working for a better tomorrow · enplas microtech, inc. /u.s.a. ... sustained growth, and rapidly...

Ｅｎｐｌａｓ America, Ｉｎｃ．/U.S.A.ＥｎｐｌａｓＴｅｃｈＳｏｌｕｔｉｏｎｓ, Ｉｎｃ．/U.S.A.Enplas Microtech, Inc. /U.S.A.

Enplas Hi-Tech （Singapore） Pte. Ltd. /SingaporeEnplas Semiconductor Peripherals Pte. Ltd. /Singapore

Enplas Precision （Malaysia） Sdn. Bhd. /Malaysia

Enplas Precision（Thailand） Co., Ltd. /Thailand

Enplas （Vietnam） Co., Ltd. /Vietnam

Enplas Electronics （Shanghai）Co., Ltd. Suzhou Branch /China

Enplas （Deutschland） GmbH. /Germany

Enplas （Italia） S.r.I. /Italy

Guangzhou Enplas Mechatronics Co., Ltd. /China

Enplas Niching Technology Corporation /TaiwanEnplas （Hong Kong） Limited /China

Enplas Semiconductor Peripherals Philippines, Inc. /Philippines

Enplas Electronics （Shanghai） Co., Ltd. /China

PT. Enplas Indonesia /Indonesia

Enplas （Israel） Ltd. /Israel

Enplas （Europe） Ltd. /UK

Enplas（U.S.A.）, Inc. /U.S.A.

Enplas Life Tech, Inc. /U.S.A.Enplas Corporation /Japan

Business Report 2018April 1, 2017 to March 31, 2018

（Securities code:6961）

The corporate webpage provides a wide range of the latest information, including a corporate overview, business and financial information, and press releases. Please take a look at the corporate webpage.

■ Overseas Network

The “Enplas” group is in business 24 hours a day through our global network with locations in Asia, North America and Europe. Through our global network, we build partnerships based on trust with top manufacturers in various industrial arenas from planning and development stages.

Global network based on client trust and superior technology.

Global Network

■Investor Relations Page.

Easy to read universaldesign fonts that are used.

Address: 2-30-1 Namiki, Kawaguchi City, Saitama 332-0034, JapanTel: 81-48-253-3131 Fax: 81-48-255-1688http://www.enplas.com

Working for a Better Tomorrow

▷enplas.co.jp/english/

Total consolidated sales for this term were 33,288 million

yen (up 0.9% YOY), while operating income was 4,368

million yen (up 5.2% YOY). Ordinary income was 3,846

million yen (down 5.7% YOY). Profit attributable to owners

of parent was 2,536 million yen (down 50.8% YOY). Major

reasons for these changes included a rebound from gains

on sale of fixed assets and a reversal of a provision for loss

on litigation, both recorded as extraordinary income in the

previous term, which resulted in a decrease of 2,286 million

yen.

The business performance of each segment is outlined

below.

In the Engineering Plastics Business, strong sales of

automotive parts centered on the domestic market,

supported by strong market conditions, helped secure new

orders and boost sales. Although orders received from

major customers grew, printer parts exhibited disappointing

performance due to the maturation of the printer market.

In the Semiconductor Peripherals Business, sales for

automotive uses remained strong. In particular, orders

received from leading customers in North America

recovered. Sales grew in the China and Taiwan markets.

In the area of optical communication lenses in the Plastic

Optics Business, the server market demonstrated strength

in response to the growth of cloud services. Sales of

high-end products grew. At the same time, sales of LED

diffusing lenses were slow due to the impact of lower sales

volumes of existing main products and falling unit prices,

despite a focus on securing orders for new products

through proactive sales activities intended to propose

solutions.

Thus, while revenues and profits in both the Engineering

Plastics and Semiconductor Peripherals businesses rose

from the previous year, ordinary income fell due to lower

profits in the Plastic Optics Business and the effects of

exchange rates.

