Steer-by-WireStarted production in April 2013

Annual Report 2013
Year Ended March 31, 2013

Message from the President

The KYB Group contributes to society by providing technologies andproducts that make life safe and comfortable.
That’s why we aim to be a highly reliable organization that supplies our
products to all of the world’s major automobile and construction machinery
manufacturers by FY2020.
Masao Usui

Our vision for FY2020 is to be a highly reliable organization that supplies products to all of theworld’s major automobile and construction machinery manufacturers. For the KYB Group, Japan
has become simply one base of operations in a global organization. Achieving sustained growth for
the Group will require shifting the emphasis of management from the head office in Japan to an
optimized worldwide emphasis. The KYB Group will constantly produce creative products at R&D
bases around the world.
The KYB Group is now in the third and final year of the current medium-term management plan,due to end in March 2014. During the period from FY2011 to FY2013, we faced many severe
external factors: the Great East Japan Earthquake, extensive flooding in Thailand, an economic
slowdown in China, and the lengthening of the European debt crisis. Facing the effects of thesefactors, we forecast that the sales targets originally determined in the KYB Group’s current
medium-term management plan will not been reached. We set FY2011 to FY2013 as the stagefor ”planting the seeds for growth” and ”putting the necessary framework in place.” The slogan
Contents
Message from the President .......................................................................................... 1
Financial Review ............................................................................................................. 2
Ten-Years Summary ....................................................................................................... 4
Financial Statements
Consolidated Balance Sheets (Unaudited) .................................................................. 6
Consolidated Statements of Income (Unaudited) ....................................................... 8
Consolidated Statements of Comprehensive Income (Unaudited) ............................. 9
Consolidated Statements of Changes in Net Assets (Unaudited) .............................. 10
Consolidated Statements of Cash Flows (Unaudited)................................................. 11
Notes to Consolidated Financial Statements (Unaudited)........................................... 12
Major Subsidiaries and Affiliates ................................................................................... 36
Corporate Information ................................................................................................... 38
Shareholder Information ............................................................................................... 39

Forward-Looking StatementsT his annual report contains forward-looking statements, including KYB’s plans and strategies, as well
as statements that report historical results. Forward-looking statements involve such known andunknown risks and uncertainties as economic conditions; currency exchange rates; laws, regulations,and government policies; and political instability in principal markets.

of the current medium-term management plan is ”compete on the global stage with the power ofthe KYB Group.” We are making up-front investments for the future and taking on challenges withthe collective strength of the entire KYB Group. FY2013 is both the final year of this plan as well
as a time to set the stage for more progress during the next three-year plan. In this final year, weare concentrating on the themes of ”reinforcing the foundation” and ”growth and development.”
To accomplish these goals, we are redesigning a powerful foundation for our operations that can
support vigorous expansion and growth during the next medium-term management plan.
We set FY2014 to FY2016 as the stage for ”growth” on a global scale, which we will achieve by”aggressive measures” carried out throughout the Group.
I ask for the support and understanding of shareholders, investors, and all other stakeholders as we
continue to move toward achieving our goals.
December 2013

Masao Usui
Representative Director, President Executive Officer

1

2

13.8

24.1

11

FY

12

R&D Expenses

08

09

11

10

11

39.2

FY

12

Total Net Assets and Total Assets

FY

08

09

10

11

10

11

12

Equity Ratio

11

12

FY

08

09

10

11

12

Return on Equity (ROE)*

(%)

33.2

327.9

10

27.1

09

34.5

(%)

21.1

30.6
26.6

27.3

14.8

116.4

301.3

285.1
89.9

269.3
78.4

(Billions of yen)

08

09

8.9

24.9
10.0

09

08

(Billions of yen)

5.4
4.0

08

FY

Depreciation and Amortization(Billions of yen)

3.2

2.8

3.2

FY

12

Capital Expenditure(Billions of yen)

0.6
-5.2

10

14.5

10

16.5

09

3.8

0.04

10.4

7.7

305.7

337.1

252.0

320.0

329.2

08

269.6

Cash FlowsNet cash provided by operating activities increased 9.1%
to ¥18,984 million. Major sources of cash were income
before income taxes and minority interests of ¥12,994 million, depreciation and amortization of ¥14,554 million, anddecrease in notes and accounts receivable—trade of¥13,091 million. Cash was used for ¥14,882 million in
decrease in notes and accounts payable—trade and¥6,884 million in income taxes paid.
Net cash used in investing activities increased 80.6%
to ¥36,125 million. The purchase of property, plant andequipment of ¥31,682 million was the primary use of cash.
Net cash provided by financing activities was ¥8,529
million. This was due to net increase in short-term loans
payable of ¥7,018 million and long-term loans payable of¥4,326 million.
As a result, cash and cash equivalents at end of period
decreased ¥6,794 million to ¥35,215 million.

(Billions of yen)

13.5

FY

Net Income (Loss)(Billions of yen)

13.4

Financial Condition
Total current assets decreased mainly because of notes andaccounts receivable—trade that accompanied the decline in
net sales. Non-current assets were higher due to anincrease in property, plant and equipment resulting frommaking speedy investments in strengthening KYB’s production system. As the result, total assets increased ¥26,564
million to ¥327,912 million.
Total liabilities increased ¥12,890 million to ¥211,476
million. There were decreases in notes and accounts payable—trade that accompanied the decline in net sales andan increase in notes payable—facilities because of capital
expenditures.
Total net assets increased ¥13,674 million to ¥116,435
million due to increase in retained earnings.
The increase in net assets raised the equity ratio by 1.3
percentage points from one year earlier to 34.5%.

Operating Income(Billions of yen)

15.3

Net Sales

21.5

non-current assets and provision for retirement benefits inassociation with an early retirement program at a
subsidiary.
After subtracting the net extraordinary loss of ¥567 million from the ordinary income of ¥13,561 million, income
before income taxes and minority interests totaled¥12,994 million. Deductions were ¥4,725 million for total
income taxes and ¥479 for minority interests in income,which resulted in net income of ¥7,789 million.

76.4

Summary
In the automotive components segment, sales decreased
1.0% to ¥184,802 million.
Sales of automotive shock absorbers in Japan wereabout the same as one year earlier but shipments in
Europe were sluggish. Sales of shock absorbers increasedin North America and Thailand and there was also an
increase in sales of aftermarket shock absorbers, mainly inemerging countries. As a result, total shock absorber sales
were higher than one year earlier. For motorcycle shock
absorbers, shipments increased in Vietnam but were sluggish in Thailand. The result was a small decrease in sales.
Sales of automotive hydraulic components, mainly for
power steering, decreased in part because of a drop in
demand in China.
In the hydraulic components segment, sales decreased
23.6% to ¥105,067 million.
Sales of industrial hydraulic components, which areused mainly in construction machinery, were strong inJapan as internal demand was created by earthquake
recovery activities. Outside Japan, sales of industrial
hydraulic components decreased. Although there washigher demand for hydraulic components used in largesize excavators for mining, demand for mid-size excavators in China fell sharply.
Sales of hydraulic equipment for aircraft declined alongwith decrease in orders for spare parts.
In the others segment, which consists of special-purpose vehicle and other products, sales increased 22.4% to¥15,882 million. Sales of special-purpose vehicles, primarily concrete mixer trucks, were much higher due to the
combined benefits of demand associated with earthquake
reconstruction activity and replacement demand for older
vehicles.
As a result, consolidated net sales decreased 9.3% to¥305,752 million.
Operating income was ¥10,473 million. The large
declines in the automotive components segment and thehydraulic components segment were the main causes.
The other segment’s segment profit also declined.
Non-operating income and expenses, net improved to
net non-operating income of ¥1,870 million. Althoughinterest expenses increased ¥129 million, there was an
improvement in foreign exchanges from a ¥351 million
loss to a ¥1,965 million gain.
Ordinary income decreased ¥9,194 million to ¥13,561
million.
There was net extraordinary loss of ¥567 million.
Extraordinary losses included a loss on disposal of

Annual Report 2013

17.0

KYB Corporation

102.7

Financial Review

7.3
0.9

FY

12

Total Net Assets
Total Assets

08

09

10

11

12

FY

08

09

10

11

12

* ROE = Net income/(Net assets – Minority interests
in consolidated subsidiaries)3

