital, other capital surplus, and retained earnings can be transferred
among the accounts within equity under certain conditions upon
resolution of the shareholders.
(c) Treasury Stock and Treasury Stock Acquisition RightsThe Companies Act also provides for companies to purchase treasury
stock and dispose of such treasury stock by resolution of the Board of
Directors. The amount of treasury stock purchased cannot exceed the
amount available for distribution to the shareholders, which is
determined by a specific formula. Under the Companies Act, stock
acquisition rights, which were previously presented as a liability, are
now presented as a separate component of equity. The Companies
Act also provides that companies can purchase both treasury stock
acquisition rights and treasury stock. Such treasury stock acquisition
rights are presented as a separate component of equity or deducted
directly from stock acquisition rights.
On April 1, 2015, the Company effected a 1.2-for-1 stock split by
way of a free share distribution based on the resolution of the Board of
Directors meeting held on December 12, 2014.
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a
normal effective statutory tax rate of approximately 33.0% and 35.6% for the years ended March 31, 2016 and 2015, respectively. Foreign
subsidiaries are subject to income taxes of the countries in which they operate.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31,
2016 and 2015, are as follows:
Millions of YenThousands of
U.S. Dollars
Millions of YenThousands of
U.S. Dollars
Net deferred tax assets and liabilities at March 31, 2016 and 2015, are reflected in the accompanying consolidated balance sheet under the
following captions:
52TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.51
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35.6%
1.0
(0.5)
0.6
(0.5)
(1.8)
(0.6)
(1.4)
1.0
(0.5)
(7.8)
0.4
25.5%
Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Income not taxable for income tax purposes
Taxation on per capita basis
Change in valuation allowance
Amortization of negative goodwill
Equity in earnings of associated company
Difference in foreign subsidiaries’ tax rates
Decrease adjustment of deferred tax assets for changing tax rates
Tax deduction
(Gain) loss on acquisition of subsidiary
Other - net
Actual effective tax rate
Year Ending March 31
2017
2018
2019
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 231
269
226
¥ 726
$ 2,044
2,381
2,000
$ 6,425
2015
On March 29, 2016, a tax reform law was enacted in Japan which changed the normal effective statutory tax rate for the fiscal year beginning
on or after April 1, 2016, to approximately 30.8% and for the fiscal year beginning on or after April 1, 2018, to approximately 30.6%. The effect
of these changes was to decrease deferred tax liabilities, net of deferred tax assets, by ¥46 million and to increase income taxes-deferred in the
consolidated statement of income for the year then ended by ¥34 million.
At March 31, 2016, certain subsidiaries have tax loss carryforwards aggregating approximately ¥726 million ($6,425 thousand), which are
available to offset taxable income of such subsidiaries in future years. These tax loss carryforwards, if not utilized, will expire as follows:
* Information for the year ended March 31, 2016 was not provided because the difference between the statutory tax rate and the effective
income tax rate was less than 5% of the statutory tax rate.
Future minimum payments under noncancelable operating leases were as follows:
$ 611654
$ 1,265
¥ 6974
¥ 143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due within one year
Due after one year
Total
. . . . . . .
. . . . . . . . . . . . . .
. .
. . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . .
Cash and cash equivalents
Trade receivables
Allowance for doubtful receivables
Subtotal
Other receivables
Short-term investments and
investment securities
Total
Short-term bank loans
Trade payables
Long-term bank loans
Total
Derivative financial instruments
(a) Fair value of financial instruments
$ 96,133452,770
(416)452,35414,663
152,337$ 715,487
$ 14,319284,239
1,130$ 299,688
$ 53
$ 96,133
452,35414,663
152,337$ 715,487
$ 14,319284,239
1,133$ 299,691
$ 53
$ 3$ 3
¥ 10,86351,163
(47)51,1161,657
17,214¥ 80,850
¥ 1,61832,119
128¥ 33,865
¥ 6
¥ 10,863
51,1161,657
17,214¥ 80,850
¥ 1,61832,119
128¥ 33,865
¥ 6
¥ 0¥ 0
¥ 12,935
52,878
(60)
52,818
1,586
14,886
¥ 82,225
¥ 1,641
35,549
188
¥ 37,378
¥ (21)
¥ 12,935
52,818
1,586
14,886
¥ 82,225
¥ 1,641
35,549
188
¥ 37,378
¥ (21)
¥ (0)
¥ (0)
(1) Group Policy for Financial InstrumentsThe Group uses mainly bank loans to fund its ongoing operations.
Cash surpluses are invested in bank deposits or low-risk financial
assets. Derivatives are used to reduce foreign currency exchange
risk of receivables and payables denominated in foreign
currencies and interest rate risks of variable interest rate loans,
not for speculative purposes.
(2) Nature, Extent of Risks Arising from Financial Instruments, and Risk Management for Financial Instruments
Trade receivables, such as trade notes and trade accounts, are
exposed to customer credit risk.
The Group manages its credit risk from receivables on the
basis of internal guidelines, which include monitoring of payment
terms and balances and monitoring major customers' financial
status on a regular basis.
Other receivables are mainly rebate receivables from major
vendors and the Company considers their credit risks to be
limited.
Securities included in short-term investments and investment
securities, mainly equity instruments of customers and suppliers
of the Group and high credit rating bonds, are exposed to market
price fluctuations. The market values are reported to the Group’s
administrative director on a regular basis.
Payment terms of trade payables, such as trade notes and
trade accounts, are mainly less than one year.
Although foreign currency trade receivables and payables are
exposed to fluctuations in foreign currency exchange rates, the
Group reduces such foreign currency exchange risk by using
forward foreign currency contract hedges.
Short-term bank loans and long-term bank loans are mainly
used to finance the Group’s operating activity payments.
(3) Fair Values of Financial InstrumentsFair values of financial instruments are based on quoted prices in
active markets. If a quoted price is not available, another rational
valuation technique is used instead. Please see Note 12 for the
details of the fair value of derivatives.
11. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESA reconciliation between the normal effective statutory tax rates for the years ended March 31, 2015 and the actual effective tax rates
reflected in the accompanying consolidated statement of income is as follows:
Millions of YenThousands of
U.S. Dollars
9. GAIN (LOSS) ON ACQUISITION OF SUBSIDIARYThe Company additionally acquired 33.34% of the shares of Takagi Co., Ltd. on December 25, 2014. By adding 47.84% of the shares held by
the Group immediately before the acquisition, a total of 81.14% of Takagi Co., Ltd. shares are owned by the Company, making Takagi Co., Ltd.
a consolidated subsidiary of the Company. As a result, negative goodwill recognized in the acquisition of Takagi Co., Ltd. is ¥4,075 million, and
loss resulting from the step acquisition of Takagi Co., Ltd. is ¥2,475 million which are netted and recorded as “Gain (loss) on acquisition of
subsidiary” in the consolidated statement of income.
10. LEASESThe Group leases certain machinery, computer equipment, and other assets.
Total rental expenses for the years ended March 31, 2016 and 2015, were ¥552 million ($4,885 thousand) and ¥573 million, respectively.
Millions of Yen
Operating Leases2016
Thousands ofU.S. Dollars
March 31, 2016
Thousands of U.S. Dollars
March 31, 2016
Millions of Yen
March 31, 2015
FairValue
CarryingAmount
UnrealizedGain/Losses
FairValue
CarryingAmount
UnrealizedGain/Losses
FairValue
CarryingAmount
UnrealizedGain/Losses
Cash and cash equivalents, trade receivables, other receivables, trade payables, and short-term bank loans
The carrying values approximate fair value because of their short maturities.