Q: Can you describe business performance during the 57th term?

Con te n t s01.Corporate Philosophy

02.To Our Shareholders

04.Consolidated Performance

05.Outline by Businesses

07.Enplas Policies

08.Consolidated Financial Outline

09.Corporate Profile / Stock Information

10.Global Network Domestic Network

Appendix. Global Network Overseas Network

Corporate MissionBased on ties of trust, and keeping our solid management footing that allows us to respond to any changes with confidence, we strive to:1. Offer products and services that satisfy our customers,2. Nurture and maintain a high level of motivation among employees through appraisal and recognition of capabilities and achievements, and

3. Enhance the value of our business to meet the expectations of shareholders.

By fulfilling the ideals set forth in our mission statement, we are confident that our contributions to society will help build a better, more prosperous world for all.

Business DomainEnplas will continue pursuing cutting-edge technology and offering creative value to the global market, based on advanced expertise cultivated in the field of engineering plastics.

Management Philosophy1. We pursue greater competitive and growth capabilities by providing outstanding technology and reliable products.

2. We ensure steady corporate development by maintaining a sound financial position.

3. We aim to provide consistent quality in all our corporate activities.

Guiding Principles for Our Employees1. We seek to challenge ourselves by setting creative goals and pursuing them enthusiastically.

2. We value a sense of gratitude and an attitude to learn from others.3. We make a clear distinction between public and private affairs and act in a fair and direct manner.

Corporate Mission

Business Domain

Guiding Principles for Our Employees

Management Philosophy

Corporate Mission

Business Domain

Guiding Principles for Our Employees

Management Philosophy

We have advanced and utilized the overall technology of engineering plastics since the establishment of our company, and constantly strive for higher precision, higher functionality, and higher quality. We will contribute to the advancement of our society by providing our customers with high quality products and services that they appreciate.

Q: Can you describe business

We have advanced and utilized the overall technology of engineering plastics since the establishment of our company, and constantly strive for higher precision, higher functionality, and higher quality. We will contribute to the advancement of our society by providing our customers with high quality products and services that they appreciate.

Daisuke Yokota, PresidentEnplas Corporation

To Our Shareholders

02

808070

80 80

0

10,000

20,000

30,000

40,000

5,592

0

20

40

60

80

10088.2

52,83846,637

（％）

0

20406080

0

8,000

6,000

10,000

4,000

2,000

0

800

600

400

200

3,640.14

427.64

0

10,000

20,000

40,000

60,000

50,000

30,000

39,65039,529

0

1,000

2,000

3,000

4,000

2,942.46629.42

3,516.43

545.91

12,38312,912

11,24310,777

84.5

50,97943,161

90.0

53,89948,562

7,9219,139

0

7,500

5,000

10,000

12,500

15,000

2,500

38,737

9,8239,933

33,288

2,536

3,8464,3684,368

90.8

57,23457,23452,25852,258

2,151

2,703

1,108

0

500

1,000

1,500

2,000

2,500

3,000

6,5002,971

957

2,7342,225

2,968

1,045

4,062.72

198.26198.26

2,0292,068

1,1931,193

Q: Can you say something about the Engineering Plastics Business?

Q: Can you discuss the Semiconductor Peripherals Business?

Q: How about the Plastic Optics Business?

Q: Do you have any specific messages you would like to send to shareholders?

Organic Growth

32,991

5,152

3,958.65

402.66402.66

2,320

6,129

1,132

91.791.7

55,24950,783

4,0774,1514,151

The Enplas Group adopted the following fundamental management policy for the 58th term, with the goal of achieving further growth.

The Group’s business areas of Engineering Plastics, Semiconductor Peripherals, and Plastic Optics are industries subject to dramatic changes in market conditions as new technologies are introduced day after day. We expect future developments to remain difficult to project, due in part to concerns about US and China trade policies and effects of monetary policies in various countries. Given these conditions, to promote organic growth, we will stress enhancements in our ability to propose solutions to customers. We will do so by improving our production structures and establishing state-of-the-art evaluation technologies, investing to achieve sustained growth, and rapidly commercializing various newly developed technologies and products.

