ETIC to Provide Support to ARRK Corporation
March 31st, 2011
Enterprise Turnaround Initiative Corporation of JapanThe Enterprise Turnaround Initiative Corporation of Japan (“ETIC”), has decided to provide
support to ARRK Corporation under Article 25, Clause 4 of the Enterprise Turnaround
Initiative Corporation of Japan Act (Act 63, of 2009, hereafter “the ETIC Act”).
1.

Name(s) of persons or companies concerned
ARRK Corporation (“ARRK”) and its subsidiaries Yasuda Inc., Showa Seiki Kogyo, Co.,
Ltd., Gifu Die & Mold Engineering Co., Ltd., Sol-Plus Co., Ltd., Sagamihara-Buhin Co.,
Ltd., Clover Electronics Co., Ltd., Toho System Co., Ltd.

2.

Name(s) of financial institutions jointly applying for rehabilitation support with ARRK
Mizuho Bank, Ltd. (“Mizuho Bank”) and Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”)

3.

Outline of business revitalization plan
Please see appendix.

4.

Comments from State Ministers in charge of ETIC
Prime Minister, Minister of Internal Affairs, Minister of Finance, Minister of Economy,
Trade and Industry, Minister of Health, Labour and Welfare: “I have no objection to thedecision to support ARRK Corporation. However, I ask that after reaching the decision to
support, ETIC should encourage ARRK to discuss the situation with employees of thecompany as soon as possible. I also ask that in advising on and guiding theimplementation of the corporate revitalization plan, ETIC should aim to ensure that
ARRK complies with related laws and regulations, and that ARRK also provides
adequate opportunities for substantive discussions with the workforce with due
consideration of employment stability and other such factors.”

5.

Comment from State Minister supervising business activities
Minister of Economy, Trade and Industry: It is my recognition that, although ARRK
Corporation has previously formulated a medium-term business plan and pursued
reorganization of its business accordingly, the present situation with regard to its
business environment and financial base would make it difficult to achieve further
1business restructuring.
This business revitalization plan aims, while improving ARRK’s financial strength, at
designating its key strength, product development-related services, as a core businessonto which concentrates management resources. The plan also aims at consolidate
ARRK’s domestic business locations and construct a global production framework thatwill improve productivity and cost competitiveness. The plan uses a business modelspanning the full line of production from the product development to casting andassembly, which will enable ARRK to respond to the needs of the domestic and of
Asian markest and thereby inspire the overseas expansion, of Japan-based
manufacturers. The Ministry of Economy, Trade and Industry expects that, through theimplementation of this plan, ARRK Corporation should achieve renewed growth
together with its group companies as a integrated businesses entity, while also making
steady progress in the better reorganization of its group structure.
6.

Debt purchase application period: From Friday, April 1st, 2011 for receipt by ETIC nolater than Wednesday, June 22nd, 20117.

Request for temporary suspension
Under Article 27, Clause 1 of the ETIC Act, financial institutions have been requested
not to recover loans or exercise any other rights they may have as creditors, other thanthose permitted under the corporate revitalization plan, before the end of the debt
purchase period as per item 6 above.

8.

Treatment of trade creditors
The decision to provide support only involves requesting financial institutions to provide
financial support to the target companies. No request for support will be made withregard to trade debt. Therefore there will be no impact on trade creditors.

9.

Basis for decision to support
ETIC’s basis for deciding to provide support is as follows.