Short-term investments and investment securities
The fair values of short-term investments and investment securities are measured at the quoted market price of the stock exchange for
equity instruments, and at the quoted price obtained from financial institutions for certain debt instruments. Fair value information for
short-term investments and investment securities by classification is included in Note 3.
Long-term bank loans
The fair values of long-term bank loans are determined by discounting the cash flows related to the debt at the Group’s assumed corporate
borrowing rate.
Derivatives
Fair value information for derivatives is included in Note 12.
54TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.53
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35.6%
1.0
(0.5)
0.6
(0.5)
(1.8)
(0.6)
(1.4)
1.0
(0.5)
(7.8)
0.4
25.5%
Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Income not taxable for income tax purposes
Taxation on per capita basis
Change in valuation allowance
Amortization of negative goodwill
Equity in earnings of associated company
Difference in foreign subsidiaries’ tax rates
Decrease adjustment of deferred tax assets for changing tax rates
Tax deduction
(Gain) loss on acquisition of subsidiary
Other - net
Actual effective tax rate
Year Ending March 31
2017
2018
2019
Total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 231
269
226
¥ 726
$ 2,044
2,381
2,000
$ 6,425
2015
On March 29, 2016, a tax reform law was enacted in Japan which changed the normal effective statutory tax rate for the fiscal year beginning
on or after April 1, 2016, to approximately 30.8% and for the fiscal year beginning on or after April 1, 2018, to approximately 30.6%. The effect
of these changes was to decrease deferred tax liabilities, net of deferred tax assets, by ¥46 million and to increase income taxes-deferred in the
consolidated statement of income for the year then ended by ¥34 million.
At March 31, 2016, certain subsidiaries have tax loss carryforwards aggregating approximately ¥726 million ($6,425 thousand), which are
available to offset taxable income of such subsidiaries in future years. These tax loss carryforwards, if not utilized, will expire as follows:
* Information for the year ended March 31, 2016 was not provided because the difference between the statutory tax rate and the effective
income tax rate was less than 5% of the statutory tax rate.
Future minimum payments under noncancelable operating leases were as follows:
$ 611654
$ 1,265
¥ 6974
¥ 143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due within one year
Due after one year
Total
. . . . . . .
. . . . . . . . . . . . . .
. .
. . . . . . . . . . . . .
. . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . .
Cash and cash equivalents
Trade receivables
Allowance for doubtful receivables
Subtotal
Other receivables
Short-term investments and
investment securities
Total
Short-term bank loans
Trade payables
Long-term bank loans
Total
Derivative financial instruments
(a) Fair value of financial instruments
$ 96,133452,770
(416)452,35414,663
152,337$ 715,487
$ 14,319284,239
1,130$ 299,688
$ 53
$ 96,133
452,35414,663
152,337$ 715,487
$ 14,319284,239
1,133$ 299,691
$ 53
$ 3$ 3
¥ 10,86351,163
(47)51,1161,657
17,214¥ 80,850
¥ 1,61832,119
128¥ 33,865
¥ 6
¥ 10,863
51,1161,657
17,214¥ 80,850
¥ 1,61832,119
128¥ 33,865
¥ 6
¥ 0¥ 0
¥ 12,935
52,878
(60)
52,818
1,586
14,886
¥ 82,225
¥ 1,641
35,549
188
¥ 37,378
¥ (21)
¥ 12,935
52,818
1,586
14,886
¥ 82,225
¥ 1,641
35,549
188
¥ 37,378
¥ (21)
¥ (0)
¥ (0)
(1) Group Policy for Financial InstrumentsThe Group uses mainly bank loans to fund its ongoing operations.
Cash surpluses are invested in bank deposits or low-risk financial
assets. Derivatives are used to reduce foreign currency exchange
risk of receivables and payables denominated in foreign
currencies and interest rate risks of variable interest rate loans,
not for speculative purposes.
(2) Nature, Extent of Risks Arising from Financial Instruments, and Risk Management for Financial Instruments
Trade receivables, such as trade notes and trade accounts, are
exposed to customer credit risk.
The Group manages its credit risk from receivables on the
basis of internal guidelines, which include monitoring of payment
terms and balances and monitoring major customers' financial
status on a regular basis.
Other receivables are mainly rebate receivables from major
vendors and the Company considers their credit risks to be
limited.
Securities included in short-term investments and investment
securities, mainly equity instruments of customers and suppliers
of the Group and high credit rating bonds, are exposed to market
price fluctuations. The market values are reported to the Group’s
administrative director on a regular basis.
Payment terms of trade payables, such as trade notes and
trade accounts, are mainly less than one year.
Although foreign currency trade receivables and payables are
exposed to fluctuations in foreign currency exchange rates, the
Group reduces such foreign currency exchange risk by using
forward foreign currency contract hedges.
Short-term bank loans and long-term bank loans are mainly
used to finance the Group’s operating activity payments.
(3) Fair Values of Financial InstrumentsFair values of financial instruments are based on quoted prices in
active markets. If a quoted price is not available, another rational
valuation technique is used instead. Please see Note 12 for the
details of the fair value of derivatives.
11. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESA reconciliation between the normal effective statutory tax rates for the years ended March 31, 2015 and the actual effective tax rates
reflected in the accompanying consolidated statement of income is as follows:
Millions of YenThousands of
U.S. Dollars
9. GAIN (LOSS) ON ACQUISITION OF SUBSIDIARYThe Company additionally acquired 33.34% of the shares of Takagi Co., Ltd. on December 25, 2014. By adding 47.84% of the shares held by
the Group immediately before the acquisition, a total of 81.14% of Takagi Co., Ltd. shares are owned by the Company, making Takagi Co., Ltd.
a consolidated subsidiary of the Company. As a result, negative goodwill recognized in the acquisition of Takagi Co., Ltd. is ¥4,075 million, and
loss resulting from the step acquisition of Takagi Co., Ltd. is ¥2,475 million which are netted and recorded as “Gain (loss) on acquisition of
subsidiary” in the consolidated statement of income.
10. LEASESThe Group leases certain machinery, computer equipment, and other assets.
Total rental expenses for the years ended March 31, 2016 and 2015, were ¥552 million ($4,885 thousand) and ¥573 million, respectively.
Millions of Yen
Operating Leases2016
Thousands ofU.S. Dollars
March 31, 2016
Thousands of U.S. Dollars
March 31, 2016
Millions of Yen
March 31, 2015
FairValue
CarryingAmount
UnrealizedGain/Losses
FairValue
CarryingAmount
UnrealizedGain/Losses
FairValue
CarryingAmount
UnrealizedGain/Losses
Cash and cash equivalents, trade receivables, other receivables, trade payables, and short-term bank loans
The carrying values approximate fair value because of their short maturities.
Short-term investments and investment securities
The fair values of short-term investments and investment securities are measured at the quoted market price of the stock exchange for
equity instruments, and at the quoted price obtained from financial institutions for certain debt instruments. Fair value information for
short-term investments and investment securities by classification is included in Note 3.
Long-term bank loans
The fair values of long-term bank loans are determined by discounting the cash flows related to the debt at the Group’s assumed corporate
borrowing rate.
Derivatives
Fair value information for derivatives is included in Note 12.
54TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.53
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
The contract or notional amounts of derivatives which are shown in the above table do not represent the amounts exchanged by the parties and
do not measure the Group’s exposure to credit or market risk.