The Engineering Plastics Business manufactures and sells products for use in office machines, information and telecommunications devices, audio-visual devices, precision instruments, home appliances, automotive devices, and bioscience applications, with a focus on high-precision gears.At this time, sales in the Engineering Plastics Business’s main product lines of automotive and printer parts remain relatively stable. We have invested proactively in recent years in the biosciences field and in creating new businesses.

The Semiconductor Peripherals Business manufactures and

sells IC test sockets and burn-in sockets, both of which are tools for semiconductor reliability testing.Since we trade with semiconductor manufacturers around the world, this business is highly susceptible to the effects of exchange rates and experiences fluctuations from quarter to quarter due to the timing of sales deals. Nevertheless, overall, sales have continued to grow over the course of the year.

The Plastic Optics Business manufactures and sells optical communication lenses and LED diffusing lenses.Sales of optical communication lenses are growing steadily from year to year, backed by favorable headwinds generated by the booming server market. While sales of LED diffusing lenses have declined in recent years, the Plastic Optics Business is continuing to pursue activities to secure orders for diverse new products with the goal of stabilizing its businesses. These activities involve proposing solutions to customers.

Based on the high-precision fine machining technologies accumulated since our founding, we plan to help build a prosperous society by tackling the challenge of developing high value-added products no one else can provide and providing products and services that satisfy the needs of our customers. To date, we’ve succeeded in creating new markets by taking the initiative and outdoing the competition in developing new products and improving our mass production technologies.In the future, we plan to continue strengthening corporate value by promoting the development of new markets based on proactive new business development, let alone achieving growth in existing markets. Moving forward, we look forward to continuing support and encouragement from all our shareholders.

Q: Can you discuss your fundamental management policy for the 58th term?

1

3

2

4

■ Consolidated Sales ■ Consolidated Operating Income /　 Consolidated Ordinary Income

■ Net Income per Share / Net Assets per Share

■ Consolidated Profit attributable to owners of parent

■ Consolidated Total Assets/Consolidated Net Assets/　 Consolidated Equity Ratio

■ Amount of Capital Investment/Depreciation Expense/　 Research and Development Cost

(Millions of yen) (Millions of yen)

(Millions of yen)

Consolidated Operating Income

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

(Millions of yen)

Consolidated Total Assets Consolidated Net AssetsConsolidated Equity Ratio

(Millions of yen)(Yen)

(Yen)

Depreciation ExpenseAmount of Capital InvestmentResearch and Development CostNet Income per Share Net Assets per Share

Consolidated Ordinary Income

Consolidated sales for this term were 33,288 million yen (up 0.9% YOY).

1Point

Consolidated operating income was 4,368 million yen (up 5.2% YOY), and the consolidated ordinary income was 3,846 million yen (down 5.7% YOY).

２Point

３PointConsolidated profit attributable to owners of parent was 2,536 million yen (down 50.8% YOY).

Consolidated net assets were 52,258 million yen (up 2.9% YOY), and the capital-to-asset ratio was 90.8% (down 0.9 percentage points YOY).

4Point

Distribution ofProfits

The dividend pershare is 80 yen

It is our fundamental policy to distribute the fruits of our

management activities to our shareholders in a clear manner. We

set the annual dividends per share including the interim dividends to

80 yen based on the future earnings forecasts with stable

redistribution on our mind.

