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May 7, 2014
Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (FY2013)
[Japanese GAAP] Company name: ZUKEN Inc. Listing: Tokyo Stock Exchange, First Section Stock code: 6947 URL: http://www.zuken.co.jp/ Representative: Makoto Kaneko, President and Representative Director Contact: Nobutaka Nishi, General Manager of Finance Department Tel: +81-45-942-1511 Scheduled date of Annual General Shareholders’ Meeting: June 27, 2014 Scheduled date of payment of dividend: June 30, 2014 Scheduled date of filing of Annual Securities Report: June 27, 2014 Preparation of supplementary materials for financial results: None Holding of financial results meeting: None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (Apr. 1, 2013–Mar. 31, 2014) (1) Consolidated results of operations (Percentages for net sales and incomes represent year-on-year changes)
Net sales Operating income Ordinary income Net income Fiscal years ended Millions of yen % Millions of yen % Millions of yen % Millions of yen %
Mar. 31, 2014 19,772 10.5 630 77.7 848 73.1 466 53.5 Mar. 31, 2013 17,887 (2.0) 354 (59.8) 489 (50.1) 304 (82.8)
Note: Comprehensive income (Millions of yen) Fiscal year ended Mar. 31, 2014: 738 (up 67.0%) Fiscal year ended Mar. 31, 2013: 441 (down 75.3%)
Net income per share Diluted net income
per share Return on equity
Ordinary income on total assets
Operating income to net sales
Fiscal years ended Yen Yen % % %
Mar. 31, 2014 20.08 - 1.7 2.2 3.2 Mar. 31, 2013 13.08 - 1.1 1.3 2.0
Reference: Equity in earnings of affiliates (Millions of yen) Fiscal year ended Mar. 31, 2014: (25) Fiscal year ended Mar. 31, 2013: (1)
(2) Consolidated financial position
Total assets Net assets Shareholders’ equity ratio Net assets per share Millions of yen Millions of yen % Yen
As of Mar. 31, 2014 38,846 27,680 70.3 1,173.84 As of Mar. 31, 2013 37,098 28,254 75.2 1,199.22
Reference: Shareholders’ equity (Millions of yen) As of Mar. 31, 2014: 27,294 As of Mar. 31, 2013: 27,885
(3) Consolidated cash flows
Cash flows from
operating activities Cash flows from
investing activities Cash flows from
financing activities Cash and cash equivalents at
end of period Fiscal years ended Millions of yen Millions of yen Millions of yen Millions of yen
Mar. 31, 2014 1,243 (706) (337) 12,306 Mar. 31, 2013 338 (708) (564) 11,766
2. Dividends
Dividend per share
Total dividends Payout ratio
(consolidated)
Dividend on equity
(consolidated) 1Q-end 2Q-end 3Q-end Year-end Total
Yen Yen Yen Yen Yen Millions of yen % %
Fiscal year ended Mar. 31, 2013 - 7.00 - 7.00 14.00 325 107.0 1.2 Fiscal year ended Mar. 31, 2014 - 7.00 - 7.00 14.00 325 69.7 1.2 Fiscal year ending Mar. 31, 2015 (forecast)
- 7.00 - 7.00 14.00 27.8
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2015 (Apr. 1, 2014–Mar. 31, 2015) (Percentages represent year-on-year changes)
Net sales Operating income Ordinary income Net income Net income per
share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen
Full year 22,300 12.8 1,600 153.9 1,670 96.9 1,170 150.5 50.32
Note: Only the full-year forecast is shown because Zuken manages performance on a fiscal year basis.
* Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope
of consolidation): None (2) Changes in accounting policies and accounting-based estimates, and restatements
(a) Changes in accounting policies due to revisions in accounting standards, others: Yes
(b) Changes in accounting policies other than (a) above: None
(c) Changes in accounting-based estimates: None
(d) Restatements: None
Note: Please refer to “Changes in Accounting Policies” on page 19 for further information.
(3) Number of outstanding shares (common stock)
(a) Number of shares outstanding at the end of period (including treasury shares)
As of Mar. 31, 2014: 23,267,169 shares As of Mar. 31, 2013: 23,267,169 shares
(b) Number of treasury shares at the end of period
As of Mar. 31, 2014: 14,869 shares As of Mar. 31, 2013: 14,299 shares
(c) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2014: 23,252,661 shares Fiscal year ended Mar. 31, 2013: 23,253,129 shares
Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (Apr. 1, 2013–Mar. 31, 2014)
(1) Non-consolidated results of operations (Percentages represent year-on-year changes)
Net sales Operating income Ordinary income Net income Fiscal years ended Millions of yen % Millions of yen % Millions of yen % Millions of yen %
Mar. 31, 2014 9,372 9.2 321 - 751 652.7 526 516.3 Mar. 31, 2013 8,585 (5.5) (180) - 99 (93.9) 85 (97.3)
Net income per share Diluted net income per share Fiscal years ended Yen Yen
Mar. 31, 2014 22.63 - Mar. 31, 2013 3.67 -
(2) Non-consolidated financial position
Total assets Net assets Shareholders’ equity ratio Net assets per share Millions of yen Millions of yen % Yen
As of Mar. 31, 2014 31,048 26,594 85.7 1,143.72 As of Mar. 31, 2013 30,560 26,381 86.3 1,134.55
Reference: Shareholders’ equity (Millions of yen) As of Mar. 31, 2014: 26,594 As of Mar. 31, 2013: 26,381
* Information regarding the implementation of audit procedure
The current financial statements in this report are exempted from audit procedures based on the Financial Instruments and Exchange Act. At the time of disclosure, the audit procedures for these financial statements have not been completed.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in this report are based on assumption judged to be valid and information available to the Company’s management at the time this report was prepared, but are not promises by the Company regarding future performance. Actual results may differ substantially from the forecasts for a number of reasons. Please refer to “Analysis of Results of Operations” on page 2 for forecast assumptions and notes of caution for usage.
1
Contents of Attachments
1. Analysis of Results of Operations and Financial Position ................................................................................................................... 2
(1) Analysis of Results of Operations .................................................................................................................................................. 2
(2) Analysis of Financial Position ....................................................................................................................................................... 4
(3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years ............................................................ 5
2. Corporate Group .................................................................................................................................................................................. 6
3. Management Policies ........................................................................................................................................................................... 8
(1) Basic Management Policy .............................................................................................................................................................. 8
(2) Performance Targets ...................................................................................................................................................................... 8
(3) Medium- and Long-term Business Strategy and Issues ................................................................................................................. 8
4. Consolidated Financial Statements .................................................................................................................................................... 10
(1) Consolidated Balance Sheet ......................................................................................................................................................... 10
(2) Consolidated Statements of Income and Comprehensive Income ................................................................................................ 12
Consolidated Statement of Income ................................................................................................................................................ 12
Consolidated Statement of Comprehensive Income ...................................................................................................................... 13
(3) Consolidated Statement of Changes in Equity ............................................................................................................................. 14
(4) Consolidated Statement of Cash Flows ........................................................................................................................................ 16
(5) Notes to Consolidated Financial Statements ................................................................................................................................ 17
Going Concern Assumption .......................................................................................................................................................... 17
Basis of Presenting the Consolidated Financial Statements ........................................................................................................... 17
Changes in Accounting Policies .................................................................................................................................................... 19
Reclassifications ............................................................................................................................................................................ 19
Notes to Consolidated Balance Sheet ............................................................................................................................................ 20
Notes to Consolidated Statement of Income .................................................................................................................................. 20
Notes to Consolidated Statement of Comprehensive Income ........................................................................................................ 21
Notes to Consolidated Statement of Changes in Equity ................................................................................................................ 21
Notes to Consolidated Statement of Cash Flows ........................................................................................................................... 22
Financial Instruments .................................................................................................................................................................... 23
Marketable Securities .................................................................................................................................................................... 25
Segment and Other Information .................................................................................................................................................... 27
Per-share Information .................................................................................................................................................................... 29
Subsequent Events ......................................................................................................................................................................... 29
Omission of Disclosure ................................................................................................................................................................. 29
5. Production, Orders and Sales ............................................................................................................................................................. 30
6. Non-consolidated Financial Statements ............................................................................................................................................. 31
(1) Balance Sheet ............................................................................................................................................................................... 31
(2) Statement of Income .................................................................................................................................................................... 33
(3) Statement of Changes in Equity ................................................................................................................................................... 34
7. Others ................................................................................................................................................................................................ 36
(1) Change in Representative Director .............................................................................................................................................. 36
(2) Changes in Other Board Members ............................................................................................................................................... 36
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
2
1. Analysis of Results of Operations and Financial Position
(1) Analysis of Results of Operations
(a) Summary of the fiscal year under review
In the fiscal year that ended on March 31, 2014, the U.S. and Japanese economies continued to recover at a
moderate pace. However, the overall economic outlook remained uncertain because of the prolonged financial
instability in some regions of Europe and slowing economic growth in China.