9.1 Rationale
ARRK Corporation is Japan’s leading product development company serving the
manufacturing sector. The mainstay business of the ARRK Group (the parent and 67
consolidated subsidiaries) is industrial design modeling (product development support)
wherein it uses a full-line network system to provide integrated one-stop services
2including planning, design, prototype model production, mold making, casting, andassembly. The company’s initial business was the provision of development support
skills. It then proceeded to create a global network, amass knowledge related to casting
technologies, and develop a system providing clients with integrated services ranging
from product development to mold making and casting. The ARRK Group is able toprovide services in its core competence, support of small-lot production of prototype
models used in product development, on a global scale. The group can thus provide
clients with value superior to its competitors, making it highly competitive in the industry.
Provision of support for ARRK Corporation is an example of revitalization based on themodel of integration of multiple small- and medium-sized businesses in possession ofleading-edge technologies. The company has to date been unable to put into placegroup-wide management systems capable of keeping pace with rapid M&A-driven
expansion, while the parent company's hands-off management style (referred toin-house as renpo management) has hindered operational efficiency by tolerating a lackof adherence to business strategy and a preservation of unprofitable business divisions.
As a result the company has failed to produce desired synergies from the groupcompanies and the management has been slow to take action to improve groupcompanies producing lackluster results. Through the ETIC business revitalization plan,
ARRK Group will follow a clear business strategy geared toward reorganizing it into agroup of companies that generate synergies. Though this effort and by strengthening
the internal controls of its group management, the company is expected to improve its
profitability. In addition, we believe the restructuring of the domestic mold making andcasting business within the ARRK Group will assist in the resolution of structural
oversupply.
We believe business failure of ARRK Corporation would have an adverse impact on the
numerous suppliers and clients and threaten the livelihood of the company’s employees(1,600 employees of ARRK Corporation, 8,700 employees in total of domestic andoverseas group companies).
In addition to the adverse impact on local economies in the regions where thecompany’s businesses are located, we believe business failure of ARRK Corporation
would negatively impact product development of the domestic and the overseas
automakers and the electronics makers and thus think it important to consider the
impact of such a failure on society at large. Accordingly, ETIC has determined there is3

ample merit in supporting the revitalization of ARRK Corporation.
9.2 Role of ETIC
Under the terms of this plan, ETIC will:(1) Coordinate between the financial

institutions involved; (2) Implement a capital injection of ¥9 billion; (3) Facilitate newfinancing totaling ¥7.4 billion; (4) Strengthen management structure by providing
management personnel
With regard to (1) above, ETIC will reduce excessive interest-bearing debt and improve
the financial condition of ARRK Corporation by requesting debt forgiveness fromfinancial institutional creditors. With regard to (2), ETIC will provide funding for businessrestructuring and capital expenditures by underwriting the issue of ¥9 billion of ordinary
shares. With regard to (3), ETIC will provide a credit guarantee of ¥7.4 billion, thereby
facilitating the procurement of financing at overseas subsidiaries in the ARRK Group
from overseas financial institutions. With regard to (4), ETIC will support the business
revitalization process by placing management staff in ARRK Corporation following thecapital injection described in (2).
Ends

4

Appendix: Outline of business revitalization plan
Section 1: Overview of company receiving support (as of September 30th)
1. ARRK Corporation
1.1

Name of company
ARRK Corporation

1.2

Head office
Minami Honmachi 2-2-9, Chuo-ku, Osaka, 541-0054

1.3

Day of establishment
September 1st, 1989

1.4

Capital¥30,755,500,000

1.5

SharesNumber of shares authorized:

100,000,000 shares

Number of shares issued and outstanding: 68,101,592 shares
1.6

Main shareholders
Name

Number of shares held
(Unit: Thousand)

Percentage of
total (%)

3,578
2,758
2,588
2,147
1,017

5.25
4.05
3.80
3.15
1.49

Emiko Araki
Japan Trustee Services Bank, Ltd.
Toshihiro Araki
Kazumi Araki
Japan Securities Finance Co., Ltd.
UBS AG London Account IPB SegregatedClient Account
Others750

1.10

55,264

81.16

Total

68,102100.00

1.7

Business
Comprehensive product development-related services
・ Manufacturing and sale of industrial design models
・ Product development/planning/design/architectonics
・ Designing and manufacturing of molds; small-lot production and sale of molded
products
・ Other design/model planning, designing, manufacturing, sales and related business・ Worker placement service

5

1.8

Number of employees
610 (of which, 77 part-time, 8 on placement )1.9

Main facility locations
Headquarters office: Osaka-shi, Osaka
Tokyo head office: Asaka-shi, Saitama
Osaka head office: Tondabayashi-shi, Osaka
Nagoya head office: Nagoya-shi, Aichi
Fujiyoshida factory: Fujiyoshida-shi, Yamanashi

