TERASAKI REPORT
1 April 2018 – 31 March 20196-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 Japan
TEL：+81-6-6791-2701

Securities code 6637

President's Message

Industrial Systems

Marine Systems

Demonstrating originality in industrial
markets with our electrical power
distribution systems

Pursuing business challenges as aleading international manufacturer ofelectrical power distribution systems formarine applications

Circuit Breakers

Reigning as the most trusted circuit
breakers manufacturer in the world

TERASAKI in constant pursuit of innovativeelectrical power distribution and control systems

On the whole, the economic
environment surrounding Terasaki
Group has improved. In Japan,
corporate earnings grew, andcorrespondingly capital investments
have also increased strongly. In
overseas, the U.S.'s and European
economies were solid, but the U.K.'s
economy remained weak. China's
economy showed the tendency
towards a slowdown. The
shipbuilding industry, being one ofour major markets, showed thetrend of mild recovery, with increasein the numbers of orders for new
vessels, but business still remained
tough because ship prices did notrecover sufficiently.
Against this backdrop, theTerasaki Group increased efforts toimprove profits, through actions that
include enhancing sales activities inthe environmental protection-related
market, developing new products,
and reducing costs and expenses.
However, to our regret, theoverall sales volume decreased ascompared to the same term lastyear. This was due to the reduced
sales of equipment for container
ships and projects involving overseas
infrastructure investments in our
industrial system products, anddespite an increase in the sales ofmarine system products in China.
Operating profit declined due to thelow ship prices and increased
expenses for the development of
new products. Recurring profit had
also declined despite some profits
from an unexpected change inexchange rates. Profit attributable toowners of the company decreased,
although there was a gain on sales of
non-current assets.
In fiscal year 2019, we are
expecting to have an increased in
the number of orders from theenvironmental protection-related
market. We will strengthen global
cooperation under our "TEAMTERASAKI" banner and respondPresident

Taizo Terasaki
effectively to customers' needs inorder to improve customers'
satisf ac tio n. The re b y , we a recommitted to making unceasing
efforts to promote the businesses ofour five divisions.
We sincerely ask forcontinued support from ourshareholders and partners as we
pursue these challenges.
June 2019

Financial Highlights
Net sales

35,311 million JPY

Down 4.3% from the same term last year

Medical Devices

Contributing to human health andsecurity as a manufacturer of medical
devices
01

Engineering & Lifecycle
Services
Offering solutions to worldwide
customers through the engineering andlifecycle business

Recurring profit

1,923 million JPY

Down 15.0% from the same term last year

Operating profit

1,342 million JPY

Down 39.9% from the same term last year

Profit attributable to owners of the company

1,307 million JPY

Down 9.3% from the same term last year02

Consolidated Financial Highlights
Net sales

Operating profit/Operating profit ratio■Operating profit(Units: Million(Units: Million
JPY) JPY)

40,00040,000(Units:(Units:Million(Units:MillionJPY)
Million
JPY) JPY)

Consolidated Financial Statements●(Units: Million(Units: Million
JPY) JPY)

36,88036,88035,31135,31135,00035,00032,87332,87340,00040,00040,00036,88036,88036,88030,00030,00035,31135,31135,31135,00035,00035,00032,87332,87332,87325,00025,00030,00030,00030,00020,00020,00025,00025,00025,00015,00015,00020,00020,00020,00010,00010,00015,00015,00015,0005,0005,000
10,00010,00010,000002016 20162017 20172018 2018
5,000
5,000
5,000
FY FY
FY FY
FY FY
0 0 0
2016
2016
2016 20172017
2017 2018
2018
2018
FYFY FY
FYFY FY
FYFY FY

Recurring profit(Units: Million(Units: Million
JPY) JPY)

2,5002,500

2,2642,264
2,252
2,252
(Units:(Units:Million(Units:MillionJPY)
Million
JPY)
JPY)

2,5002,500(Units:(Units:Million(Units:MillionJPY)
Million
JPY) JPY)

2,500
2,500
2,500
2,000
2,000
1,9001,900

2,2352,235

10

5.8
5.8 5.8
1,500
1,500
1,500

6.1
6.1 6.1

1,000
1,000
1,000
500
500

10

(Units:(Units:%)(Units:%)%)

10
810 10
8

2,235
2,235
2,235

5.8
5.8
2,000
2,000
2,000
1,900
1,900
1,900
1,500
1,500

(Units:(Units:Million(Units:MillionJPY)
Million
JPY) JPY)

1,7181,718●(Units:%)(Units:%) %)(Units:(Units:JPY)(Units:
JPY) JPY)(Units:

