(1) Reportable Segments
The reportable segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess performance.
The accounting policies of the segments are substantially the same as those described in the significant accounting policies in Notes 2. Segment performance is evaluated based on operating income or loss. Intersegment sales are recorded at the same prices used in transaction with third parties.
Effective from April 1, 2011, the Wireless Communications and Information Systems and Broadcasting and Video Systems segments have been integrated to form the Video and Wireless Network Systems segment. In addition, while carrying on its existing operations and duties, the Semiconductor Manufacturing Systems segment will enter in earnest the energy conservation (ecology) field of semiconductor thermal processing technologies as a part of efforts to engage in next-generation product activities. In order to better reflect the nature of its business, this segment has been renamed the Eco- and Thin Film Processing segment.
Major products and services of each segment are as follows:
1. Video and wireless network: Wireless Communication Systems, Information Solutions, Broadcasting Systems, Surveillance Cameras and Video Processing Systems and else
2. Eco- and thin film processing: Semiconductor Manufacturing Systems and else
The segment information for the year ended March 31, 2011 is retrospectively presented on the new reporting segments.
Sales, Profits (loss) and Other Items
Millions of Yen 2012 Video and
wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated Sales to customers ……… ¥81,129 ¥65,330 ¥ 725 ¥ — ¥147,184
Intersegment sales ……… — — 3,396 (3,396) —
Total sales ……… 81,129 65,330 4,121 (3,396) 147,184
Segment profits (loss) ……… ¥ 302 ¥ 8,293 ¥ 199 ¥ (480) ¥ 8,314 Other Items
Depreciation ……… 1,217 1,708 48 424 3,397
Amortization of goodwill ……… 254 249 — 10 513
Loss on impairment of long-lived assets ……… 207 — — — 207
Thousands of U. S. Dollars 2012
Video and wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated Sales to customers ……… $987,091 $794,866 $ 8,820 $ — $1,790,777
Intersegment sales ……… — — 41,319 (41,319) —
Total sales ……… 987,091 794,866 50,139 (41,319) 1,790,777 Segment profits (loss) ……… $ 3,674 $100,900 $ 2,422 $ (5,840) $ 101,156 Other Items
Depreciation ……… 14,807 20,781 584 5,159 41,331
Amortization of goodwill ……… 3,090 3,030 — 122 6,242
Loss on impairment of long-lived assets ……… 2,519 — — — 2,519
Notes:
Adjustments and eliminations for sales to customers are unrealized profit resulting from transactions with affiliated company accounted for by the equity method.
Adjustments and eliminations for segment profits and loss include ¥172millions ($2,093 thousand) of corporate general administration expense which are not allocable to the reportable segments, ¥(494) millions ($(6,010) thousand) of unrealized gain, ¥(424) millions ($(5,159) thousand) of amortization of allocation of acquisition cost and else and
¥266 millions ($3,236 thousand) of others.
Adjustments and eliminations for depreciation are amortization of allocation of acquisition cost.
Adjustments and eliminations for amortization of goodwill are amortization which is not allocable to the reportable segments.
Segment assets and liabilities are not described as the Executive Committee does not use them to make decisions about resource allocation and to assess performance.
Millions of Yen 2011 Video and
wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated Sales to customers ……… ¥80,503 ¥61,405 ¥ 759 ¥ 39 ¥142,706
Intersegment sales ……… — — 3,613 (3,613) —
Total sales ……… 80,503 61,405 4,372 (3,574) 142,706
Segment profits (loss) ……… ¥ (5,160) ¥ 9,313 ¥ 202 ¥ (399) ¥ 3,956 Other Items
Depreciation ……… 2,730 1,313 48 152 4,244
Amortization of goodwill ……… — 129 — 11 140
Loss on impairment of long-lived assets ……… 3,279 — — — 3,279
Notes:
Adjustments and eliminations for sales to customers are unrealized profit resulting from transactions with affiliated company accounted for by the equity method.
Adjustments and eliminations for segment profits and loss include ¥209 millions of corporate general administration expense which are not allocable to the reportable segments,
¥(406) millions of unrealized gain, ¥(386) millions of amortization of allocation of acquisition cost and else and
¥184 millions of others.
Adjustments and eliminations for amortization of goodwill are amortization which is not allocable to the reportable segments.
Segment assets and liabilities are not described as the Executive Committee does not use them to make decisions about resource allocation and to assess performance.
Segment information for the year ended March 31, 2011 has been restated in accordance with such accounting standards for comparative purpose.