1.10

Main banks
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ,
other

1.11

Affiliated companies
Yasuda, Inc., Showa Mold & Engineering Co., Ltd., Gifu Die & Mold Engineering Co.,
Ltd, Sol-Plus Co., Ltd., Sagamihara-Buhin Co, Ltd., Clover Electronics Co., Ltd.,
Satosen Co., Ltd., Toho System Co., Ltd., Sekisui Machinery Co., Ltd., ARRK
Okayama Co., Ltd., C&G Systems Inc., 3D Auto Protech Co., Ltd.; 55 consolidated
foreign subsidiaries and 16 other affiliated companies

1.12

Financial overview (for the year ended March 2010)(Consolidated)
Net sales¥122,186,620,000

Gross profit¥15,211,530,000

Operating income(¥5,004,590,000)

Ordinary profit(¥5,637,100,000)

Net income(¥15,415,850,000)

Net assets¥8,472,310,000

Gross assets¥116,613,400,000(Non-consolidated)
Net sales¥8,511,680,000

Gross profit¥1,649,280,000

Operating income(¥205,610,000)

Ordinary profit(¥297,470,000)

Net income(¥13,123,960,000)

Net assets¥12,255,720,000

Gross assets¥61,757,860,000

6Section 2: Background and circumstances leading to the request for ETIC support
Based on its leading-edge technologies, ARRK Corporation has the top domestic market
share in the field of industrial model design and has for many years supported thedevelopment activities of the automotive and electronics industries, key sectors in theJapanese economy. The company has therefore developed a powerful brand and a strong
client base including the major automakers and the consumer electronics makers.
The mainstay business of the ARRK Group is industrial design modeling (development
support) wherein it uses a full-line network system to provide integrated one-stop services
including planning, design, prototype model production, mold making, casting, andassembly on a global scale. This business expanded rapidly starting in 2000 due to thecompany's aggressive M&A strategy. The number of consolidated subsidiaries thus grewfrom seven in the fiscal year to March 2000 to 180 in the fiscal year to March 2007 andconsolidated sales increased from ¥13.9 billion in the fiscal year to March 2000 to¥383.3 billion in the fiscal year to March 2008.
However, the company was unable to put into place group-wide management systems
capable of keeping pace with rapid M&A-driven expansion and growth halted amid theglobal economic downturn. The parent company's hands-off management style (referred toin-house as renpo management) failed to produce desired synergies from group companies
and management was slow to take action to improve group companies producing lackluster
results. The earnings power of the ARRK Group therefore waned while interest-bearing debt
taken on to conduct M&A (¥150.1 billion as of end of the fiscal year to March 2008) has
acted as a drag on earnings.
In response, in July 2009, the company formulated its medium-term business plan, ARRK24,
which aimed to improve management of group companies (through consolidated
management) while maintaining a high level of autonomy. In line with this plan, subsidiaries
with flagging earnings and non-core businesses were restructured and the number ofconsolidated subsidiaries fell from a peak of 180 to the current level of 67 while the group’s
interest-bearing debt was roughly halved.
However, due to losses on sales of subsidiaries and the posting of impairment losses due toearnings decline, shareholders’ equity has deteriorated significantly and, as of the third
quarter of the fiscal year to March 2011, the shareholders’ equity ratio had fallen to 2.7% andthe company was unable to reduce interest-bearing debt to levels commensurate with its
7earnings potential. As a result, starting in April 2010, ARRK Corporation and several
subsidiaries asked for and received an extension of debt repayment terms from its financial
institution creditors.
In our view, the ARRK Group should leverage its powerful brand and strong clientbase—which includes the major automakers and the consumer electronics makers—built up
based on leading-edge technologies, to become more competitive. In order to do this, we
believe it must further strengthen consolidated management through far-reaching
restructuring of the group and individual businesses. However, due to declining
shareholders’ equity and excessive interest-bearing debt, the ARRK Group is currently at an
impasse because it is not in a position to embark on restructuring programs which would
drain capital.
Accordingly, ARRK Corporation, after discussions with its main creditors (Mizuho Bank andBank of Tokyo-Mitsubishi UFJ), applied to ETIC for support with the aim of pursuing atransparent and fair business revitalization while minimizing damage to corporate value andconducting far-reaching restructuring of its businesses with the financial support of thefinancial institutions and the capital injection from ETIC, thereby maximizing corporate
value.

