|The Total Number of Shares issuable:||40,000,000|
|Issued Number of Shares:||29,007,708|
|Number of Shareholders:||9,810|
|Stock Listings:||Prime Market of the Tokyo Stock Exchange|
|Name or Company Name||Number of shares held|
|Ratio of number of shares held to total number of shares outstanding (excluding treasury shares) (%)|
|The Master Trust Bank of Japan, Ltd. (trust account)||2,528||8.80|
|Custody Bank of Japan, Ltd. (trust account)||2,358||8.21|
|Toagosei Co., Ltd.||1,497||5.21|
|MUFG Bank, Ltd.||1,137||3.96|
|Sumitomo Mitsui Banking Corporation||1,137||3.96|
|Sumitomo Mitsui Trust Bank, Limited||1,136||3.95|
|BOT Lease Co., Ltd.||1,128||3.93|
|Meiji Yasuda Life Insurance Company||675||2.35|
|Mitsui Sumitomo Insurance Co., Ltd.||530||1.85|
|Type||Stock Information (The number of unit (tangen) shares is 100 shares)||Shares less than one unit (shares)|
|National government and local governments||Financial institutions||Securities companies||Other domestic entities||Foreign entities||Individuals, others||Total|
|Other than individuals||Individuals|
|Number of shareholders||―||17||20||56||104||8||6,707||6,912||―|
|Number of shares (trading units) held||―||102,933||3,358||44,751||20,080||43||118,366||289,531||54,608|
|Share ownership ratio (%)||―||35.55||1.16||15.46||6.94||0.01||40.88||100.00||―|
The Company conducted a 2-for-1 stock split with January 31, 2020 (Friday) as the record date.
|Total shareholder return(％)|
(Comparison index: TOPIX including dividends)(％)
|Share price high/(yen)||3,010||2,492||1,375|
|Share price low(yen)||1,920||1,650||698|
|Change in the total number of issued shares||Balance of the total number of issued shares||Change in share capital (thousand yen)||Balance of share capital (thousand yen)||Change in legal capital surplus (thousand yen)||Balance of legal capital surplus (thousand yen)|
The risks which could affect the Group’s business performance and financial standing are as follows.
Please note, however, this information does not necessarily cover all the risks concerning the Company’s business.
The forward-looking statements in the document are based on the judgment of the Group as of the end of the consolidated fiscal year under review.
(i) Impact of economic trends in major market
The Group sells products to a wide range of industrial sectors. However, sales to the automotive, consumer appliance and information equipment-related sectors account for a particularly high percentage of total sales. Accordingly, deterioration of the market conditions in these sectors could affect the Group’s business performance and financial standing.
(ii) Impact of fluctuation in product prices
The purchase prices of certain products handled by the Group fluctuate considerably depending on the supply-demand balance and the Group endeavors to set selling prices accordingly and to maintain reasonable inventory levels. However, if the Group is unable to sufficiently pass on the increased costs or is forced to write down inventories, the Group’s business performance and financial standing may be affected.
(iii) Risk of competition
The Group handles a wide range of products and competes with many different corporations in Japan and overseas. In the event of a change in the strategy of these competitors or market entry by an emerging market firm or other low-cost competitor, the Group may not be able to maintain its competitive edge and this may affect the Group’s business performance and financial standing.
(iv) Risks related to suppliers
The Group purchases products from many suppliers both in Japan and overseas and endeavors to maintain and build good relationships with its suppliers to ensure a stable supply of products. However, any loss or curtailment of trading rights due to a change in the situation of such suppliers, such as business restructuring, deterioration in business performance, or agency policy revisions, could affect the Group’s business performance and financial standing.
(v) Impact of investments associated with the development of new business
The Group actively focuses on M&A and other activities for the development of new businesses. When making investment decisions, the Group strives to mitigate risks by carrying out financial and legal due diligence to fully assess and evaluate the target company or business. However, if the investee company or business declines in value, the Group may have to recognize a goodwill impairment loss, which may affect the Group’s business performance and financial standing.
(vi) Risks associated with overseas business expansion
The Group conducts a wide range of activities overseas, engaging in many import and export transactions and establishing business bases in the United States and Asia, and it intends to increase its focus on overseas business expansion in the future. However, in the event of the materialization of country risk, for example, unexpected deterioration in the political or economic situation in any of the countries or regions in which the Group operates, this could hinder the continuation of transactions or implementation of the Group’s planned business activities and this could affect the Group’s business performance and financial standing.
(vii) Risks related to management of receivables
Trade receivables account for a high percentage of the Group’s total assets, accounting for 38.2％(24,008million yen) as of the end of the consolidated fiscal year under review. To manage receivables, the Group sets credit limits for individual suppliers based on their business results and financial position and constantly monitors their credit standing in an attempt to minimize uncollectible accounts. To prepare for unforeseen circumstances, the Group also records an allowance for doubtful accounts based on historical experience and the estimated collectability of individual accounts. However, if actual uncollectible accounts receivable exceed the allowance, this could affect the Group’s business performance and financial standing.
(viii) Impact of foreign exchange rate fluctuations
As a trading company, the Group is actively involved in import and export transactions, mainly in Europe, the United States and Asia. The Group makes use of hedging instruments such as forward exchange contracts to manage the risk of transactions denominated in foreign currencies. However, in price negotiations with suppliers, the impact of foreign exchange rate fluctuation is unavoidable and any dramatic fluctuation in foreign exchange rates could affect the Group’s business performance and financial standing. Additionally, the financial statements of overseas consolidated subsidiaries are denominated in the relevant local currency and, depending on the rate used to convert the local currency into yen, the Group’s net assets may decrease through foreign currency translation adjustments.
(ix) Impact of stock market fluctuations
The Group holds the stock of financial institutions and suppliers in a bid to build close business relationships. Many of these stocks are stocks with a fair market value being traded on the open market and, these stockholdings could affect the Group’s business performance and financial standing depending on fluctuations in their price in the future.
(x) Impact of natural disasters
The Group takes steps to prepare for natural disasters such as earthquakes, typhoons and floods, including developing Business Continuity Plans (BCPs) and introducing safety confirmation systems as part of such plans. However, it is difficult to avoid damage entirely and suppliers and customers could also be affected by natural disasters. Such a situation could hinder activities at the the Group’s business bases and could affect the Group’s business performance and financial standing.
(xi) Risks relating to COVID-19
The Group strives to prevent COVID-19 from affecting its business operations. It makes precautionary actions against COVID-19 known to its employees and takes appropriate steps to control behavior and enhance safety, including the introduction of staggered working hours and working at home. However, any worsening of the economic condition due to the spread of COVID-19 or the prolongation of the pandemic could affect the Group’s operating results and financial position.
(xii) Risks related to compliance
The Group conducts business activities both in Japan and various foreign countries and is subject to a wide range of relevant legislation. To comply with such legislation, the Company has established a Compliance Committee and is seeking to strengthen its compliance framework. However, even by taking such steps, the Group cannot completely eliminate all risks related to compliance in its business activities. Any major change in the relevant legislation or the adoption of an unexpected interpretation of such legislation could affect the Group’s business performance and financial standing.
The Company has not obtained any credit ratings.
The Company has not issued any bonds.