$ 327
27
549
$ (9)
0
(1)
¥ 37
3
62
¥ 1
0
(0)
¥ 38
3
¥ 1
(0)
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . .
(b) Carrying amount of financial instruments whose fair value cannot be reliably determined
2015 20162016
¥ 59 $ 522¥ 64
(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
¥ 10,863
51,163
1,657
2,306
400
¥ 66,389
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents
Trade receivables
Other receivables
Short-term investments and investment securities:
Time deposits
Available-for-sale securities with
contractual maturities:
Government and corporate bonds
Total
¥ 400
¥ 400
¥ 1,450
¥ 1,450
¥ 2,400
¥ 2,400
¥ 800
¥ 800
¥ 12,935
52,878
1,586
693
150
¥ 68,242
¥ 900
¥ 900
$ 96,133
452,770
14,663
20,407
3,540
$ 587,513
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents
Trade receivables
Other receivables
Short-term investments and investment securities:
Time deposits
Available-for-sale securities with
contractual maturities:
Government and corporate bonds
Total
$ 3,540
$ 3,540
$ 12,832
$ 12,832
$ 21,239
$ 21,239
Please see Note 5 for annual maturities of long-term bank loans.
12. DERIVATIVES
Derivative transactions to which hedge accounting is applied
Carrying Amount
Investments in equity instruments that do not
have a quoted market price in an active market
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
March 31, 2015March 31, 2016
Millions of Yen
Thousands of U.S. Dollars
March 31, 2016
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
The Group enters into foreign currency forward contracts to hedge
foreign exchange risk associated with certain assets and liabilities
denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency
exposures incorporated within its business. Accordingly, market risk in
these derivatives is basically offset by opposite movements in the
value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major
international financial institutions, the Group does not anticipate any
losses arising from credit risk.
These derivative transactions entered into by the Group are executed
by the international division and an overseas subsidiary.
Derivative transactions entered into by the Group are controlled by the
financial department in accordance with internal policies which
regulate the authorization and credit limit amount.
Derivative transactions to which hedge accounting is not applied
¥ 106
14
¥ 7
1
¥ 7
1
March 31, 2016
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
¥ 237
6
¥ (22)
(0)
¥ (22)
(0)
March 31, 2015
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Foreign currency forward contracts:
Selling U.S.$
Selling CNY
$ 938
124
$ 62
7
$ 62
7
March 31, 2016
Thousands of U.S. Dollars
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Foreign currency forward contracts:
Selling U.S.$
Selling CNY
The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
March 31, 2016
Thousands of U.S. Dollars
March 31, 2016 March 31, 2015
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Hedged
Item
Payables
Payables
Payables
. . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . .
Foreign currency forward contracts:
Buying U.S.$
Buying H.K.$
Buying CNY
Millions of YenThousands of
U.S. Dollars
56TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.55
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
The contract or notional amounts of derivatives which are shown in the above table do not represent the amounts exchanged by the parties and
do not measure the Group’s exposure to credit or market risk.
$ 327
27
549
$ (9)
0
(1)
¥ 37
3
62
¥ 1
0
(0)
¥ 38
3
¥ 1
(0)
Notes to Consolidated Financial Statements
. . . . . . . . . . . . . . . . . . . .
(b) Carrying amount of financial instruments whose fair value cannot be reliably determined
2015 20162016
¥ 59 $ 522¥ 64
(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
¥ 10,863
51,163
1,657
2,306
400
¥ 66,389
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents
Trade receivables
Other receivables
Short-term investments and investment securities:
Time deposits
Available-for-sale securities with
contractual maturities:
Government and corporate bonds
Total
¥ 400
¥ 400
¥ 1,450
¥ 1,450
¥ 2,400
¥ 2,400
¥ 800
¥ 800
¥ 12,935
52,878
1,586
693
150
¥ 68,242
¥ 900
¥ 900
$ 96,133
452,770
14,663
20,407
3,540
$ 587,513
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents
Trade receivables
Other receivables
Short-term investments and investment securities:
Time deposits
Available-for-sale securities with
contractual maturities:
Government and corporate bonds
Total
$ 3,540
$ 3,540
$ 12,832
$ 12,832
$ 21,239
$ 21,239
Please see Note 5 for annual maturities of long-term bank loans.
12. DERIVATIVES
Derivative transactions to which hedge accounting is applied
Carrying Amount
Investments in equity instruments that do not
have a quoted market price in an active market
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
March 31, 2015March 31, 2016
Millions of Yen
Thousands of U.S. Dollars
March 31, 2016
Due in 1
Year or Less
Due after 1Year through
5 Years
Due after 5Years through
10 Years
Due after
10 Years
The Group enters into foreign currency forward contracts to hedge
foreign exchange risk associated with certain assets and liabilities
denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency
exposures incorporated within its business. Accordingly, market risk in
these derivatives is basically offset by opposite movements in the
value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major
international financial institutions, the Group does not anticipate any
losses arising from credit risk.
These derivative transactions entered into by the Group are executed
by the international division and an overseas subsidiary.
Derivative transactions entered into by the Group are controlled by the
financial department in accordance with internal policies which
regulate the authorization and credit limit amount.
Derivative transactions to which hedge accounting is not applied
¥ 106
14
¥ 7
1
¥ 7
1
March 31, 2016
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
¥ 237
6
¥ (22)
(0)
¥ (22)
(0)
March 31, 2015
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Foreign currency forward contracts:
Selling U.S.$
Selling CNY
$ 938
124
$ 62
7
$ 62
7
March 31, 2016
Thousands of U.S. Dollars
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Unrealized
Gain/Loss
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
Foreign currency forward contracts:
Selling U.S.$
Selling CNY
The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
March 31, 2016
Thousands of U.S. Dollars
March 31, 2016 March 31, 2015
Millions of Yen
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Contract Amount Due afterOne Year
Contract
Amount
Fair
Value
Hedged
Item
Payables
Payables
Payables
. . . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . . .
Foreign currency forward contracts:
Buying U.S.$
Buying H.K.$
Buying CNY
Millions of YenThousands of
U.S. Dollars
56TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.55
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
13. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2016 and 2015, were as follows:
16. SEGMENT INFORMATION
Unrealized gain (loss) on available-for-sale securities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gains (loss) on derivatives under hedge accounting:
Gains arising during the year
Amount before income tax effect
Income tax effect
Total
Foreign currency translation adjustments:
Adjustments arising during the year
Total
Defined retirement benefit plan:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Total other comprehensive income (loss)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 20162016
$ (10,912)
9
(10,903)
3,673
$ (7,230)
$ (18)
(18)
9
$ (9)
$ (584)
$ (584)
$ (1,150)
221
(929)
345
$ (584)
$ (8,407)
¥ 2,332
(9)
2,323
(585)
¥ 1,738
¥ (2)
(2)
0
¥ (2)
¥ 507
¥ 507
¥ 447
21
468
¥ (153)
¥ 315
¥ 2,558
¥ (1,233)
1
(1,232)
415
¥ (817)
¥ (2)
(2)
1
¥ (1)
¥ (66)
¥ (66)
¥ (130)
25
(105)
39
¥ (66)
¥ (950)
14. NET INCOME PER SHARE
The average number of common shares used in the computation was 25,956,926 shares for 2016 and 26,020,552 shares for 2015.
