Fiscal 2011
Results
Briefing
May 30, 2012

AGENDA

I. Fiscal 2011 (Term 66) Earnings Highlights
II. Progress status of
the VISTA-3S Medium-term Business Plan
III. Fiscal 2012 Earnings Forecasts
IV. Shareholder Returns

I. Fiscal 2011 (Term 66) Earnings Highlights

1. Consolidated Statementof Income for Fiscal 2011
2. Factors Affecting Profit Performance
3. Departmental Overview
4. Balance Sheets (Consolidated)
5. Financial Position & Cash Flow
6. TopicsConsolidated Statement of Income for Fiscal 2011 (1)Consolidated Income Statement(¥ millions)Fiscal 2011
(Term 66)

YOY (%)

Gross margin

323,703
39,992372,830
47,571(Gross margin ratio)(12.4%)(12.8%)(+0.4)

SGA expenses

32,576
7,415
7,623
103

37,043
10,528
11,155
7

14.0

951
4,363

2,633
4,933

Sales

Operating income
Ordinary income
Extraordinary
profitExtraordinaryloss

Net profit¾

Fiscal 2010
(Term 65)

Publishedtargets(adjusted)

Ratio totarget15.2 358,000 104.1
19.0

―

－

―

－

42.0

9,300 113.2

46.3

9,800 113.8

△92.4

―

－

－

―

－

13.1

5,700

87.0

Domestic and overseas demand for capital goods recovered gently. Also observed was stronger demand for consumer
goods driven by demand for energy-saving goods.

Consolidated Statement of Income for Fiscal 2011 (2)Quarterly Fluctuations(¥ millions)

Sales
Operating income

Ordinary income

Net profit

1Q 2011
4-6

2Q 2011
7-9

2011
3Q 10-12

4Q 20121-3

90,969
2,817
2,940
1,816

90,043
2,558
2,635
1,493

94,970
2,881
3,085
1,747

96,846
2,270
2,494
△ 123

100,000

200%

80,000150%

60,000100%

40,000

Sales(\million)
Year-On-Year(%)

20,00050%

00%
1Ｑ ２Ｑ ３Ｑ ４Ｑ 1Ｑ ２Ｑ ３Ｑ ４Ｑ 1Ｑ ２Ｑ ３Ｑ ４Ｑ

FY09

FY10

FY11

Consolidated Statement of Income for Fiscal 2011 (3)Sales by department (actual results vs. published targets)(¥ millions)
Machine Tools
Industrial Systems
Industrial Tools(Total producer goods)
Housing Equipment,
Materials
Home Products(Total consumer goods)
International Operations(Total overseas producer
goods)
Other departments
Total

Fiscal 2010
(Term 65)

39,58347,644
48,172
135,400
50,64560,455111,101
73,69773,697
3,504
323,703

Fiscal 2011
(Term 66)

51,49553,676
53,835
159,006
50,51977,104
127,623
79,95079,9506,249
372,830

YOY (%)

Published
Ratio totargets
target(adjusted)

30.1
12.7
11.8
17.4

47,00052,00052,000151,000

109.6

△ 0.2

52,500

96.2

103.2
103.5
105.3

27.5
14.9
8.5

72,500 106.4
125,000 102.1
76,300 104.7

8.5

76,300 104.7

78.3
15.2

5,700 109.6
358,000 104.1

Factors Affecting Profit Performance(¥ millions)

Domestic consumer goods

Fiscal 2010

Home products
Overseas (producer goods
sold to overseas)
Others¥7,623 million

Higher gross profit(a profit-boosting factor)

2,160
3,017
1,980
420

7,579
Payroll-related
Freight

Higher SG&A
(a profit-reducing factor)
Non-operating income(a profit-boosting factor)

Fiscal 2011

4,467
420

¥11,155 million(YOY change: + ¥3,532 million)

For(1) Gain (loss) on valuation of derivatives: ¥333 million in unrealized gain onreference: derivatives in FY2011, against unrealized loss of ¥50 million in FY2010 – an
improvement of ¥384 million.
(2) Effect on ordinary income, of newly consolidated subsidiaries and realigned yearend book closing date by subsidiaries in China: +¥163 million

Lease & storage
Allowance for
doubtful accounts
Fees paid
Increases intravel/transportatio
n expenses
Other factors
resulting inincrease
Decreases in loss onderivative revaluation
Increases in interest
incomeIncreases in interest
expenses
Other changes affecting
non-operating income

2,280
802
593
334
224
141
90

384
97
▲240
178

Departmental Overview (1)Production Equipment and Materials Business
Fiscal 2010(Term 65)(¥ millions)Fiscal 2011(Term 66)

OperatingOperatingoperatingS a l e s i n c o m e S a l e s i n c o m e marginof
Machine Tools
39,583877
51,495
1,688 3.3%
Industrial Systems
47,644875
53,676
1,204 2.2%
Industrial Tools
48,172984
53,835
1,283 2.4%
(Total producer goods)
135,400
2,737
159,006
4,176 2.6%

