fy2016 financial results briefing - · pdf filenihon parkerizing co., ltd. 4 management...

NIHON PARKERIZING CO., LTD.
FY2016
Financial Results Briefing
June 6, 2016

NIHON PARKERIZING CO., LTD. 2
Contents
Introducing the company
Overview for Consolidated Results for FY2016
Earnings Forecasts for FY2017
Overview of the Mid-term Management Plan

Introducing the Company

Management PhilosophyWe will contribute to the preservationof our global environment andcreation of a wealthy society bycreating new value through surfacemodifications of a great variety ofsubstrates which make the most oflimited resources.

Overview of the CompanyCompany name: Nihon Parkerizing Co., Ltd.Chairman & C.E.O: Shun OnoPresident & C.O.O: Kazuichi SatomiHeadquarters: 15-1, 1-chome, Nihonbashi, Chuo-ku, TokyoEstablished: July 12, 1928Capital: 4.5 billion yen (as of March 2016)Sales: 109,000 million yen (FY2016)Listing: First Section of Tokyo Stock Exchange, 1967Other: JPC Nikkei Index 400January 2014
Global Niche Top Company 100 (March 2014)
Founded in 1928, Nihon Parkerizing will celebrate its 90th anniversary in 2018. The history of Nihon Parkerizing starts from the company being granted a patent in Japan for the technology developed by Dr. Parker in 1915, for generating a phosphate coating on steel to prevent corrosion. In the beginning, the technology was mostly developed for the Army Ministry, however following the war, business expanded in conjunction with the growth of the automotive industry.

Stock Market Related TopicsJPX Nikkei Index 400from January 2014
Global Niche Top Company Selection100March, 2014)
The JPX Nikkei Index 400 is comprised of 400 stocks selected from among TSE-listed companies (1st
and 2nd sections, Mothers, and JASDAQ) after a scoring process based on;1Screening by eligibility criteria and market liquidity indicators,2Screening by quantitative indicators (3yr average ROE, 3yr cumulative operating profit, market capitalization) and,3Screening by qualitative factors (appointment of independent outside directors, adoption of IFRS, disclosure of English earnings information).
GNT Companies are companies selected by the Ministry of Economy, Trade and Industry (METI) that have captured a global market share of 20% or over in their niche in at least one of the last three years. In the case of large corporations (in the manufacturing industry, those with capital over 300 million yen and more than 300 employees), the scale of the global market for the niche product or service must be between 10 and 100 billion yen.

Market Share (Automotive Pre-treatment )
We have achieved a 70% share of the global pre-treatment business of Japanese auto manufacturers.
By maintaining an integrated approach to development fromdeveloping initial ideas through to product development,implementing flexible and swift research and development with thegoal of expanding product sales both in Japan and overseas, wehave been able to achieve a 20% market share in the globalmarket for pre-treatment in the automotive industry.
Global Share
Share of business at Japanese Auto Manufacturers
Based on research by Nihon Parkerizing

Global NetworkNetwork in 15 Countries
ChemicalsJobbingEquipment, other
Note: Includes subsidiaries, affiliated companies and their subsidiaries.

List of Affiliated Companies As of 31stMarch 2016)
KoreaDae Han Parkerizing Co.,
Ltd.
TaiwanChung Jih Metal
Treatment Chemicals, Inc.
IndonesiaP.T. Nusantara ParkerizingP.T. Parker Metal Treatment
Indonesia P.T. Parker Engineering Indonesia
MalaysiaNihon Parkerizing Malaysia Sdn Bhd
ThailandThai Parkerizing Co., Ltd.PET Trading Co., Ltd.Parker Engineering (Thailand) Co., Ltd.Kanigen (Thailand) Co., Ltd. & 1 other
China Parker Surface Technologies
(Shanghai) Co., Ltd.Parker Engineering (Shanghai) Co.,
Ltd.Kanigen (Shanghai) Trade Co., Ltd.Guangzhou Parkerizing Co., Ltd.Foshan Parker Surface Modification
Co., Ltd.Shenyang Parkerizing Co., Ltd.Shanghai Parkerizing Co., Ltd.Wuhan Parkerizing Chemical Co., Ltd.
(and 4 more companies)
VietnamVietnam Parkerizing Co., Ltd.Vietnam Parkerizing (Hanoi) Co., Ltd.Parker Processing Vietnam Co., Ltd.
IndiaNihon Parkerizing (India) PVT
LTDParker Engineering (India) PVT
LTD
U.S.Parker Trutec Inc.Parker Trutec MMI Inc.Parkwood Engineering Development Corporation
MexicoParker Trutec Mexicana S.A de C.V.Parker Eng. De Mexico S.A. de C.V.
BelgiumP.I of Europe NV
The PhilippinesPhilippine Parkerizing Inc.
JapanNihon Parkerizing Co., Ltd.Parker Engineering Co., Ltd.Parker Industries, Inc.Parker Kako Co., Ltd.Hamamatsu Netsushori Kogyo Co., Ltd.Komatsu Parkerizing Co., Ltd.Oita Parkerizing Co., Ltd.
Japan Kanigen Co., Ltd.tKyodo UnsoOzeki Chemical Industry Co., Ltd.Hokkaido Parkerizing Co., Ltd.Kyowa Manufacturing Co., Ltd.Parker Giken Kogyo Ltd.Paltec Test Panels Co., Ltd.
Parker CorporationYuugen Co., Ltd.Parker Netsushori Kogyo Co., Ltd.Nagaizumi Parkerizing Co., Ltd.Green-TechnoMillion Chemicals Co., Ltd.
Nihon Parkerizing and subsidiaries Affiliated companies
Network of 43 subsidiaries & 12 Affiliated Companies