Shares and per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
15. SUBSEQUENT EVENTS
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2016, was approved at the Company’s board of directors held on May 27, 2016:
Year-end cash dividends, ¥14 ($0.12) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 358 $ 3,168
Millions of YenThousands ofU.S. Dollars
Millions of YenThousands of
U.S. Dollars
1. Description of Reportable Segments
The Group has four reportable segments, each of which has products and services as described in the table below. The segments are
categorized by available separate financial information and evaluated by management regularly. Management discusses the segments'
financial information in order to make decisions, such as how to allocate resources among the Group. The Group plans domestic and
overseas strategies based on the segments.
For the consolidated year under review, we have readjusted certain performance management sections for some subsidiaries. Accordingly,
sections of the reporting segment have changed.
Further, segment information disclosed for the previous consolidated fiscal year reflects the changes made to sections of the reporting
segment.
Products and ServicesReportable Segment
Programmable controllers, inverters, AC servos, various types of motors, power distribution control
equipment and control devices, industrial robots, electric discharge machines, and laser beam machines
Semiconductors (microcomputers, ASIC, power devices, memory modules, and standard IC)Electronic devices (contact image sensors, LCD modules, and projector lamps)
Package air conditioners and other air-conditioning equipment, equipment for all-electric housing (heat
pump systems named “ECO Cute,” IH cooking heaters), room air-conditioners, power
receiving/transformation equipment, and monitoring and controlling equipment
Embedded systems, FA computers, touch panels, surveillance cameras, network devices, RFID systems
Factory Automation Systems
Business
Semiconductors and
Electronic Devices Business
Building Services Systems
Business
Industrial Device Component
Business
2. Methods of Measurement for the Amounts of Sales, Profit (Loss), Assets, and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant Accounting
Policies.”
Under ASBJ revised ASBJ Statement No. 17, “Accounting Standard
for Segment Information Disclosures,” and issued ASBJ Guidance
No. 20, “Guidance on Accounting Standard for Segment
Information,” an entity is required to report financial and descriptive
information about its reportable segments. Reportable segments
are operating segments or aggregations of operating segments that
meet specified criteria. Operating segments are components of an
entity about which separate financial information is available and
such information is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in
assessing performance. Generally, segment information is required
to be reported on the same basis as is used internally for evaluating
operating segment performance and deciding how to allocate
resources to operating segments.
58TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.57
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
13. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2016 and 2015, were as follows:
16. SEGMENT INFORMATION
Unrealized gain (loss) on available-for-sale securities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gains (loss) on derivatives under hedge accounting:
Gains arising during the year
Amount before income tax effect
Income tax effect
Total
Foreign currency translation adjustments:
Adjustments arising during the year
Total
Defined retirement benefit plan:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Total other comprehensive income (loss)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 20162016
$ (10,912)
9
(10,903)
3,673
$ (7,230)
$ (18)
(18)
9
$ (9)
$ (584)
$ (584)
$ (1,150)
221
(929)
345
$ (584)
$ (8,407)
¥ 2,332
(9)
2,323
(585)
¥ 1,738
¥ (2)
(2)
0
¥ (2)
¥ 507
¥ 507
¥ 447
21
468
¥ (153)
¥ 315
¥ 2,558
¥ (1,233)
1
(1,232)
415
¥ (817)
¥ (2)
(2)
1
¥ (1)
¥ (66)
¥ (66)
¥ (130)
25
(105)
39
¥ (66)
¥ (950)
14. NET INCOME PER SHARE
The average number of common shares used in the computation was 25,956,926 shares for 2016 and 26,020,552 shares for 2015.
Shares and per share figures have been restated, as appropriate, to reflect a 1.2-for-1 stock split effected April 1, 2015.
15. SUBSEQUENT EVENTS
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2016, was approved at the Company’s board of directors held on May 27, 2016:
Year-end cash dividends, ¥14 ($0.12) per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 358 $ 3,168
Millions of YenThousands ofU.S. Dollars
Millions of YenThousands of
U.S. Dollars
1. Description of Reportable Segments
The Group has four reportable segments, each of which has products and services as described in the table below. The segments are
categorized by available separate financial information and evaluated by management regularly. Management discusses the segments'
financial information in order to make decisions, such as how to allocate resources among the Group. The Group plans domestic and
overseas strategies based on the segments.
For the consolidated year under review, we have readjusted certain performance management sections for some subsidiaries. Accordingly,
sections of the reporting segment have changed.
Further, segment information disclosed for the previous consolidated fiscal year reflects the changes made to sections of the reporting
segment.
Products and ServicesReportable Segment
Programmable controllers, inverters, AC servos, various types of motors, power distribution control
equipment and control devices, industrial robots, electric discharge machines, and laser beam machines
Semiconductors (microcomputers, ASIC, power devices, memory modules, and standard IC)Electronic devices (contact image sensors, LCD modules, and projector lamps)
Package air conditioners and other air-conditioning equipment, equipment for all-electric housing (heat
pump systems named “ECO Cute,” IH cooking heaters), room air-conditioners, power
receiving/transformation equipment, and monitoring and controlling equipment
Embedded systems, FA computers, touch panels, surveillance cameras, network devices, RFID systems
Factory Automation Systems
Business
Semiconductors and
Electronic Devices Business
Building Services Systems
Business
Industrial Device Component
Business
2. Methods of Measurement for the Amounts of Sales, Profit (Loss), Assets, and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant Accounting
Policies.”
Under ASBJ revised ASBJ Statement No. 17, “Accounting Standard
for Segment Information Disclosures,” and issued ASBJ Guidance
No. 20, “Guidance on Accounting Standard for Segment
Information,” an entity is required to report financial and descriptive
information about its reportable segments. Reportable segments
are operating segments or aggregations of operating segments that
meet specified criteria. Operating segments are components of an
entity about which separate financial information is available and
such information is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in
assessing performance. Generally, segment information is required
to be reported on the same basis as is used internally for evaluating
operating segment performance and deciding how to allocate
resources to operating segments.
58TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.57
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
3. Information about Sales, Profit (Loss), Assets, and Other Items
¥ 82,045
¥ 82,045
¥ 4,154
36,761
203
157
¥ 48,802
¥ 48,802
¥ 1,160
17,219
96
52
¥ 13,426
¥ 13,426
¥ 175
7,339
44
26
¥ 11,095
¥ 11,095
¥ 250
6,006
29
31
¥ 155,368
¥ 155,368
¥ 5,739
67,325
372
266
¥ 6,775
¥ 6,775
¥ (122)
3,442
38
21
¥ 162,143
¥ 162,143
¥ 5,617
70,767
410
287
¥ 28,127
¥ 162,143
¥ 162,143
¥ 5,617
98,894
410
287
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Increase in property, plant, and
equipment and intangible assets
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . .
$ 726,062
$ 726,062
$ 36,761
325,319
1,796
1,390
$ 431,876
$ 431,876
$ 10,266
152,380
850
460
$ 118,814
$ 118,814
$ 1,549
64,947
389
230
$ 98,186
$ 98,186
$ 2,212
53,150
257
274
$ 1,374,938
$ 1,374,938
$ 50,788
595,796
3,292
2,354
$ 59,956
$ 59,956
$ (1,080)
30,460
336
186
$ 1,434,894
$ 1,434,894
$ 49,708
626,256
3,628
2,540
$ 248,912
$ 1,434,894
$ 1,434,894
$ 49,708
875,168
3,628
2,540
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Increase in property, plant, and
equipment and intangible assets
¥ 69,307
¥ 69,307
¥ 3,269
38,286
167
134
1,600
900
¥ 51,427
¥ 51,427
¥ 1,184
17,725
96
520
¥ 12,668
¥ 12,668
¥ 210
7,472
36
207
¥ 6,814
¥ 6,814
¥ 159
5,731
19
92
¥ 140,216
¥ 140,216
¥ 4,822
69,214
318
134
1,600
1,719
¥ 7,205
¥ 7,205
¥ 39
3,474
36
209
¥ 147,421
¥ 147,421
¥ 4,861
72,688
354
134
1,600
1,928
¥ 27,872
¥ 147,421
¥ 147,421
¥ 4,861
100,560
354
134
1,600
1,928
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Equity in earnings of associated
company
Gain (loss) on acquisition of
subsidiary
Increase in property, plant, and
equipment and intangible assets
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
4. Information about goodwill and negative goodwill is as follows:
¥ 376 ¥ 376 ¥ 376 ¥ 376Amortization of negative goodwill . . . . . . . .
Note: Amortization of negative goodwill is not included in segment profit.
5. Information about negative goodwill by segment
The Company acquired additional shares of Takagi Co., Ltd. By adding the shares held by the Company immediately before the acquisition to the total shares owned by the Company, Takagi Co., Ltd. became a consolidated subsidiary of the Company within the “Factory Automation Systems Business” segment. As a result, negative goodwill recognized in the acquisition of Takagi Co., Ltd. is ¥4,075 million, and loss resulting from the step acquisition of Takagi Co., Ltd. is ¥2,475 million, which are netted and recorded as “Gain (loss) on acquisition of subsidiary” of ¥1,600 million in the consolidated statement of income. This amount is not included in the segment profit.
2016
Millions of Yen
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
2015
Millions of Yen
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
2016
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
Thousands of U.S. Dollars
Notes:Segment assets included in the reconciliation line as of March 31, 2016 and 2015, which were ¥28,127 million ($248,192 thousand) and ¥27,872 million, respectively, are corporate assets which are not allocated to each reportable segment and primarily comprise financial resources (cash and cash equivalents and short-term investments) and long-term investment funds (investment securities).
Millions of Yen
2015
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal
Elimination/Corporate Total
60TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.59
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
Notes to Consolidated Financial Statements
3. Information about Sales, Profit (Loss), Assets, and Other Items
¥ 82,045
¥ 82,045
¥ 4,154
36,761
203
157
¥ 48,802
¥ 48,802
¥ 1,160
17,219
96
52
¥ 13,426
¥ 13,426
¥ 175
7,339
44
26
¥ 11,095
¥ 11,095
¥ 250
6,006
29
31
¥ 155,368
¥ 155,368
¥ 5,739
67,325
372
266
¥ 6,775
¥ 6,775
¥ (122)
3,442
38
21
¥ 162,143
¥ 162,143
¥ 5,617
70,767
410
287
¥ 28,127
¥ 162,143
¥ 162,143
¥ 5,617
98,894
410
287
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Increase in property, plant, and
equipment and intangible assets
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . .
$ 726,062
$ 726,062
$ 36,761
325,319
1,796
1,390
$ 431,876
$ 431,876
$ 10,266
152,380
850
460
$ 118,814
$ 118,814
$ 1,549
64,947
389
230
$ 98,186
$ 98,186
$ 2,212
53,150
257
274
$ 1,374,938
$ 1,374,938
$ 50,788
595,796
3,292
2,354
$ 59,956
$ 59,956
$ (1,080)
30,460
336
186
$ 1,434,894
$ 1,434,894
$ 49,708
626,256
3,628
2,540
$ 248,912
$ 1,434,894
$ 1,434,894
$ 49,708
875,168
3,628
2,540
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Increase in property, plant, and
equipment and intangible assets
¥ 69,307
¥ 69,307
¥ 3,269
38,286
167
134
1,600
900
¥ 51,427
¥ 51,427
¥ 1,184
17,725
96
520
¥ 12,668
¥ 12,668
¥ 210
7,472
36
207
¥ 6,814
¥ 6,814
¥ 159
5,731
19
92
¥ 140,216
¥ 140,216
¥ 4,822
69,214
318
134
1,600
1,719
¥ 7,205
¥ 7,205
¥ 39
3,474
36
209
¥ 147,421
¥ 147,421
¥ 4,861
72,688
354
134
1,600
1,928
¥ 27,872
¥ 147,421
¥ 147,421
¥ 4,861
100,560
354
134
1,600
1,928
Sales:
Sales to external customers
Intersegment sales or transfers
Total
Segment profit
(Operating profit)
Segment assets
Other:
Depreciation
Equity in earnings of associated
company
Gain (loss) on acquisition of
subsidiary
Increase in property, plant, and
equipment and intangible assets
. . . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . .
4. Information about goodwill and negative goodwill is as follows:
¥ 376 ¥ 376 ¥ 376 ¥ 376Amortization of negative goodwill . . . . . . . .
Note: Amortization of negative goodwill is not included in segment profit.
5. Information about negative goodwill by segment
The Company acquired additional shares of Takagi Co., Ltd. By adding the shares held by the Company immediately before the acquisition to the total shares owned by the Company, Takagi Co., Ltd. became a consolidated subsidiary of the Company within the “Factory Automation Systems Business” segment. As a result, negative goodwill recognized in the acquisition of Takagi Co., Ltd. is ¥4,075 million, and loss resulting from the step acquisition of Takagi Co., Ltd. is ¥2,475 million, which are netted and recorded as “Gain (loss) on acquisition of subsidiary” of ¥1,600 million in the consolidated statement of income. This amount is not included in the segment profit.
2016
Millions of Yen
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
2015
Millions of Yen
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
2016
Reportable Segment
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal Reconciliation Consolidated
Thousands of U.S. Dollars
Notes:Segment assets included in the reconciliation line as of March 31, 2016 and 2015, which were ¥28,127 million ($248,192 thousand) and ¥27,872 million, respectively, are corporate assets which are not allocated to each reportable segment and primarily comprise financial resources (cash and cash equivalents and short-term investments) and long-term investment funds (investment securities).
Millions of Yen
2015
Factory Automation
Systems Business
Semiconductors and
Electronic Devices Business
BuildingServicesSystemsBusiness
IndustrialDevice
ComponentBusiness Others TotalTotal
Elimination/Corporate Total
60TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.59
TACHIBANA ELETECH CO., LTD. and Consolidated Subsidiaries
Years Ended March 31, 2016 and 2015
History
Board of Directors and Auditors
Company Data (as of June 29, 2016)
62TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.61
Company Outline
Company Name in English
TACHIBANA ELETECH CO., LTD.Date of Establishment
July 12, 1948Capital
¥5,874,284,611Number of Employees
768 (Consolidated 1,232) as of March 31, 2016Stock Listings
First Section of the Tokyo Stock Exchange ISO Acquisitions
Product Quality Management SystemISO9001 JQA-QMA10303Environmental Management SystemISO14001 JQA-EM1654Information Security Management SystemISO27001 IS 509430Offices