Among the Zuken Group’s major customer segments, electronics manufacturers remained cautious about making
capital investment but there was a clear upturn in the performance of companies in the automobile-related
manufacturing sector and the industrial equipment manufacturing sector.
Against this background, the Zuken Group took many actions aimed at becoming a “truly global company” in order
to provide the best solutions for supporting the design and manufacturing operations of manufacturers on a global
scale. Becoming a “truly global company” requires departing from the traditional business paradigm in which Japan
is always the starting point followed by other countries. We must perform planning and development activities in the
right locations, wherever our customers reside, be it in Europe, North America, Asia or Japan. Then we must use
these bases to supply the best possible solutions for manufacturers around the world. To accomplish this goal, we
made our worldwide organization much more powerful while continuing to perform extensive development and
sales activities in all our markets during the fiscal year.
The following actions were taken for enforcing our organization.
(i) In the electronics manufacturing sector, we established Zuken SOZO Center (SOZO means “creation” in
Japanese). This center plans and develops products from the global perspective, in Silicon Valley of the United
States, where many leading companies in the electronics and IT fields with global operations are located. The
center plays a key role in developing products for these companies and the first goal is to increase our North
America market share. Another goal is to provide more business opportunities in emerging countries where
these companies have manufacturing bases. As a result, establishing of Zuken SOZO Center is a strategic
investment that targets worldwide growth.
(ii) In the automotive sector, we enforced collaboration between our development bases in Japan and Germany to
perform joint development programs for creating solutions that embody new concepts. Japan and Germany have
the world’s leading technologies for designing and manufacturing automobiles. We believe that the
development of solutions to support the automotive industries in these two countries will contribute to our
global growth in the automotive sector.
The following initiatives were the primary measures for development and sales activities.
(i) In the electronics manufacturing sector, we concentrated on sales of the electronic design solution system
“CR-8000/Design Force”, which has state-of-the-art 3D graphics. Sales of this system increased significantly
because of its advanced GUI capability together with outstanding performance. Our Zuken SOZO Center has
been working on promoting “CR-8000 series” to our medium and long-term strategic prospects.
(ii) In the automotive sector, we developed solutions for automobile safety that comply with international standards
and started selling these solutions. In Germany, we accelerated development activities for data management
systems as a part of the enhancements to our “E3.series” of cabling design systems.
(iii) In the industrial equipment and medical equipment manufacturing sector, we further strengthened the functions
of the “PreSight/visual BOM”, a product component information platform with highly compressed 3D database
technology. Steady sales growth was achieved in Japan.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
3
(b) Results of the fiscal year under review
(Consolidated results)
Net sales 19,772 million yen (up 10.5% year on year)
Ordinary income 848 million yen (up 73.1% year on year)
Net income 466 million yen (up 53.5% year on year)
By taking these actions, net sales increased significantly from the previous fiscal year. Sales growth was mainly
attributable to higher sales of the “CR-8000 series” of advanced electronic design solution systems and growth in
sales of IT solutions, primarily the “DS-2” data management system and “visual BOM”.
Profits increased due to higher sales despite the growth in expenses for strengthening Zuken’s infrastructure, such as
by establishing a development base in the United States.
Sales by product category were as follows.
(Sales by product)
Printed Circuit Board design solutions 2,996 million yen (up 16.7% year on year)
Circuit design and IC solutions 4,509 million yen (down 1.0% year on year)
IT solutions 4,360 million yen (up 24.4% year on year)
Client services 7,894 million yen (up 8.9% year on year)
Major products of Printed Circuit Board design solutions
CR-8000/Design Force CR-8000/DFM Center
CR-5000/Board Designer
Major products of Circuit design and IC solutions
CR-8000/Design Gateway CR-8000/System Planner E3.series Cabling Designer
CR-5000/System Designer
Major products of IT solutions PreSight/visual BOM DS-2
(c) Forecasts for the fiscal year ending March 31, 2015
The overall economic outlook will probably remain uncertain. Economic recoveries are expected to continue in the
United States and Japan. But there are still financial problems in some regions of Europe and worries about slowing
economic growth in Asia are increasing.
In this difficult environment, the Zuken Group is dedicated to achieving more growth in corporate value by
supplying the best possible solutions for our customers’ complex problems while adapting to the increasingly
borderless nature of manufacturing activities.
We expected net sales of 22,300 million yen, ordinary income of 1,670 million yen, and net income of 1,170 million
yen in the fiscal year ending March 31, 2015.
* Above forecasts are based on information available at the time this report was prepared and actual results may
differ from these forecasts for a number of reasons.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
4
(2) Analysis of Financial Position
(a) Assets, liabilities and net assets
Total assets at the end of the fiscal year under review increased 1,747 million yen from the end of the previous fiscal
year to 38,846 million yen. The main factors of increase were cash and deposits of 519 million yen, notes and
accounts receivable-trade of 807 million yen, and securities of 174 million yen.
Liabilities at the end of the fiscal year under review increased 2,321 million yen from the end of the previous fiscal
year to 11,166 million yen. The main factors of increase were advances received of 737 million yen and net defined
benefit liability following the revision of the “Accounting Standard for Retirement Benefits” (presented as the
provision for retirement benefits in the previous fiscal year) of 1,491 million yen.
Net assets at the end of the fiscal year under review decreased 573 million yen from the end of the previous fiscal
year to 27,680 million yen, and the shareholders’ equity ratio was 70.3%. The main factor of decrease was
remeasurements of defined benefit plans following the revision of the “Accounting Standard for Retirement Benefits”
of 982 million yen.
(b) Cash flows
Cash and cash equivalents (hereafter “cash”) at the end of the fiscal year under review increased 540 million yen
over the end of the previous fiscal year to 12,306 million yen. Cash flows by category were as follows.
Cash flows from operating activities
Net cash provided by operating activities increased 905 million yen from the previous fiscal year to 1,243 million
yen. The main cash inflows were income before income taxes and minority interests of 928 million yen (a
year-on-year increase of 538 million yen), depreciation of 738 million yen (a year-on-year increase of 87 million
yen), and an increase in net defined benefit liability of 387 million yen. The main cash outflows were an increase in
notes and accounts receivable-trade of 619 million yen (a decrease of 754 million yen in the previous fiscal year),
and income taxes paid of 246 million yen (a year-on-year decrease of 1,254 million yen).
Cash flows from investing activities
Net cash used in investing activities decreased 2 million yen from the previous fiscal year to 706 million yen. This
was mainly due to the payment for the purchase of non-current assets of 628 million yen (same level as in the
previous fiscal year).
Cash flows from financing activities
Net cash used in financing activities decreased 226 million yen from the previous fiscal year to 337 million yen.
This was mainly due to cash dividends paid of 325 million yen (a year-on-year decrease of 232 million yen).
Cash flow indicators were as follows:
Fiscal years ended March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014
Shareholders’ equity ratio 74.0% 73.0% 75.2% 70.3%
Shareholders’ equity ratio based on market prices 42.0% 40.8% 43.7% 49.1%
Interest-bearing debt to cash flow ratio 2.7% 0.6% 6.1% 1.8%
Interest coverage ratio 1,816.7 4,984.6 - 17,779.3
Calculation formula: Shareholders’ equity ratio: Shareholders’ equity / Total assets Shareholders’ equity ratio based on market prices: Market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows Interest coverage ratio: Operating cash flows / Interest payments Notes: 1. All indicators are calculated based on consolidated figures. 2. Market capitalization is calculated based on the number of shares outstanding (excluding treasury shares). 3. Operating cash flows are calculated using the figures for operating cash flows on the consolidated statement of cash flows. 4. Interest-bearing debt includes all liabilities on the consolidated balance sheet that incur interest.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
5
(3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
Distributing profits to shareholders is one of the highest management priorities of the Zuken Group. The basic
policy is to pay a stable and consistent dividend. In addition, we will continue to consider suitable and highly
effective methods of returning earnings to shareholders while taking into account business performance, operating
conditions and other factors. Profit distributions will also reflect the need to retain earnings for strengthening
business operations and financial soundness and for funding upcoming business activities.
Based on the policy of paying a stable dividend, we plan to pay a year-end dividend of 7 yen per share for the fiscal
year ended March 31, 2014. This dividend also reflects the financial condition, outlook for performance in the fiscal
year ending on March 31, 2015, and other items. With the interim dividend of 7 yen per share, this will result in a
full-year dividend of 14 yen per share. For the fiscal year ending on March 31, 2015, we plan to pay a dividend of
14 yen per share, the sum of interim and year-end dividends of 7 yen per share.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
6
2. Corporate Group
The Zuken Group consists of ZUKEN Inc., 17 subsidiaries and two affiliates (one affiliate accounted for under the
equity method and one affiliate not accounted for under the equity method). Group companies are engaged in
solutions business including research and development, manufacturing and sales activities involving processes from
design to production in manufacturing industries and associated client services especially in electronics industries.