250
300
300
3002502,000
2,000
1,9231,923 2,000
2,264
2,264
2,264
2,252
2,252
2,252
1,5001,500
1,4411,441
1,718
1,718
1,718
1,3071,307
200
250
250
250200
2,000
2,000
2,000
1,923
1,923
1,923
1,500
1,500
1,500
1,500
1,500
1,441
1,441
1,441
1,307
1,307
1,307
150
1,0001,000
131.93131.93200
200
200150110.67110.67
1,500
1,500
1,500
1,0001,000
100.36100.36100
150
150
150100
1,000
1,000
1,000
131.93131.93131.93500
500
110.67110.67110.67
1,000
1,000
1,000
100.36100.36100.36
500
500
2,500
2,500
2,500
2,000
2,000

03

500
500 500
0050 5000502016 20162017 20172018 2018
FY FY FY FY FY FY
0 0 0
0 0 0
2016
2016
2017
2017
2018
2018
2016
2017
2018
FYFY FY FYFY FY FYFY FY（Note）Monetary amounts are rounded off to one million JPY.

Current assets

32,93832,57013,638

12,1793.8 3.8
6
46
1,342
1,342
1,342

46

Property, plant and equipment

9,478

8,937

3.8
3.8 3.8
4 4

24

185

165

Investments and other assets

3,975

3,076

Total Assets

46,57744,74902
067.1 67.1

63.3 63.3
67.1
67.167.1
60.4 60.4
63.3
63.363.3

60.4
60.460.4

50
50
100
100 100

500
500
0
0 500
2016 20162017 20172018 2018
FY FY FY FY FY FY
0 0 0
2016
2017
2018
2016
2016
2017
2017
2018
2018
FYFY FY FYFY FY FYFY FY［Assets］

Non-current assets

Equity ratio

Profit per
share
300
300

（As of 31 March 2018） （As of 31 March 2019）682

2016 20162018 20182017 2017
FY FY FY FY FY FY
2016
2016
2016
2018
2018
2018
2017
2017
2017
FYFY FY FYFY FY FYFY FY（Units: Million JPY）

2018FY

8 8(Units: %)(Units:Million(Units:Million
JPY) JPY)
JPY)(Units: JPY) (Units: %)■Profitattributableto owners of(Units:
the company

2,0002,000

2017FY

6
1,3421,342

2
500
500
02
0 500
0
2016 2016 2017 2017 2018 2018
FY FY
FY FY
FY FY
0 0
0 0 0
2016
2016
2016 20172017
2017 2018
2018
2018
FYFY FY
FYFY FY
FYFY FY

Profit attributable to owners of
the company /Profit per share（Units: Million JPY）

Operating profit ratio(Units: %)(Units: %)6.1 6.1

1,0001,000■Consolidated Balance Sheets

Intangible assets■Consolidated Statements of Income

2017FY

2018FY

13,593
3,474
17,06812,546
2,131
14,67828,301
1,236
2,244
24,822△1
1,166
40
29,50946,57729,427
1,236
2,244
25,947△1607
37
30,07144,749（As of 31 March 2018） （As of 31 March 2019）［Liabilities］
Current liabilities
Non-current liabilities
Total Liabilities［Equity］
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Accumulated other comprehensive income
Non-controlling interests
Total Equity
Total Liabilities and Equity■Consolidated Statements of Cash Flows（Units: Million JPY）

2017FYNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Non-operating expenses
Recurring profit
Extraordinary income
Extraordinary loss
Profit before income taxes
Income taxes - Current
Income taxes - Deferred
Profit for the period
Profit（loss）attributable tonon-controlling interests
Profit attributable toowners of the company（Units: Million JPY）

2018FY

1 April 2017
（From
to 31 March 2018）

1 April 2018
（From
to 31 March 2019）

36,88026,620
10,259
8,024
2,235
334
305
2,264
27
9
2,282
709
127
1,445

35,31125,733
9,578
8,235
1,342
625
44
1,923
208
0
2,131
512
313
1,305

4
1,441

2017FY

1 April 2017
（From
to 31 March 2018）

2018FY

1 April 2018
（From
to 31 March 2019）

Cash flows from operating activities

2,512

1,112

Cash flows from investing activities

△865

△437

Cash flows from financing activities△880△1,018

Effect of exchange rate changes
on cash and cash equivalents

247

△56

Net increase（decrease）in
cash and cash equivalents

1,014

△400

Cash and cash equivalents
at beginning of year

10,766

11,768△1

Increase（decrease）in cash and cash equivalents
resulting from change of scope of consolidation

△12

－

1,307

Cash and cash equivalents
at end of year

11,76811,36804

Segment Performance by Region and ProductJapan
Net sales percentage

EuropeNet sales

13.1% from the
23,002 million JPY （Downsame term last year）

Segment profit

39.8% from the
1,299 million JPY （Downsame term last year）■Marine Systems

65.2％

Sales of Terasaki Shore Connection
increased, but sales of equipment forcontainer ships and LNG ships declined.