¾ The factory capacity utilization rate rose as auto production restored. Capital investment
saw gradual recovery.
 Domestic orders for machine tools (full-year) bounced back to the ¥50 billion line. Cutting tools and accessories
also grew at a double-digit pace.
50,000MachineTools
13.8
Industrial
Systems
14.4

45,00040,000Industrial
Tools
14.4

Quarterly
Quarterly changechange inin salessales

35,00030,000Machine Tools

25,00020,00015,000Industrial Systems

10,0005,000

Industrial Tools

0(¥ millions)

11/3
-1Q

11/3
-2Q

11/3
-3Q

11/3
-4Q

12/3
-1Q

12/3
-2Q

12/3
-3Q

12/3
-4Q

Departmental Overview (2)Consumer Goods

Fiscal 2010(Term 65)(¥ millions)Fiscal 2011(Term 66)

OperatingOperatingoperatingS a l e s i n c o m e S a l e s i n c o m e marginof
Housing Equipment,
50,645
1,357
50,5191,118 2.2%
Materials
Home Products
60,455
2,232
77,1043,570 4.6%
(Total consumer goods)
111,101
3,589
127,623
4,688 3.6%

¾ Housing Equipment & Materials was buoyed by brisk sales of gas appliances.
¾ Record sales by Home Products on strong demand for products addressing energy
conservation, disaster preparedness and digital terrestrial TV broadcasting (7 straightyears of consistent sales growth)
40,00035,000Quarterly
Quarterly changechange inin sales
sales

HEM

30,00025,00020,000Home
Products
20.7 HEM
13.6

15,00010,000Home Products

5,000
0

(¥ millions)

11/3
-1Q

11/3
-2Q

11/3
-3Q

11/3
-4Q

12/3
-1Q

12/3
-2Q

12/3
-3Q

12/3
-4Q

Departmental Overview (3)Production Equipment and Materials Business (International)
Fiscal 2010(Term 65)(¥ millions)International
Operations(Total overseas
producer goods)

Fiscal 2011(Term 66)

OperatingOperatingoperatingS a l e s i n c o m e S a l e s i n c o m e marginof
73,697
3,634
79,9503,919 4.9%

73,697

3,634

79,950

3,919

4.9%

¾ Auto production was strong in North America (4-wheeled vehicles) and ASEAN(motorcycles). Capital investment remained firm in Greater China.
 Higher income and earnings (for 2 consecutive years) achieved by boosting sales foundations,despite an increasingly difficult operating environment characterized by China’s economic
slowdown, the earthquake in Japan, flooding in Thailand, and the yen’s appreciation.
30,000Quarterly
Quarterly changechange inin salessales

25,000International
21.4

20,00015,000International

10,0005,000
0(¥ millions)

11/3
-1Q

11/3
-2Q

11/3
-3Q

11/3
-4Q

12/3
-1Q

12/3
-2Q

12/3
-3Q

12/3
-4Q

Balance Sheet (Consolidated)¾ Total assets grew on the back of higher trade receivables and trade
payablesAssetsLiabilities/Total Assets(¥100 million)

1,236

221
Total assets 1,457

FiscalFiscal2010
2010

Liquid assets
＋138
1,374

▲20

Fixed assets
200

＋117

1,575
FiscalFiscal2011
2011

Current
liabilities
1,123

＋80

Fixed liabilities 17▲017

Net assets
435

＋25

371

1,042

Capital adequacy ratio

27.6％←27.3％

Financial Position & Cash Flow
Interest-bearing debt
Net assets
Debt-to-equity ratio

500
400

348

368

371

397
2.00

281
2420.86

1.00

191

200

0.55

100

144
0.39

0.22
83

0.19
71

0.19
76

0.13
0.00
55

0

(Multiple)

Unit: ¥100 million

300

364

<Financial position for operating activities>

3.00
435

-1.00
'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3*Debt-to-equity ratio = interest-bearing debts ÷ net assets

200

400
368

150
100

0
-50

-100

95
72

25,480Accounts receivable

67,381

Bills payable

48,766

Accounts payable

45,738(1)
Tradereceivables

92,861(2)
Tradepayables

94,504(3) Results from operating△1,643
activities ((1) – (2))
Cash anddeposits

24,398 (4) Cash andBorrowings

5,511

deposits net ofborrowings

18,887(5) Net balance ((3) + (4))

17,244

366
237
95

75
179

160

243
52

300
200

Unit: ¥100 million

Unit: ¥100 million

50

368

Trade bills-15
16'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 100
-75
-34
-53
-73
-78
-88
-95
0
Free Cash Flow(full year)
Financial cash flow (full year)
Cash and equivalents at term-end¾ The positive net balance, evenafter accounting for net cash
and deposits, means thatYamazen remained virtuallydebt-free.
* Free cash flow = operating cash flow
+ investment cash flow

Highlight (1) :Impairment loss
¾ Impairment reviews were performed on office properties in Tokyo, Nagoya
and Sendai.
Place
Tokyo Corporate
HQ

Use
Property forbusiness use

Value(¥ millions)

ActionCategory

Sale

Buildings &structures, etc.