Major business activities and the roles of group companies are shown below.
Business activities Company name (reportable segment) Major product category
Software R&D
Manufacturing, sales and
consulting
Support services
ZUKEN Inc. (Japan)
Zuken Limited (Europe & Americas)
Zuken GmbH (Europe & Americas)
Printed Circuit Board design solutions
Circuit design and IC solutions
IT solutions
Client services
Zuken E3 GmbH (Europe & Americas)
Zuken Contact GmbH & Co. KG (*)
Circuit design and IC solutions
Client services
Software sales
Support services
Zuken USA Inc. (Europe & Americas)
Zuken UK Limited (Europe & Americas)
Zuken S.A. (Europe & Americas)
Zuken S.r.l. (Europe & Americas)
Zuken Korea Inc. (Asia)
Zuken Singapore Pte. Ltd. (Asia)
Zuken Taiwan Inc. (Asia)
One other company
Printed Circuit Board design solutions
Circuit design and IC solutions
IT solutions
Client services
Consulting
Support services
CAD Lab. Inc. (Japan)
Zuken Shanghai Technical Center Co.,
Ltd. (Asia)
Middleware and system
board R&D
Manufacturing, sales and
support services
Zuken Elmic, Inc. (Japan) Circuit design and IC solutions
Client services
Network systems sales
Support services
Zuken NetWave Inc. (Japan) IT solutions
Client services
Staffing and other
technology support services
Zsas (Zuken Support and Service) Inc.
(Japan)
Printed Circuit Board design solutions
Circuit design and IC solutions
IT solutions
Client services
Overall control of UK
operations
Zuken Group Limited (Europe &
Americas)
Notes: 1. Zuken Contact GmbH & Co. KG is an affiliate accounted for under the equity method. All other companies in the above table are consolidated subsidiaries.
2. Zuken Elmic, Inc. has been listed on the Tokyo Stock Exchange MOTHERS Section.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
7
The diagram below provides a visual representation of the positioning and relationships of businesses within the
group.
<The Company> <Affiliates>
(Overall control of UK operations)
Zuken Group Limited
(R&D, manufacturing, sales, consulting and support services)
Zuken LimitedZuken GmbHZuken E3 GmbHZuken Contact GmbH & Co. KG (*)
(Sales and support services)
Zuken USA Inc.Zuken UK LimitedZuken S.A. Zuken S.r.l. One other company
(Sales and support services)
Zuken Korea Inc.Zuken Singapore Pte. Ltd.Zuken Taiwan Inc.
(Consulting and support services)
Zuken Shanghai Technical Center Co., Ltd.
(Consulting and support services)
CAD Lab. Inc.
(R&D, manufacturing, sales and support services)
Zuken Elmic, Inc.
(Sales and support services)
Zuken NetWave Inc.
(Staffing and other technology support services)
Zsas (Zuken Support and Service) Inc.
(Domestic users) (Overseas users)
ZU
KE
N In
c.(R
&D
, ma
nu
factu
ring
, sale
s, con
sultin
g a
nd
sup
po
rt service
s for e
ach
solu
tion
)
Product and support services
Product andsupport services
Product and support services
Product and support services
Support services
Consulting andsupport services
Product andsupport services
Staffing and other technology support
services
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
8
3. Management Policies
(1) Basic Management Policy
The Zuken Group is dedicated to making a significant contribution to the advancement of the manufacturing sector
by assisting in the development and manufacture of products. Our goal is to assist a broad range of manufacturers,
primarily in the electronics sector, improve design and manufacturing efficiency and raise productivity. To
accomplish this goal, we concentrate on supplying the best possible solutions while constantly adapting to changes
in market needs.
(2) Performance Targets
The Zuken Group is fulfilling increasingly important roles in the electronics, automotive and industrial equipment
manufacturing sectors, which are the group’s primary markets, as demand for these products grows in emerging
countries and technological advances are needed for environmental and other requirements. In addition, markets that
the Zuken Group can serve are expanding as all manufacturers rapidly increase the use of electronics in their
products. To capitalize on these opportunities, we will continue our solutions business while aggressively entering
new markets and technology domains. We are determined to generate long-term returns for shareholders as we
continue increasing the scope and scale of our business activities. Consequently, sustaining the growth of earnings
per share is one of our key performance indicators.
(3) Medium- and Long-term Business Strategy and Issues
The Zuken Group aims to become a “truly global company” by meeting needs associated with the increasingly
borderless nature of design and manufacturing activities. We will seamlessly integrate the operations of bases in
Japan, Europe, the United States and Asia to supply customers with the best possible solutions.
We will need to work on the following issues to accomplish this goal. (a) Increase sales of the CR-8000 series, Zuken’s major product
For the state-of-the-art CR-8000 electrical design system, we will continue to respond swiftly to technological
progress and changes in development flow at our customers as we move even faster to expand functions. In
addition, we will use the entire Zuken Group to work aggressively to sell more of these systems worldwide. Our
objective is to achieve more growth in the electronics manufacturing sector. (b) Step up activities in the automotive sector
Electronic control is vital to the safe operation of automobiles. Motor vehicles will use an increasing amount of
electronics and the designs of these devices are becoming more sophisticated and intricate. To meet these needs,
the Zuken Group will leverage its highly advanced software technologies and other expertise gained from many
years of experience in the field of electronics design and manufacturing. We will also use collaboration between
development bases in Japan and Germany. With these activities, we plan to develop new solutions for the
automotive sector and sell them on a global scale. (c) Transform ourselves from “Zuken for Electronics Design” into “Zuken for Products Design”
Zuken will concentrate on further enhancing functions and increasing sales for component data management
solutions that utilize 3D data compression technology, targeting mostly manufacturers of industrial equipment and
medical equipment. These solutions can optimize entire design and manufacturing processes by facilitating the
sharing of component data among a company’s design, production and procurement sections. Our aim is to use
these activities to become an organization that can assist in solving a variety of problems for manufacturers across
multiple industries, electronics, machinery, and many other industries.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
9
The Zuken Group plans to achieve more growth in corporate value by using these initiatives to supply the best
possible solutions with activities that directly target our customers’ complex problems.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
10
4. Consolidated Financial Statements
(1) Consolidated Balance Sheet (Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Assets
Current assets
Cash and deposits 4,552,107 5,071,935
Notes and accounts receivable-trade 4,087,880 4,895,506
Securities 16,013,686 16,188,534
Merchandise and finished goods 152,780 176,908
Work in process 77,982 49,974
Raw materials and supplies 2,283 1,993
Deferred tax assets 416,408 341,853
Other 1,135,023 1,520,183
Allowance for doubtful accounts (28,088) (30,879)
Total current assets 26,410,063 28,216,009
Non-current assets
Property, plant and equipment
Buildings and structures 9,019,231 9,102,396
Accumulated depreciation (5,840,582) (5,954,566)
Buildings and structures, net 3,178,649 3,147,830
Machinery, equipment and vehicles 93,467 98,260
Accumulated depreciation (49,536) (61,515)
Machinery, equipment and vehicles, net 43,931 36,744
Tools, furniture and fixtures 1,794,197 1,965,871
Accumulated depreciation (1,518,104) (1,606,593)
Tools, furniture and fixtures, net 276,093 359,277
Land 3,009,559 3,009,821
Leased assets 31,697 42,463
Accumulated depreciation (11,775) (20,647)
Leased assets, net 19,922 21,815
Construction in progress - 4,015
Total property, plant and equipment 6,528,155 6,579,505
Intangible assets
Goodwill 986,963 997,450
Other 859,315 758,818
Total intangible assets 1,846,279 1,756,268
Investments and other assets
Investment securities 955,800 927,729
Deferred tax assets 721,685 787,582
Other 651,863 588,756
Allowance for doubtful accounts (15,334) (9,674)
Total investments and other assets 2,314,014 2,294,393
Total non-current assets 10,688,448 10,630,168
Total assets 37,098,511 38,846,177
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
11
(Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Liabilities
Current liabilities
Accounts payable-trade 681,494 705,940
Income taxes payable 136,893 315,777
Advances received 2,792,769 3,530,050
Provision for bonuses 682,501 661,002
Provision for directors' bonuses 1,980 18,062
Provision for loss on litigation 72,320 -
Other provision 43,439 13,877
Other 1,385,636 1,350,462
Total current liabilities 5,797,035 6,595,173
Non-current liabilities
Provision for retirement benefits 2,879,473 -
Net defined benefit liability - 4,370,781
Other 167,910 200,067
Total non-current liabilities 3,047,384 4,570,848
Total liabilities 8,844,419 11,166,021
Net assets
Shareholders’ equity
Capital stock 10,117,065 10,117,065
Capital surplus 8,657,753 8,657,753
Retained earnings 8,845,254 8,986,688
Treasury shares (12,762) (13,209)
Total shareholders’ equity 27,607,311 27,748,297