Ten-Years Summary

KYB Corporation

Annual Report 2013

Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31,

Millions of yen
2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

Net sales¥305,752¥337,158¥320,082¥252,020¥329,262¥387,080¥356,083¥290,455¥270,329¥228,525

Cost and expenses

295,279

315,621295,931

248,124

329,213368,809341,510

283,732

260,687

217,406

Operating income

10,473

21,53724,151

3,896

49

18,271

14,573

6,723

9,642

11,119

3.4

6.4

7.5

1.5

0.0

4.7

4.1

2.3

3.6

4.9

Ordinary income (loss)

13,561

22,75523,972

5,530(1,395)

17,643

15,111

8,272

9,992

10,918

Income (loss) before income taxes and minority interests

12,99421,75924,4391,670(4,299)15,21813,480

8,008

10,13810,856

Net income (loss)

7,789

13,897

17,014661(5,229)

8,397

6,959

2,917

5,501

6,040

Comprehensive income

16,06014,997

14,405

—

—

—

—

—

—

—

Return on equity (ROE)

7.3

14.8

21.1

0.9

—

9.9

8.7

4.0

8.0

9.6

Cash flows from operating activities

18,984

17,39935,43322,654

8,499

19,706

20,357

13,8208,999

12,570Cash flows from investing activities(36,125)(20,000)(7,233)(12,828)(26,505)(20,165)(18,322)(15,959)(14,778)(11,533)

Cash flows from financing activities

8,529(3,454)(16,967)(6,646)32,1994,192(3,157)

2,965

191

(2,310)R&D expenses

5,468

4,035

3,218

2,816

3,268

3,367

3,707

3,705

3,533

3,393

Depreciation and amortization

14,554

13,50813,42615,31816,551

14,973

12,288

10,250

9,780

8,268

Capital expenditure

39,21527,172

8,915

10,081

24,96823,564

19,735

15,677

14,070

10,395Working capital

22,18042,00646,024

48,701

43,512

29,12023,75821,392

26,492

17,917

Total net assets

116,435

102,761

89,96478,48976,45091,73887,81676,71870,656

66,819Total assets

327,912301,348

285,134

269,361

269,655

289,738

285,146

247,966

222,224

213,845

Cash and cash equivalents at end of period

35,21542,00948,122

37,66334,272

20,073

16,651

14,963

13,96018,901

34.5

33.2

30.6

27.3

26.6

29.8

29.1

30.9

31.8

31.2

For the year:

Operating income margin [%]At year-end:

Equity ratio [%]Yen
Per share data:¥ 35.24¥ 62.87¥ 77.54¥

3.03¥(23.62)¥ 37.72¥ 31.33¥ 12.63¥ 24.15¥ 26.55

512.18453.00395.18336.55327.97387.45372.60343.99316.64299.34

Cash dividends applicable to the year

8.00

9.00

8.00

2.50

3.50

7.00

7.00

6.00

6.00

6.00

P/E ratio [Times]

13.1

8.0

8.6

113.9

—

10.2

20.8

35.2

15.2

15.0

12,306

11,975

11,44010,977

11,370

11,546

10,596

8,387

8,186

7,645

Net income (loss)
Net worthNumber of employees

45Financial Statements

KYB Corporation

Annual Report 2013

Consolidated Balance Sheets (Unaudited)
Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
As of March 31, 2013 and 2012

Millions of yen

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable—tradeFinished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts    Total current assets

Non-current assets:
Property, plant and equipment:   Buildings and structures, net   Machinery, equipment and vehicles, net   Land   Lease assets, net
Construction in progress   Other, net    Total property, plant and equipment

Intangible assets:   Goodwill   Software   Other    Total intangible assets

Investments and other assets:   Investment securities   Deferred tax assets   Other   Allowance for doubtful accounts    Total investments and other assets    Total non-current assets    Total assets

Millions of yen

2013

2012

¥ 33,530
77,834
21,814
11,647
8,607
4,194
3,051
9,597
(436)
169,841¥ 36,460
86,582
17,121
12,229
8,581
3,996
7,042
7,885
(437)
179,462

39,41747,19824,3352,036
15,687
2,794
131,469

26,864
41,537
23,341
1,767
5,747
2,302
101,562

4
114
1,129
1,247

5
58
1,109
1,173

21,104
2,451
1,859
(62)
25,353
158,071¥327,912

14,709
2,865
1,625
(49)
19,150121,886¥301,348

LIABILITIES AND NET ASSETS
Current liabilities:
Notes and accounts payable—trade
Short-term loans payable
Lease obligations
Accounts payable—other
Income taxes payable
Notes payable—facilities
Provision for product warranties
Provision for directors’ bonuses
Other    Total current liabilities

2013

2012

¥ 58,558
47,200401
11,637
1,466
9,453
3,605
147
15,191
147,661¥ 69,596
35,160341
12,006
3,313
2,721
3,339
159
10,819137,456

Non-current liabilities:
Long-term loans payable
Lease obligations
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Provision for environmental measures
Asset retirement obligations
Other    Total non-current liabilities    Total liabilities

45,7191,683
3,965
10,404
70
222
390
1,359
63,814
211,476

43,226
1,464
3,965
10,431
264
222
354
1,199
61,130
198,586

19,11321,00967,216(549)
106,790

19,11321,00961,416(544)
100,995

3,121
5,316
(2,018)6,419
3,225
116,435¥327,912

2,107
5,316
(8,283)(859)
2,626
102,761¥301,348

Net assets:
Shareholders’ equity:   Capital stock   Capital surplus   Retained earnings   Treasury stock    Total shareholders’ equity
Accumulated other comprehensive income:   Valuation difference on available-for-sale securities   Revaluation reserve for land   Foreign currency translation adjustment    Total accumulated other comprehensive income
Minority interests    Total net assets    Total liabilities and net assets

Note: This document has been translated from the original Japanese, the Annual Securities Report.

67

Financial Statements

KYB Corporation

Consolidated Statements of Income (Unaudited)

Annual Report 2013

Consolidated Statements of Comprehensive Income (Unaudited)

Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31, 2013 and 2012

Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31, 2013 and 2012

Millions of yen

Net sales
Cost of sales    Gross profit
Selling, general and administrative expenses    Operating income
Non-operating income:Interest income
Dividends income
Foreign exchange gains
Technical support fee
Equity in earnings of affiliates
Subsidies income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses   Ordinary income
Extraordinary income:Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of subsidiaries and affiliates’ stock
Total extraordinary income
Extraordinary losses:
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investment securities
Loss on valuation of investments in capital of subsidiaries and affiliates
Special retirement expenses
Other
Total extraordinary losses   Income before income taxes and minority interests
Income taxes—current
Income taxes for prior periods
Income taxes—deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)   Net income

Millions of yen

2013

2012

¥305,752
250,693
55,05944,585
10,473¥337,158
273,087
64,07042,533
21,537

131
301
1,965
784
536
422
1,105
5,248

211
401
—
837
870
348
851
3,520

1,684
—
476
2,160
13,561

1,555
351
395
2,302
22,755

102
0
—
103

33
0
26
60

457
55
8
—
147
—
670
12,994
4,054
810
(138)
4,725
8,268
479
¥   7,789

309
481
3
87
166
8
1,056
21,759
6,928
—
388
7,317
14,441544¥ 13,897

Income before minority interests
Other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Revaluation reserve for land
Share of other comprehensive income of associates accounted for using equity method   Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests
Note: This document has been translated from the original Japanese, the Annual Securities Report.

Yen

Amounts per share of common stock:
Net income
Cash dividends applicable to the year

¥35.248.00¥62.879.00

Note: This document has been translated from the original Japanese, the Annual Securities Report.

