2
At a Glance: The Tsubaki Group and Industry
Trends in sales by operating segment
Business Domains and Areas of Activity
Our performance figures in fiscal 2009, ended March 31, 2009, were
substantially down due to the serious impact of the global economic
recession. Even so, in the last five years sales have grown to 1.2 times
the level of fiscal 2004, when our growth phase was beginning.
View-ing sales accordView-ing to consolidated business segments, Automotive
Parts operations increased its percentage of total sales from 27% to
30%. When viewed according to geographic market, we can see we
have continued to steadily increase our global presence, with our ratio
of overseas sales to consolidated net sales rising from 33% to 35%. The
major economic recession in fiscal 2009 caused a marginal decrease in
the ratio of net sales in North America, but the ratio for Asia and
Ocea-nia grew from 8% to 12%, a substantial increase across the five-year
period from fiscal 2004.
Trends in sales by geographic market
Net Sales ¥141.5 billion Net Sales
¥119.1 billion
Materials Handling Systems Operations Chain Operations Power Transmission Units and Components Operations Automotive Parts Operations
Fiscal 2004 Fiscal 2009
Materials Handling Systems Segment
24%
Power Transmission Products Segment
76
%Materials Handling Systems Segment
20%
Power Transmission Products Segment
80
%Net Sales ¥141.5 billion Net Sales
¥119.1 billion
Japan
65%
Japan
67%
Europe
4%
Europe
6%
North America
17% North America
20% Asia and Oceania 8%
Asia and Oceania 12%
Fiscal 2004 Fiscal 2009
3
Global share
Domestic share
75%
67%
50%
80%
35%
80%
Automotive Engine Timing Chain
Drive Systems Industrial-Use
Steel Chains Power Cylinders
Automotive Body Paint Shop Conveyor Systems Cam Clutches
Roll Paper Feeding Systems
for Newspapers
Our Position in the Industry
We have a number of products with the top-share in their markets in
both Japan and overseas. For example, our industrial-use steel chains
and automotive engine timing chain drive systems have steadily
in-creased their global share through the competitive advantages they
provide, such as improved abrasion resistance, reduced size and
weight, heightened efficiency, and reduced noise. We are fulfilling our
corporate social responsibilities (CSR) by providing products that
di-rectly contribute to our customers’ ability to reduce their impact on the
environment, such as by reducing CO2 emissions and saving energy,
and also to their improved productivity. In these ways, we are aiming
to achieve sustainable growth.
Industrial-Use Steel Chains
24%
Automotive Engine Timing Chain Drive Systems
37%
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Consolidated Financial Highlights
Trends in net sales
Billions of yen
150
100
50 200
05 06 07 08 09
FY 129.5
147.7 155.7 167.2
141.5
0
Trends in profitability
%
12
8
4 16
05 06 07 08 09
FY 6.4
8.9 10.8
12.8
7.7 6.9
8.5
9.3 10.8
6.6
Ordinary income margin
ROE
0
Trends in financial soundness
0.6
0.4
0.2 0.8
05 06 07 08 09
FY 0.61
0.51 0.52
0.48 0.48
D/E ratio
0.0
The Company’s consolidated fiscal year runs from April 1 to March 31 of the following year. 1. Net financial expenses = Interest and dividend income – Interest expense
2. Net interest-bearing debt = Interest-bearing debt – Cash and cash equivalents
3. Free cash flow = Net cash provided by operating activities + Net cash provided by (used in) investing activities 4. ROE = Net income ÷ Average shareholders’ equity
5. D/E ratio = Interest-bearing debt ÷ Shareholders’ equity 6. Includes a commemorative 90th anniversary dividend of ¥2.00
2009 2008 2007 2006 2005
Operating Performance (Millions of yen)
Net sales ¥141,517 ¥167,202 ¥155,746 ¥147,761 ¥129,563 Operating income 9,095 19,805 16,008 13,830 10,447
Ordinary income 9,328 18,051 14,545 12,594 8,888
Net income 6,188 10,371 8,541 6,606 4,449
Depreciation and amortization 7,344 7,301 5,948 5,509 5,503 Net financial expenses*1 (209) (446) (554) (641) (1,002)
Balance Sheets (Millions of yen)
Total assets ¥178,455 ¥202,316 ¥212,739 ¥198,458 ¥179,263 Shareholders’ equity 78,422 81,605 81,033 77,098 71,633 Interest-bearing debt 37,600 39,314 42,313 38,966 43,380 Net interest-bearing debt*2 26,330 21,570 27,694 27,981 31,817
Cash Flows (Millions of yen)
Net cash provided by operating activities ¥ 7,263 ¥ 20,873 ¥ 10,107 ¥ 10,680 ¥ 9,672 Net cash used in investing activities (9,723) (11,481) (5,879) (5,595) (2,465) Net cash used in financing activities (3,540) (5,582) (647) (5,595) (9,412) Free cash flow*3 (2,459) 9,391 4,228 5,085 7,207
Major Indicators
Ordinary income margin 6.6% 10.8% 9.3% 8.5% 6.9%
ROE*4 7.7% 12.8% 10.8% 8.9% 6.4%
D/E ratio*5 0.48 0.48 0.52 0.51 0.61
Per Share Data (Yen)
Net income ¥ 33.26 ¥ 55.70 ¥ 45.55 ¥ 34.78 ¥ 22.77
Net assets 421.53 438.56 432.2 410.66 380.91