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 306,188 318,521
Foreign currency translation adjustment (28,094) 210,057
Remeasurements of defined benefit plans - (982,326)
Total accumulated other comprehensive income 278,093 (453,747)
Minority interests 368,687 385,606
Total net assets 28,254,092 27,680,156
Total liabilities and net assets 37,098,511 38,846,177
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
12
(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
(Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Net sales 17,887,827 19,772,854
Cost of sales 4,929,623 5,251,693
Gross profit 12,958,203 14,521,160
Selling, general and administrative expenses 12,603,504 13,890,920
Operating income 354,699 630,240
Non-operating income
Interest income 27,664 26,722
Foreign exchange gains - 66,035
Amortization of negative goodwill 50,234 50,234
Rent income 38,096 44,001
Subsidy income 5,794 31,464
Other 37,396 37,204
Total non-operating income 159,187 255,663
Non-operating expenses
Share of loss of entities accounted for using equity method 1,707 25,617
Loss on investments in partnership 11,016 10,260
Foreign exchange losses 6,223 -
Other 5,073 1,984
Total non-operating expenses 24,021 37,862
Ordinary income 489,865 848,041
Extraordinary income
Gain on sales of non-current assets 5,147 2,877
Transfer of rights income - 73,824
Payback of directors' retirement benefits - 9,670
Gain on sales of investment securities - 1,875
Gain on transfer of business 19,124 -
Total extraordinary income 24,271 88,247
Extraordinary losses
Loss on disposal of non-current assets 14,851 6,242
Impairment loss 16,335 1,123
Provision for loss on litigation 72,320 -
Special retirement expenses 20,071 -
Total extraordinary losses 123,578 7,365
Income before income taxes and minority interests 390,558 928,923
Income taxes-current 169,531 394,034
Income taxes-deferred (14,898) 47,119
Total income taxes 154,632 441,153
Income before minority interests 235,925 487,769
Minority interests in income (loss) (68,297) 20,795
Net income 304,223 466,973
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
13
Consolidated Statement of Comprehensive Income (Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Income before minority interests 235,925 487,769
Other comprehensive income
Valuation difference on available-for-sale securities 16,079 12,191
Foreign currency translation adjustment 190,213 225,284
Share of other comprehensive income of associates accounted for using equity method
(349) 12,866
Total other comprehensive income 205,943 250,342
Comprehensive income 441,869 738,111
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent 509,828 717,458
Comprehensive income attributable to minority interests (67,958) 20,653
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
14
(3) Consolidated Statement of Changes in Equity FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
(Thousands of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’
equity Balance at beginning of current period
10,117,065 8,657,753 9,099,109 (12,542) 27,861,384
Changes of items during period
Dividends of surplus (558,077) (558,077)
Net income 304,223 304,223
Purchase of treasury shares (219) (219)
Net changes of items other than shareholders’ equity
Total changes of items during period
- - (253,854) (219) (254,073)
Balance at end of current period 10,117,065 8,657,753 8,845,254 (12,762) 27,607,311
Accumulated other comprehensive income
Minority interests
Total net assets Valuation
difference on available-for-sale
securities
Foreign currency translation adjustment
Total accumulated other
comprehensive income
Balance at beginning of current period
290,447 (217,958) 72,489 436,646 28,370,520
Changes of items during period
Dividends of surplus (558,077)
Net income 304,223
Purchase of treasury shares (219)
Net changes of items other than shareholders’ equity
15,740 189,864 205,604 (67,958) 137,645
Total changes of items during period
15,740 189,864 205,604 (67,958) (116,428)
Balance at end of current period 306,188 (28,094) 278,093 368,687 28,254,092
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
15
FY2013 (Apr. 1, 2013 – Mar. 31, 2014) (Thousands of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’
equity Balance at beginning of current period
10,117,065 8,657,753 8,845,254 (12,762) 27,607,311
Changes of items during period
Dividends of surplus (325,539) (325,539)
Net income 466,973 466,973
Purchase of treasury shares (447) (447)
Net changes of items other than shareholders’ equity
Total changes of items during period
- - 141,433 (447) 140,986
Balance at end of current period 10,117,065 8,657,753 8,986,688 (13,209) 27,748,297
Accumulated other comprehensive income
Minority interests
Total net assets
Valuation difference on
available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined
benefit plans
Total accumulated
other comprehensive
income Balance at beginning of current period
306,188 (28,094) - 278,093 368,687 28,254,092
Changes of items during period
Dividends of surplus (325,539)
Net income 466,973
Purchase of treasury shares (447)
Net changes of items other than shareholders’ equity
12,333 238,151 (982,326) (731,841) 16,918 (714,922)
Total changes of items during period
12,333 238,151 (982,326) (731,841) 16,918 (573,936)
Balance at end of current period 318,521 210,057 (982,326) (453,747) 385,606 27,680,156
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
16
(4) Consolidated Statement of Cash Flows (Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Cash flows from operating activities
Income before income taxes and minority interests 390,558 928,923
Depreciation 650,691 738,546
Amortization of goodwill 99,031 79,339
Interest and dividend income (30,680) (30,076)
Foreign exchange losses (gains) (11,878) (25,954)
Share of (profit) loss of entities accounted for using equity method
1,707 25,617
Decrease (increase) in notes and accounts receivable-trade 754,152 (619,692)
Increase (decrease) in notes and accounts payable-trade (66,473) (144,261)
Increase (decrease) in provision for retirement benefits (22,190) -
Increase (decrease) in net defined benefit liability - 387,808
Other, net 40,747 122,670
Subtotal 1,805,666 1,462,920
Interest and dividend income received 33,609 26,910
Interest expenses paid - (69)
Income taxes paid (1,501,270) (246,487)
Net cash provided by (used in) operating activities 338,005 1,243,274
Cash flows from investing activities
Decrease (increase) in time deposits (3,801) (136,950)
Purchase of securities (1,999,540) (3,998,800)
Proceeds from redemption of securities 2,000,000 4,000,000
Purchase of property, plant and equipment (194,703) (343,128)
Proceeds from sales of property, plant and equipment 66,911 25,860
Purchase of intangible assets (433,408) (285,360)
Purchase of investment securities (40,000) -
Proceeds from sales and redemption of investment securities 4,760 38,484
Payments for investments in capital of subsidiaries and associates
(85,867) -
Other, net (23,034) (6,594)
Net cash provided by (used in) investing activities (708,684) (706,489)
Cash flows from financing activities
Purchase of treasury shares (219) (447)
Cash dividends paid (558,077) (325,539)
Other, net (5,835) (11,831)
Net cash provided by (used in) financing activities (564,132) (337,817)
Effect of exchange rate change on cash and cash equivalents 238,312 341,166
Net increase (decrease) in cash and cash equivalents (696,498) 540,133
Cash and cash equivalents at beginning of period 12,463,138 11,766,640
Cash and cash equivalents at end of period 11,766,640 12,306,774
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
17
(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Basis of Presenting the Consolidated Financial Statements
1. Scope of consolidation
Number of consolidated subsidiaries: 17
Name of the consolidated subsidiaries are stated in the Section “2. Corporate Group.”
2. Application of equity method
(1) Number of affiliates accounted for under the equity method: 1 (Zuken Contact GmbH & Co. KG) (2) Number of affiliates not accounted for under the equity method: 1 (Zuken Contact Verwaltungs GmbH)
Zuken Contact Verwaltungs GmbH is not included in the scope of application of the equity method since it is a small-scale
business whose net income (equity in earnings) and retained earnings (equity in earnings) have no significant effect on the
overall results of consolidated financial statements.
(3) The fiscal year-end of Zuken Contact GmbH & Co. KG is different from the fiscal year-end for the consolidated financial
statements. ZUKEN Inc. (the “Company”) prepares provisional accounts for Zuken Contact GmbH & Co. KG as of the fiscal
year-end for the consolidated financial statements.
3. Fiscal year-end of consolidated subsidiaries
Among the consolidated subsidiaries, fiscal year-ends of Zuken Korea Inc., Zuken Singapore Pte. Ltd. and Zuken Taiwan Inc.
are the end of February, and fiscal year-end of Zuken Shanghai Technical Center Co., Ltd. is the end of December.
The consolidated financial statements include the financial statements of these consolidated subsidiaries as of their fiscal
year-ends. However, adjustments to the consolidated financial statements are made as needed for significant transactions at the
above four subsidiaries with different fiscal year-ends that occur between their fiscal year-ends and the fiscal year-end for the
consolidated financial statements.
4. Accounting standards
(1) Valuation standards and methods for principal assets
(a) Securities
Held-to-maturity debt securities: Stated at cost determined by the amortized cost method (straight-line method).
