To Our Shareholders JUKI CORPORATION. Business Report for the 95th Business Term. (From April 1, 2009 through March 31, 2010) Security code: 6440

Transcription

1 To Our Shareholders (From April 1, 9 through March 31, 1) JUKI CORPORATION Security code:

2 FINANCIAL HIGHLIGHTS MAJOR POINTS OF BUSINESS PERFORMANCE Net sales decreased by.8% from FY8 (the previous fiscal year). Operating, ordinary, and net incomes showed the largest-ever deficit. Net sales 57. billion yen (.8 billion yen from FY8) Operating income 11. billion yen (. billion yen from FY8) Ordinary income 11.1 billion yen ( 5.8 billion yen from FY8) Net income 11. billion yen ( 1.9 billion yen from FY8) Net sales 15 Operating income Ratio of operating income to net sales 15 (%) Ordinary income Ratio of ordinary income to net sales (%) % % % 19.%.8% 19.5% FY7 FY8 FY9 1 FY7 FY8 FY9 1 1 FY7 FY8 FY9 Net income 8 Total assets Net assets Shareholders' equity ratio (%) Cash dividends per share (yen) % % % FY7 FY8 FY9 FY7 FY8 FY9 FY7 FY8 FY9 1

3 To Our Shareholders We would like to express our appreciation for your ongoing support of our business activities. In presenting our business results for the 95th business term (from April 1, 9 through March 31, 1), I would like to take the opportunity to convey a few words to our shareholders. The business performance picked up in the fourth quarter but, due to a significant influence of the poor business results until the third quarter, consolidated sales of the Juki Group stood at 5,97 million yen, down.8% from the preceding fiscal year, and consolidated ordinary income stood at the negative 11,1 million yen. We would like to suspend the payment for the yearend dividend with a feeling of much regret due to severe financial conditions. In this regard, we sincerely request the understanding of our shareholders. Moreover, as for the next term (the fiscal year 1), we will keep on improving business results and devote ourselves entirely to resuming a divided as early as possible. In these challenges, we ask for the ongoing support and guidance of our shareholders. Kazuyuki Nakamura President

4 Industrial Sewing Machines Business Sales turned around in the fourth quarter of FY8 but, due to weakness of recuperative power, consolidated sales of the Industrial Sewing Machines Business as a whole stood at 3,9 million yen, down 19.% from FY8. Operating income stood at a deficit of 5,81 million yen, down 5,3 million yen from FY8. Net sales 3.1 billion yen Operating income 5.3 billion yen Changes in net sales and operating income Net sales increased by 8% in the second half from the first half of FY9, and a deficit of operating income shrunk Net sales Operating income Ratio of operating income to net sales Changes in net sales by region (excluding parts etc) An increase in all regions in the second half of FY Americas Europe Japan Other Asian countries China % % % FY7 FY8 FY9 FY7 1st half FY7 nd half FY8 1st half FY8 nd half FY9 1st half FY9 nd half 3

5 SMT Systems Business Sales is growing up at a satisfactory pace from the bottom in the first quarter thanks to the launch of the high-speed chip mounter but, due to continued weakness of the recuperative power, consolidated sales of the SMT Systems Business as a whole stood at 1, million yen, down 39.7% from FY8. Operating income stood at a deficit of 3,57 million yen, down 1,777 million yen from FY8. Net sales 1. billion yen Operating income 3. billion yen Changes in net sales and operating income Net sales increases by 1% in the second half from the first half of FY9, and a deficit of operating income shrunk Net sales Operating income Ratio of operating income to net sales Changes in net sales by region An increase in all regions in the second half of FY9, and especially by 8% in China Americas Europe Japan Other Asian countries China % % 9.7 % FY7 FY8 FY9 FY7 1st half FY7 nd half FY8 1st half FY8 nd half FY9 1st half FY9 nd half