Section 3: Outline of business revitalization plan
1. Basic policy
The core aim of this business revitalization plan is to conduct a far-reaching program of
streamlining of resources to maximize the competitiveness of the ARRK Group with the aimof supporting industrial product development in four global centers (Japan, other Asian
countries, Europe, and North America).
The ARRK Group has competitive advantages including (1) high-level development support
skills, (2) a global network, (3) leading-edge technology and knowledge related to molds,
and (4) the ability to provide clients with integrated services related to small-lot production
for product development (ranging from development to mold making and casting). As
mentioned above, however, the formation of a corporate group lacking a robust consolidated
management system has prevented the effective leveraging of its capabilities. ARRK
Corporation has therefore decided to embark on a group-wide restructuring program withthe financial support of its main creditors and a capital injection from ETIC in line with this8business revitalization plan.
2. Business restructuring
In line with the above basic policy, the ARRK Group will optimize the number of its groupcompanies, domestic production facilities, and domestic employees through a far-reaching
program of streamlining of resources while improving coordination within the group andstrengthening consolidated management.
The following is an outline of the business revitalization plan.
(1) Far-reaching streamlining of resources
The ARRK Group will review its scope of operations, designating knowledge related to
product development support as its core competency, designating businesses related to themaintenance and strengthening of its core competency as viable businesses anddesignating all other businesses as non-viable businesses from which it will withdraw.
(2) Strengthening of core businessesa) Streamlining of domestic production facilities and increasing selectivity with regard toacceptance of ordersb) Acceptance of more orders making full use of the group's full-line network system inJapan and other Asian countriesc) Achievement of synergies in Europe and North America(3) Strengthening of management systemsa) Strengthening of management of subsidiariesb) Strengthening of ARRK Corporation’s earnings management(4) Reform of organizational controls and HR policies
Reform of organizational controls and HR policies with the aims of carrying out afar-reaching restructuring of businesses, establishing a consolidated management
system, carrying out steady cost-cutting efforts, and continuously strengthening
competitiveness.
3. Financing of restructuring and capital expenditures
ETIC will provide funding for business restructuring and capital expenditures by
underwriting the issue of shares.
4. Terms of financial support
The subject company and the others should request that the creditors should forgive at
most ¥2.8 billion in outstanding debt and accept stock in lieu of ¥20.6 billion equivalent9in outstanding debt through a debt/equity swap. (However, separately a request to
relinquish rights to claim performance guarantees of approximately ¥1 billion is to be
made.) The debtor companies other than ARRK Corporation are to transfer all relevant
debts to ARRK Corporation, thereby concentrating all relevant obligations in ARRK
Corporation so as to integrate all the financial functions.
5. Financing
With the provision of financial support as outlined in this business revitalization plan,
namely the injection of capital and new financing by ETIC and new financing by the main
creditors, we believe the companies receiving support should not to face capitalinsufficiencies.
6. Conformance with standards for support(1) Possession of effective management resources
In its product development support business, the ARRK Group assists manufacturers
with the development of new products and has the largest team of product development
engineers and largest client base in Japan. In the 62 years since its establishment, the
ARRK Group has amassed leading-edge technologies, knowledge and a strong clientbase.
The ARRK Group’s businesses perform essential services for domestic and overseas
manufacturers including the automakers and the consumer electronics makers. The
group has positioned itself as a provider of product development infrastructure enabling
it to provide services related to new product development including support for planningand design and prototype model production.
(2) Excessive indebtedness
The ARRK Group carries an excessive amount of debt compared to its revenues.
Financial support is essential to the revitalization of the group.
(3) Standard for productivity improvement
Successful implementation of this business revitalization plan is expected to increase
productivity within three years of the date of the decision to provide support.
(4) Standards for financial soundness
Successful implementation of this business revitalization plan is expected to enable thegroup to meet the required standards with respect to financial soundness within three
years of the date of the decision to provide support.
(5) Potential to refinance within three years
Implementation of the business revitalization plan is expected to significantly improve10