Available-for-sale securities
Marketable securities: Stated at fair value using quoted market price on the balance sheet date. (Unrealized gain or loss
is included in net assets. Cost of securities sold is determined by the moving-average method).
Non-marketable securities Stated at cost determined by the moving-average method.
With respect to investments in investment partnerships (regard as marketable securities under
Article 2-2 of the Japanese Financial Instruments and Exchange Act), the net amount equivalent
to the level of equity based on the most recently available financial statements for the reporting
date specified in the partnership agreement is used.
(b) Inventories
Valued at the cost method (the book value on the balance sheet is written down to reflect the effect of lower profitability).
Merchandise: Primarily stated at cost, determined by the moving-average method.
Finished goods, work in process: Stated at cost, determined by the specific identification method at the Company and its
major consolidated subsidiaries, and stated at cost, determined by the periodic average
method at some consolidated subsidiaries.
Raw materials: Stated at cost, determined by the moving-average method at the Company, and stated at cost, determined by
the specific identification method at major consolidated subsidiaries.
Supplies: Stated at cost, determined by the last purchased price method at the Company and its major consolidated
subsidiaries.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
18
(2) Depreciation and amortization of significant depreciable assets
(a) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries compute depreciation of buildings (excluding attached structures)
by the straight-line method, other than buildings, the declining-balance method is used. Overseas consolidated subsidiaries
compute depreciation mainly by the straight-line method.
Estimated useful lives of principle assets are as follows: Buildings and structures: 3 years to 60 years Tools, furniture and fixtures: 2 years to 20 years
(b) Intangible assets (excluding leased assets)
Software for sale at the Company and its domestic consolidated subsidiaries are amortized using the straight-line method
over the period of validity starting when sales begin (not more than three years) and software for internal use at these
companies is amortized using the straight-line method over the estimated useful lives (not more than five years).
Amortization of other intangible assets is calculated by the straight-line method.
(c) Leased assets
Depreciation of finance lease transaction where there is no transfer of ownership is calculated based on the straight-line
method, assuming the lease period to be the useful lives and a residual value of zero.
For finance lease transaction where there is no transfer of ownership that started on or before March 31, 2008, the Company
uses an accounting method that is based on the method used for ordinary rental transactions.
(3) Recognition of significant allowances
(a) Allowance for doubtful accounts
To prepare for losses on doubtful accounts such as notes and account receivables-trade and loans receivable, allowances
equal to the estimated amount of uncollectible receivables are booked for general receivables based on the historical
write-off ratio, and bad receivables based on case-by-case determination of collectibility.
(b) Provision for bonuses
To provide for employee bonus obligation, the Company and some consolidated subsidiaries provide an allowance at the
amount based on the estimated bonus obligations.
(c) Provision for directors' bonuses
To provide for directors’ bonuses, the Company and some consolidated subsidiaries provide an allowance at the amount
based on the estimated bonus obligations.
(4) Accounting for retirement benefit
(a) Allocation method for the estimated retirement benefit obligations
For the determination of retirement benefit obligations, the straight-line attribution standard is used as the method for
allocating estimated retirement payments over the period ending in the fiscal year under review.
(b) Accounting for actuarial gain or loss
Actuarial gain or loss is amortized and charged to expenses in the year following the fiscal year in which such gain or loss is
recognized by the straight-line method over five years.
(5) Recognition of significant income and expenses
Recognition criteria for net sales and cost of sales of completed construction contracts
(a) The portion of contracted work deemed to have been completed by the end of the fiscal year under review
The percentage-of-completion standard (with the percentage of completion estimated on the cost-to-cost basis).
(b) Other contracted work
The completed-contract standard.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
19
(6) Translation of significant foreign currency-denominated assets and liabilities
Foreign currency receivables and payables are translated into Japanese yen at year-end exchange rates and resulting exchange
gains or losses are recognized in earnings currently. All assets and liabilities of overseas consolidated subsidiaries and
affiliates are translated into Japanese yen at year-end exchange rates, and income and expenses into Japanese yen at the
average of the exchange rates in effect during each fiscal period, and resulting exchange gains or losses are included in foreign
currency translation adjustments and minority interests under the net assets section.
(7) Amortization method and amortization period of goodwill
Goodwill is amortized using the straight-line method within 15 years, with the number of years determined by the origin of the
goodwill. Negative goodwill recorded due to business combinations and other events on or prior to March 31, 2010 is
amortized using the straight-line method within five years.
(8) Scope of cash and cash equivalents on consolidated statement of cash flows
Cash and cash equivalents consist of cash on hand and readily available deposits and short-term investments which can be
easily converted to cash and are exposed to little risk of change in value.
(9) Other significant accounting policies in the preparation of consolidated financial statements
(a) Accounting for consumption taxes, etc.
Consumption taxes, etc. are accounted by the tax-exclusion method.
Changes in Accounting Policies
Accounting standard for retirement benefits
Following the application of the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ)
Statement No. 26, May 17, 2012; excluding the provisions set forth in Clause 35) and “Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012; excluding the provisions set forth in Clause 67),” the Company has
changed its accounting treatment to record the retirement benefit obligations as a net defined benefit liability after deducting plan
assets, and recorded the unrecognized actuarial gain or loss as a net defined benefit liability from the fiscal year under review.
For the application of these accounting standard, in accordance with the transitional accounting treatments set forth in Clause 37
of the Accounting Standard for Retirement Benefits, the monetary effect of this change has been included in the remeasurements
of defined benefit plans of accumulated other comprehensive income at the end of the fiscal year under review.
The effect of this change was to decrease accumulated other comprehensive income by 982,326 thousand yen in the fiscal year
under review.
Net assets per share decreased 42.24 yen.
Reclassifications
Consolidated statement of income
“Subsidy income,” included in “Other” under “Non-operating income” in the previous fiscal year, is reclassified and presented as
a separate line item in the fiscal year under review since it has increased materiality in the context of consolidated financial
statements. To conform to this change, the consolidated financial statements for the previous fiscal year are reclassified.
As a result, “Other” (43,191 thousand yen) under “Non-operating income” shown in the previous fiscal year’s consolidated
statement of income is reclassified and divided into “Subsidy income” (5,794 thousand yen) and “Other” (37,396 thousand yen).
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
20
Notes to Consolidated Balance Sheet
1. Investments and other assets for non-consolidated subsidiaries and affiliates are as follows. (Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Other (Investments in capital) 83,810 71,059
2. Presentation of goodwill and negative goodwill Goodwill and negative goodwill are stated in net terms. The figures for each before netting are as follows.
(Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Goodwill 1,049,757 1,010,009
Negative goodwill 62,793 12,558
Net amount 986,963 997,450
Notes to Consolidated Statement of Income 1. Major items of selling, general and administrative expenses are as follows.
(Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Salaries and allowances 4,346,386 4,786,924
Depreciation 568,348 659,035
Provision for bonuses 409,386 405,667
Provision for directors' bonuses 1,980 18,062
Provision for retirement benefits 148,121 195,162
Research and development expenses 2,627,389 2,823,871
2. Total amount of research and development expenses included in general and administrative expenses
(Thousands of yen) FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
2,627,389 2,823,871
3. Breakdown of gain on sales of non-current assets is as follows.
(Thousands of yen)
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
FY2013 (Apr. 1, 2013 – Mar. 31, 2014)
Vehicles 5,082 2,731
Tools, furniture and fixtures 64 145
Total 5,147 2,877
4. Transfer of rights income
This income was recorded due to the sale of IP addresses that were not expected to be used.
5. Breakdown of loss on disposal of non-current assets is as follows. (Thousands of yen)
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
FY2013 (Apr. 1, 2013 – Mar. 31, 2014)
Buildings, etc. 6,695 4,275
Tools, furniture and fixtures 4,393 1,967
Others 3,762 -
Total 14,851 6,242
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
21
Notes to Consolidated Statement of Comprehensive Income Re-classification adjustments and tax effect with respect to other comprehensive income
(Thousands of yen) FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014) Valuation difference on available-for-sale securities:
Amount incurred during the period 24,784 17,056 Re-classification adjustments - 1,875
Before tax effect adjustments 24,784 18,931 Tax effect (8,705) (6,739) Valuation difference on available-for-sale securities 16,079 12,191
Foreign currency translation adjustment: Amount incurred during the period 190,213 225,284
Share of other comprehensive income of associates accounted for using equity method
Amount incurred during the period (349) 12,866 Total other comprehensive income 205,943 250,342
Notes to Consolidated Statement of Changes in Equity
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
1. Type of share and number of shares of outstanding shares and treasury shares (Shares)
Number of shares as of Apr. 1, 2012
Increase Decrease Number of shares
as of Mar. 31, 2013
Outstanding shares
Common stock 23,267,169 - - 23,267,169
Total 23,267,169 - - 23,267,169
Treasury shares
Common stock (Note) 13,901 398 - 14,299
Total 13,901 398 - 14,299
Note: Number of treasury shares of common stock increased 398 shares due to the acquisition of odd-lot shares.