6 Household Sewing Machines Business The launch of new products was effective, and consolidated sales of the Household Sewing Machines Business as a whole stood at, million yen, up.9% from FY8. Operating income stood at a deficit of 319 million yen, up 1,17 million yen from FY8. Net sales. billion yen Operating income.3 billion yen Changes in net sales and operating income FY % 5. % FY8 Export (Overseas) Net sales Distributors (Domestic) Door-to-door sales Operating income Ratio of operating income to net sales % FY9 Electronic Equipment and Precision Equipment Businesses Consolidated sales of the Electronic Equipment and Computer Peripherals Business as a whole stood at,381 million yen, down 55.% from FY8, due to the withdrawal from precision equipment (related to the arcade machines) business in the second quarter. Operating income stood at 5 million yen, down 39 million yen from FY8. Net sales. billion yen Operating income.3 billion yen Changes in net sales and operating income % % Electronic Equipment Net sales Precision Equipment (Arcade machines) Operating income % Ratio of operating income to net sales.3.3 FY7 FY8 FY9 Precision Casting Business Due to the influence of slump in demand of a related industry, consolidated sales of the Precision Casting Business as a whole stood at,75 million yen, down.9% from FY8. Operating income stood at a deficit of 133 million yen, down 31 million yen from FY8. Changes in net sales and operating income Net sales Operating income Ratio of operating income to net sales Net sales.7 billion yen Operating income.13 billion yen %. % % FY7 FY8 FY9 5

7 Business plan and strategy for FY1 Business plan in total Net sales increased by 7% from FY9 and more than even in FY8. Profitability returned. (Million yen) FY7 (A) FY8 (B) FY9 (C) FY1 Plan (D) Increase/decrease (D-C) Net sales 13,351 77,83 5,97 83,5,53 Operating income 1,35,975 11,187 1,5 1,87 Ordinary income 11,51 5,59 11,1 9 1, Net income,1 9,37 11, ,733 Exchange rate 1US$= Euro= US$= Euro= 15. 1US$= Euro= US$= 9. 1Euro= 15. 1US$= 3.7 1Euro= 5.5 Business plan by segment (Net sales) More net sales than in FY9 and FY8 for the Industrial sewing machines, the SMT systems, and the Household sewing machines (Million yen) FY7 (A) FY8 (B) FY9 (C) FY1 Plan (D) Increase/decrease (D-C) Industrial sewing machines 7,311,9 35,75 53, 17,35 SMT systems 9,81 19,9 1,,7 8, Household sewing machines,97,5,751 3, 9 Precision casting, 3,755,75 3, 55 Others 13,885 7,177 3,9 3, 9 Total net sales 13,351 77,83 5,97 83,5,53 (Note) Among net sales of overseas subsidiaries (JUKI AMERICA and JUKI ITALIA), net sales of the Household sewing machines that have counted in the Industrial sewing machines (31 million yen for FY7, 9 million yen for FY8, and 37 million yen for FY9) were transferred to those of the Household sewing machines for a correction.

8 Business plan and strategy for FY1 Industrial sewing machines: Monthly sales trend (excluding parts etc.) More net sales in Jan through Mar of FY1 than in the same period of FY9, and more in Apr through Jun in the same period of FY9 and FY8 (Million yen), 5, Amount Units (Units), 5, SMT Systems: Monthly sales trend Net sales in Apr through June of FY1 restored to the same level as in the same period of FY8 (Million yen) 3, Amount Units (Units) 3 5,,, 3, 3, 15,, 1, 1 1, 1, 5 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Forecast (Note) The above figures don t correspond to those for the settlement of account. Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Forecast (Note) The above figures don t correspond to those for the settlement of account. Business plan by segment: Ordinary income All business segments return to profitability. Industrial sewing machines FY7 (A) FY8 (B) FY9 (C) FY1 Plan (D) Increase/decrease (D-C) 1,3 81 5,53,5 7,953 SMT systems 1,38,53 3,53 1 3,3 (Million yen) Household sewing machines,3 1, Precision casting Others (including eliminations) Total ordinary income,35 5 1,73 1, ,51 5,59 11,1 9 1, 7