8

9

2013

2012

¥ 8,268¥14,441

1,014
6,562
—
214
7,791
16,060

741
(463)
548
(270)
555
14,997

15,068992

14,556440

Financial Statements

KYB Corporation

Consolidated Statements of Changes in Net Assets (Unaudited)

Annual Report 2013

Consolidated Statements of Cash Flows (Unaudited)

Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31, 2013 and 2012

Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31, 2013 and 2012

Millions of yen

Millions of yen
2013

2012

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Gain on sales of non-current assets
Loss on disposal of non-current assets
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sales of stocks of subsidiaries and affiliates
Loss on valuation of investments in capital of subsidiaries and affiliates
Impairment loss
Amortization of goodwill
Amortization of negative goodwill(Decrease) increase in allowance for doubtful accounts
Decrease in provision for retirement benefits
Increase in provision for product warranties
Decrease in provision for directors’ retirement benefits
Decrease in provision for directors’ bonuses
Interest and dividends income
Interest expenses
Equity in earnings of affiliates
Decrease (increase) in notes and accounts receivable—trade
Increase in inventories(Decrease) increase in notes and accounts payable—trade(Decrease) increase in accounts payable—other
Other, net   Subtotal
Interest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund    Net cash provided by operating activities¥ 12,994
14,554
(102)
457
(0)
8
—
—
55
1
(1)
(31)
(146)
42
(195)
(11)
(433)
1,684
(536)
13,091(924)(14,882)(1,092)
2,067
26,599905(1,678)(6,884)43
18,984¥ 21,759
13,508
(33)
309
(0)
3
(26)
87
481
17
(1)
8
(289)
449
(2)
(151)
(612)
1,555
(870)
(7,098)(1,480)1,593
957(4,321)
25,841
1,316(1,507)(8,527)276
17,399Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Purchase of stocks of subsidiaries and affiliates
Payments for investments in capital of subsidiaries and affiliates
Payments for sales of investments in subsidiaries resulting in change in scope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net    Net cash used in investing activities

(616)
928
(31,682)114(606)(3,621)
(298)
—
(187)
187
(342)
(36,125)

(856)
2,427
(19,200)
281(2,913)
—
(252)
(239)
(193)
1,087
(140)
(20,000)

Cash flows from financing activities:
Net increase in short-term loans payable
Repayments of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders    Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of period

7,018
(427)
22,822(18,496)(5)
0(1,989)
(392)
8,529
1,815
(6,794)42,009—¥ 35,215

6,476
(354)
13,975(21,501)(12)
0(1,768)(269)(3,454)(180)(6,236)
48,122123¥ 42,009

Shareholders’ equity

Balance as of April 1, 2011
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Balance as of April 1, 2012
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Balance as of March 31, 2013

Capital stock

Capital surplus

Retainedearnings

Treasury stock

Total shareholders’equity¥19,113——————
19,113——————¥19,113¥21,008———0——
21,009———0——¥21,009¥49,293(1,768)13,897——(5)—
61,416(1,989)
7,789
—
—
—
—
¥67,216¥(531)
—
—
(12)
0
—
—
(544)
—
—
(5)
0
—
—
¥(549)¥88,883(1,768)13,897(12)
0(5)—
100,995(1,989)
7,789
(5)
0
—
—
¥106,790

Millions of yen
Accumulated other comprehensive income
Valuationdifference on
available-for-sale Revaluation
securities
reserve for land

Balance as of April 1, 2011
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Balance as of April 1, 2012
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Balance as of March 31, 2012

¥1,365
—
—
—
—
—
741
2,107
—
—
—
—
—
1,014
¥3,121¥4,768
—
—
—
—
—
548
5,316
—
—
—
—
—
—
¥5,316

Note: This document has been translated from the original Japanese, the Annual Securities Report.

Foreigncurrencytranslation
adjustment

Total
accumulated othercomprehensive
incomeMinority
interests

Total net assets¥(7,652)
—
—
—
—
—
(631)
(8,283)
—
—
—
—
—
6,264
¥(2,018)¥(1,518)
—
—
—
—
—
658
(859)
—
—
—
—
—
7,279
¥ 6,419¥2,599
—
—
—
—
—
27
2,626
—
—
—
—
—
599
¥3,225¥ 89,964(1,768)13,897
(12)
0
(5)
685
102,761(1,989)
7,789
(5)
0
—
7,878
¥116,435

Note: This document has been translated from the original Japanese, the Annual Securities Report.

10

11

Financial Statements

KYB Corporation

Annual Report 2013

Notes to Consolidated Financial Statements (Unaudited)
Kayaba Industry Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31, 2013 and 2012

This document has been translated from the original Japanese, the Annual Securities Report.
1

Major Accounting Policies for the Preparation of the Consolidated Financial Statements
2. Application of Equity Method

1. Scope of Consolidation
1) Number of Consolidated Subsidiaries: 32

1) Number of Equity-Method Affiliates: 5

		 (1) Domestic subsidiaries: 8

		 Number of Affiliated Companies: 5

			Kayaba System Machinery Co., Ltd., KYB Engineering		Towa Industry Co., Ltd., P.T. Kayaba Indonesia, KYB-

and Service Co., Ltd., KYB Kanayama Co., Ltd., KYB

UMW Malaysia Sdn. Bhd., KYB-UMW Steering Malaysia

Logistics Co., Ltd., KYB-CADAC Co., Ltd., KYB-YS Co.,

Sdn. Bhd., KYB-Mando do Brasil Fabricante de Autopeças

Ltd., KYB Trondule Co., Ltd., Takako Industries, Inc.

S.A.

		 (2) Overseas subsidiaries: 242) Major Affiliates Not Accounted for by the Equity Method

			KYB Americas Corporation, KYB Steering Spain, S.A.,KYB Europe Headquarters GmbH, KYB Europe Head­		 (1) Non-consolidated subsidiaries
			KYB International America, Inc., KYB Technical Center

quarters B.V., KYB Europe GmbH, LLC KYB Eurasia,(Thailand) Co., Ltd, etc.

KYB Manufacturing Taiwan Co., Ltd., KYB Steering		 (2) Affiliates(Thailand) Co., Ltd., KYB (Thailand) Co., Ltd., KYB Sus-			pensions Europe, S.A., KYB Industrial Machinery		(Reason for not accounted for by the equity method)(Zhenjiang) Ltd., KYB Hydraulics Industry (Zhenjiang)		The equity method was not applied to these companies,

Chikuyo Seiki Kogyo K.K., etc.

Ltd., KYB Manufacturing Vietnam Co., Ltd., KYB Manu-

because their net income and retained earnings were notfacturing Czech s.r.o., KYB Middle East FZE, TSW

material to consolidated net income and retained earings,

Products Co., Inc., Takako Vietnam Co., Ltd., Wuxi

and have no overall material influence on the consolidated

KYB Top Absorber Co., Ltd., KYB Trading (Shanghai)

financial statements.

Co., Ltd., KYB Asia Co., Ltd., KYB Latinoamerica, S.A.
de C.V., KYB Advanced Manufacturing Spain S.A., KYB(China) Investment Co., Ltd., KYB
Panamá, S.A.
		LLC KYB Eurasia and KYB Europe Headquarters B.V. are
included in the consolidated financial statements because
they were established during FY2012, which ended March
31, 2013.

3) For equity method affiliates with a fiscal year end

4. Summary of Significant Accounting Policies
1) Standards and Methods for Valuing Assets

		 (3) Lease assets
			Finance leases and leased assets where there is notransfer of ownership		 (1) Inventories
			Inventories are stated at cost based on the average			  Method in which the leasing period is the useful life

cost method (in which book values are reduced forand the residual value is zero. However, for the financeinventories with declining profitability).

lease exempt from passage of title, where the leasestarted on or before March 31, 2008, are treated as		 (2) Investment securities

rental for accounting purposes.

			Marketable other securities are stated at market value
as of the fiscal year-end. Adjustments to market value		 (4) Long-term prepaid expenses

are recorded as an increase or decrease in net assets.

			

Costs of their sales are determined by the moving			  For the amortization period, the same standards as
for the method prescribed in the Corporation Tax Act

average method.

are used.

			  Other securities that are not marketable are statedat cost, with cost being determined by the moving
average method.

3) Accounting Basis for Allowances
		 (1) Allowance for doubtful accounts

		 (3) Derivatives

			Concerning receivables, the allowance for doubtful

			Derivatives are stated at market value.

accounts is provided based on the actual loss rate.
Concerning specific loans including doubtful accounts,2) Method of Depreciation of Material Depreciable Assets

each uncollectible debt is accounted for based on the		 (1) P roperty, plant and equipment (Excluding Leaseprobability of collection.

assets)			Depreciation on property, plant and equipment is amortized using the declining-balance method.

		 (2) Provision for product warranties
			To provide for future expenses for repairs provided atfree of charge, a provision for product warranties is			  For the useful lives and residual values, the sameother than March 31, the financial statements for the

standards as for the method prescribed in the Corpora-established for the aggregate amount of the estimatedfiscal year of each company are used.

tion Tax Act are used.

cost of certain identified claims from customers and an
amount calculating using the historical rate of sales to			  However, for buildings (excluding building fixtures)
3. Fiscal Year-End of Consolidated Subsidiaries

warranty expenses.

acquired on or after April 1, 1998, the straight-line

To prepare the consolidated financial statements, the financial

method is used. Consolidated subsidiaries outside		 (3) Provision for directors’ bonuses

statements of consolidated subsidiaries KYB Europe GmbH,Japan use primarily the straight-line method.