(Yen) ■Dividends

2014 2015 2016 2017 2018

03 04

To Our Shareholders Consolidated Performance

7,780

9,829

2,296

3,026

11,977

10,298

13,53012,863

△174

15914,000

0

2,000

4,000

6,000

8,000

10,000

12,000

-100

-200

0

100

200

0

2,000

4,000

6,000

8,000

12,000

10,000

5,000

2,500

7,500

10,000

0

1,000

3,000

2,000

4,000

0

0

500

1,000

1,500

2,000 1,912

1,299

0605

7,780（23.4%）

11,977（36.0%）

13,530（40.6%）

Ever since the establishment of our company,

we have made steady progress in improving

precision and functions in the Engineering

Plastics Business, our core business. At the

same time, we have responded to the

changing times by developing elemental

technologies ranging from mechatronics

domains to digital domains and expanding our

business areas to include Semiconductor

Peripherals and Plastic Optics. We intend to

continue broadening our activity domains to

include various industrial fields worldwide.

Breakdown of Sales by Business Segment The term ended March 2018 (from April 1, 2017 to March 31, 2018)

Strong sales of automotive parts centered on the domestic market,

supported by strong market conditions, helped secure new orders

and sales growth. Although orders received from major customers

grew, printer parts exhibited disappointing performance due to the

maturation of the printer market. These developments resulted in

consolidated sales for this term of 13,530 million yen (up 5.2%

YOY) and segment operating

income of 159 million yen (vs.

a segment operating loss of

174 million yen in the previous

term).

In the area of optical communication lenses, the server market

demonstrated strength in response to the growth of cloud services.

Sales of high-end products grew. Sales of LED diffusing lenses were

slow due to the impact of lower sales volumes of existing main

products and falling unit prices, despite a focus on securing orders for

new products through proactive sales activities intended to propose

solutions. These

developments resulted in

consolidated sales for this

term of 7,780 million yen

(down 20.8% YOY) and

segment operating income of

2,296 million yen (down

24.1% YOY).

Sales for automotive uses remained strong, with recovery in orders

received from major customers in North America. Sales also grew

in the China and Taiwan markets. These developments resulted in

consolidated sales for this term of 11,977 million yen (up 16.3%

YOY) and segment

operating income of 1,912

million yen (up 47.1% YOY).

Outline by Businesses

Engineering Plastics Business Plastic Optics Business

Semiconductor Peripherals Business

(Millions of yen)

Consolidated Sales33,288

Engineering Plastics Business

Semiconductor Peripherals Business

Plastic Optics Business


Consolidated Sales


2017 2018 2017 2018


Consolidated Sales




Consolidated Sales

2017 2018 2017 2018

2017 2018 2017 2018

24,54524,54525,14325,143

28,920

1,205

43

07 0807

Earning customer trust and appreciation by supplying superior quality products and services worldwide

Environmental commitment.As the world population nears eight billion, the environmental stress to our planet is evident in terms of air and water polution and associated climate impact. The path that Enplas must follow with respect to environmental conservation is clear.We believe that as a global enterprise it is a necessity for Enplas to obtain the ISO 14001 certification, a global standard for Environment Management Systems. In addition to having attained ISO 14001 certification, Enplas has developed an environmental manual based on ISO 14001 guidelines and made a ‘Declaration of Compliance’ in each section, including those which create fewer burdens to the environment. Our approach to environmental conservation is one conducted with strict self-discipline.

Enplas is actively engaged in environmental protection related activities across all aspects of the manufacturing process.

Quality Policy

Environment

[Registered Organization]Enplas Corporation[The Scope of the Registration]1. Design,

development, production and production management of precision plastic gears, plastic carburetor floats, optical elements and other injection molded engineering plastic precision products.

2. Design, development and production management of IC Sockets and Carriers.

[Registered Organization]Enplas Kanuma Plant

[Scope of Registration]Development and manufacturing of plastic / composite material based precision components.

Environmental Policy

1. We set environmental targets, built a company-wide environmental management system in order to achieve them, and continually work for improvement.

2. Through the rationalization and improvement of the business, we will reduce of the environmental burden and promote energy conservation (reduction of power usage/ CO2 emissions).