9 Business strategies for the Industrial sewing machines business 1. Sales (1) Products DDL-9B 1Existing products: Speed-up of cost reduction Launch in full swing of products for domestic demands in emerging countries () Actions for expanding sales 1New setup of a Parts Sales & Promotion Dept. and Knit Production Planning & Promotion Dept. Buildup of sales structure in emerging countries including China. Manufacturing (1) Plants in China: Reinforcement of facilities and capacity () Plants in Vietnam: Construction on the fourth plant Business strategies for the SMT systems business 1. Sales (1) Products Launch of new product (JX-1LED) handling LED () Actions for expanding sales 1Enhancement of finding new larger accounts Intensification of maintenance-service business 3Expanded sales of value-added product (Placement monitor) Development of South American markets. Manufacturing Start of feeder s production in China (at Juki Shanghai Industry Co., Ltd.) FX-3 Business strategies for the Household sewing machines business 1. Actions for expanding sales 1Reinforcement of dealer's network in Japan Reinforcement of sales structure in the U.S.. Advancement of cost reduction by the expanded procurement of parts in China Business strategies for the Precision casting business 1. Expanded sales of turbine blade to produce power, artificial joint, etc.. Further utilization of plants of JUKI (VIETNAM) CO., LTD. 8

10 Consolidated Financial Statements (summary) Consolidated Balance Sheets (million yen) Item Previous FY8 as of March 31, 9 Current FY9 as of March 31, 1 Year-on-year change Item Previous FY8 as of March 31, 9 Current FY9 as of March 31, 1 Year-on-year change Assets Current assets,971 55,851 7,1 Cash and deposits 8,955 8,38 7 Notes and accounts receivable-trade 1,81 13, Inventories 3,7 9,97,773 Deferred tax assets Others,,5 9 Fixed assets,83 5,9,5 Tangible fixed assets 9,1 3,911 3,895 Buildings and structures 8,8 19,83 1,81 Machinerary, equipment and vehicles,55 3, 93 Land 7,9 7,58 9 Construction in progress,9 1,8 Others 1,3 1, Intangible fixed assets,5,3 Investments and other assets 9,1 1, Investment securities,89,15 3 Deferred tax assets 5,35, 1,8 Others 1,99 1,88 11 Total assets 13,5 11,81,573 Liabilities Current liabilities,51,137,3 Notes and accounts payable-trade,9 11,3,57 Short-term borrowings, corporate bonds, etc. 5,9 3,19,71 Others 1,5,115 7,95 Fixed liabilities 17,5 3,57 1,93 Long-term borrowings, corporate bonds, etc. 1,51,88 1,318 Reserve for retirement benefits,3,51 35 Others Total liabilities 8,5 9,395 8,33 Net assets Shareholders' equity 7, 1,3 11,3 Capital stock 15,95 15,95 Capital surplus 8,977 8,97 Retained earnings,39 8,839 11,33 Treasury stock Valuation and translation adjustments 5,93 5,5 337 Minority interests Total net assets 1,589 1,8 1,93 Total liabilities and net assets 13,5 11,81,573 9 Consolidated Statement of Change in Net Assets April 1, 9 through March 31, 1 Capital stock Capital surplus Shareholders' equity Retained earnings Treasury stock Total shareholders' equity Total valuation and translation adjustments Valuation difference on available-forsale securities Deferred gains or losses on hedges Foreign Total currency valuation and translation translation adjustments adjustments Minority interests (million yen) Balance at the end of the term 15,95 8,977, , 77 5,83 5,93 7 1,589 Changes of items during the term Dividends from surplus Net income (loss) 11,33 11,33 11,33 Purchase of treasury stock Disposal of treasury stock 1 Net amount of changes in items not included in shareholders' equity during the term Total changes of items during term 11,33 11, ,9 Balance at the end of the term 15,95 8,97 8, , ,53 5,5 1 1,8 Total net assets