783

Land

1,647
2,431

Subtotal
NagoyaRegional HQ

Property forbusiness use

RetiredBuildings &structures

62

Property forbusiness use

Sale

Buildings &structures21

Sendai Branch

Total

2,515

Highlight (2) :Energy-saving achievement¾ 14% reduction (year-on-year)and 21% reduction (year-onyear) during the requested
period for energy saving.

Changes
Changes inin power
power consumption
consumption
over
over thethe years
years

450
428

Â Restricted use of elevators;
400
physical removal of 1,617
fluorescent tubes
Â Installation of a highly efficient,350
gas-enabled heat pump
airconditioning system wasinstalled at the Osaka Corporate
300
HQ’s Building No.2)

420
408

Power consumed (thousand kWh)
% Reduced (Base year = 2005)10%% Reduced (Per floor area)
5%
404
398
0%
388
-5%
347

-10%
-15%
-20%

'05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3

Osaka

EasternJapan

NagoyaPower consumption for
FY2011 (thousand Kwh)

1,507

1,281

354

195

131

3,471

Power consumption
FY2010 (thousand Kwh)

1,831

1,477

387

213

127

4,038

Reduction rate (full year)▲17.7% ▲13.3%

▲8.5%

▲8.3%

3.2% ▲14.0%

Reduction rate (requested
period from July to Sept.)▲27.7% ▲19.4%

▲8.5%

▲2.5%

▲4.4% ▲21.1%

Items

Kyushu Hiroshima

Whole
companyⅡ. Progress status of the VISTA-3S
Medium-term Business Plan

1. Vision and Mid-Term Management Policy
2. VISTA-3S Objectives
3. Strategic Goals of VISTA-3S andProgress to Date
4. VISTA-3S 3-year Targets (consolidated)

Vision & Mid-Term Policy
Improve
profitability
3 policies
ReformStrengthen ourmanagement financial position
systems

Producer goods
3 core businesses
Housing
materials

Home
products

Global competitivenessWe remain committed to
3 strategies
achieving long-term profit
growth and surpassing Specialization Organizational
the expectations of ourstrengthshareholders

Our goal is to become a specialized trading company that provides
best-in-class products and offers customers a comfortable living environment!

VISTA-3S Objectives

3 Strategies / 10 actions
By leveraging three key strategies, our aim is to spark innovation andto evolve into a company that combines value, impressions,specialization, technology and adaptability

Progress update for VISTA-3S(1): Strategy for Global Competitiveness¾ Higher presence in China and ASEAN; No. ofengineers increased to 197.

<Metalex2011 (Thailand)>Â Launch of Souzen Trading (a subsidiary of
Yamazen Taiwan) in Shenzhen, a joint venture in
Thailand with Citizen Machinery Miyano, and a
representative office in Mexico City for Latin
America.
1000

Total headcount900

Local hires

800

83.5%

83.5%

700

662

656

100.0%

853
775

81.8%

90.0%

679
80.0%

78.8% 80.3%

600
500

70.0%
08/3

'09/3

'10/3

'11/3

'12/3

<Trade Exhibition (Dongguan)>* Articles furnished by Nihon Butsuryu Shinbun

Progress update for VISTA-3S(2): Strategy for Specialization (a)¾ Orders received for machine tools
from Japan and abroad rose to¥99.9 billion (full year), accounting
for 8%* of the market
Â Cutting tools (up 10% year-on-year),accessories (up 13% year-on-year) and otherperipheral areas also experienced growth.

300

12.0

250

10.0

200

8.0

150

Monozukuri Exhibitionin Support ofManufacturing Firms

100
Orders received (¥100 million)
Market share (%)

50

6.0
4.0
2.0

0

0.0
1Q

2Q

3Q

’10/3

4Q

1Q

2Q

3Q

’11/3

4Q

1Q

2Q

3Q

4Q

’12/3

(* Market share is based on the total orders received as reported by the JMTBA)

Progress update for VISTA-3S(2): Strategy for Specialization (b)¾ Sales of private-brand products
reached ¥45.0 billion
Â Sold 3.33 million+ electric fans (Market
share: 20%), and 830,000+ Kotatsu
heated tables (25%) capturing the top
shares<Sales of private-brand products>
Unit: ¥100 million

Tools & gardening goods
Exterior & leisure goods
Interior goods
Home appliances

500
400
300
200
100
0
'07/3

'08/3

'09/3

'10/3

'11/3

'12/3

冬物ジャンルTV tuners for terrestrial broadcasting:
Cumulative shipments of 800,000+

510,000+ humidifiers; 1.14 Mio+ electric carpets

Progress update for VISTA-3S(2): Strategy for Specialization (c)<Sales of environmentally superior products>
1,000