			To provide bonuses to directors and corporate auditors,

Wuxi KYB Top Absorber Co., Ltd., and KYB Europe Headquar-

2) Major Non-Consolidated Subsidiaries

Amortized in equal installments

ters GmbH as of December 31 are used. The consolidated

		 (1) Domestic subsidiaries

financial statements are adjusted as necessary for any signifi-

			KYB Systemerit Co., Ltd., Kensiyuu Co., Ltd., KK

cant transactions between this date and March 31.

the Company provides an allowance for that fiscal year
portion based on the expected future payment			(Change in accounting policies which are difficult toamount.

distinguish from changes in accounting estimates)			In association with the revisions to the Corporation Tax

		 (4) Provision for retirement benefits

Hydraulics Ltd.

	  In FY2012, consolidated subsidiaries KYB Manufacturing		 (2) Overseas subsidiaries

Taiwan Co., Ltd. and KYB Manufacturing Vietnam Co., Ltd.

			KYB International America, Inc., KYB Suspansiyon

domestic consolidated subsidiaries have changed theemployees, a provision for retirement benefits ischanged their fiscal year ends to March 31. As a result,

Sistemleri Sanayi ve Ticaret, A.S., KYB Technical Cen-

depreciation method to comply with the method in therecorded at an amount based on retirement benefit

these financial statements cover the 15-month period fromter (Thailand) Co., Ltd., KYB Mexico S.A. de C.V., KYB-

revised Corporation Tax Act for property, plant andobligations and pension plan assets as of the end ofJanuary 1, 2012, to March 31, 2013.

equipment that was acquired on or after April 1, 2012.

Act of Japan, starting with FY2012, KYB and its

			To prepare for the payment of retirement benefits tothe fiscal year.

Conmat Pvt. Ltd., KYB Motorcycle Suspension India	  The fiscal year-end of KYB Industrial Machinery (Zhenjiang)

Pvt. Ltd., KYB CHITA Manufacturing Europe s.r.o., KK			  Making this change caused increases of ¥247 million

Ltd., KYB Hydraulics Industry (Zhenjiang) Ltd., KYB Trading

Hydraulics Sales (Shanghai) Co., Ltd.

in operating income, ordinary income and income

into proportional amounts using the straight-line method(Shanghai) Co., Ltd., KYB Latinoamerica S.A. de C.V., KYB

before income taxes in FY2012.

based over a period that does not exceed the average			 Unrecognized actuarial net gains or losses are divided

		 (Reason for exclusion from consolidation)(China) Investment Co., Ltd., and LLC KYB Eurasia are		The remaining 11 non-consolidated subsidiaries were not		 (2) Intangible assets (Excluding Lease assets)remaining service years (14–15 years) for employees in

December 31. Adjustments were made as necessary for any

			Intangible assets are amortized using the straight-line

each fiscal year that an actuarial gain or loss occurred.

consolidated because their aggregate amount of total

significant transactions between the fiscal year end andassets, net sales, net income (amount corresponding toMarch 31 for the purpose of unifying fiscal year ends withownership), and retained earnings (amount corresponding

the fiscal year of KYB, pro forma financial statements as ofto ownership) were not material to the consolidated finan-

method prescribed in the Corporation Tax Act are		 (5) Provision for directors’ retirement benefits

March 31 are used instead.

used.

			

cial statements.

method.

Each proportional amount is recognized as an expense			  For the useful lives, the same standards as for the			  However, amortization of computer software for12

in the following fiscal year.
To prepare for the payment of retirement benefits todirectors, some consolidated subsidiaries establish a pro-internal use is principally calculated using the straight-

vision for directors’ retirement benefits based on year-

line method over five years, the estimated useful life.

end payments in accordance with their internal rules.

13

Financial Statements

KYB Corporation

		 (6) Provision for environmental measures			7) Scope of Cash on Consolidated Statements of Cash FlowsTo prepare for the payment of expenses for the removal		The scope of cash (cash and cash equivalents) on the con-and treatment of polychlorinated biphenyl (PCB) used insolidated statements of cash flows is cash on hand,equipment and other locations, a provision has been

deposits readily convertible to cash and short-term invest-

made that is equal to expected future payments.

ments that mature within three months and that carry lit-4) Foreign Currency Translations (Assets and liabilities
denominated in major foreign currencies)		Foreign currency denominated receivables and payables

Consolidated Financial Statementson the respective balance sheet dates. Translation differ-		Consumption taxes is accounted for using the net-of-tax
method.
		 (New accounting standards not yet applied)

lated into Japanese yen at the spot rate prevailing on the		Accounting Standard for Retirement Benefits (ASBJ State-balance sheet date. Income and expenses are translated

ment No. 26, May 17, 2012) and Guidance on Accounting

at the average rate for the period. Translation differences

Standard for Retirement Benefits (ASBJ Guidance No. 25,

are included in Foreign currency translation adjustments

May 17, 2012)and minority interests under the net assets section on the		 1) Summary

consolidated balance sheet.

			For actuarial gains and losses and past service cost, arevision has been made to include these items in net

5) Hedging

assets in the consolidated balance sheet after a tax-		 (1) Hedge accounting method			The Company uses the deferred method for hedge
accounting.
			  However, the exceptional accrual method is used toaccount for interest rate swap agreements that meet
specified conditions.
		 (2) Hedging instruments and hedging targets
			Hedging instruments: Forward exchange contracts andinterest rate swap agreements			  Hedging targets: Foreign currency-denominatedtransactions and interest on loans payable		 (3) Hedging policy			In accordance with internal administrative rules, theCompany’s policy is to use derivatives within thescope of actual demand for the purposes of hedging

1. Consolidated Balance Sheets
1) Accumulated Depreciation for Property, Plant and Equipment
FY2011 (Mar. 31, 2012)
207,4268) Other Material Items in Basis of Presentation of		Accounting for consumption taxes		  Assets and liabilities of overseas subsidiaries are trans-

Notes to Consolidated Financial Statements

tle risk of price fluctuation.

are translated into Japanese yen at the spot rate prevailingences are treated as gains and losses.

2

Annual Report 2013

effect adjustment. The accumulated amounts of these
items are shown as liabilities or assets. Furthermore,
for the method for determining the period for which
expected retirement expenses are applicable, a revision2) Assets of Non-Consolidated Subsidiaries and Equity-Method Affiliates

Investment securities (Stock)(Investments in companies under joint control in above amount)
Investments included in investments and other assets (Other)

Property, plant and equipment:
Buildings and structures
Machinery, equipment and vehicles
Land
Leased land
Othertion standard and the method for calculating the dis-			The new standard will be applied starting with the consolidated financial statements as of the end of the fiscal
year ending March 31, 2014. However, the revision to(¥ million)
FY2012 (Mar. 31, 2013)
8,135
2,566
354

FY2011 (Mar. 31, 2012)(¥ million)
FY2012 (Mar. 31, 2013)

Assets pledged

method standard in addition to the straight-line attribu-

		 2) Planned start of application

FY2011 (Mar. 31, 2012)
4,220
2,492
305

3) Assets Pledged as Collateral and Corresponding Liabilities

has been made to allow use of the benefit formula

count rate has been revised.

(¥ million)
FY2012 (Mar. 31, 2013)
220,969

1,586
[190]
43
[43]
709
[—]
124
[—]
0
[0]
¥2,463[234]

Corresponding liability securedFY2011 (Mar. 31, 2012)
1,880
[149]
1,595
[—]
3,475
[149]

Short-term loans payable
Long-term loans payable

the method for determining periods for which expected
retirement expenses are applicable will be applied at

1,225
[124]
29
[29]
709
[—]
—
[—]
—
[—]
¥1,964[153](¥ million)
FY2012 (Mar. 31, 2013)
1,134
[—]
1,607
[100]
2,741
[100]

risk associated with foreign exchange rate volatility forthe beginning of the fiscal year ending March 2015.

foreign currency-denominated transactions and vari-

Since transitional handling is specified in the applicableable interest rates for loans payable.

accounting standard, the revised method will not beIn accordance with the “Act on Revaluation of Land (Act No. 34, March 31, 1998),” companies are required to reevaluate land		 (4) Determining hedging effectivenessapplied retroactively to financial statements in prior fis-used for business operations. An amount equivalent to taxes for the amount following the revaluation is then recognized as			There are no assessments of hedging effectivenesscal years.