11 Corporate information Consolidated Statements of income Item Previous FY8 (Apr 1, 8 through Mar 31, 9) Current FY9 (Apr 1, 9 through Mar 31, 1) (million yen) Year-on-year change Net sales 77,83 5,97,8 Corporate profile (as of March 31, 1) Trade name: JUKI CORPORATION Founded on: December 15, 1938 Cost of sales 5,9 7,1 7,8 Gross profit,85 9,89 13,3 Selling, general and administrative expenses 7,8 1,17,83 Operating loss ( ),975 11,187,1 Non-operating income 1,3 1, Non-operating expenses 1,7 1,753 1 Paid in capital: Business items: Number of employees: Consolidated subsidiary companies: 15,95. million yen Industrial Sewing Machines, SMT Systems, Household Sewing Machines, Electronic Equipment and Precision Equipment, Precision Casting, etc.,57 (consolidated basis) 3 companies Ordinary loss ( ) 5,59 11,1 5,83 Extraordinary income Extraordinary loss,35 1, 3,9 Net loss before taxes and minority interests ( ) Corporate income tax, inhabitants tax, and enterprise taxes 9,85 11, 1, Refund of income taxes Corporate tax adjustments 58 1 Minority interests Net loss ( ) 9,37 11,33 1,88 Stock information (as of March 31, 1) Total number of authorized shares: Total number of shares issued:,, shares 19,37,899 shares Total number of shareholders: 13,75 Stock distribution status by owner type Treasury stock.1% (1, shares) Financial institutions 5.1% (3,8, shares) Consolidated Statements of Cash Flows Item Previous FY8 (Apr 1, 8 through Mar 31, 9) Current FY9 (Apr 1, 9 through Mar 31, 1) Year-on-year change Cash flow from operating activities 1,81 1, 1,5 Cash flow from investing activities 3,87 1,,573 Cash flow from financing activities 1, 8,5,98 Effect of exchange rate changes on cash and cash equivalents Net increase (or decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the fiscal year Cash and cash equivalents at the end of the fiscal year (million yen) , ,9 8,95 1,15 8,95 8,91 3 Individuals, others 51.7% (,71, shares) Total number of shares issued: 19,37,899 shares Other domestic legal entities.9% (3,73, shares) Securities companies.% (,95, shares) Foreign legal entities 18.% (3,338, shares) 1

12 Shareholder s memo Business year: Ordinary general meeting of shareholders: Record date for the ordinary general meeting of shareholders: Unit stock: Method of public notice: April 1 through March 31 of the next year (year after year) June March 31 1, shares We will issue public notices electronically on our website ( If accidents or unforeseen causes prevent us from issuing public notices electronically, we will publish the notice in the newspaper Nippon Keizai Shinbun (The Nikkei). Listed stock exchange: Tokyo Stock Exchange, 1st section (Security code: ) Shareholders list Mizuho Trust & Banking Co., Ltd. administrator and Special account administrator: (Mailing address): Stock Transfer Agency Department, Mizuho Trust & Banking Co., Ltd. 8-, Izumi -chome, Suginami-ku, Tokyo Administration office for special account: Special account Branch offices of Mizuho Trust & Banking Co., Ltd. Headquarters and branch offices of Mizuho Investors Securities Co., Ltd. For shareholders who were not using JASDEC prior to the implementation of the electronic stock system, we open accounts ("special accounts") in their names with Mizuho Trust & Banking Co., Ltd., the administrator of the shareholders list. Please telephone the above number for any inquiries about your special account, address changes, or other administrative matters. * Please contact your securities companies to report address changes and other administrative matters. Website guidance (Inquiry contact): (toll free) Business hours: 9: 17: (excluding Saturdays, Sundays, and national holidays) Map of our new office buildings We moved there in December 9. Tama New Town-dori Hashimoto Inaribashi-dori Keio Line Karakida Odakyu Line Keiõ-Tama-Center Odakyu-Tama-Center Shinjuku Tama chuo Police Sta. Police Station Tama-Center Tama Monorail Bus Terminal JUKI TAMA TOKIO MARINE NICHIDO BUILDING Tama tsurumaki Restaurant NTT Post Office KEIO PLAZA HOTEL JUKI CORPORATION -11-1, Tsurumaki, Tama-shi, Tokyo Tel: MITSUKOSHI Bicycle Pedestrian Road Suggested way to JUKI English translation from the original Japanese-language document.