2. Dividends
(1) Dividend payment
Resolution Type of share Total dividends
(Thousands of yen) Dividend per share (yen)
Record date Effective date
General Shareholders’ Meeting on Jun. 28, 2012
Common stock 395,305 17 Mar. 31, 2012 Jun. 29, 2012
Board of Directors’ meeting on Nov. 5, 2012
Common stock 162,772 7 Sep. 30, 2012 Dec. 4, 2012
(2) Dividends with a record date in the fiscal year under review but an effective date in the following fiscal year
Resolution Type of share
Total dividends (Thousands of yen)
Source of funds
Dividend per share (yen)
Record date Effective date
General Shareholders’ Meeting on Jun. 27, 2013
Common stock
162,770 Retained earnings
7 Mar. 31, 2013 Jun. 28, 2013
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
22
FY2013 (Apr. 1, 2013 – Mar. 31, 2014)
1. Type of share and number of shares of outstanding shares and treasury shares (Shares)
Number of shares as of Apr. 1, 2013
Increase Decrease Number of shares
as of Mar. 31, 2014
Outstanding shares
Common stock 23,267,169 - - 23,267,169
Total 23,267,169 - - 23,267,169
Treasury shares
Common stock (Note) 14,299 570 - 14,869
Total 14,299 570 - 14,869
Note: Number of treasury shares of common stock increased 570 shares due to the acquisition of odd-lot shares.
2. Dividends
(1) Dividend payment
Resolution Type of share Total dividends
(Thousands of yen) Dividend per share (yen)
Record date Effective date
General Shareholders’ Meeting on Jun. 27, 2013
Common stock 162,770 7 Mar. 31, 2013 Jun. 28, 2013
Board of Directors’ meeting on Nov. 5, 2013
Common stock 162,769 7 Sep. 30, 2013 Dec. 3, 2013
(2) Dividends with a record date in the fiscal year under review but an effective date in the following fiscal year
Resolution Type of share
Total dividends (Thousands of yen)
Source of funds
Dividend per share (yen)
Record date Effective date
General Shareholders’ Meeting on Jun. 27, 2014
Common stock
162,766 Retained earnings
7 Mar. 31, 2014 Jun. 30, 2014
Notes to Consolidated Statement of Cash Flows
1. Reconciliation of cash and cash equivalents at end of period and amount of consolidated balance sheet is made as follows. (Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Cash and deposits 4,552,107 5,071,935
Short-term investments included in securities account 7,314,093 7,488,834
Time deposit with maturities over three months (99,561) (253,995)
Cash and cash equivalents 11,766,640 12,306,774
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
23
Financial Instruments
1. Conditions of financial instruments
(1) Policy for handling financial instruments
Safety is the highest priority of the Zuken Group when investing funds in financial instruments, while also taking into account
credit risk, interest rates and other factors. Funds are invested in financial instruments that are believed to have an extremely
small risk of the value falling below face value. (2) Details of financial instruments, their risks and risk management system
Notes and accounts receivable-trade, which are operating receivables, are vulnerable to credit risk associated with customers.
The Company performs rigorous credit management for each customer and supervise payment dates and balances. In addition,
there are measures to quickly identify doubtful receivables caused by a decline in a customer’s financial soundness or other
event and to reduce the amount of these receivables.
Marketable securities and investment securities are bonds held to maturity and stock of companies with relationships with the
Zuken Group. These securities are vulnerable to risk associated with changes in their market prices. The Company periodically
checks fair values, the financial condition of issuers and other items in order to quickly identify securities that may need to be
written down and reduce the amount of these securities.
Accounts payable-trade, which is operating debt, is mostly due within one year.
(3) Supplemental explanation concerning fair values, etc. of financial instruments
Fair value of the financial instrument is measured at a quoted market price, if available, or reasonably assessed value if a quoted
market price is not available. As the calculation of the reasonably assessed value incorporates varying factors, the amount may
vary if different assumptions are used. 2. Items related to fair values of financial instruments
The book value, fair value, and their differences are shown as follows. However, financial instruments, whose fair value is
deemed to be extremely difficult to measure, are not included (please refer to Note 2 below.)
FY2012 (As of Mar. 31, 2013)
(Thousands of yen)
Book value Fair value Difference
(1) Cash and deposits 4,552,107 4,552,107 -
(2) Notes and accounts receivable-trade 4,087,880 4,087,880 -
(3) Marketable securities and investment securities
16,594,313 16,594,321 7
Assets total 25,234,301 25,234,309 7
(1) Accounts payable-trade 681,494 681,494 -
Liabilities total 681,494 681,494 -
FY2013 (As of Mar. 31, 2014)
(Thousands of yen)
Book value Fair value Difference
(1) Cash and deposits 5,071,935 5,071,935 -
(2) Notes and accounts receivable-trade 4,895,506 4,895,506 -
(3) Marketable securities and investment securities
16,777,236 16,777,136 (100)
Assets total 26,744,678 26,744,578 (100)
(1) Accounts payable-trade 705,940 705,940 -
Liabilities total 705,940 705,940 -
Notes 1. Matters concerning determination of fair value of financial instruments and marketable securities
Assets
(1) Cash and deposits, and (2) Notes and accounts receivable-trade
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
24
Fair value of the financial instruments in these categories is deemed to be equal to their carrying amount.
(3) Marketable securities and investment securities
For fair value of the financial instruments in these categories, stocks are valued based on their prices on securities exchanges. Bonds are valued based on securities exchange prices or prices provided by financial institutions. Please refer to the section “Marketable Securities” for information about securities categorized by purpose.
Liabilities
(1) Accounts payable-trade
Fair value of the financial instrument in this category is deemed to be equal to their carrying amount because they are settled within a short period of time.
2. Financial instruments whose fair values are deemed to be extremely difficult to measure.
(Thousands of yen)
Item FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Unlisted stocks 306,195 306,063
Investment in partnership 68,978 32,964
Investments in capital of subsidiaries and associates 83,810 71,059
These instruments are not included in the above table because there are no market prices and the fair values are deemed to be extremely difficult to measure.
3. Balance of money claims and marketable securities with maturity scheduled to be redeemed in the subsequent fiscal years
FY2012 (As of Mar. 31, 2013) (Thousands of yen)
Due within one
year One to five years Five to ten years Over ten years
Cash and deposits 4,552,107 - - -
Notes and accounts receivable-trade 4,087,880 - - -
Marketable securities and investment securities
Held-to-maturity debt securities
Government bonds 2,000,000 - - -
Total 10,639,987 - - -
FY2013 (As of Mar. 31, 2014) (Thousands of yen)
Due within one
year One to five years Five to ten years Over ten years
Cash and deposits 5,071,935 - - -
Notes and accounts receivable-trade 4,895,506 - - -
Marketable securities and investment securities
Held-to-maturity debt securities
Government bonds 2,000,000 - - -
Total 11,967,441 - - -
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
25
Marketable Securities
1. Held-to-maturity debt securities
FY2012 (As of Mar. 31, 2013) (Thousands of yen)
Type Book value Fair value Unrealized gains (losses)
Securities with fair value exceeds book value
Government bonds 1,999,592 1,999,600 7
Sub-total 1,999,592 1,999,600 7
Securities with fair value not exceeding book value
Government bonds - - -
Sub-total - - -
Total 1,999,592 1,999,600 7
FY2013 (As of Mar. 31, 2014)
(Thousands of yen)
Type Book value Fair value Unrealized gains (losses)
Securities with fair value exceeds book value
Government bonds - - -
Sub-total - - -
Securities with fair value not exceeding book value
Government bonds 1,999,700 1,999,600 (100)
Sub-total 1,999,700 1,999,600 (100)
Total 1,999,700 1,999,600 (100)
2. Available-for-sale securities
FY2012 (As of Mar. 31, 2013)
(Thousands of yen)
Type Book value Acquisition cost Unrealized gains (losses)
Securities with book value exceeds acquisition cost
(1) Shares 576,064 100,747 475,316
(2) Bonds - - -
(3) Others - - -
Sub-total 576,064 100,747 475,316
Securities with book value not exceeding acquisition cost
(1) Shares 4,563 4,770 (207)
(2) Bonds - - -
(3) Others 14,014,093 14,014,093 -
Sub-total 14,018,656 14,018,863 (207)
Total 14,594,721 14,119,611 475,109
Note: Unlisted stocks (book value of 306,195 thousand yen) and investment in partnership (book value of 68,978 thousand yen) are not included in available-for-sale securities in the above table because there are no market prices and the fair values are deemed to be extremely difficult to measure.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
26
FY2013 (As of Mar. 31, 2014)
(Thousands of yen)
Type Book value Acquisition cost Unrealized gains (losses)
Securities with book value exceeds acquisition cost
(1) Shares 588,702 97,677 491,024
(2) Bonds - - -
(3) Others - - -
Sub-total 588,702 97,677 491,024
Securities with book value not exceeding acquisition cost
(1) Shares - - -
(2) Bonds - - -
(3) Others 14,188,834 14,188,834 -
Sub-total 14,188,834 14,188,834 -
Total 14,777,536 14,286,511 491,024
Note: Unlisted stocks (book value of 306,063 thousand yen) and investment in partnership (book value of 32,964 thousand yen) are not included in available-for-sale securities in the above table because there are no market prices and the fair values are deemed to be extremely difficult to measure.