3. We will promote the reduction and recycling of waste plastic.4. In cooperation with suppliers we will strive to reduce the environmental impact of our supply chain.5. We will comply with all environmental regulations and environmental agreements.6. We will strive to prevent the emission of pollution from our corporate activities.7. As members of society, we will contribute to the protection of the environment.

1. The quality policy applies globally to all Enplas entities and activities.2. All Enplas entities have adopted ISO9001 as the fundamental framework of their quality

management system.3. Based on the quality first policy, Enplas has made improvements across all business

processes to manufacture and supply products that satisfy customers.4. In addition to being monitored locally, quality is also monitored and supported by

headquarters to maintain quality worldwide.

Enplas Policies

JIS Q 14001JSAE 661 CM001

ISO 9001JSAQ 007 CM001

Units and physical boundaries of the organization Classification Description

of BusinessEn

plas C

orpo

ratio

nDo

mes

tic G

roup

Com

panie

s

Global Head Office

Head Office

Kanuma Plant

Hamamatsucho Office

Enplas Laboratories, Inc.

Enplas Display Device Corporation

Enplas Semiconductor Peripheral Corporation

QMS Co., Ltd.

Self-Declaration

Self-DeclarationExamination Registrations

Self-Declaration

Self-Declaration

Self-Declaration

Self-Declaration

Self-Declaration

Development and manufacture of precision plastic components.

Registration Status

Sales

32,991

Operating income4,151

Ordinary income4,077 5,152

Total liabilities and net assets57,234Liabilities4,975Liabilities

4,465

Current assets36,817


Liabilities4,975

Net assets52,258

Total liabilities and net assets55,249Liabilities4,465

Net assets50,783

Current liabilities3,602

Fixed liabilities863

Shareholder’s equity49,884

Accumulated other comprehensive

income774

Minority interests

50

Current liabilities4,026

Fixed liabilities948

Shareholder’sequity51,389Accumulated othercomprehensive income594Minority interests109Stock options165

Cash flows from operating activities

5,581

Cash flows from investing activities△4,834

Effect of exchange rate changes on cash and cash equivalents△307

Cash flows from financing activities△1,037

Sales

33,288

Operating income4,368

Ordinary income3,846

Profit attributableto owners of parent

2,536

Non-operating expenses731

Extraordinary income14

Extraordinary loss74

Profit attributableto ownersof parent

Property, plant and equipment

12,888

Intangiblefixed assets

568

Investments and other assets

4,358

Cash and deposits25,686


Fixed assets20,417

Total assets57,234


Fixed assets17,815

Total assets55,249

Cash and deposits24,798

Property, plant and equipment13,339

Intangible fixed assets2,744

Investments and other assets4,333

Cash and cash equivalents for this term were 24,545 million yen, a decrease of 598 million yen from the end of the previous term.

Consolidated sales were 33,288 million yen (up 0.9% YOY), consolidated operating income was 4,368 million yen (up 5.2% YOY), consolidated ordinary income was 3,846 million yen (down 5.7% YOY), and profit attributable to owners of parent was 2,536 million yen (down 50.8% YOY).

Total assets were 57,234 million yen, up 1,985 million yen from the previous term. While current assets decreased by 617 million yen, fixed assets increased by 2,602 million yen. Major factors driving the change included increases of 2,175 million yen in intangible fixed assets and 451 million yen in property, plant, and equipment.

Net assets were 52,258 million yen, up 1,475 million yen from the previous term. As a result, the equity ratio fell 0.9 percentage points from the end of the previous term to 90.8%.