27.1% 26.9%

Sales (¥100 million)
800

Share (%)
20.0% 20.1%
16.8% 17.4%

600
400

13.6%
419 536

824

949

17.9%

25.0%
20.0%

606

446

621

607

30.0%

15.0%
10.0%

200
'05/3

06/3

07/3

08/3

09/3

'10/3

'11/3

'12/3

<Green Ball Project Results: Actual vs. Planned>¾ The environmentally superior
980
product segment is poised to
1,120
Industrial goods （t-CO2）
35,00035,000 1,000
generate ¥100 billion+ in sales
981
30,000No. of participating
928
in Fiscal 2012.
25,122800
817
25,000780
20,00024,558600 ¾ The Green Ball Project has
20,00016,679645
13,532
reduced a total of 137,000 tons
15,000 12,332
15,206400
of CO2 to date.
6,859 6,885
10,000
6,627
40,000Consumer goods （t-CO2）

1,200

5,004 4,401

5,000

200

0

0

'07/3

'08/3

'09/3

'10/3

'11/3

'12/3

'13/3

Â Over 20,000 residential solar
systems have been installed
to date!

Progress update for VISTA-3S(2): Strategy for Specialization (d)¾ Online sales (B2B & B2C)
reached ¥11.0 billion (*Excluding EDI
transactions)Website for PbN was
revamped
No. ofregistered companies:
1,576

80
70
Unit: ¥100 million

60

PROCUEbyNET
KURASHINO e-shop

50

Best-selling product (quantity-wise) in
Fiscal 2011: “Pet Sheets PS200R”

40
30
20
10
0
'08/3

'09/3

'10/3

'11/3

'12/3

Progress update for VISTA-3S(3): Organizational Strength

VISTA-3S 3-Year Targets (consolidated) (1)rdTargets
Targetsplannedplannedfor
forthethe33rdyear
yearofofthe
theMedium-Term
Medium-TermManagement
ManagementPlan
Plan

Profit Targets

werestated as Fiscal 2012 targets.
were stated as Fiscal 2012 targets.

Fiscal 2009
(Term 64)

Fiscal 2010
(Term 65)

Fiscal 2011
(Term 66)

Fiscal 2012
(Term 67)

241,410

323,703372,830(350,000)

Operating income

836

7,415

10,528(8,500)Ordinary income

955

7,623

11,155(8,500)Net profit

438

4,363

4,933

(4,800)Fiscal 2009
(Term 64)

Fiscal 2010
(Term 65)

Fiscal 2011
(Term 66)

Fiscal 2012
(Term 67)

2.3％

2.8％

（Initial target 1.1％）（Initial target 1.8％）

2.5％

5.6％

6.9％

（Initial target 2.3％）（Initial target 5.0％）

2.6％

1.3％

（Initial target 1.0％）（Initial target 1.7％）(¥ millions)

Sales

Key Financial Targets(%)

Gross margin

0.3％

Return on total
assets0.7％

Cash flow margin

0.6％

5.5％
2.5％

VISTA-3S 3-Year Targets (consolidated) (2)rdTargets
Targetsplannedplannedfor
forthethe33rdyear
yearofofthe
theMedium-Term
Medium-TermManagement
ManagementPlan
Plan

Departmental Sales Targets(¥ millions; %)Machine Tools
Industrial Systems (1)Industrial Tools (2)Industrial Tools &Equipment(1)+(2)(Total domestic producer
goods)
Housing Equipment,
Materials
Home Products(Total consumer goods)
International Operations(Total overseas producer
goods)
Other departments
Total

were
stated as Fiscal 2012 targets.
were stated as Fiscal 2012 targets.

Fiscal 2009
(Term 64)

Fiscal 2010
(Term 65)

Fiscal 2011
(Term 66)

Fiscal 2012
(Term 67)

26,52939,75438,382－
104,667
47,75153,941
101,692
31,87631,875
3,173
241,410

39,58347,644
48,172
95,816
135,400
50,64560,455111,101
73,69773,697
3,504
323,70351,49553,676
53,835
107,511
159,006
50,51977,104
127,623
79,95079,9506,249
372,830

58,00058,00052,500110,500
168,500
57,00066,000123,000
54,70054,7003,800
350,000

VISTA-3S 3-Year Targets (consolidated) (3)Budget for Capital Investments
Fiscal 2009(actual)Fiscal 2010
(actual)Fiscal 2011(actual)Fiscal 2012
(full-year
forecast)

302

100

553

760

959

179

420

300

Subtotal for parent only

1,261

279

973

1,060

Consolidated total

1,300

380

1,226

1,300

(¥ millions)
Property, plant andequipment
Intangible fixed
assetsAdditional
investments
made during theyear
Additional
investments
made during theyear