Head Office 1-13-25 Nishi-honmachi, Nishi-ku, Osaka
Branch Offices Tokyo, Nagoya
Branches East Kanto, North Kanto, Kanagawa,
Mikawa, Hokuriku, Mie, Shiga, South Osaka,
Kobe, Himeji, Hiroshima, Shikoku, Kyushu
Sales Offices Tohoku, Tokai
President, CEO & COO
Director, Managing Operating Officer
Director, Managing Operating Officer
Director, Managing Operating Officer
External Director
External Director
Standing Auditor
External Auditor
External Auditor
Takeo Watanabe
Hitoshi Yamaguchi
Sadayuki Takami
Hisanobu Nunoyama
Yoichi Aikawa
Masato Tsujikawa
Genichi Masuda
Yasuhiro Otani
Hiroumi Shioji
Hisashi Takami
Hideki Matsuno
Kinya Kawahara
Hiroshi Yoneda
Hirokazu Ueda
Keiji Yamajo
Mitsuru Tada
Tadanori Aizawa
Yoshinori Matsuura
Managing Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
12
11
10
9
8
7
6
5
4
1921 Norimitsu Tachibana founded Tachibana Shokai.
1925 Special contract made with Mitsubishi Corporation.
1947 Special contract made with Mitsubishi Electric Corporation.
1948 Tachibana Shokai Ltd established.
1961 Head Office moved to Nishi-ku in Osaka City.
1962 Special contract with Mitsubishi Electric Corporation annulled to make new agency agreement.
1982 Singaporean branch office established.
1985 Osaka Software Center established.
1986 Listed as the specified brand in the Second Section(New Second Section) of the Osaka Securities Exchange.
1987 Tachibana Sales (Singapore) Pte. Ltd. established.
1988 Hong Kong branch office established.
1990 Listed as stock on the Second Section of the Osaka Securities Exchange.
1992 Tachibana Sales (Hong Kong) Ltd. established.
1994 Head Office newly built.
1997 Tachibana Sales (Taiwan) Co., Ltd. established.
2000 Shenzhen Semiconductor Technology Center established.
2001 Ritsuryokai established.
Renamed “Tachibana Eletech Co., Ltd”.
Acquired ISO14001.
2002 Tachibana Sales (Shanghai) Ltd. established.
2003 Acquired ISO9001.
2004 Listed on the Second Section of the Tokyo Stock Exchange.
2005 Listed on the First Section of the Tokyo Stock Exchange and the Osaka Securities Exchange.
2006 Acquired ISMS.
2007 Tachibana Sales (Korea) Ltd. established.
Tachibana Sales (Bangkok) Co., Ltd. established.
Tachibana Overseas Holdings (in-house company) established.
Move from ISMS certification standard to ISO27001.
2008 Minami Osaka Building completed (the Minami Osaka branch office and the “Risshikan” training center with accommodation/dormitory).
2010 Tachibana Kouwa System Service Co., Ltd. established through the merger between Tachibana ES and Kouwa Kogyo.
Daidensha Co., Ltd. becomes wholly owned subsidiary.
Beijing Office, Shenzhen Office established.
2011 Wuhan Office established.
2012 Tachibana Overseas Holdings Ltd. incorporated as a supervising holding company for overseas subsidiaries.
Dalian Office established.
Conclude a capital and business tie-up agreement with Takagi Co., Ltd.
Tachibana Device Component Co., Ltd. established.
2013 Malaysia Office established.
2014 PT Tachibana Sales (Indonesia) established.
Establishment of Qingdao Sales Office
Acquisition of company building for the Tokyo Branch Office, and relocation
Conversion of Takagi Co., Ltd. to consolidated subsidiary
2015 Absorption merger of TAIYO SHOKAI Co., Ltd. by DAIDENSHA Co., Ltd.
1
2
3
1
2
3
4
5
6
7
8
9
10
11
12
Deloitte Touche Tohmatsu LLC
Yodoyabashi Mitsui Building
4-1-1,Imabashi,Chuo-ku
Osaka 541-0042
Japan
Tel: +81 (6) 4560 6000
Fax: +81 (6) 4560 6001
www.deloitte.com/jp
History
Board of Directors and Auditors
Company Data (as of June 29, 2016)
62TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.61
Company Outline
Company Name in English
TACHIBANA ELETECH CO., LTD.Date of Establishment
July 12, 1948Capital
¥5,874,284,611Number of Employees
768 (Consolidated 1,232) as of March 31, 2016Stock Listings
First Section of the Tokyo Stock Exchange ISO Acquisitions
Product Quality Management SystemISO9001 JQA-QMA10303Environmental Management SystemISO14001 JQA-EM1654Information Security Management SystemISO27001 IS 509430Offices
Head Office 1-13-25 Nishi-honmachi, Nishi-ku, Osaka
Branch Offices Tokyo, Nagoya
Branches East Kanto, North Kanto, Kanagawa,
Mikawa, Hokuriku, Mie, Shiga, South Osaka,
Kobe, Himeji, Hiroshima, Shikoku, Kyushu
Sales Offices Tohoku, Tokai
President, CEO & COO
Director, Managing Operating Officer
Director, Managing Operating Officer
Director, Managing Operating Officer
External Director
External Director
Standing Auditor
External Auditor
External Auditor
Takeo Watanabe
Hitoshi Yamaguchi
Sadayuki Takami
Hisanobu Nunoyama
Yoichi Aikawa
Masato Tsujikawa
Genichi Masuda
Yasuhiro Otani
Hiroumi Shioji
Hisashi Takami
Hideki Matsuno
Kinya Kawahara
Hiroshi Yoneda
Hirokazu Ueda
Keiji Yamajo
Mitsuru Tada
Tadanori Aizawa
Yoshinori Matsuura
Managing Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
Operating Officer
12
11
10
9
8
7
6
5
4
1921 Norimitsu Tachibana founded Tachibana Shokai.
1925 Special contract made with Mitsubishi Corporation.
1947 Special contract made with Mitsubishi Electric Corporation.
1948 Tachibana Shokai Ltd established.
1961 Head Office moved to Nishi-ku in Osaka City.
1962 Special contract with Mitsubishi Electric Corporation annulled to make new agency agreement.
1982 Singaporean branch office established.
1985 Osaka Software Center established.
1986 Listed as the specified brand in the Second Section(New Second Section) of the Osaka Securities Exchange.
1987 Tachibana Sales (Singapore) Pte. Ltd. established.
1988 Hong Kong branch office established.
1990 Listed as stock on the Second Section of the Osaka Securities Exchange.
1992 Tachibana Sales (Hong Kong) Ltd. established.
1994 Head Office newly built.
1997 Tachibana Sales (Taiwan) Co., Ltd. established.
2000 Shenzhen Semiconductor Technology Center established.
2001 Ritsuryokai established.
Renamed “Tachibana Eletech Co., Ltd”.
Acquired ISO14001.
2002 Tachibana Sales (Shanghai) Ltd. established.
2003 Acquired ISO9001.
2004 Listed on the Second Section of the Tokyo Stock Exchange.
2005 Listed on the First Section of the Tokyo Stock Exchange and the Osaka Securities Exchange.
2006 Acquired ISMS.
2007 Tachibana Sales (Korea) Ltd. established.
Tachibana Sales (Bangkok) Co., Ltd. established.
Tachibana Overseas Holdings (in-house company) established.
Move from ISMS certification standard to ISO27001.
2008 Minami Osaka Building completed (the Minami Osaka branch office and the “Risshikan” training center with accommodation/dormitory).
2010 Tachibana Kouwa System Service Co., Ltd. established through the merger between Tachibana ES and Kouwa Kogyo.
Daidensha Co., Ltd. becomes wholly owned subsidiary.
Beijing Office, Shenzhen Office established.