“Deferred tax liabilities for land revaluation” on the balance sheet. The amount less these deferred tax liabilities is recognizedbecause significant terms are the same for hedging		 3) Effect of application of this accounting standard, etc.

methods and the items hedged.

			The application of the Accounting Standard for Retire-6) Amortization Method and Period for Goodwill and
Negative Goodwill
		Goodwill and negative goodwill are amortized in equal
installments over the estimated length of time that thebenefits are expected to be received (five years). However,negative goodwill recognized on or after April 1, 2010 istreated as an extraordinary gain in the fiscal year in which

ment Benefits and other items is expected to have amaterial effect on the consolidated financial statementsof the KYB Group. In the consolidated balance sheet,actuarial gains and losses are generally recognized

Figures in brackets are industrial park mortgages and the corresponding liabilities.

4) Revaluations of Land Used for Business Operations

as “Revaluation reserve for land” in net assets.
Revaluation method
	Revaluations are calculated by using the valuation for property tax as prescribed in Article 2-3 of the “Order for Enforcement of
the Act on Revaluation of Land (Order No. 119, March 31, 1998).”
	  Revaluation date: Mar. 31, 2002

when they occur. As a result, it is anticipated that net
assets changes, but the size of this change is currently
being evaluated.

FY2011 (Mar. 31, 2012)
Difference at end of fiscal year between fair value andpost-revaluation book value of land subject to revaluation

the negative goodwill occurred.

14

15(6,069)(¥ million)
FY2012 (Mar. 31, 2013)(6,175)Financial Statements

KYB Corporation

5) Balance of Guaranteed Loans

3) Major Components of Gain on Sales of Non-current Assets
(1) Loan guaranteesHome construction loans

FY2011 (Mar. 31, 2012)0(¥ million)
FY2012 (Mar. 31, 2013)—

FY2011 (Mar. 31, 2012)
219(EUR 2 million)8(RP 960 million)(¥ million)
FY2012 (Mar. 31, 2013)
1,266(EUR 10 million)4(RP 420 million)

FY2011 (Mar. 31, 2012)5499(¥ million)
FY2012 (Mar. 31, 2013)
35482

2. Guarantees of affiliated company loans from financial institutions

KYB-Mando do Brasil Fabricante de Autopeças S.A.
P.T. Chita Indonesia

6) Notes Receivable Discount and Notes Receivable Endorsed(1) Notes receivable discount(2) Notes receivable endorsed

7) Notes Matured at the End of the Fiscal Year
	The end of the fiscal year was a holiday for financial institutions. However, notes that matured on this day were treated as having
been settled the same day. Notes that matured on March 31, 2013 and 2012, were as follows:
FY2011 (Mar. 31, 2012)
681
539
184

(1) Notes receivable—trade(2) Notes payable—trade(3) Notes payable—equipment(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

		 1. Guarantees of employees’ loans from financial institutions

			Annual Report 2013(¥ million)
FY2012 (Mar. 31, 2013)
421
326
449

Buildings and structures
Machinery, equipment and vehicles
Land
Other
Total

0
22
—
11
33

0
24
75
2
102

4) Major Components of Loss on Disposal of Non-current Assets(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Buildings and structures
Machinery, equipment and vehicles
Other
Total

134
141
32
309

261
174
21
457

5) Impairment Loss
	The KYB Group has been charged with impairment loss for the following groups of assets:
FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Location
Kani-shi, Gifu
Zhenjiang, China
Zhenjiang, China—

Use

Idle assets
Business assets
Business assets
Other

Category

Machinery and equipment
Machinery and equipment
Automotive equipment
Goodwill	  In principle, the KYB Group uses business sites as the standard for grouping assets used for business operations. Idle
assets are grouped individually.
	  In FY2011, for idle assets not used for business operations, the book value was written down to the amount that can berecovered with no expected future cash flows. As a result, an impairment loss of ¥22 million was recorded as an extraordinary

2. Consolidated Statements of Income

loss.

1) Major Components of Selling, General and Administrative Expenses	  For assets used for business operations where there was a significant decline in profitability, the book value was written(¥ million)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Salaries and subsidies
Retirement benefit expenses
Provision for directors’ retirement benefits
Packing and freight
Research and development expenses

11,781
616
94
9,430
4,035

12,647
627
30
8,764
5,468

prospects at this time for a recovery in earnings at this company, the resulting impairment loss of ¥103 million for this goodwill
was recorded as an extraordinary loss.
	  The amount that can be recovered from these assets is determined by using net sales proceeds based on market prices.

(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

1,652
99

1,818
139

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Location
Kani-shi, Gifu
Zhenjiang, China
Zhenjiang, China

Use

Idle assets
Business assets
Business assets

Category

Machinery and equipment
Machinery and equipment
Automotive equipment

	  In principle, the KYB Group uses business sites as the standard for grouping assets used for business operations. Idle

2) General and Administrative Expenses Include Research and Development Expenses(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

4,035

was recorded as an extraordinary loss.
	  The increase in ownership of Wuxi KYB Top Absorber Co., Ltd., resulted in the recognition of goodwill. Since there are no	Major components of the above research and development expenses are as follows:

Salaries and subsidies
Retirement benefit expenses

down to the amount that can be recovered with no expected future cash flows. As a result, an impairment loss of ¥355 million

5,468

assets are grouped individually.
	  In FY2012, for idle assets not used for business operations, the book value was written down to the amount that can berecovered with no expected future cash flows. As a result, an impairment loss of ¥25 million was recorded as an extraordinaryloss.
	  For assets used for business operations where there was a significant decline in profitability, the book value was written
down to the amount that can be recovered with no expected future cash flows. As a result, an impairment loss of ¥30 million
was recorded as an extraordinary loss.
	  The amount that can be recovered from these assets is determined by using net sales proceeds based on market prices.

16

17

Financial Statements

KYB Corporation6) Special Retirement Expenses

Annual Report 2013

4. Consolidated Statements of Changes in Net Assets

	FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)	Special retirement expenses include increased payments in association with additional benefits offered to employees who

1. Number and Type of Shares Issued and Treasury Stock(Thousands of shares)

resign at two consolidated subsidiaries in Europe.
Shares issued as ofApril 1, 2011

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)	Special retirement expenses include increased payments in association with additional benefits offered to employees who
resign at one consolidated subsidiary in Japan, one consolidated subsidiary in South East Asia, and two consolidated subsidiaries in Europe.
7) Income Taxes for Prior Periods
	FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
	KYB expects to receive from the Tokyo Regional Taxation Bureau a notice of a correction of past taxes based on the transfer
pricing taxation system for transactions with KYB’s overseas subsidiaries. As a result, an estimate of income taxes for priorperiods has been recognized.

Shares issued:
Common shares   Total
Treasury stock:
Common shares   Total

Shares issued as ofMarch 31, 2012

Increase

Decrease

222,984
222,984————

222,984
222,984

1,907
1,907

28
28

1
1

1,933
1,933

Note: T he increase of 28 thousand shares of treasury stock is due to purchases by the Company of holdings of less than one unit (tangen). The decreaseof 1 thousand shares of treasury stock is due to sales by the Company of treasury stock to shareholders who wanted to increase their holdings to
one unit.

2. Stock Acquisition Rights and Stock Acquisition Rights Held by the Company
Not applicable
3. Dividends

3. Consolidated Statements of Comprehensive Income

1) Dividends Paid

Other reclassification adjustments and tax effect for comprehensive income(¥ million)

Type of shares

Aggregate
dividend

Dividend
per share

Record date

Effective date

Annual Shareholders’ Meeting, Jun. 24, 2011 Common shares
Board of Directors Meeting, Nov. 22, 2011
Common shares¥884 million¥884 million

¥4.00
¥4.00

Mar. 31, 2011
Sept. 30, 2011

Jun. 27, 2011
Dec. 6, 2011

FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Valuation difference on available-for-sale securities:
Amount arising during the year
Reclassification adjustments   Before tax effect   Tax effect   Valuation difference on available-for-sale securities
Revaluation reserve for land:
Amount arising during the year
Reclassification adjustments    Before tax effect    Tax effect    Revaluation reserve for land
Foreign currency translation adjustments:
Amount arising during the year
Reclassification adjustments    Before tax effect    Tax effect    Foreign currency translation adjustments

1,062
3
1,065
(324)
741

1,543
0
1,543
(529)
1,014

—
—
—
548
548

—
—
—
—
—

(384)
(81)
(465)
1
(463)

6,562
—
6,562
—
6,562

Share of other comprehensive income of associates accounted
for using equity method:Amount arising during the year
Total other comprehensive income

(270)
555

214
7,791

Resolution2) O f the Dividends for Which the Record Date Was in FY2010, Dividends for Which the Effective Date Falls After the
End of FY2011.