Property, plant andequipment

Depreciation

315

310

314

300

Intangible fixed
assetsAmortization

437

492

457

400

Subtotal for parent only

752

802

771

700

Consolidated total

830

900

898

800

Ⅲ. Fiscal 2012 Earnings Forecasts

1. Operating Outlook
for Fiscal 2012 (Term 67)
2. Numerical targets
for Fiscal 2012 (Term 67)
3. Divisional System
4. Actions for Fiscal 2012
5. Consolidated Sales Targets

by Division: Summary

Operating Outlook for Fiscal 2012
Business
Segment

Key Indicators
Industrial Production Index
Aggregate orders published by JMTBA
members
Orders received for semiconductor
manufacturing equipment
Statistics published by JMTBA

Market Outlook*1

Producer Goods- Domestic

2

Consumer Goods Housing starts;
Kitchen and bath shipment statistics- HousingEquipment &Materials

Housing starts are poised to make a turnaround.
Demand for home remodeling will also rise.
Higher investment in housing development andpublic works, coupled with full-strength postquake reconstruction efforts, will drive this
sector’s growth. Sought-after product lines will
include those addressing energy generation,energy storage and energy saving.

3

Consumer Goods Propensity to consume- Home Products Statistics by the Japan DIY Industry

The consumer confidence index is rising
gradually, and so is the consumers’ willingness tospend. However, bleakness prevails over
employment and personal income horizons, andtheir uncertain outlook casts a doubt on thesustainability of strong consumer sales.

Association

4

Producer Goods-International

Investment induced by overseas demand isgaining further momentum. Production is
expected to bounce back to the post-earthquake
level for a broad spectrum of industries. Negatives
include the likelihood of the higher cost of
production and production cuts caused by power
shortages affecting the manufacturing sector.

National industrial production for countries A strong recovery is seen in demand from theoutside Japan
United States. Demand from China and Asia will
Diffusion indexes for countries outside
remain virtually unchanged. A slowdown observed
Japan
Machine tool sales statistics published by in overseas economies, together with the paststrength of the yen, is expected to dampen
the U.S. Association for Manufacturing
Technology, among others
exports for the time being.

*Based on Yamazen’s own projections

Fiscal 2012 (Term 67) Financial Targets¾ Fiscal 2011 level of sales and profits must be secured while every attempt will bemade to achieve higher sales and profits

Fiscal 2011(Term 66)(Unit: ¥millions)

2Q Results

Full-year
Results

Fiscal 2012(Term 67)
2Q(planned)

YOYchange(%)

Full-year(planned)

YOYchange(%)

Sales

181,012 372,830 186,000

2.8 375,000

0.6[Stand-alone]

166,596 344,113 174,000

4.4 350,000

1.7Operatingincome5,376

10,5285,500

2.3

11,0004.5[Stand-alone]

3,716

7,676

4,300

15.7

8,500

10.7

Ordinary
income5,575

11,155

5,700

2.2

11,3001.3[Stand-alone]

3,940

8,291

4,500

14.2

8,800

6.1

Net profit

3,309

4,933

3,350

1.2

6,200

25.7

[Stand-alone]

2,215

2,988

2,450

10.6

4,800

60.6

Divisional System¾

The new divisional system allows for a quick and flexible response to sudden changes in respective
markets.
Â All task processes are carried out by and within the division, leading to greater organizational strengths and“on-the-spot” abilities.

¾

The system leads to the fostering of advanced skills and productivity required for professionals.
Â The corporate HQ and regional HQ continue to supplement the endeavors of the divisions by performing
specific functions and providing assistance as before, with greater focus on proposal and planning activities.
Assistance andsupport provided
to the divisions

Corporate & Regional
HQ (by functionality)

Area

RegionIndustrial Tools &Equipment

Machine Tools

Area…

RegionBoard of Directors/President

RegionRegion…

Area…

RegionRegionArea…

RegionRegion…

MarketMarketfor
forproducer
producergoods
goods
Each division is responsible
for the execution of all
business activities end to
end for the mandated
product/business line basedon its business strategy

International
Operations

Housing Equipment& Materials

Home Products

Area…

Area…

Area…

Local
subsidiaries

Region…

Retail formats

Housing
Housing
marketmarketRetailRetailmarketmarketOverseasActions for the Current Fiscal Year (1): Producer Goods(¥ millions)

MachineTools

Fiscal 2011

Fiscal 2012

S a l e s

51,49552,000 % change 1.0%

Operatingi n c o m e

1,688

3.5%
1,800 Operating
margin¾ As the successor to the former Machine Tools Department,
it sells machine tools and metal forming machines usedprimarily by domestic manufacturers.

Machine Tools
Tools Div.
Div. HQ
HQ
MachineNishi
Nishi Nippon
NipponSales
Sales Dept.
Dept.

Kansai,Kansai, Hokuriku,
Hokuriku, Chugoku-Shikoku
Chugoku-Shikoku&& Kyushu
Kyushu Regions
Regions

Higashi
Higashi Nippon
NipponSales
Sales Dept.
Dept.

Kanto,
Kanto, Koshinetsu,
Koshinetsu,
TohokuTohoku && Hokkaido
Hokkaido Regions
Regions

Chubu
Chubu Sales
Sales Dept.
Dept.