(2) Related Information
Net sales by geographical countries or areas for the years ended March 31, 2012 and 2011 are summarized as follows:
Millions of Yen 2012 Japan
North
America Taiwan Korea Other Asia
Europe and
others Consolidated Net sales ……… ¥83,785 ¥12,372 ¥14,141 ¥23,334 ¥11,192 ¥2,360 ¥147,184
Thousands of U. S. Dollars 2012
Japan
North
America Taiwan Korea Other Asia
Europe and
others Consolidated Net sales ……… $1,019,406 $150,529 $172,053 $283,903 $136,172 $28,714 $1,790,777
Millions of Yen 2011 Japan
North
America Taiwan Korea Other Asia
Europe and
others Consolidated
Net sales ……… ¥82,680 ¥12,901 ¥21,175 ¥17,167 ¥6,449 ¥2,334 ¥142,706
Property, plant and equipment by geographical countries or areas at March 31, 2012 and 2011 are summarized as follows:
Millions of Yen 2012 Japan
North
America Asia Europe Consolidated Property, plant and equipment ……… ¥18,285 ¥90 ¥2,467 ¥606 ¥21,448
Thousands of U. S. Dollars 2012
Japan
North
America Asia Europe Consolidated Property, plant and equipment ……… $222,472 $1,095 $30,016 $7,373 $260,956
Millions of Yen 2011 Japan
North
America Asia Europe Consolidated Property, plant and equipment ……… ¥18,973 ¥113 ¥1,798 ¥115 ¥20,999
Sales by major customers are as follows:
Millions of Yen
Thousands of U.S. Dollars
Related segment
2012 2011 2012
Samsung Group ……… ¥20,638 ¥15,884 $251,101
Eco- and thin film processing
(3) Balance of Goodwill
Millions of Yen 2012 Video and
wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated
BALANCE, MARCH 31, 2012 ……… ¥2,322 ¥768 ¥ — ¥ — ¥3,090
Thousands of U. S. Dollars 2012
Video and wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated
BALANCE, MARCH 31, 2012 ……… $28,252 $9,344 $ — $ — $37,596
Millions of Yen 2011 Video and
wireless network
Eco- and thin film
processing Other
Adjustments and
eliminations Consolidated
BALANCE, MARCH 31, 2011 ……… ¥ — ¥1,066 ¥ — ¥9 ¥1,075
Notes: Adjustments and eliminations are the balances which are not allocated to the reportable segments.
Corporate Name and Head Office:
Hitachi Kokusai Electric Inc.
Akihabara UDX Building 11
thfloor, 4-14-1 Soto-Kanda, Chiyoda-ku, Tokyo 101-8980, Japan
Established:
November 17, 1949
Fiscal Year-end:
March 31
Independent Auditors:
Ernst & Young ShinNihon LLC
Paid-in Capital:
¥10,058 million
Employees:
5,477 (consolidated)
URL:
http://www.hitachi-kokusai.co.jp/
Directors and Executive Officers (As of June 25, 2012):
Directors Chairman of the Board
Junzo Nakajima
(1)(3)*Directors
Manabu Shinomoto
(1)(3)Kenshiro Koto
(1)(2)(3)*Tadahiko Ishigaki
(2)*Yoshifumi Nomura
(2)Executive Officers President and Chief Executive Officer
Manabu Shinomoto
Vice President and Executive Officers
Hideyuki Hagiwara
Tetsuo Takemura Takeo Kawano Isoo Fujita Takashi Okada Nobuo Owada Osamu Naruse
Executive Officers
Shoichiro Izumi Yoshinao Arai Shigeru Kimura Fumiyuki Kanai Satoru Nakamura
(1) Nominating Committee (2) Audit Committee (3) Compensation Committee
* outside director
Corporate Data (As of March 31, 2012)
Corporate Data
7,000 8,000 9,000 10,000 (Yen)
0 3,000 6,000 9,000 12,000 (Thousand Shares) 300
500 700 900 1,100 (Yen)
(Month) 4/11 5 6 7 8 9 10 11 12 1/12 2 3 4 5 6
Nikkei Stock Average Closing (Right scale)
High Low Average Closing Trading Volume
Financial Institutions 18.14%
Securities Companies 0.98%
Other Corporations 51.35%
Individuals and Others 17.48%
Foreign Investors 12.02%
Month/Year 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12
Stock Price (Yen)
High 674 707 667 683 625 551 612 612 664 719 724 779 773 764 666
Low 605 618 601 582 493 484 443 545 588 606 662 656 704 600 599
Average Closing 672 636 667 626 523 501 592 606 625 664 707 759 754 628 624
Trading Volume
(Right scale, Thousands) 6,443 7,744 6,540 10,476 9,494 5,577 7,303 6,231 7,137 9,967 7,227 7,684 6,421 7,899 4,497
Ten Largest Shareholders:
Name of Shareholder
Number of Shares Held (thousands)
Percentage of Total (%)
Hitachi, Ltd. 53,070 50.43
The Master Trust Bank of Japan, Ltd. (Trust Account) 5,251 4.99
Japan Trustee Services Bank, Ltd. (Trust Account) 4,235 4.02
Japan Trustee Services Bank, Ltd. (Trust Account 9) 3,087 2.93
Treasury Stock 2,413 2.29
Nipponvest 1,350 1.28
State Street Bank and Trust Company 505104 1,062 1.00
BBH (LUX) Fidelity Funds - Japan Advantage 1,002 0.95
The Nomura Trust and Banking Co., Ltd. (Trust Account) 794 0.75
State Street Bank and Trust Company 631 0.59
Breakdown of Shareholders by Category:
Shareholder Information (As of March 31, 2012)
Monthly Stock Price Data (As of June 30, 2012)
Common Share:
Number of Common Shares 105,221,259 shares Number of Shareholders 10,387
Number of Shares per Unit 1,000
Stock Listings: Tokyo Stock Exchange (1st Section) Osaka Securities Exchange (1st Section) Transfer Agent for Shares: Tokyo Securities Transfer Agent Co., Ltd.
6-2, Otemachi 2-chome, Chiyoda-ku, Tokyo, 100-0004, Japan Phone: +81-3-6833-3907