the financial condition of the ARRK Group, enabling it to reach a appropriate level offinancial stability for the repayment of debt principal and interest, thereby making
refinancing highly possible.
(6) Connection with structural oversupply
Implementation of the business revitalization plan is expected to decrease structural
oversupply through the restructuring of the group’s domestic mold and casting
businesses.
(7) Status of consultations with unions
As there is no labor union representing a majority of employees at ARRK Corporation,
Yasuda, Sol-Plus, Sagamihara-Buhin, Clover Electronics, and Toho System, as part of
the revitalization process it is planned that a meeting with representatives of the majorityof employees will be scheduled promptly after the announcement of the decision by
ETIC to provide support, and opportunities will be provided to discuss aspects of thebusiness revitalization plan including employment and working conditions. At Showa
Seiki Kogyo and Gifu Die & Mold Engineering, it is planned that a meeting with labor
unions is scheduled promptly after the announcement of the decision by ETIC to provide
support, and opportunities are provided to discuss aspects of the business revitalization
plan including employment and working conditions.
Section 4: Responsibility of management and governance
1. ARRK Corporation
In recognition of their responsibility for the current situation, all current directors andauditors of ARRK Corporation relinquish retirement payments and representative
directors surrender their shares free of charge to ARRK Corporation. With the exceptionof outside auditors, in principle, all current directors and auditors of ARRK Corporation
resign from their posts.
2. Yasuda, Showa Seiki Kogyo, Sol-Plus, Clover Electronics, and Toho System
In recognition of their responsibility for the current situation, all current directors andauditors of companies requesting financial support relinquish retirement payments andrepresentative directors surrender their shares free of charge to ARRK Corporation,
relinquish retirement payments and, in principle, resign from their posts.
Section 5: Responsibility of the shareholders
Regarding the responsibilities of the shareholders of ARRK Corporation, in line with thebusiness revitalization plan, ETIC will underwrite the issue of ¥9 billion of shares andcreditors will accept stock in lieu of ¥20.6 billion equivalent in outstanding debt in a
11

debt/equity swap. This is expected to significantly dilute the holdings of the current
shareholders, which leads to clarify the performance of the responsibility by the shareholders.

12

(Reference) Overview of the companies receiving support besides ARRK
1. Yasuda Inc. (as of June 30th, 2010)
1.1 Name of company
Yasuda Inc.
1.2 Head Office
Nishi-Shinagawa 3-16-45, Shinagawa-ku, Tokyo
1.3 Date of establishment
September 1, 1982
1.4 Capital¥237,600,000
1.5 Shares
Number of shares authorized:

3,200

Number of shares issued:

1,700

1.6 Main shareholder
Number ofName/name of company

shares held
(thousand)

Percentage of
total equity (%)

ARRK

1.7

100.00Total

1.7

100.00

1.7 Main business
Design and manufacture of ejector sleeves
Manufacture, paint, print and simple assembly of plastic products
Manufacture of trial products
1.8 Number of employees
98 (of which, 2 on placement and other)
1.9 Main facility locations
Head Office:Shinagawa-ku, Tokyo

Yamagata Plant: Kawakita-cho, Nishimurayama-gun, Yamagata
Yunosawa Plant: Murayama-shi, Yamagata
1.10 Main banks
Sawayaka Shinkin Bank, Japan Finance Corporation, The Shonai Bank, Ltd., others131.11 Financial overview (for the year ended December 2009)
Net sales¥1,253,860,000

Gross profit (loss)(¥156,700,000)

Operating income (loss)(¥356,100,000)

Ordinary income (loss)(¥360,200,000)

Net income (loss)(¥225,000,000)

Net assets¥1,101,630,000

Total assets¥3,711,800,000

2. Showa Mold & Engineering Co., Ltd.
2.1

Name of company
Showa Mold & Engineering Co., Ltd.