Chubu
Chubu &
& Tokai
Tokai Regions
Regions

MarketingMarketing Dept.
Dept.
Administrative
Administrative Dept.
Dept.

*Please note that thischart does not reflect thestructure in full.

 Collaborative
Collaborativeevents
eventssuch
suchasasthe
the“Monozukuri“Monozukuri
Exhibition
ExhibitionininSupport
SupportofofManufacturing
ManufacturingFirms”
Firms”
showcasing
multiplemanufacturers
andshowcasing multiple manufacturers andtheir
their
production
productionknow-how
know-howand
andexpertise
expertisewill
willbeberolledrolledout
out
Î
Î To
Tobetterbetterrespond
respondtotodemand
demandfor
for
precisionequipment
andhighlyprecision equipment and highlyefficientefficientequipment
andtouncover
andexpandequipment and to uncover and expand
potential
potentialneeds
needs Keybusiness
locations
Key business locationsare
areestablishedestablishedand
and
sales
salesteams
teamsarearedeployed
deployedappropriately
appropriatelyfrom
fromaabroaderbroaderperspective
perspectivetotoallow
allowforforaagreater
greater
concentrationof
information
andtoconcentration of information and toboost
boost
proposal
proposalcapabilities.
capabilities.

Actions for the Current Fiscal Year (2): Producer Goods
Fiscal 2011(¥ millions)
Industrial
Tools& Equipment¾

Fiscal 2012

S a l e s

107,511

108,000 % change 0.5%

Operatingi n c o m e

2,487

2.9%
3,100 Operating
marginThis division took over the tasks performed by the former Industrial
Systems division HQ and the Industrial Tools Dept. It is engaged insales of industrial equipment, peripheral tools and consumables forindustrial equipment, elemental machining parts and logisticalmachines in factories, etc., for which the primary end-users are
manufacturers.
Category

12,28013,500(2) Mechatronics

15,662

16,000

6,221

6,400

(4) accessories

20,59421,000(5) Measuring equipment

5,049

5,200

Northern
Northern Kanto/Tohoku
Kanto/Tohoku(6) Fluid machinery

6,839

7,200

SD
SD SalesSales Dept.
Dept.

(7) & equipment

25,641

26,000*Please note that the chartdoes not reflect thestructure in full.

(8) equipment

2,254

2,500

(9) Others

12,973

Industrial Tools &Industrial
Tools&
Equipment Division
Division HQ
HQ
Equipment

NagoyaNagoya No.1,
No.1, No.2
No.2
Kyushu/Hiroshima
Kyushu/Hiroshima

Higashi
Higashi Nippon
NipponMarketingMarketing
Administrative
Administrative Div.
Div.

13/3 (planned)(1) Material handling

Osaka
Osaka No.
No. 1,
1, No.2,
No.2, No.3
No.3

Nishi
Nishi Nippon
Nippon

12/3

TokyoTokyo No.1,
No.1, No.2,
No.2, No.3
No.3

Environmental(3) improvement aids
Cutting tools &Industrial machinery
Air-conditioning

10,200(Unit: ¥ millions)

Actions for the Current Fiscal Year (3): Producer Goods
Fiscal 2011(¥ millions)

Overseas
Producergoods¾

Fiscal 2012

S a l e s

79,95080,000 % change 0.1%

Operatingi n c o m e

3,919

4.5%
3,600 Operating
marginThe division inherited the organization and functionality of the former
International Operations HQ. It is responsible for exports and sales of
producer goods (machine tools, industrial tools & equipment) foroverseas markets. It also administers oversight of overseas offices
and subsidiaries.

Electronics/Industrial Tools
Tools
Electronics/Industrial
Equipment Dept.
Dept.
&& Equipment

China
China Regional
Regional HQ
HQ (Shanghai)(Shanghai)
Operations
Operations under
under direct
direct control
control ofof
Corporate
Corporate HQ(Dusseldorf
HQ(Dusseldorf && Seoul)
Seoul)SESE Headquarters.
Headquarters.

Machine Tools
Tools Dept.
Dept.
MachineInternational Operations
Operations HQ
HQInternational

USA
USA Regional
Regional HQ(Chicago)
HQ(Chicago)Southern
Southern ASEAN
ASEAN Regional
Regional HQ
HQ(Singapore)(Singapore)
Northern
Northern ASEAN
ASEAN Regional
Regional HQ
HQ(Bangkok)(Bangkok)
TaiwanTaiwan Regional
Regional HQ
HQ (Taipei)(Taipei)*Please note that the chart does not reflect the structure in full.