■Industrial Systems

Sales for projects involving overseas
infrastructure investment declined.

■Medical Devices

Medical tools and equipment:
New products sales were strong.
		
Clinical testing devices: Sales declined.

■Circuit Breakers
Japan:

Sales for the marine market were
weak.
Overseas: Export sales to East Asia and Europe
were strong, but those to Oceania
were sluggish.

Net sales
Segment profit

8,199 million JPY（Up 25.3% from thesame term last year）

708 million JPY（Up 5.7% from thesame term last year）■Marine Systems

23.2％

Segment profit

12.8% from the
220 million JPY （Downsame term last year）■Circuit Breakers

11.6％

U.K.: Sales nearly leveled off even though there were still uncertainties
surrounding the impending Brexit.
European and Middle Eastern countries: Sales remained firm.

■Engineering & Lifecycle Services
Sales declined.

By Product GroupAsia
Net sales percentage

Net sales percentage■Engineering & Lifecycle Services

Sales of replacements and modification ofequipment for ships and industry use were strong.

Up 6.4% from theterm last year）
4,109 million JPY （sameNet sales

The shipbuilding industry showed signs of recovery, but not to the extent that ships pricelevels were moved up sufficiently. This means the sales of our Marine Systems are still
not that great.

■Circuit Breakers

Sales for China's marine market were solid, but those for the Malaysian market weresluggish.

System Products
Net sales

19,032 million JPY（Down 8.4% from the same term
last year）

Orders received

Circuit Breaker Products
Net sales（Up 949 million JPY from the endof the last consolidated fiscal year）

53.9%

46.1%

16,278 million JPY

Net sales
percentage by
product group（Up 5.0% from the same term
last year）

17,139 million JPY

CircuitBreaker
Products（Up 1.0% from the same term
last year）

19,982 million JPY
Order backlog

SystemProducts（Note）We do not disclose orders received or orderbacklog for Circuit breaker products because
they are manufactured in accordance with
our planned production schedule.

■Engineering & Lifecycle Services
Sales remained firm.

05

06

Topics

Registered first as a "platform provider"
Recently the Ministry of Land, Infrastructure,
Transport and Tourism of Japan（MLIT）has beenpromoting the expansion of ship exports under theslogan "Export expansion and regional revitalization
through i-Shipping, the maritime industry's production
revolution". This project aims to capture 30 percent of
the world's ship share by improving the international
competitiveness of Japan's shipbuilding industry
through the introduction of information andcommunication technology into all phases of
shipbuilding, from ship development and construction
to operation. In addition, this government project alsooffers support to shipyards and related companies forthe research and development of IoT-based ships andmarine equipment that make use of advanced
technology, including IoT and big data.

Ships

Ships hold and use a variety of data, such as
information on vessel operations, weather and sea
conditions, and the conditions of the hull andequipment（including the engines）. So far, these dataon each ship have been collected and used
individually on board by systems and equipment thatare not linked and do not share with each other.
That is, up to now, a sufficient environment has notbeen established to collect and analyze these data
as a group. Therefore, in December 2015 Ship Data
Center Co., Ltd. was established by internationalclassification society Class NK（Nippon Kaiji Kyokai）
as a foundation for using ships' big data.
In April 2018, the Center launched Internetof Ships Open Platform （IoS-OP） and IoS-OP
Consortium. IoS-OP is a universal platform thatcollects and shares operational vessel data among
stakeholders and provides many services, including
the sale of data use rights to shipyards andmanufacturers. IoS-OP Consortium is anorganization that the business operators registered
as members, including shipping agents, shipyard
companies, ship machinery and equipment
companies, and weather information providers areallowed to participate in.

Land

TMIP（TERASAKI Marine Information
Platform）
TMIP collects data from various
systems around the ship, stores themand also sends them to land-based
stations.

07

On February 25, 2019, Terasaki Electric Co.,
Ltd. was first to be registered by the Center as aplatform provider which supply and deliver
on-board data collection equipment.
We are going to promote to the maritime
industry for applications in large data for ships anddo our best to contribute to the development of
this industry for this generation and long into the
future as well.