3. Available-for-sale securities sold
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Not applicable.
FY2013 (Apr. 1, 2013 – Mar. 31, 2014)
(Thousands of yen)
Type Sales amount Aggregate gains Aggregate losses
(1) Shares 9,715 1,875 -
(2) Bonds - - -
(3) Others - - -
Total 9,715 1,875 -
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
27
Segment and Other Information
1. General information about reportable segments
Reportable segments of the Company are based on the Company’s components from which financial information
can be obtained separately, so that CEO can judge how to distribute management resources and to evaluate its
performance.
The Company is engaged in solutions business including research and development, manufacturing and sales
activities involving processes from design to production in manufacturing industries and related client services
especially in electronics industries. In the domestic market, the Company and its domestic subsidiaries are in charge
and in overseas, each sales subsidiary which is an independent management unit in each country is in charge in
Europe (mainly UK, Germany, France) and USA, Asia (Korea, Singapore, China, Taiwan). The subsidiary in USA is
under the management of the German subsidiary.
Therefore, the Company consist of segments based on the sales structure. Reportable segments are divided into
following three areas: Japan, Europe & Americas, and Asia. Each reportable segment consists of sales of solutions
for processes extending from designs to production in manufacturing industries and related client services especially
in electronics industries.
2. Basis of measurement about reportable segments profit or loss, segment assets, segment liabilities and other
material items
The accounting treatment methods for reportable business segments are the same as those listed in the section “Basis
of Presenting the Consolidated Financial Statements.”
Profits for reportable segments are operating income figures in the consolidated statement of income.
Intersegment sales or transfers are based on market price.
3. Information about reportable segments profit or loss, segment assets, segment liabilities and other material items
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
(Thousands of yen)
Reportable segment Adjustment amount (Note 1)
Appropriated amount in the consolidated financial statements
(Note 2) Japan
Europe & Americas
Asia Total
Net sales
(1) Sales to third parties 12,889,032 4,020,822 977,973 17,887,827 - 17,887,827
(2) Intersegment sales or transfers 691,250 388,113 70,958 1,150,323 (1,150,323) -
Total 13,580,282 4,408,936 1,048,931 19,038,150 (1,150,323) 17,887,827
Segment profit (loss) (34,824) 149,329 246,755 361,260 (6,560) 354,699
Segment assets 16,093,878 4,685,025 1,289,844 22,068,748 15,029,763 37,098,511
Other items
Depreciation and amortization 556,266 88,093 11,341 655,702 (5,011) 650,691
Amortization of goodwill - 149,266 - 149,266 - 149,266
Investment on companies accounted for using equity method
- 82,262 - 82,262 - 82,262
Increase in property, plant and equipment and intangible assets
545,941 91,635 14,125 651,703 - 651,703
Notes: 1. Contents of adjustments are as follows. (1) Adjustment amount in segment profit (or loss) includes amount of -6,560 thousand yen eliminated for intersegment
transactions. (2) Adjustment amount in segment assets includes amount of -1,842,598 thousand yen eliminated for intersegment
transactions and total company assets of 16,872,361 thousand yen. The total company assets mainly composed of surplus funds (cash and deposits and marketable securities), and long-term invested assets (investment securities) of the Company.
(3) Adjustment amount of depreciation and amortization includes amount of -5,011 thousand yen eliminated for
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
28
intersegment transactions. 2. Segment profit (loss) is adjusted with operating income in the consolidated statement of income.
FY2013 (Apr. 1, 2013 – Mar. 31, 2014)
(Thousands of yen)
Reportable segment Adjustment amount (Note 1)
Appropriated amount in the consolidated financial statements
(Note 2) Japan
Europe & Americas
Asia Total
Net sales
(1) Sales to third parties 13,610,527 5,090,973 1,071,353 19,772,854 - 19,772,854
(2) Intersegment sales or transfers 707,798 399,035 84,230 1,191,065 (1,191,065) -
Total 14,318,325 5,490,009 1,155,584 20,963,919 (1,191,065) 19,772,854
Segment profit (loss) 574,024 (216,437) 261,774 619,361 10,878 630,240
Segment assets 16,655,122 5,533,364 1,513,267 23,701,754 15,144,423 38,846,177
Other items
Depreciation and amortization 602,923 126,240 13,262 742,426 (3,879) 738,546
Amortization of goodwill - 129,574 - 129,574 - 129,574
Investment on companies accounted for using equity method
- 69,511 - 69,511 - 69,511
Increase in property, plant and equipment and intangible assets
474,090 161,057 3,568 638,716 - 638,716
Notes: 1. Contents of adjustments are as follows. (1) Adjustment amount in segment profit (or loss) includes amount of 10,878 thousand yen eliminated for intersegment
transactions. (2) Adjustment amount in segment assets includes amount of -1,883,059 thousand yen eliminated for intersegment
transactions and total company assets of 17,027,482 thousand yen. The total company assets mainly composed of surplus funds (cash and deposits and marketable securities), and long-term invested assets (investment securities) of the Company.
(3) Adjustment amount of depreciation and amortization includes amount of -3,879 thousand yen eliminated for intersegment transactions.
2. Segment profit (loss) is adjusted with operating income in the consolidated statement of income.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
29
Per-share Information (Yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Net assets per share 1,199.22 1,173.84
Net income per share 13.08 20.08
Notes: 1. Diluted net income per share is not presented since there is no dilutive share. 2. Basis for calculation of net income per share is as follows
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Net income per share
Net income (Thousands of yen) 304,223 466,973
Amount not available to common shareholders (Thousands of yen)
- -
Net income applicable to common stock (Thousands of yen)
304,223 466,973
Average number of shares outstanding during period (Shares)
23,253,129 23,252,661
Subsequent Events
Not applicable.
Omission of Disclosure
Disclosure of the notes on leases, derivatives, retirement benefits, stock options, deferred tax accounting, business combinations,
asset retirement obligations, rental and other properties, and related party information was omitted since the disclosure of these
information are not significant in the context of the summary of financial results.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
30
5. Production, Orders and Sales
(1) Sales and Orders
(a) Sales (Thousands of yen)
Segment
FY2012
(Apr. 1, 2012 – Mar. 31, 2013)
FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Amount Composition (%) Amount Composition (%)
Japan 12,889,032 72.1 13,610,527 68.8
Europe & Americas 4,020,822 22.5 5,090,973 25.7
Asia 977,973 5.4 1,071,353 5.5
Total 17,887,827 100.0 19,772,854 100.0
(b) Orders received and order backlog (Thousands of yen)
Segment
FY2012
(Apr. 1, 2012 – Mar. 31, 2013)
FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Orders received Order backlog Orders received Order backlog
Japan 13,479,363 4,203,689 13,789,010 4,382,172
Europe & Americas 4,039,346 1,639,105 5,354,916 2,163,474
Asia 1,009,962 270,113 997,214 223,211
Total 18,528,672 6,112,908 20,141,141 6,768,858
Notes: 1. Intersegment transactions have been eliminated. 2. The above amounts are based on selling prices and the amounts do not include consumption taxes.
(Reference) Results by product category are as follows.
(a) Sales (Thousands of yen)
Product category
FY2012
(Apr. 1, 2012 – Mar. 31, 2013)
FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Amount Composition (%) Amount Composition (%)
Printed Circuit Board design solutions 2,568,779 14.4 2,996,524 15.2
Circuit design and IC solutions 4,554,100 25.5 4,509,395 22.8
IT solutions 3,504,308 19.6 4,360,927 22.1
Client services 7,247,523 40.4 7,894,587 39.8
Others 13,115 0.1 11,418 0.1
Total 17,887,827 100.0 19,772,854 100.0
(b) Orders received and order backlog (Thousands of yen)
Product category
FY2012
(Apr. 1, 2012 – Mar. 31, 2013)
FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Orders received Order backlog Orders received Order backlog
Printed Circuit Board design solutions 2,614,272 408,416 3,258,884 693,601
Circuit design and IC solutions 4,713,607 770,611 4,367,364 659,720
IT solutions 3,755,064 684,782 4,183,545 515,465
Client services 7,431,483 4,247,717 8,321,308 4,900,071
Others 14,245 1,380 10,038 -
Total 18,528,672 6,112,908 20,141,141 6,768,858
Note: The above amounts are based on selling prices and the amounts do not include consumption taxes.
