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| 1. Outlines of the Company |
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| (1) What is the origin of company name "Nichidai"? |
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"Nichidai" is a combination of "Nichi" and "dai," where "Nichi" is an abbreviation of "Nippon" and "dai" is the Japanese pronunciation of "die." This name comes from a wish to make the company Japan's top die manufacturer. |
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| (2) What was the trigger for foundation of the Company? |
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In 1959, ex-President Yoshiaki Tanaka started manufacturing and selling drawing dies of irregular shape with special techniques to process hard metal. In 1967, this personal shop was organized into a limited company. |
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| (3) What companies are included in your Group? Where are your branches and factories located? |
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NICHIDAI GROUP has two subsidiaries in Japan and three overseas subsidiaries.
The factory is located on the site of about 120 thousand square meters at Ujitawara-cho in the southern part of Kyoto Prefecture, where technological and manufacturing functions are concentrated. In Japan, we are operating sales offices in cities of Kumagaya, Hamamatsu, Nagoya, Kyoto, Okayama and Kumamoto. We also have overseas bases in China (Shanghai), and the U.S. (Ohio), Thailand (3 bases).
For details, please see "Introduction to offices and factory." |
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| (4) What is the personal history of the current president? |
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He was born in Yamanashi Prefecture. After graduating from the Department of Sociology, Hitotsubashi University, he entered Mitsubishi Electric Corporation. He joined our Company in 1998. He was assigned to Director in charge of sales coordination in 1999, and to Vice President in 2001. April 2002, took over office of President from Mr. Yoshiaki Tanaka. |
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| 2. Contents of business |
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| (1) What does "forging" mean? |
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Forging transforms a metal block by applying high pressure with a hammer or pressing machine. The Japanese word equivalent to "forge" means "train somebody strictly," and this method "trains" metal. Products shaped this way are stronger than those manufactured by cutting or casting.
For details, refer to "What is Net Shape?" |
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| (2) What does "die" mean? |
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A die is a metal mould to shape products using the material's deforming nature or liquidity. This is widely used among industries such as automobile and home electric appliances industries as a tool for mass production. |
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| (3) Can you explain in simple terms the difference between "Net Shape" and "Precision Forging"? |
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"Warm forging" and "cold forging" are comprehensively called "precision forging." In general, precision-forged parts are completed by cutting subtle portions that cannot be shaped well only by forging. "Net Shape" completes products only with forging, not lathing.
For details, refer to "What is Net Shape?" |
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| (4) What are the characteristics and advantages of your Company? |
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Advantages of our company are "total engineering power," "technological development abilities" and "distribution of customers." |
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Total engineering power: Different from die manufacturers specialized in dies, our Company has been engaged in processes from designing and development of dies since foundation. Moreover, we are meeting customers' diversified needs from research and development, construction of production lines to subcontracted mass production of parts. |
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Technological development abilities: In various fields, our company not only carries out in-house development for precision forging of parts, but also is in charge of customer-entrusted and -joint development projects for precision forging of new products. We are enhancing equipment for CAE analysis, experiments and prototyping with nearly 30 design and development staff members. |
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Distribution of customers: Although our major customers are auto-related industries, we do not concentrate on specific auto makers but are trading with a wide range of customers. |
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| (5) Which part of an automobile your products are used for? |
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Dies we are manufacturing are used for important security parts such as gears that are incorporated into "engines," "transmissions" and "driving mechanisms," and require both strength and precision. These parts are supplied not only to Japanese auto companies but also to overseas car manufacturers. |
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| (6) What is the competing product of your precision forging dies? |
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A product competing with the precision forging die is the cutting machine. Many products manufactured today with the precision forging die were formerly produced with cutting machine. Since manufacturing with precision forging dies leads to lower costs and higher productivity, manufacturing methods have shifted. At present, however, some parts may sometimes be manufactured by cutting or precision forging dies, so these two methods are developing keen competition in technology innovation. |
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| (7) I need to know more about your Net-shape business. |
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NICHIDAI GROUP has integrated our die section and precision-forged parts business into Net-shape business to step up R&D since 2008/4.By reinforcing total engineer capability with this organizational restructuring, NICHIDAI GROUP responds to new development projects and overseas projects which will increase from now. |
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| (8) What percentage do you occupy share in the die industry? |
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No data on the market share is available from any third party.