Contributing Through Surface Modification Technology in a Wide Variety of Industries
Surface Modification BusinessChemicals
Development Jobbing ServicesEquipment
Manufacture
Energy
Non-steel
Steel Household
appliances
Household Electric
appliances
Rubber Rubber
ConstructionConstructionmaterials
machinerymachinery
Agricultural machinery
Agricultural machinery
Glass BatteriesBatteries
machineryElectrical
machinery
Autos
railways
electronicselectronicsBrewing
Tools
Self-defense
Aerospace Aerospace
constructionconstructionFood
Steel furniture
Beverage Beverage cansMetals
Chemicals

Sales by segment
Business Areas and Sales Composition Ratios
Conversion Coating ChemicalsRolling oil and lubricantsRust proof oilElectroless plating solution
Chemicals
Pre-treatment and ED equipmentWaste water treatment equipmentPowder coating equipmentHeat exchangers
Equipment
Rust proof jobbingPlatingHeat treatmentPainting
Jobbing
Building maintenanceManufacture and sale of metaltest piecesManufacture and sale of boltsExport of specialty steel products
Other business
FY 2016
109,000 million yen
Chemicals
40
Equipment 20
Jobbing 36
Other
4

Chemicals Business: Supply of Diverse Range of Surface Treatment Chemicals
Realizing new added value with surface modification
Auto Steel
AircraftBeverage cans Electronic parts

Equipment Business: Surface Treatment Plants
E coat
Surfacer coatTop coat
Pre-treatment /painting plants for the automotive industry
The total conveyor length reaches several thousand meters! We handle the processes over the full-line, from pre-treatment to ED, mid- and top coats of paint, and baking and drying.
We also handle a diverse range of products such as pre-treatment and ED coating of heavy construction materials, and integrated painting and drying booths for large products in aircraft.
Pre-treatment and painting plant for general industry
Capacity of production20,000U/Mo.

Equipment Business: Waste Water Treatment, Powder Coating, Heat Exchangers
Realizing optimal systems according to the components of the waste water, at low running cost.
Waste water treatment equipment
Using electrostatic force to deposit powder paint.
Powder Coating Equipment
H e a t e x c h a n g e r sEnabling efficient heating and cooling with less energy.

Jobbing Business: Conversion treatments, plating
R u s t p r o o f i n g
C o n v e r s i o n t r e a t m e n t s
Lubricant treatment for plasticity forming
Solid lubricant treatment
Electroless nickel plating
Composite nickel plating

Jobbing Business: Heat Treatment
ISONITESalt bath soft nitriding
G a s c a r b u r i z i n g
G a s s o f t n i t r i d i n g
P V D / C V D c o a t i n g s

Other Business
Building maintenance work
Building maintenance work
Manufacture and sale of cold forging bolts
Manufacture and sale of cold forging bolts
Sale of metal test pieces
Sale of metal test pieces
Solar power generationSolar power generation
Export of specialty steel products
Export of specialty steel products

The Central Research Laboratories operates asthe nucleus for our fundamental research anddevelopment of technology and products,bringing together all of our business areas.
Central Research Laboratories (Hiratsuka, Kanagawa Prefecture)
Plasticity formingPlasticity forming
Steel Automotive Rolling Non-steel
Cutting
fields
Cutting edge fields
Analysis
Surface hardenin

fy2016 financial results briefing - · pdf filenihon parkerizing co., ltd. 4 management...

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