Product Excellence and Global Expansion - Hitachi Koki Co., Ltd.

Net Sales (left scale)
Overseas Sales Ratio (right scale)
Net Sales/Overseas Sales Ratio
Annual Dividends per Share
(Billions of yen) (%)
200
80
69.1
Annual Dividends per Share
150
(Yen)
50
100
Total 40 Assets/ROA
50
(Billions of yen)
200 30
20
0
150
10
100
0
50
0
(Billions of yen)
200
150
100
Assets, Net Assets/ROE
Liabilities and Net Assets
20
• Assets 150 30
24.0
0
Total
0
assets at the end of fiscal 2009 were ¥148,982 million, a decrease of
2006 2007 2008 2009 148.9 2010
2006 2007 2008 2009112.1
2010
15
¥3,571 million from the end of the previous fiscal year. Current assets were
Net Sales (left scale)
100 20
Overseas Sales Ratio (right scale)
¥114,924 million of the total, a decrease of ¥1,501 million from a year earlier,
10
mainly due to a decrease of ¥8,309 million in inventories resulting from
2006 2007 2008 2009 2010
aggressive inventory reduction policies, despite an increase in deposits.
2006 2007 2008 2009 2010
Capital Expenditures
20
(%)
100 50
20 5
(Billions of yen)
5
2.2
0
0
4 2006 2007 2008 2009 2010
50 10
Total Assets (left scale)
3 ROA (right scale)
3.0
2.1
0 2
0
1
Total Assets (left scale)
ROA (right scale)
Total Assets/ROA
Net Assets/ROE
119.1
2.2
60
40
5
0
(%)
(Billions of yen) (%)
150 30
2006 2007 2008 2009 2010
Net Assets (left scale)
ROE (right scale)
(Yen)
50
40
30
20
(Billions 10 of yen) (%)
50 10
• Liabilities
3.0
Total liabilities at the fiscal year end were ¥36,841 million, a decrease of
0 0
¥3,436 2006 million 2007 from 2008 a year 2009 earlier. 2010
This decrease was mainly due to decreases in
Net (left scale)
Net notes Assets/ROE
and accounts payable, trade, resulting from production adjustments.
ROE (right scale)
(Billions of yen) (%)
• Net Assets
20
150 30
Total net assets at the fiscal year end were ¥112,141 million, a decrease of
148.9
¥134 million from a year earlier. 112.1
15
This decrease was mainly due to the change
100 20
in foreign currency translation adjustments resulting from the impact of the
10
strong yen, despite an increase in retained earnings.
112.1
50 10
Capital Expenditures
24.0
3.0
Capital expenditures in fiscal 2009 totaled ¥2,178 million as Hitachi Koki promoted
0 0
2006 2007 2008 2009 2010
rationalization of strictly selected manufacturing facilities including enhancements to
Net Assets (left scale)
manufacturing ROE management (right scale) systems where it deemed it necessary.
Main expenditures included rationalizing manufacturing facilities at the Sawa Plant,
as well as augmenting or renewing manufacturing facilities and strengthening
functions of the production management system at overseas plants.
0
2006 2007 2008 2009 2010
Capital Expenditures
(Billions of yen)
5
4
3
2
1
0
2.1
2006 2007 2008 2009 2010
Risk Information
Factors that could affect the operating results, share price and financial condition of
the Hitachi Koki Group are listed below. Forward-looking statements below reflect the
judgment of management as of March 31, 2010.
(1) Economic Conditions
The Hitachi Koki Group sells products in Japan, North America, Europe, Asia and
other regions. To counter regional economic fluctuations, the Group plans measures
including increasing manufacturing efficiency through cost-reduction activities and
establishing production bases in a number of regions. However, a reduction in demand
stemming from worse-than-expected regional economic slowdown could negatively
affect the Group’s businesses.
(2) Interest Rate Fluctuations
Although the Hitachi Koki Group is working to establish a business model that is
unaffected by interest rate fluctuations, greater-than-expected interest rate fluctuations
could affect the Group’s businesses because overseas sales make up a high
proportion of total consolidated net sales. Usually, a high yen exchange rate exerts a
12 Hitachi Koki ANNUAL REPORT 2010