Resolution
Annual Shareholders’Meeting, Jun. 26, 2012

Type of shares
Common shares

Aggregate
dividend

Source of funds
for dividends

Dividend
per share

Record date

Effective date

¥1,105 million

Retainedearnings¥5.00

Mar. 31, 2012

Jun. 27, 2012

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
1. Number and Type of Shares Issued and Treasury Stock(Thousands of shares)
Shares issued as ofApril 1, 2012
Shares issued:
Common shares   Total
Treasury stock:
Common shares   Total

Shares issued as ofMarch 31, 2013

Increase

Decrease

222,984
222,984————

222,984
222,984

1,933
1,933

15
15

2
2

1,947
1,947

Note: T he increase of 15 thousand shares of treasury stock is due to purchases by the Company of holdings of less than one unit (tangen). The decreaseof 2 thousand shares of treasury stock is due to sales by the Company of treasury stock to shareholders who wanted to increase their holdings to
one unit.

2. Stock Acquisition Rights and Stock Acquisition Rights Held by the Company
Not applicable18

19

Financial Statements

KYB Corporation

3. Dividends

Annual Report 2013

		 (2) Future lease payments

1) Dividends Paid
Resolution

Type of shares

Annual Shareholders’ Meeting, Jun. 26, 2012 Common shares
Board of Directors Meeting, Nov. 22, 2012
Common shares

Aggregate
dividend

Dividend
per share

Record date

Effective date

¥1,105 million¥884 million

¥5.00
¥4.00

Mar. 31, 2012
Sept. 30, 2012

Jun. 27, 2012
Dec. 6, 20122) Of the Dividends for Which the Record Date Was in FY2011, Dividends for Which the Effective Date Falls After the

Resolution

Due within one year
Due after one year
Total(¥ million)
FY2012 (Mar. 31, 2013)
83
52
136

Note: F uture lease payments are calculated by including interest paid because future lease payments at the end of the fiscal year are a small percentage of property, plant and equipment at the end of the fiscal year.

		 (3) Lease payments and assumed depreciation charge

End of FY2012.

Annual Shareholders’Meeting, Jun. 25, 2013

FY2011 (Mar. 31, 2012)
160
141
302

Type of shares
Common shares(¥ million)

Aggregate
dividend

Source of funds
for dividends

Dividend
per share

Record date

Effective date

¥884 million

Retainedearnings¥4.00

Mar. 31, 2013

Jun. 26, 2013

FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Lease payments
Assumed depreciation charge

296
296

159
159

		 (4) Calculation method of the assumed depreciation charge
5. Consolidated Statements of Cash FlowsThe relationship between cash and cash equivalents and the amounts in the line items of the balance sheet was as follows:(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012) FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Cash and deposits
Deposits with maturities more than three months

36,460(1,449)33,530(1,314)Purchases of commercial paper under repurchase agreements(Short-term loans receivable)

6,998

2,998

Cash and cash equivalents

42,00935,215			Straight-line method using the leasing term as the asset life with a residual value of zero.

			(Impairment loss)			No impairment loss was recognized for leased assets.

2. Operating Leases (Lessee)
Future lease payments for operating leases that cannot be terminated(¥ million)
Due within one year
Due after one year
Total

FY2011 (Mar. 31, 2012)

FY2012 (Mar. 31, 2013)

943
2,094
3,037

944
1,571
2,516

6. Lease Transactions
1. Finance Leases (Lessee)

7. Financial Instruments

Finance leases where there is no transfer of ownershipof receivables in the same foreign currency. Loans are

1. Financial Instruments

1) Leased Assets

1) Policy on Financial Instruments

		 Property, plant and equipmentused primarily to procure funds for capital expendi-

For funds needed for capital expenditures, the Grouptures. Since some loans carry floating interest rates,

uses internal funds from operating cash flows and uses

the Group is exposed to interest rate volatility risk.

bank loans and other sources to procure funds as need-

Derivatives (interest rate swaps) are used to hedge this		 Major items for the preparation of the consolidated financial statements

ed. Funds that are temporarily unneeded are investedrisk.

		These items are explained in “4. Summary of Significant Accounting Policies (2) Method of Depreciation of Material Depre-

mainly in short-term deposits, investment-grade repur-

		 Mainly automobiles used in the Automotive Components and Hydraulic Components Operations
2) Method for Depreciation of Leased Assets

ciable Assets.”		  For finance leases where there is no transfer of ownership, leases are accounted for using the same method as for ordinary rental transactions for leases that started on or before March 31, 2008. These leases are as follows:		 (1) Acquisition cost, accumulated depreciation and net book value of leased assets(¥ million)

Buildings and structures
Machinery, equipment and vehicles
Other
Total

Acquisition cost

Accumulated depreciation

Net book value

4
1,089
177
1,271

2
819
147
969

2
269
30
302

FY2012 (Mar. 31, 2013)
Buildings and structures
Machinery, equipment and vehicles
Other
Total

Acquisition cost

Accumulated depreciation

Net book value

4
705
58
768

3
580
48
632

1
124
10
136

Note: The acquisition cost is calculated by including interest paid because future lease payments at the end of the fiscal year are a small percentage ofproperty, plant and equipment at the end of the fiscal year.

20

contracts to hedge foreign exchange rate volatility risk

Group’s policy uses derivative financial instruments inand interest rate swaps to hedge interest rate volatility

order to hedge interest rate fluctuation risk and does

risk associated with loans. For information about hedg-

not use these instruments for speculative purposes.

ing methods, items hedged, hedging policies and the2) Financial Products and Their Risks
Trade notes and accounts receivable expose the GroupFY2011 (Mar. 31, 2012)

Derivatives used by the Group are forward exchangechase agreements and similar instruments. The

to credit risk associated with individual customers. Furthermore, the Group is vulnerable to foreign exchange

evaluation of hedging effectiveness, please see in“4.
Summary of Significant Accounting Policies (5)Hedging.”3) Risk Management for Financial Instruments

rate volatility risk because of foreign currency-denomi-

Credit Risk Management (risk of a counterparty fail-nated receivables associated with overseas operations.

ing to fulfill a contractual obligation)

Securities and investment securities are mainly long-

In accordance with the Company’s internal administra-term holdings of stock and the stock of companies

tive rules, the appropriate department of each businesswhere the Group has a business relationship. These

unit periodically monitors the status of all major counter-securities expose the Group to market risk.

parties for trade receivables. In addition, the Company

Almost all trade notes and accounts receivable andworks on quickly identifying situations where a decline

payable are due within one year. Some foreign curren-

in a customer’s financial condition or other event raises

cy-denominated receivables and payables are vulnera-

concerns about the collection of a receivable and takes

ble to foreign exchange rate volatility risk. However,actions to reduce this risk. Consolidated subsidiaries as

the amount of exposure is never more than the balancewell use the same credit risk management procedures

21

Financial Statements

KYB Corporationin accordance with the Company’s internal administra-

Derivatives are used in accordance with internal

tive rules.

rules.

Derivatives are used solely for the purpose of reduc-

Liquidity Risk Management Concerning to Funding exposure to risk and are conducted only with finan-

Procurement (risk of being unable to make pay-cial institutions that have a high credit rating.

ments on payment dates)

Market Risk Management (risk associated with chang-

The Company manages liquidity risk by preparing andes in foreign exchange rates, interest rates, etc.)

updating cash flow plans at departments responsible

The Company uses forward exchange contracts at

for these plans, using reports from other departments

times to reduce exposure to foreign exchange rate vol-of the Company, and by maintaining an adequate levelatility risk. In addition, the Company uses interest rateof liquidity and taking other actions.

swaps to reduce exposure to interest rate volatility risk4) Supplemental Explanations of Matters Relating toassociated with loans payable.

the Fair Value of Financial Instruments and Others

For securities and investment securities, the Company

The fair values of financial instruments include the values

checks the fair value, financial condition of issuers (coun-based on market prices and those deemed as market

terparty companies) and other items. This facilitates theprices obtained by a reasonable estimate when the finan-

continuous reexamination of these holdings in consider-cial instruments do not have market prices. Since certain

ation of market conditions and the relationship withassumptions are adopted for calculating such values,

these counterparty companies.

they may differ when different assumptions are adopted.