Integrated Control and Monitoring System TERANET50XTERANET50X is a ship-to-shore information sharing platform
which enables ships and land-based offices to share data using awide range of applications, through communication and storage
features designed for utilizing Big Data and IoT. This system isapproved for use by the classification society mentioned above.
In addition, TERANET50X is put on energy-saving ships andcontribute to global environmental protection by increasing the
optimum operating efficiency of the plants.
08

Corporate Information（As of 31 March 2019）■Corporate Profile■Board of Directors（As at 27 June 2019）

Company Name

Terasaki Electric Co., Ltd.

President

Head Office

6-13-47 Kamihigashi, Hirano-ku, Osaka 547-0002 JapanFoundation

1 October 1923

Established

1 April 1980

Capital1,236 million JPY

Employees

1,811（Consolidated）
558（Non-consolidated）

Consolidated
Subsidiaries

Domestic: 5, Overseas: 8

certified ISO 9001

Terasaki has attained ISO9001 certification, the international
standard for quality assurance.
<Locations>・System Division - Head Office, Yao Factory, and Yao Factory
Metal Work Section Kami Workshop, Tokyo Branch Office,Kyusyu Branch Office・Circuit Breakers Division - Head Office, Kami Factory

Taizo Terasaki

Senior Managing Director

Makoto Suto

Accounting & Finance, Business
Planning, R&D, Disclosure

Senior Managing Director

Shunji Okada

System Division

Managing Director

Kazunobu Kumazawa

General Affairs Department

Director

Masao Nishida

Marine Department System
Division
Engineering, Life Cycle

Director

Yoshihiro Umemoto

Circuit Breaker Division

Hirofumi Kobayashi

Sales and Marketing Circuit
Breaker Division

Director
Director

Junji Nagase

Director

Kunio Chiyoda

Audit & Supervisory Committee
Member（External）

Shunji Takano

Audit & Supervisory Committee
Member（External）

Director

Dividends/Payout ratio
10.6

certified ISO 14001

Terasaki has attained OHSAS18001 certification, thestandard for occupational health and safety management
systems.
<Locations>
Head Office, Yao Factory, Kami Factory
Imari Factory（TERASAKI ELECTRIC IMARI）
certified OHSAS 18001 Yabakei Factory（YABAKEI SEISAKUSHO）

Total number of shares authorized to be issued

52,000,000

Total number of issued shares

13,030,000
852

Number of shareholders

Shareholder

12.7

13.9

2015
FY

14

2016
FY

14

2017
FY

14

2018
FY

16

（Forecast）

2019
FY

Financial instrumentbusiness operators
17
2.00%
Individual investor andothers
720 84.50%

Business or othercorporation
59
6.92%

Terasaki Co., Ltd.

2,200

16.89

The Master Trust Bank of Japan, Ltd.

1,167

8.95

Taizo Terasaki

1,118

8.58

Terasaki Trust Co., Ltd

866

6.64

Kaori Aramaki

738

5.66

Terasaki Employee Stock Ownership

687

5.27

Yuzo Terasaki

677

5.19

Hozansha Co., Ltd.

653

5.01

Terasaki Kyoeikai

486

3.73

Arc Ltd.

400

3.07

* Treasury stock is included in individual investor and others.

Foreign corporation, etc.
629 thousand shares 4.83%

Financial instrumentbusiness operators
26 thousand shares 0.20%

Financial institution
2,454 thousand shares
18.83%
Shares distribution

Business or othercorporation
4,470 thousand shares
34.31%

13,030Individual investor andothers5,448 thousand shares
41.82%

thousand shares* Treasury stock（1,021 shares）is included in individual investor and others.

■Stock Price/Traded Volume（Tokyo Stock Exchange）
Stock price（JPY）

Traded volume（shares）

2,000

6.0
12

■■ Dividends（JPY）
Payout ratio（%）

Foreign corporation, etc.
47
5.52%
Financial institution
9
1.06%

Shares owned Share（1,000 shares） （%）（Note）Share percentages are calculated without treasury stock（1,021 shares）.

certified ISO 9001 & ISO 13485

Terasaki has attained ISO14001 certification, the international
standard for environment management systems.
<Locations>
Head Office, Yao Factory, Kami Factory
Imari Factory（TERASAKI ELECTRIC IMARI）
Yabakei Factory（YABAKEI SEISAKUSHO）■Distribution by Shareholders■Shares■Major Shareholders

Audit & Supervisory Committee
Member

The medical device related organization of Terasaki
Electric Co., Ltd. System Division has attained ISO9001
certification and ISO13485 certification, the international
standard of quality management system for medical
devices, from TÜV Rheinland Japan.

09

Stock Information（As of 31 March 2019）1,500,000

1,600

1,200,000

1,200

900,000

800

600,000

400

300,000

0

2016

2017

2018

2019

0

Mar. Apr. May May Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.

10