 Action
Actiontotoachieve
achievebalanced
balancedoperations
operationsÎÎ Activities
Activitiestotoincrease
increasesales
saleschannels
channelstoto
reachgreaterindustrial
sectors;
reach greater industrial sectors;combined
combinedwiththecreationofadditional
servicewith the creation of additional serviceand
andbusinessbusinesslocations,locations,these
theseactions
actionsaim
aimatatpromotingpromotingstable,
stable,locally
locallyorientedorientedoperations
operations
underscoredunderscoredby
bywell-balanced
well-balancedsales
salesand
andservicing(engineering)capabilities.
servicing (engineering) capabilities.
 Action
Actiontotocome
comeupupwithwithaamore
moreunified
unifiedsales
sales
strategy
andtoachievehighersales(instrategy and to achieve higher sales (interms
termsofof
volume)through
activeexchanges
withinvolume) through active exchanges withinandandbetweenbetweenregional
regionalH.Qs.
H.Qs.
ÎÎ Industrial
Industrialtools
toolsandandequipment:
equipment:The
Thesalessales
andanddelivery
deliverymechanism
mechanismforforcutting
cutting&&measuringmeasuringtools
tools++mechatronicmechatronicproducts
productswill
will
beenhanced.
be enhanced.

Actions for the Current Fiscal Year (4): Consumer Goods(¥ millions)

H.E.M.

¾

Fiscal 2011

Fiscal 2012

S a l e s

50,51951,000 % change 1.0%

Operatingi n c o m e

1,118

2.5%
1,250 Operating
marginThis successor to the former Housing Equipment
and Materials Dept. is in charge of sellinghousing equipment, air conditioning equipment,
construction materials and other materials, inaddition to the assembly/set-up thereof, to meetthe needs of building, housing and equipment
construction companies.

 Stepped-up
Stepped-upactivities
activitiestotomake
makegreater
greaterinroads
intogrowthfieldsandmarkets
inroads into growth fields and markets

Home Equipment
Equipment && Materials
Materials Div.
Div. HQ
HQ
Home

KansaiKansai Sales
Sales Dept.
Dept.
Nishi
Nishi Nippon
Nippon Sales
Sales

Chubu
Chubu Sales
Sales Dept.
Dept.
KyushuKyushu Sales
Sales Dept.
Dept.
Chugoku
Chugoku Sales
Sales Dept.
Dept.
Greater
Greater Tokyo
Tokyo Sales
Sales Dept.
Dept.

Higashi
Higashi Nippon
Nippon Sales
Sales

CentralCentral Tokyo
Tokyo Sales
Sales Dept.
Dept.
Northern
Kanto&
TohokuSales
Northern Kanto & Tohoku Sales Dept.
Dept.

Î
Î For
Forresidential
residentialsolar
solarpower
powersystems,
systems,thethedivisiontargets¥10billioninsales.
division targets ¥10 billion in sales.
Sales
Salesandandinstallation
installationstructures
structuresfor
forindustrial
solar
power
generation
systems
industrial solar power generation systems
will
willbebedeveloped.
developed.
Î
CreationÎ Creationofofaapreparatory
preparatoryteam
teamforfor
overseas
overseasprocurement
procurementand
andsalessales
activities
activities

 Focused
Focusedefforts
effortstotobroaden
broadenthe
theproductproductrange
toaddress
remodelingneeds
range to address remodeling needsand
andtotoenhance
housingequipment
line
enhance housing equipment line
gearedgearedtotothe
theneeds
needsofofthe
theelderly
elderly

Building
Building Materials
Materials &&Engineering
Engineering Dept.
Dept.
MarketingMarketing Dept.
Dept.

*Please note that the chart does not reflect the structure in full.

ÎÎ Exploration
Explorationofofnew
newsalessaleschannels
channelsvia
via
volumemerchandisers
andtheInternet
volume merchandisers and the InternetÎSales
Î Saleslaunch
launchofofprefabricatedprefabricatedbathrooms
bathrooms
modulesmodulesdesigned
designedfor
forthethehandicapped
handicappedandandthetheelderly
elderlyActions for the Current Fiscal Year (5): Consumer Goods(¥ millions)Home
Products¾

Fiscal 2011

Fiscal 2012

S a l e s

77,10478,000 % change 1.2%

Operatingi n c o m e

3,570

5.2%
4,050 Operating
marginFormerly known as the Home Product Division HQ, the division is responsible for the saleof home appliances and interior goods for general consumers use.

Osaka
Osaka Sales
Sales Dept.
Dept.

Home Products
Products Div.
Div. HQ
HQ
Home

Sales
Sales Promotion
Promotion Div.
Div.

NagoyaNagoya Sales
Sales Dept
Dept..
KyushuKyushu Sales
Sales Dept.
Dept.
Kanto
Kanto Sales
Sales Depts.
Depts.
No.
No. 11 throughthrough No.
No. 33Mail-order
Mail-order BusinessBusiness Dept.
Dept.
eBusinesseBusiness Dept.
Dept.
Sales
Sales Dept.
Dept. No.4
No.4
Merchandise
Merchandise Div.
Div.

Merchandise
Merchandise Depts.
Depts.
No.
No. 11 throughthrough 4/
4/ Overseas
Overseas
Quality
QualityAssurance
Assurance Dept.
Dept.

MarketingMarketing Dept.
Dept.