Annual Report 2013

Notes: 1. Calculation of fair values of financial instruments and information concerning securities and derivatives
Assets(1) Cash and deposits, (2) Notes and accounts receivables—trade, and (3) Short-term loans receivable
		 Since all deposits are short term, book values are used as fair values because the two figures are virtually identical.
(4) Investment securities
		 Fair values of stocks and bonds are the prices on securities exchanges.
Liabilities(5) Notes and accounts payables—trade, (6) notes payable—facilities and (7) short-term loans payable		 Since all payables are repaid within a short term, book values are used as fair values because the two figures are virtually identical.
(8) Long-term loans payable (including current portion)
		The fair value of long-term loans payable is calculated by using a discount rate that is equal to the interest rate for a new loan with the same
total interest and principal. Long-term loans payable with floating interest rates are subject to the special accounting procedure for interest
rate swaps (see (9) below). The fair value is calculated by using a reasonable estimate of the interest rate for a loan with the same total ofinterest and principal that was processed along with the applicable interest rate swap.
		 Long-term loans payable include the current portion to be repaid within one year.
Derivatives(9) Derivative transactions		Interest rate swaps that use the special accounting procedure are processed as a single unit with long-term loans payable that have been
hedged. Consequently, the fair values of these swaps are included in the fair values of the applicable long-term loans payable (see (8) above).
2. Financial instruments whose fair values are deemed too difficult to determine(¥ million)
Category

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

104
4,220

95
8,135

Unlisted stock
Affiliated company stock	The above stocks are not included in “(4) Investment Securities” due to the extreme difficulty of determining a fair value because there are nomarket prices.
3. Scheduled redemption amount of financial assets and securities with maturities

2. Matters Relating to the Fair Value of Financial Instruments(¥ million)

The following are the consolidated balance sheet amounts, fair values, and differences between them. Unlisted stocks and

FY2011 (Mar. 31, 2012)

others, the fair values of which are extremely difficult to determine, have been excluded. (see Note 2)

Due within
one year(¥ million)
FY2011 (Mar. 31, 2012)(1) Cash and deposits(2) Notes and accounts receivables—trade(3) Short-term loans receivable(4) Investment securities
Assets(5) Notes and accounts payables—trade(6) Notes payable—facilities(7) Short-term loans payable(8) Long-term loans payable (including current portion)
Liabilities(9) Derivative transactions:
Exempt from hedge accounting
Subject to hedge accounting

Consolidated balance
sheet amounts
36,46086,582
7,042
10,384140,470
69,596
2,721
17,94860,438150,704——

Fair values
36,46086,582
7,042
10,384140,470
69,596
2,721
17,94860,515
150,780——

Differences
—
—
—
—
—
—
—
—
76
76

(1) Cash and deposits(2) Notes and accounts receivables—trade(3) Short-term loans receivable(4) Investment securities
Assets(5) Notes and accounts payables—trade(6) Notes payable—facilities(7) Short-term loans payable(8) Long-term loans payable (including current portion)
Liabilities(9) Derivative transactions:
Exempt from hedge accounting
Subject to hedge accounting
22——

Fair values
33,53077,834
3,051
12,873
127,289
58,5589,453
26,37566,764
161,150——

36,46086,582
7,042
130,085

Cash and deposits
Notes and accounts receivables—trade
Short-term loans receivable
Total

—
—
—
—

—
—
—
—

33,53077,834
3,051
114,415

Due after one year Due after five years
through five years
through ten years

—
—
—
—

—
—
—
—

Due after
ten years————

4. Scheduled repayment of loans payable after the accounting period(¥ million)
FY2011 (Mar. 31, 2012)
Category

Differences
—
—
—
—
—
—
—
—
220
220

—
—
—
—

Due after
ten years

FY2012 (Mar. 31, 2013)
Due within
one year——

FY2012 (Mar. 31, 2013)
Consolidated balance
sheet amounts
33,53077,834
3,051
12,873
127,289
58,5589,453
26,37566,544160,930

Cash and deposits
Notes and accounts receivables—trade
Short-term loans receivable
Total

Due after one year Due after five years
through five years
through ten years

Due after one year Due after two years Due after three years Due after four years
through two years through three years through four years
through five years

Long-term loans payable

21,335

10,812

7,004

3,873

Due after
five years

200(¥ million)

FY2012 (Mar. 31, 2013)
Category

Due after one year Due after two years Due after three years Due after four years
through two years through three years through four years
through five years

11,151Long-term loans payable——
23

14,996

12,6566,595

Due after
five years319

Financial Statements

KYB Corporation

Annual Report 2013

9. Derivative Transactions

8. Securities

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

FY2011 (Mar. 31, 2012)

1. Derivative Transactions Exempt from Hedge Accounting

1. Other Securities(¥ million)
Category
Securities whose book values on theaccompanying consolidated balance sheet
exceed their acquisition costs
Securities whose book values on theaccompanying consolidated balance sheet
do not exceed their acquisition costs

Consolidated balance
sheet amount(1) Equity securities(2) Bonds(3) Other
Subtotal(1) Equity securities(2) Bonds(3) Other
Subtotal

Acquisition cost

9,385
—
—
9,385
999
—
—
999
10,384

Total

Differences

5,978
—
—
5,978
1,163
—
—
1,163
7,142

3,406
—
—
3,406
(164)
—
—
(164)
3,242

Note: Unlisted equity securities (consolidated balance sheet amount of ¥104 million) are not included in the above table of “Other securities” due to theextreme difficulty of determining a fair value because there are no market prices.

2. Other Securities Sold During FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Proceeds from sales
0Equity securities(¥ million)
Loss on sales—

Gain on sales
0

3. Securities Subject to Asset Impairment
	In FY2011, there was an asset impairment loss of ¥3 million for equity securities included in other securities.
	  To determine asset impairment loss, securities with a fair value that was at least less than half of the acquisition cost were
written down to zero and securities with a fair value of about 30% to 50% below the acquisition cost were written down to
the level regarded as necessary in consideration of the likelihood of recovering the investment and other factors.

1. Other Securities(¥ million)

Securities whose book values on theaccompanying consolidated balance sheet
exceed their acquisition costs
Securities whose book values on theaccompanying consolidated balance sheet
do not exceed their acquisition costs

Consolidated balance
sheet amount(1) Equity securities(2) Bonds(3) Other
Subtotal(1) Equity securities(2) Bonds(3) Other
Subtotal

Total

2. Derivative Transactions Subject to Hedge Accounting
	Hedges related to interest rates(¥ million)
Hedge accounting
methodType of derivativetransactions

Hedging targets

Interest rate swap
exceptional treatment

Interest rate swap transaction
Receive floating, pay fixedLong-term loans
payable3,743(Note)FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
1. Derivative Transactions Exempt from Hedge Accounting	Not applicable
2. Derivative Transactions Subject to Hedge Accounting
	Hedges related to interest rates(¥ million)
Hedge accounting
methodType of derivativetransactions

Hedging targets

Interest rate swap
exceptional treatment

Interest rate swap transaction
Receive floating, pay fixedLong-term loans
payableContractual
amount, etc.

Contractual
amount of morethan one year

6,610

2,740

Fair value(Note)

10. Retirement Benefits

11,247——
11,247
1,625
—
—
1,625
12,873Differences	The Company and its domestic consolidated subsidiaries have three types of defined benefits plans: Employees’ Pension

4,903
—
—
4,903
(117)
—
—
(117)
4,786

Fund, defined benefit corporate pension plan, and lump-sum payment plan. In addition, additional retirement payments are

6,344
—
—
6,344
1,742
—
—
1,742
8,086

made in some cases when employees retire or resign.
	  The Company has established a retirement benefit payment trust.
	  Some consolidated subsidiaries have withdrawn from a comprehensive employees’ pension fund on October 1, 2012.
	  At the end FY2012, for the Company and its consolidated companies in Japan, six companies had lump-sum payment plans.
In addition, for the Employees’ Pension Fund, one company belonged to a comprehensive employees’ pension fund and, forthe defined benefit corporate pension plan, five companies outsourced asset management to a life insurance company, etc.
	  Some domestic consolidated subsidiaries and other countries have established a defined contribution pension system in
addition to a defined benefit pension system.