2011 Wuhan Office established.
2012 Tachibana Overseas Holdings Ltd. incorporated as a supervising holding company for overseas subsidiaries.
Dalian Office established.
Conclude a capital and business tie-up agreement with Takagi Co., Ltd.
Tachibana Device Component Co., Ltd. established.
2013 Malaysia Office established.
2014 PT Tachibana Sales (Indonesia) established.
Establishment of Qingdao Sales Office
Acquisition of company building for the Tokyo Branch Office, and relocation
Conversion of Takagi Co., Ltd. to consolidated subsidiary
2015 Absorption merger of TAIYO SHOKAI Co., Ltd. by DAIDENSHA Co., Ltd.
1
2
3
1
2
3
4
5
6
7
8
9
10
11
12
Deloitte Touche Tohmatsu LLC
Yodoyabashi Mitsui Building
4-1-1,Imabashi,Chuo-ku
Osaka 541-0042
Japan
Tel: +81 (6) 4560 6000
Fax: +81 (6) 4560 6001
www.deloitte.com/jp
Investor Information (as of March 31, 2016)
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
TACHIBANA SALES (SINGAPORE) PTE. LTD.
PT TACHIBANA SALES (INDONESIA)
TACHIBANA SALES (KOREA) LTD.
TACHIBANA SALES (SHANGHAI) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA OVERSEAS HOLDINGS LTD.
BEIJING OFFICE
Qingdao Sales Office
WUHAN OFFICE
SHENZHEN OFFICE
HONG KONG
SINGAPORE
HONG KONG
TAIWAN
KOREA
SHANGHAI
BEIJING OFFICE
SHENZHEN OFFICE
WUHAN OFFICE
DALIAN OFFICEQingdao Sales Office MALAYSIA OFFICE
INDONESIA
KENDEN INDUSTRY CO., LTD.
TACHIBANA KOUWA SYSTEM SERVICE CO., LTD.
Head Office
DAIDENSHA CO., LTD.
TAKAGI CO., LTD.
TACHIBANA DEVICE COMPONENT CO., LTD.
BANGKOK (THAILAND)
Shareholders
Mitsubishi Electric Corporation
Sansei Technos Co., Ltd.
KBL EPB S.A. 107704
Japan Trustee Services Bank, Ltd. (trust account)
Tachibana Eletech’s Employees Shareholders’ Association
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Kinden Corporation
Noritz Corporation
Chigusa Satake
Nippon Life Insurance Company
1,921
1,478
1,460
1,357
1,236
1,082
754
742
491
471
10,994
7.52
5.78
5.71
5.31
4.84
4.23
2.95
2.91
1.92
1.84
43.02
Financial Institutions
34 (1.09%)
Securities Firms
26 (0.84%)Treasury stock
465 (1.79%)
Treasury stock
1 (0.03%)
Non-Japanese Corporations
80 (2.58%)
Individuals and others
2,877 (92.69%)
Securities Firms
102 (0.39%)
Financial Institutions
6,882 (26.44%)
Non-Japanese Corporations
3,145 (12.09%)
Individuals and others
7,549 (29.01%)
Authorized Number of Shares:96,000,000
Issued Number of Shares:26,025,242
Number of Shareholders:3,104
1,800
1,500
1,200
900
600
300
0
3,000
2,500
2,000
1,500
1,000
500
0
’12Apr.
’12Oct.
’13Apr.
’13Oct.
’14Apr.
’14Oct.
’15Apr.
’15Oct.
’16Mar.
(thousand stocks)(Yen)
stock price
Major Shareholders
Distribution by Number of Shareholders
Share Price and Trade Volume Trends (Tokyo Stock Exchange)
Distribution by Number of Shares Held (thousand stocks)
27 March 2015Stock split of 1.2 shares for every share
Subsidiaries and Affiliates Corporation Office
2-2-7 Kitasenzoku, Ota-ku, Tokyo 145-0062 Tel. 81-3-3783-6314
KENDEN INDUSTRY CO., LTD.
TACHIBANA KOUWA SYSTEM SERVICE CO., LTD.
TECHNOLOGY NETWORK, INC.
DAIDENSHA CO., LTD.
TACHIBANA DEVICE COMPONENT CO., LTD.
TAKAGI CO., LTD.
[Domestic] [Overseas]
TACHIBANA OVERSEAS HOLDINGS LTD.
TACHIBANA SALES (SINGAPORE) PTE. LTD. Office: Malaysia
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA SALES (SHANGHAI) LTD. Office: Beijing, Shenzhen, Wuhan, Dalian, Qingdao
TACHIBANA SALES (KOREA) LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
PT TACHIBANA SALES (INDONESIA)
2-6-23, Mitejima, Nishiyodogawa-ku, Osaka 555-0012Tel. 81-6-6471-9451
2-5-1, Ohama-Cho, Amagasaki City 660-0095Tel. 81-6-6413-3623
3-8-15, Hinaga-higashi, Yokkaichi 510-0886Tel. 81-59-345-9090
1-6-17, Nipponbashi-nishi, Naniwa-ku, Osaka 556-0004Tel. 81-6-6632-6111
4-18-32 Shibaura, Minato-ku, Tokyo, Japan 108-0023Tel. 81-3-5418-9200
Unit 2605, 26F., One Kowloon No.1, Wang Yuen Street, Kowloon Bay, Kowloon, Hong KongTel. +852(2838)8103
10 Anson Road #30-07 International Plaza Singapore 079903Tel. +65(6270)4567
Unit 2605, 26F., One Kowloon No.1, Wang Yuen Street, Kowloon Bay, Kowloon, Hong KongTel. +852(2838)8103
4F., No.288 Fu-Shing N. RD., Taipei 104, Taiwan, R.O.C.Tel. +886(2)2518-1112
Room K, 18F, Huamin Empire Plaza, No.728 West Yanan Road, Shanghai, 200050, PRCTel. +86(21)3100-1700
No.1118, Mario Tower, 222-12, Guro-Dong, Guro-gu, Seoul 152-741 Korea Tel. +82(2)890-6620
62 Thaniya Building 11F., Room No.1109, Silom Road Suriyawong Bangrak, Bangkok 10500, ThailandTel. +66(2)652-5191
Plaza Sentral 10th Floor JL. Jend. Sudirman No.47, Jakarta, 12930, IndonesiaTel. +62(21)520-5620
Organizational Structure
Manufacturing Services Division
Building Services Systems Division
Semiconductors and Electronic Devices Division (I,II,III)
FA Systems Division (I,II,III,IV,V,VI)
Foreign Semiconductors & Electronic Devices Division
Industrial Device Component Division
Solution Systems DivisionTechnology Division
Tachibana Overseas Holdings Ltd.International Dept.
Finance & Administration Division
Semiconductor Technology DivisionSemiconductors and Electronic Devices
Industrial Device Component Systems
Building Services Systems
Finance & Administration
Overseas Operations
Solution Systems
Manufacturing Services
Factory Automation Systems
Auditors and Auditor Meeting
Management Strategy Office
Shareholders Meeting
Corporate ExecutiveCommittee
President
Board of Director
Shares(thousand stocks)
Ratio of shareholders(%)
Total
Notes: 1. Shown with less than 1,000 shares truncated.
2. The ratio of shareholders was calculated excluding 465 shares of treasury stock.
26,0253,1047,880 (30.28%)
Other Domestic Corporations86 (2.77%)
Other Domestic Corporations
volume of trading
5
4
1
2
3
TECHNOLOGY NETWORK, INC.