2.2

Head Office
Takagawara 1505, Aza Takagawara, Ishii-cho, Myozai-gun, Tokushima

2.3

Date of establishment
February 10th, 1937

2.4

Capital¥96,000,000

2.5

2.6

SharesNumber of shares authorized:

6,000,000

Number of shares issued:

1,920,000

Main shareholder
Number ofName/name of company

shares held
(thousand)

2.7

Percentage of
total equity (%)

ARRK

1,920

100.00

Total

1,920

100.00Main business
Plastics moldings
Die casting
Engineering, Manufacture and sale of precision and general molds for powder
metallurgy

2.8

Number of employees

14179 (of which, 3 part-time)
2.9

Main facility locations
Head Office/Ishii Factory:
Kamojima Factory:

Ishii-Cho, Myozai-gun, Tokushima

Yoshinogawa-shi, Tokushima

Kansai Branch: Itami-shi, Hyogo
2.10 Main banks
The Awa Bank, Limited, Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd., others
2.11 Financial overview (for the year ended March 2010)
Net sales¥1,762,450,000

Gross profit (loss)(¥187,710,000)

Operating income (loss)(¥476,630,000)

Ordinary income (loss)(¥452,040,000)

Net income (loss)(¥5,350,000)

Net assets¥2,156,380,000

Total assets¥4,552,810,000

3. Gifu Die & Mold Engineering Co., Ltd.
3.1 Name of company
Gifu Die & Mold Engineering Co., Ltd.
3.2 Head Office
Rokujo-minami 1-9-6, Gifu-shi, Gifu
3.3 Date of establishment
March 14th, 1957
3.4 Capital¥400 million
3.5 Shares
Number of shares authorized:
Number of shares issued:

1,600,000
800,000

15

3.6

Main shareholder
Number of shares
Name/name of company

3.7

Percentage of

held

total

(thousandequity

)

(%)

ARRK

800

100.00Total

800

100.00Main business
Plastic mold ejector sleeves
Die casting dies
Low-pressure die casting
Shell molding

3.8

Number of employees
257 (of which, 10 part-time and 26 on placement/other)

3.9

Main facility locations
Head Office/Factory: Gifu-shi, Gifu

3.10 Main banks
The Juroku Bank, Ltd., Mizuho Bank, Ltd., The Gifu Shinkin Bank, others
3.11 Financial overview (for the year ended March 2010)
Net sales¥3,405,980,000

Gross profit (loss)¥53,520,000

Operating income (loss)(¥454,680,000)

Ordinary income (loss)(¥409,780,000)

Net income (loss)¥3,201,630,000

Net assets¥5,811,220,000

Total assets¥8,880,180,000

4. Sol-Plus Co., Ltd. (as of June 30th, 2010)
4.1

Name of company
SOL-PLUS Co., Ltd.

4.2

Head OfficeHirai 22-9, Hinode-Machi, Nishitama-Gun, Tokyo

4.3

Date of establishment

16September 3rd, 1966
4.4

Capital¥295 million

4.5

4.6

SharesNumber of shares authorized:

2,400

Number of shares issued and outstanding:

1,700

Main shareholders
Number ofName/name of company

Percentage ofshares held

total equity (%)(thousand)
ARRK

1.2

72.06

Hiroshi Yoshida

0.3

19.06

Minoru Yoshida

0.2

8.82

Yasunori Hirata

0

0.06

1.7

100.00

Total
4.7

Main business
Design and manufacture of synthetic resin molds
Molding and processing of synthetic resin products
Processing of precision mold components

4.8

Number of employees
65 (of which, 4 part-time)

4.9

Main facility locations
Head Office/Factory:

4.10

Hinode-machi, Nishitama-gun, Tokyo

Main banks
Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking
Corporation and others

4.11

Financial overview (for the year ended December 2009)
Net sales¥2,295,140,000

Gross profit¥587,710,000

Operating income¥144,450,000

Ordinary income¥123,200,000

Net income¥10,080,000

Net assets¥2,278,790,000

Total assets¥7,593,860,000

175. Sagamihara-Buhin Co., Ltd.
5.1

Name of company
Sagamihara-Buhin Co., Ltd.