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
31
6. Non-consolidated Financial Statements (1) Balance Sheet
(Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Assets
Current assets
Cash and deposits 1,043,422 1,059,545
Notes receivable-trade 103,065 139,446
Accounts receivable-trade 2,025,751 2,473,112
Securities 15,950,571 16,125,384
Inventories 65,010 25,743
Deferred tax assets 305,683 216,401
Other 199,475 189,395
Allowance for doubtful accounts (427) (780)
Total current assets 19,692,553 20,228,249
Non-current assets
Property, plant and equipment
Buildings 3,037,630 3,006,985
Structures 52,921 49,022
Vehicles 9,808 13,845
Tools, furniture and fixtures 97,596 112,729
Land 3,009,559 3,009,559
Leased assets 16,643 11,641
Total property, plant and equipment 6,224,158 6,203,783
Intangible assets
Other 639,081 555,548
Total intangible assets 639,081 555,548
Investments and other assets
Investment securities 921,790 902,098
Stocks of subsidiaries and affiliates 816,409 816,409
Investments in capital of subsidiaries and affiliates 739,946 739,946
Long-term trade accounts receivables from subsidiaries 534,706 602,336
Deferred tax assets 568,156 606,661
Other 432,240 401,648
Allowance for doubtful accounts (8,684) (7,824)
Total investments and other assets 4,004,565 4,061,277
Total non-current assets 10,867,805 10,820,609
Total assets 30,560,358 31,048,858
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
32
(Thousands of yen)
FY2012
(As of Mar. 31, 2013) FY2013
(As of Mar. 31, 2014)
Liabilities
Current liabilities
Accounts payable-trade 470,311 473,996
Accounts payable-other 499,587 413,361
Income taxes payable 25,453 193,940
Advances received 473,682 473,869
Provision for bonuses 328,000 334,000
Provision for directors’ bonuses 1,900 15,000
Other 243,455 189,131
Total current liabilities 2,042,390 2,093,299
Non-current liabilities
Provision for retirement benefits 2,006,312 2,188,795
Provision for loss on business of subsidiaries and affiliates 13,000 49,000
Long-term accounts payable-other 104,850 104,850
Other 12,246 18,694
Total non-current liabilities 2,136,408 2,361,340
Total liabilities 4,178,799 4,454,639
Net assets
Shareholders’ equity
Capital stock 10,117,065 10,117,065
Capital surplus
Legal capital surplus 8,657,753 8,657,753
Total capital surpluses 8,657,753 8,657,753
Retained earnings
Legal retained earnings 311,082 311,082
Other retained earnings
General reserve 6,325,000 6,325,000
Retained earnings brought forward 677,328 878,006
Total retained earnings 7,313,411 7,514,088
Treasury shares (12,762) (13,209)
Total shareholders’ equity 26,075,467 26,275,697
Valuation and translation adjustments
Valuation difference on available-for-sale securities 306,091 318,521
Total valuation and translation adjustments 306,091 318,521
Total net assets 26,381,559 26,594,219
Total liabilities and net assets 30,560,358 31,048,858
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
33
(2) Statement of Income (Thousands of yen)
FY2012
(Apr. 1, 2012 – Mar. 31, 2013) FY2013
(Apr. 1, 2013 – Mar. 31, 2014)
Net sales 8,585,648 9,372,479
Cost of sales 2,142,551 2,425,096
Gross profit 6,443,096 6,947,383
Selling, general and administrative expenses 6,624,068 6,626,295
Operating income (loss) (180,972) 321,088
Non-operating income
Interest income 545 96
Interest on securities 18,881 14,252
Dividend income 75,926 157,234
Foreign exchange gains 60,979 118,403
Rent income 127,625 144,704
Other 26,933 23,718
Total non-operating income 310,891 458,409
Non-operating expenses
Sales discounts 390 426
Rent cost of real estate 18,693 17,358
Loss on investments in partnership 11,016 10,260
Other - 77
Total non-operating expenses 30,101 28,122
Ordinary income 99,817 751,374
Extraordinary income
Gain on sales of non-current assets - 2,259
Transfer of rights income - 73,824
Reversal of provision for loss on business of subsidiaries and associates
45,000 -
Reversal of allowance for doubtful account for affiliates 1,667 -
Total extraordinary income 46,667 76,083
Extraordinary losses
Loss on disposal of non-current assets 2,165 2,920
Provision for loss on business of subsidiaries and associates - 36,000
Impairment loss 12,759 -
Special retirement expenses 20,071 -
Total extraordinary losses 34,996 38,920
Income before income taxes 111,489 788,538
Income taxes-current 20,236 218,415
Income taxes-deferred 5,862 43,905
Total income taxes 26,099 262,321
Net income 85,390 526,216
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
34
(3) Statement of Changes in Equity FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
(Thousands of yen)
Shareholders’ equity
Capital stock
Capital surplus Retained earnings
Legal capital surplus
Total capital surpluses
Legal retained earnings
Other retained earnings
Total retained earnings General
reserve
Retained earnings brought forward
Balance at beginning of current period
10,117,065 8,657,753 8,657,753 311,082 4,325,000 3,150,016 7,786,099
Changes of items during period
Provision of general reserve 2,000,000 (2,000,000)
Dividends of surplus (558,077) (558,077)
Net income 85,390 85,390
Purchase of treasury shares
Net changes of items other than shareholders’ equity
Total changes of items during period
- - - - 2,000,000 (2,472,687) (472,687)
Balance at end of current period
10,117,065 8,657,753 8,657,753 311,082 6,325,000 677,328 7,313,411
Shareholders’ equity Valuation and translation adjustments
Total net assets Treasury shares
Total shareholders’ equity
Valuation difference on
available-for-sale securities
Total valuation and translation
adjustments
Balance at beginning of current period
(12,542) 26,548,374 290,581 290,581 26,838,956
Changes of items during period
Provision of general reserve
Dividends of surplus (558,077) (558,077)
Net income 85,390 85,390
Purchase of treasury shares (219) (219) (219)
Net changes of items other than shareholders’ equity
15,510 15,510 15,510
Total changes of items during period
(219) (472,907) 15,510 15,510 (457,396)
Balance at end of current period
(12,762) 26,075,467 306,091 306,091 26,381,559
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
35
FY2013 (Apr. 1, 2013 – Mar. 31, 2014) (Thousands of yen)
Shareholders’ equity
Capital stock
Capital surplus Retained earnings
Legal capital surplus
Total capital surpluses
Legal retained earnings
Other retained earnings
Total retained earnings General
reserve
Retained earnings brought forward
Balance at beginning of current period
10,117,065 8,657,753 8,657,753 311,082 6,325,000 677,328 7,313,411
Changes of items during period
Dividends of surplus (325,539) (325,539)
Net income 526,216 526,216
Purchase of treasury shares
Net changes of items other than shareholders’ equity
Total changes of items during period
- - - - - 200,677 200,677
Balance at end of current period
10,117,065 8,657,753 8,657,753 311,082 6,325,000 878,006 7,514,088
Shareholders’ equity Valuation and translation adjustments
Total net assets Treasury shares
Total shareholders’ equity
Valuation difference on
available-for-sale securities
Total valuation and translation
adjustments
Balance at beginning of current period
(12,762) 26,075,467 306,091 306,091 26,381,559
Changes of items during period
Dividends of surplus (325,539) (325,539)
Net income 526,216 526,216
Purchase of treasury shares (447) (447) (447)
Net changes of items other than shareholders’ equity
12,429 12,429 12,429
Total changes of items during period
(447) 200,230 12,429 12,429 212,659
Balance at end of current period
(13,209) 26,275,697 318,521 318,521 26,594,219
ZUKEN Inc. (6947) Financial Results for the Fiscal Year Ended March 31, 2014
36
7. Others (1) Change in Representative Director Not applicable.
(2) Changes in Other Board Members (Scheduled for June 27, 2014) (a) Candidate for director
Director:
Takashi Sano (currently President, Sano Certified Public Accountant Office)
Note: Mr. Takashi Sano is a candidate to become outside director. Mr. Sano is currently an outside audit &
supervisory board member of the Company. As specified by the Tokyo Stock Exchange, a notice has been
submitted to the exchange that Mr. Sano is an independent corporate officer. If Mr. Sano is elected as an
outside director, the Company plans to continue to submit a notice that he is an independent corporate
officer.
(b) Candidate for audit & supervisory board member
Audit & supervisory board member (part-time):
Takashi Handa (currently Representative, White Bear International Audit & Co.)
Note: Mr. Takashi Handa is a candidate to become outside audit & supervisory board member. The Company plans
to submit a notice that Mr. Handa as an independent corporate officer as prescribed by the Tokyo Stock
Exchange.
(c) Retiring audit & supervisory board member
Audit & supervisory board member (part-time):
Takashi Sano
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.
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