Balance at the beginning of the current term

Balance at the end of the current term

Assets (Millions of yen)

■ Outline of the Consolidated Balance SheetAt the end ofprevious term

At the end ofcurrent term

(March 31, 2017) (March 31, 2018)

At the end ofcurrent term

At the end of previous termLiabilities and

Net Assets(Millions of yen)

(March 31, 2018)(March 31, 2017)

(Millions of yen)(Millions of yen)

■ Outline of the Consolidated Profit and Loss Statement ■ Outline of the Statement of the 　　Consolidated Cash Flow

(April 1, 2016 to March 31, 2017) (April 1, 2017 to March 31, 2018)

(April 1, 2017 to March 31, 2018)Previous term Current termCurrent term

Cost of sales and SG&A expenses

Income taxesMinority interests

Non-operating income209

For more detailed financial information, please refer to our web page. ▷enplas.co.jp/english/

Consolidated Financial Outline

1009

（26.5%）

（0.8%）

（20.2%）

（21.5%）

（1.2%）

（29.8%）

Individuals, others

Other corporations

Foreign corporations, etc.

Financial institutions

Securities firms

Treasury stock

4,830,896

137,767

3,677,169

3,920,667

228,733

5,437,665

Corporation NameAddress

EstablishedCapital

: Enplas Corporation: 2-30-1, Namiki, Kawaguchi City, Saitama 332-0034, Japan: February 21, 1962: 8,080,450,000 yen

Corporate Profile

Total Number of Authorized SharesShares of Common Stock IssuedNumber of Shareholders

: 62,400,000: 18,232,897: 4,982

Stock Information

■ Distribution of Shares by Shareholders

(As of March 31, 2018)(As of June 22, 2018)

PresidentMember of the BoardSenior Managing Executive OfficerMember of the BoardMember of the Board (Audit Committee)Member of the Board (Audit Committee)Member of the Board (Audit Committee)Managing Director, Executive Officer Managing Executive OfficerManaging Executive OfficerManaging Executive OfficerExecutive OfficerExecutive OfficerExecutive Officer

: Daisuke Yokota

: Takashi Sakai: Toshimasa Iue: Yoong Yoon Liong: Masanori Kazamaki: Ichiro Hasegawa: Yutaka Kikuchi: Yoshio Tamiya: Shigeo Kutsuzawa: Naoaki Takayama: Kiyotaka Hoshino: Shoji Miyasaka: Shigeya Fujita

Total18,232,897

shares(100%)

Memorandum for ShareholdersFiscal yearAnnual general meeting of shareholdersShareholder registry administrator

Mailing address/contact informationRecord dateMethod of public notice

Stock Listing

: April 1 to March 31 of the year following: June of each year

: Tokyo Securities Transfer Agent Co., Ltd.Agency services are available at the head office and branches within Japan of the Mitsui-Sumitomo Trust Bank Ltd. : Address inquiries to: Administrative Center, Tokyo Securities Transfer Agent Co., Ltd.,8-4 Izumi 2-chome, Suginami, Tokyo 168-8522, Japan: March 31 for voting at annual general meeting of shareholders: Electronic notification (http://www.enplas.com) If public notification by this method is not possible, the public notification will appear in the Nikkei newspaper. The balance sheet and the profit and loss statement are disclosed to the public in place of the mandatory financial statements via EDINET (http://info.edinet-fsa.go.jp/).: Tokyo Stock Exchange, Inc., First section

Corporate Profile/Stock Information /Memorandum for Shareholders

Toll-free: 0120-49-7009

Directors and Executive Officers

Global Head Office9F, Shin-Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, TokyoHeadquarters2-30-1 Namiki, Kawaguchi City, Saitama

Kawaguchi City, Saitama・Headquarters・Enplas Display Device Corporation・Enplas Laboratories, Inc.・QMS Co., Ltd.・Enplas Semiconductor Peripheral Corporation

Kanuma Plant

Nagoya Office

Nishi-nihon OfficeKyushu Office

HeadquartersEnplas Display Device Corporation

Kanuma Plant Enplas Laboratories, Inc.QMS Co., Ltd.Enplas Semiconductor Peripheral Corporation

■ Domestic Network

Global Network

Tokyo・Global Head Office・Single Cell Technology Corporation・Hamamatsucho Office

working for a better tomorrow · enplas microtech, inc. /u.s.a. ... sustained growth, and rapidly...

Documents