5.2

Head Office
Hashimotodai 2-6-28, Midori-ku, Sagamihara-shi, Kanagawa

5.3

Date of establishment
December 16th, 1983

5.4

Capital¥20 million

5.5

SharesNumber of shares authorized: 1,600
Number of shares issued:

5.6

400

Main shareholder
Number ofshares held
(thousand)
0.4
0.4

Name/name of company

5.7

ARRK
Total
Main business

Percentage of
total equity (%)
100.00100.00

Manufacture and sale of precision plastic components (mold design and manufacture,
product design, molding, processing and assembly)
5.8

Number of employees
69 (of which, 29 part-time employees and 2 on placement)

5.9

Main facility locations
Head office/Factory: Sagamihara-shi, Kanagawa

5.10

Main banks
The Shoko Chukin Bank Limited, and Sumitomo Mitsui Banking Corporation

5.11

Financial overview (for the year ended March 2010)
Net sales¥1,014,700,000

Gross profit¥100,570,000

Operating income¥20,130,000

Ordinary income¥21,660,000

Net earnings¥12,090,000

Net assets¥565,290,000

Total assets¥1,107,540,000

18

6. Clover Electronics Co., Ltd.
6.1

Name of company
Clover Electronics Co., Ltd.

6.2

Head office
Toiso 573-19, Eniwa-shi, Hokkaido

6.3

Date of establishment
June 1st, 1984

6.4

Capital¥420 million

6.5

SharesNumber of shares authorized:

33,600

Number of shares issued and outstanding:
6.6

Main shareholder
Number ofsharesheld(thousand)
24.4
24.4

Name/name of company

6.7

24,400

ARRK
Total
Main business

Percentage of
total equity(%)
100.00100.00

Manufacture and sale of printed wiring boards
6.8

Number of employees
214 (including 6 part-time employees and 56 on placement)

6.9

Main facility locations
Head office/factory: Eniwa-shi, Hokkaido

6.10

Main banks
Sumitomo Mitsui Banking Corporation, North Pacific Bank, Ltd., Mizuho Bank, Ltd.
and others

6.11

Financial overview (for the year ended March 2010)
Net sales¥4,237,880,000

Gross profit(¥193,630,000)

Operating income(¥725,010,000)

Ordinary income(¥808,530,000)

Net earnings(¥1,507,440,000)

Net assets¥208,450,000

Total assets¥6,048,480,000

197. Toho System Co., Ltd.
7.1 Name of company
Toho System Co., Ltd.
7.2 Head Office
Kikusuidouri 2-10-5, Moriguchi-shi, Osaka
7.3 Date of establishment
December 14th, 1974
7.4 Capital¥20,000,000
7.5 Shares
Number of shares authorized: 200,000
Number of shares issued:

40,000

7.6 Main shareholders
Number ofName/name of company

shares held
(thousand)

Percentage of
total equity (%)

ARRK

21.5

53.75

Mitsuo Nishida

10.7

26.75

Teru Nishida

3.8

9.50

Other

4.0

10.00

Total

40.0

100.00

7.7 Main business
Development and manufacture of electric power supply, electronic control,
communications and measurement instruments
Design, manufacture and installation of automated manufacturing equipment
Software development for PCs, microcomputers and sequencers
Board and chassis design (sheet metal/ resin molded products)
Board mounting/device production/inspections
7.8 Number of employees
72 (including 33 part-time and 4 on placement)
7.9 Main facility locations
Head office:Moriguchi-shi, Osaka

Kadoma factory:

Kadoma-shi, Osaka

Katano factory:

Katano-shi, Osaka20

7.10 Main banks
Bank of Kyoto, Ltd. and Bank of Tokyo-Mitsubishi UFJ, Ltd.
7.11 Financial overview (for the year ended March 2010)
Net sales¥593,910,000

Gross profit¥40,140,000

Operating income(¥22,540,000)

Ordinary income(¥24,980,000)

Net earnings(¥83,790,000)

Net assets¥180,180,000

Total assets¥1,048,400,000

21