Company Data (as of April 1, 2016)
DALIAN OFFICE
MALAYSIA OFFICE
6
12
11
13
10
9
8
7
6
5
4
1
2
3
1213 11
10
9
8
7
64TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.63
Investor Information (as of March 31, 2016)
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
TACHIBANA SALES (SINGAPORE) PTE. LTD.
PT TACHIBANA SALES (INDONESIA)
TACHIBANA SALES (KOREA) LTD.
TACHIBANA SALES (SHANGHAI) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA OVERSEAS HOLDINGS LTD.
BEIJING OFFICE
Qingdao Sales Office
WUHAN OFFICE
SHENZHEN OFFICE
HONG KONG
SINGAPORE
HONG KONG
TAIWAN
KOREA
SHANGHAI
BEIJING OFFICE
SHENZHEN OFFICE
WUHAN OFFICE
DALIAN OFFICEQingdao Sales Office MALAYSIA OFFICE
INDONESIA
KENDEN INDUSTRY CO., LTD.
TACHIBANA KOUWA SYSTEM SERVICE CO., LTD.
Head Office
DAIDENSHA CO., LTD.
TAKAGI CO., LTD.
TACHIBANA DEVICE COMPONENT CO., LTD.
BANGKOK (THAILAND)
Shareholders
Mitsubishi Electric Corporation
Sansei Technos Co., Ltd.
KBL EPB S.A. 107704
Japan Trustee Services Bank, Ltd. (trust account)
Tachibana Eletech’s Employees Shareholders’ Association
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Kinden Corporation
Noritz Corporation
Chigusa Satake
Nippon Life Insurance Company
1,921
1,478
1,460
1,357
1,236
1,082
754
742
491
471
10,994
7.52
5.78
5.71
5.31
4.84
4.23
2.95
2.91
1.92
1.84
43.02
Financial Institutions
34 (1.09%)
Securities Firms
26 (0.84%)Treasury stock
465 (1.79%)
Treasury stock
1 (0.03%)
Non-Japanese Corporations
80 (2.58%)
Individuals and others
2,877 (92.69%)
Securities Firms
102 (0.39%)
Financial Institutions
6,882 (26.44%)
Non-Japanese Corporations
3,145 (12.09%)
Individuals and others
7,549 (29.01%)
Authorized Number of Shares:96,000,000
Issued Number of Shares:26,025,242
Number of Shareholders:3,104
1,800
1,500
1,200
900
600
300
0
3,000
2,500
2,000
1,500
1,000
500
0
’12Apr.
’12Oct.
’13Apr.
’13Oct.
’14Apr.
’14Oct.
’15Apr.
’15Oct.
’16Mar.
(thousand stocks)(Yen)
stock price
Major Shareholders
Distribution by Number of Shareholders
Share Price and Trade Volume Trends (Tokyo Stock Exchange)
Distribution by Number of Shares Held (thousand stocks)
27 March 2015Stock split of 1.2 shares for every share
Subsidiaries and Affiliates Corporation Office
2-2-7 Kitasenzoku, Ota-ku, Tokyo 145-0062 Tel. 81-3-3783-6314
KENDEN INDUSTRY CO., LTD.
TACHIBANA KOUWA SYSTEM SERVICE CO., LTD.
TECHNOLOGY NETWORK, INC.
DAIDENSHA CO., LTD.
TACHIBANA DEVICE COMPONENT CO., LTD.
TAKAGI CO., LTD.
[Domestic] [Overseas]
TACHIBANA OVERSEAS HOLDINGS LTD.
TACHIBANA SALES (SINGAPORE) PTE. LTD. Office: Malaysia
TACHIBANA SALES (HONG KONG) LTD.
TACHIBANA SALES (TAIWAN) CO., LTD.
TACHIBANA SALES (SHANGHAI) LTD. Office: Beijing, Shenzhen, Wuhan, Dalian, Qingdao
TACHIBANA SALES (KOREA) LTD.
TACHIBANA SALES (BANGKOK) CO., LTD.
PT TACHIBANA SALES (INDONESIA)
2-6-23, Mitejima, Nishiyodogawa-ku, Osaka 555-0012Tel. 81-6-6471-9451
2-5-1, Ohama-Cho, Amagasaki City 660-0095Tel. 81-6-6413-3623
3-8-15, Hinaga-higashi, Yokkaichi 510-0886Tel. 81-59-345-9090
1-6-17, Nipponbashi-nishi, Naniwa-ku, Osaka 556-0004Tel. 81-6-6632-6111
4-18-32 Shibaura, Minato-ku, Tokyo, Japan 108-0023Tel. 81-3-5418-9200
Unit 2605, 26F., One Kowloon No.1, Wang Yuen Street, Kowloon Bay, Kowloon, Hong KongTel. +852(2838)8103
10 Anson Road #30-07 International Plaza Singapore 079903Tel. +65(6270)4567
Unit 2605, 26F., One Kowloon No.1, Wang Yuen Street, Kowloon Bay, Kowloon, Hong KongTel. +852(2838)8103
4F., No.288 Fu-Shing N. RD., Taipei 104, Taiwan, R.O.C.Tel. +886(2)2518-1112
Room K, 18F, Huamin Empire Plaza, No.728 West Yanan Road, Shanghai, 200050, PRCTel. +86(21)3100-1700
No.1118, Mario Tower, 222-12, Guro-Dong, Guro-gu, Seoul 152-741 Korea Tel. +82(2)890-6620
62 Thaniya Building 11F., Room No.1109, Silom Road Suriyawong Bangrak, Bangkok 10500, ThailandTel. +66(2)652-5191
Plaza Sentral 10th Floor JL. Jend. Sudirman No.47, Jakarta, 12930, IndonesiaTel. +62(21)520-5620
Organizational Structure
Manufacturing Services Division
Building Services Systems Division
Semiconductors and Electronic Devices Division (I,II,III)
FA Systems Division (I,II,III,IV,V,VI)
Foreign Semiconductors & Electronic Devices Division
Industrial Device Component Division
Solution Systems DivisionTechnology Division
Tachibana Overseas Holdings Ltd.International Dept.
Finance & Administration Division
Semiconductor Technology DivisionSemiconductors and Electronic Devices
Industrial Device Component Systems
Building Services Systems
Finance & Administration
Overseas Operations
Solution Systems
Manufacturing Services
Factory Automation Systems
Auditors and Auditor Meeting
Management Strategy Office
Shareholders Meeting
Corporate ExecutiveCommittee
President
Board of Director
Shares(thousand stocks)
Ratio of shareholders(%)
Total
Notes: 1. Shown with less than 1,000 shares truncated.
2. The ratio of shareholders was calculated excluding 465 shares of treasury stock.
26,0253,1047,880 (30.28%)
Other Domestic Corporations86 (2.77%)
Other Domestic Corporations
volume of trading
5
4
1
2
3
TECHNOLOGY NETWORK, INC.
Company Data (as of April 1, 2016)
DALIAN OFFICE
MALAYSIA OFFICE
6
12
11
13
10
9
8
7
6
5
4
1
2
3
1213 11
10
9
8
7
64TACHIBANA ELETECH CO., LTD.TACHIBANA ELETECH CO., LTD.63
Challenging Technology-driven Trading Company
Change, Challenge, Jump-up
2016Annual Report
Year ended March 31, 2016
1-13-25, Nishi-Honmachi, Nishi-ku, Osaka, 550-8555, JapanTel. 81-6-6539-2718
http://www.tachibana.co.jp/