We are calculating the share for ourselves by setting sales of the top 10 manufacturers (from Teikoku Databank) to 100, and our share has been more than 30% since FY1997, the highest in the industry |
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| (9) I need to know more about your Assembly business. |
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Our Assembly business is assembles VG turbo charger parts for diesel engines.
We expect the market of VG turbo chargers to continue growing because in Europe, the major destination of this product, the ratio of diesel-engine-driven passenger cars has risen to near 50%, and stricter environmental regulations will push demand for diesel cars even further. |
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| (10) What dose "VG" of VG turbo charger mean? |
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"VG" is abbreviation of "Variable Geometry". The feature in VG turbo charger for diesel engine is to be able to vanes open and close matching engine turn. Therefore, the combustor efficiency can be raised compared with the turbo charger of a fixed type that cannot control the opening and closing level. |
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| 3. Management policies and strategies |
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| (1) What is your management philosophy? |
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The management philosophy of our company is" We aim at being a company who creates a new value to contribute to the society by permanence of improvement at the highest level in 3s; Customer Satisfaction (CS),Investor Satisfaction (IS) ,and Employee Investor Satisfaction (ES). |
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(2) What are the fields you want to focus on in the future,
or the business or area you expect to grow? |
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The NICHIDAI Group will pursue the management strategy based on three pillars of "Dealing with overseas operation," "Advancing technological development" and "Strengthening product competitiveness by QDC improvement."
For more information, please see the Mid-Term Management Plan. |
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| 4. Business performance and financial conditions |
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| (1) What are the external factors that may affect your performance? |
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Dies, our core product, are mainly used for mass production of auto parts. Therefore, our performance depends on units of automobiles to be produced, and development of auto parts. |
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| (2) What are the performance forecasts for this fiscal year? |
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| (3) What is the profit ratio of each business field? |
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Among the Ordinary income ratio of each segment for FY3/2011, "Net-shape" was 5.0%, "Assembly" was 8.0% and "Filter" was 9.6%. |
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| (4) What is the ROE, ROA? |
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For the previous fiscal year (FY3/2011), ROE was 7.7% and ROA 5.8%. |
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| 5. Returns to shareholders |
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| (1) What are the forecasted dividend for this fiscal year and your dividend policies in the future? |
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The Company regards profit returns to shareholder as an important policy of management, and maintains the basic policy to keep the stable dividend payout ratio, while securing internal reserve necessary for future business development and enhancement of the management structure. For this fiscal year (FY3/2012), total annual dividend is ¥12 per share. Interim dividend is 6 yen and term end dividend is 6 yen. |
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| (2) Do you have any plan to split shares? |
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At present we have no plan to split shares. |
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| (3) Are you planning for retirement of treasury stock? |
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At present we have no plan of retirement of own shares. |
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| (4) Are you providing or planning to introduce any shareholder special benefit system? |
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At present, we have no plan to introduce any shareholder special benefit system. |
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| 6. IR activities |
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| (1) Please explain the current situation of your IR activities. |
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For analysts, we are holding performance results briefing meetings twice a year, In addition, our IR staff members visit analysts and institutional investors individually, and the company is holding factory tours and company information meetings for salespeople of securities companies from time to time. |
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| (2) Do you have a plan to hold a company information session for personal investors? |
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Currently, we are holding company information sessions for personal investors at the right time.
We are providing handouts and pictures of our company information sessions through the Internet.
Please click here. |
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| (3) Please show your future plan of IR activities. |
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| 7. Shares |
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| (1) How do you think about current stock price of your company? |
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We consider that the share of a company is priced through a very complicated evaluation of supply-demand situations on the share market as a whole, topics at the time, potentiality of the company and other factors. Thus, the share price is determined by the market, and the only thing we can do is to improve performance and make efforts in IR activities. We expect that growth of performance should be reflected in the share price from medium- and long-term viewpoints. |
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| (2) Please explain about composition of shareholder. |
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