 Activities
Activitiestotoextend
extendthe
therange
rangeofofPB
PBand
andoriginal
original
products
products
ÎÎ Sales
Salestarget
targetofof3.4
3.4million
millionelectric
electricfans
fansininsummersummer2012;2012;actions
actionstotoenhanceenhancethe
thesummerproduct
line
and
lines
addressing
summer product line and lines addressing
energyenergysavingsavingandandconservationconservation
Î
Actiontostrengthen
Î Action to strengthenproductproductlines
linesforfor
consumables
consumablesandandthosethosebacked
backedby
byproduct
product
loyalty.
loyalty.
 Activities
Activitiestotodrive
drivethethefurther
furthergrowth
growthofofthe
theInternet
Internetbusinessbusinessand
andtotoseek
seeknew
newsalessaleschannels
channelsÎÎ ¥5¥5billion
billionininsales
salestargetedtargetedfor
forKURASHINOKURASHINO
e-shope-shopÎÎ Product
Productdevelopment
developmentthroughthroughtie-ups
tie-upswith
with
drug
storesandpetshops,
andthedrug stores and pet shops, and thedevelopment
developmentofofnew
newsalessaleschannels
channels*Please note that the chart does not reflect the structure in full.

Consolidated Sales Targets by Division (Summary)(¥ millions)
Producer Goods

Machine Tools(Japan)Consumer
Goods

Operatingi n c o m e△ 6,647△ 2,800 g margin

Operatin－－

S a l e s

372,830
10,528of total
375,000 %sales
Gross
11,000 margin

100%
2.9%

0.6%
4.5%

Operatingi n c o m e

S a l e s

Housing
Equipment &Materials

S a l e s

Operatingi n c o m eOperatingi n c o m e
S a l e s

Total

YOY

of total
52,000 %sales
1,800 gOperatin
marginof total
108,000 %sales
3,100 gOperatin
marginof total
80,000 %sales
3,600 gOperatin
marginof total
51,000 %sales
1,250 gOperatin
marginof total
78,000 %sales
4,050 gOperatin
marginof total
6,000 %sales

International
Operations(Overseas)

Sales/income(expenses) not any of
the above divisions,Company-wide costs
and adjustments, etc.

Fiscal 2012

51,495
1,688
107,5112,487
79,9503,919
50,5191,118
77,104
3,570
6,249

S a l e s

Industrial Tools & S a l e s
Equipment
Operating(Japan)i n c o m eHome Products

Fiscal 2011

Operatingi n c o m e
S a l e s

Operatingi n c o m e

13.9% 1.0%
3.5% 6.6%
28.8% 0.5%
2.9% 24.6%
21.3% 0.1%
4.5% △ 8.1%
13.6% 1.0%
2.5% 11.8%
20.8% 1.2%
5.2% 13.4%
1.6% △ 4.0%

Ⅳ. Shareholder Returns

1. Shareholder Returns
2. Current Term Dividends

Shareholder Returns❐Basic Policy⊿ Yamazen is working to strengthen and enhance our corporate culture and toraise profit levels, and we are committed to returning profits to ourshareholders on a regular basis, maintaining a consolidated payout ratio ofaround 25% that reflects current profit levels.
⊿ Retained earnings are appropriated for investment that is intended toeffectively promote the sustainable development of our business andenhance shareholder equity, and by increasing our corporate value throughmid- to long-term growth, to meet the expectations of our shareholders.

Dividend Trends
FY07

FY08

FY09

FY10

FY11

FY12 (est.)

Consolidated
payout ratio

21.3％

30.9％

213.7％

25.8％

24.7％

22.7％

Cash Interim
DividenYear-end
ds

¥5.0

¥5.0

¥5.0

¥5.0

¥7.0

¥7.0

¥7.5

¥7.5

¥5.0

¥7.0

¥8.0

¥8.0

Current Term Dividends¾ We aim to achieve a consolidated payout ratio of 22.7%¾ Our fiscal 2012 targets are for an interim dividend of 7.0 yen and a year-end
dividend of 8.0 yen, or a total payout of 12.0 yen for the year
100.0025.0
Net earnings per share

80.03
80.00

58.60

60.77
40.43

12.5

12.5

46.52 15.0

12.5

66.1
15.0

15.0

12.0

10.0

10.0
20.00

5.0

4.68
0.00

0.0
FY06

FY07

FY08

FY09

FY10

FY11

FY12

(Dividend per share: yen)

(Earnings per share: yen)

60.00
40.00

20.0

Dividend per shareInquiries❐ Contact information for inquiries relating to particular meetings⊿ Public Relations Dept., Corporate Planning Dept., Corporate Planning Headquarters⊿ E-mail: info06@yamazen.co.jp⊿ Please use the inquiry form provided on the company website for any other inquiries
relating to Yamazen investor relations (http://www.yamazen.co.jp/ ).

Please note:This document contains statements pertaining to future events and the business performance of thiscompany. These statements are made on the basis of currently available information and the views
and assumptions of management as of this time. Actual results may differ materially from thoseexpressed or implied and this document is not intended to assure or guarantee that these results will
be achieved by the company.