Gain on sales0(¥ million)
Loss on sales—

3. Securities Subject to Asset Impairment
In FY2012, there was an asset impairment loss of ¥8 million for equity securities included in other securities.
	  To determine asset impairment loss, securities with a fair value that was at least less than half of the acquisition cost were
written down to zero and securities with a fair value of about 30% to 50% below the acquisition cost were written down to
the level regarded as necessary in consideration of the likelihood of recovering the investment and other factors.

24

7,286

Fair value

Note: F or hedges where the exceptional treatment of interest rate swaps is used, fair value includes the fair values of the hedged long-term loans payablebecause the swaps and loans are treated as a single unit.

2. Other Securities Sold During FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Equity securities

Contractual
amount of morethan one year

1. Overview of Retirement Benefit Plans
Acquisition cost

Note: Unlisted equity securities (consolidated balance sheet amount of ¥95 million) are not included in the above table of “Other securities” due to theextreme difficulty of determining a fair value because there are no market prices.

Proceeds from sales
1

Contractual
amount, etc.

Note: F or hedges where the exceptional treatment of interest rate swaps is used, fair value includes the fair values of the hedged long-term loans payablebecause the swaps and loans are treated as a single unit.

FY2012 (Mar. 31, 2013)

Category	Not applicable25

Financial Statements

KYB Corporation

2. Retirement Benefit Obligations

Annual Report 2013

12. Tax Effect Accounting
FY2011 (Mar. 31, 2012)(33,227)
18,741(14,485)
4,054—(10,431)(1) Retirement benefit obligation (Note 1)(2) Pension plan assets(3) Funded status (1)+(2)(4) Unrecognized net actuarial gain
(5) Prepaid pension expenses (Note 2)(6) Provision for retirement benefits (3)+(4)–(5)(¥ million)
FY2012 (Mar. 31, 2013)(34,591)
22,330(12,260)
1,885
28(10,404)

Notes: 1. Some consolidated subsidiaries’ retirement benefit obligations were calculated using a simplified method. In addition, pension plan assets at
consolidated subsidiaries that use a comprehensive employees’ pension fund, which were ¥2,321 million at the end of FY2011 and ¥3,100 million at the end of FY2012, are not included in the above plan assets.
		
2. In FY2012, prepaid pension expenses were recorded.

3. Retirement Benefit Expenses(¥ million)
FY2011 (Apr. 1, 2011 – Mar. 31, 2012)(1) Service cost (Note)(2) Interest cost(3) Expected return on plan assets (deductible amounts)(4) Net actuarial gain(5) One-time payments of additional retirement benefits(6) Retirement benefit expenses (1)+(2)+(3)+(4)+(5)FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

2,177
634
(229)
421
17
3,021

2,148
648
(355)
438
28
2,908

Note: Retirement benefit expenses of consolidated subsidiaries using the simplified method are added up in (1) Service cost.

4. Assumptions in Calculating Retirement Benefit Obligations
FY2011 (Mar. 31, 2012)
Straight-line attribution
2.0%(¥ million)
FY2012 (Mar. 31, 2013)
Straight-line attribution
2.0%(3) Expected rate of return on investments

3.0%(1.28% for retirement benefit
payment trust)

1.5 –2.0%(1.09% for retirement benefit
payment trust)(4) Years for amortizing net actuarial

14–15 years(Amortized using the straight-line
method over a period that does notexceed the average remaining
service period for employees whenan actuarial gain or loss occurs.
Recognized as an expense startingin the following fiscal year.)

14 –15 years(Amortized using the straight-line
method over a period that does notexceed the average remaining
service period for employees whenan actuarial gain or loss occurs.
Recognized as an expense startingin the following fiscal year.)(1) Allocation of projected retirement benefit obligations(2) Discount rate

11. Stock Options
FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Not applicable
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Not applicable26

FY2012 (Mar. 31, 2013)

FY2011 (Mar. 31, 2012)
1. M
 ajor Components of Deferred Tax Assets and Deferred
Tax Liabilities(¥ million)
Deferred tax assets:
Provision for retirement benefits
7,527
Tax loss carried forward
1,811
Accrued bonuses
1,463
Software1,110
Provision for product warranties
907
Tax effect of unrealized gains on inventories
628
Impairment loss on non-current assets
317 Valuation loss on inventories297 Accrued retirement benefits for directors andcorporate auditors
237
Enterprise taxes
210
Tax effect of unrealized gains on non-current assets
202 Expenses payable (social security payments
for bonuses)
195
Other
1,075
Subtotal
15,986
Less: Valuation allowance(2,457)
Total deferred tax assets
13,528Deferred tax liabilities: Securities contributed to employees’ retirement
benefit trust(3,040) Tax effect for retained earnings at overseas
consolidated subsidiaries(2,173)
Valuation difference on available-for-sales securities (1,111)
Tax allowable reserves for deduction of fixed assets
(221)
Other
(347)
Total deferred tax liabilities(6,895)Net deferred tax assets
6,633

1. M
 ajor Components of Deferred Tax Assets and Deferred
Tax Liabilities(¥ million)
Deferred tax assets:
Provision for retirement benefits
7,483
Tax loss carried forward
2,026
Accrued bonuses
1,599
Software1,292
Tax effect of unrealized gains on inventories
1,065
Provision for product warranties
735
Tax effect of unrealized gains on non-current assets
412 Valuation loss on inventories
327 Expenses payable (social security payments for226
bonuses) Accrued retirement benefits for directors and210
corporate auditors Limit on deductible expenses for assets used in
162
research and development Loss on valuation of investment securities,
144
currently not deductible)
Other
1,138
Subtotal
16,823
Less: Valuation allowance(2,638)
Total deferred tax assets
14,185
Deferred tax liabilities: Securities contributed to employees’ retirement(2,993)benefit trust Tax effect for retained earnings at overseas(2,598)
consolidated subsidiaries
Valuation difference on available-for-sales securities (1,644)
Tax allowable reserves for deduction of fixed assets
(187)
Other
(389)
Total deferred tax liabilities(7,813)Net deferred tax assets
6,372

Net deferred tax assets as of March 31, 2012, are included in
the following balance sheet items.
(¥ million)
Current assets—Deferred tax assets
3,996
Fixed assets—Deferred tax assets
2,865
Current liabilities—Other(42)
Long-term liabilities—Other(186)

Net deferred tax assets as of March 31, 2013, are includedin the following balance sheet items.
(¥ million)
Current assets—Deferred tax assets
4,194
Fixed assets—Deferred tax assets
2,451
Current liabilities—Other(38)
Long-term liabilities—Other
(235)

2. B
 reakdown of the Principal Categories That Are Factors
Underlying Significant Differentials between the Burden of
the Statutory Tax Rate and Income Taxes After the Application of Tax Effect Accounting.
Statutory tax rate
(Adjustment)
Tax rate differences among consolidated subsidiaries
Change in valuation reserves
Tax exemptions at overseas consolidated subsidiaries
Equity-method investment income
Retained earnings at overseas consolidated
subsidiaries
Effect of change in tax rate
Other
Effective tax rate

27

39.8 %(3.4)%(3.3)%(2.2)%(1.6)%
1.7 %3.7 %(1.1)%
33.6 %

2. Breakdown of the Principal Categories That Are Factors
Underlying Significant Differentials between the Burdenof the Statutory Tax Rate and Income Taxes After the
Application of Tax Effect Accounting.
This information is omitted because the difference between
the statutory tax rate and the effect of change in tax rate wasless than 5% of the statutory tax rate.

Financial Statements

KYB Corporation

13. Business Combinations

Annual Report 2013

14. Asset Retirement Obligations

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

Transactions under Common Control

1. Asset Retirement Obligations Included in the Consolidated Balance Sheet

Establishment of KYB Europe Headquarters B.V. (KEH) and change in current European subsidiaries to indirectly-owned(1) Summary of asset retirement obligations

subsidiaries.

	The Company and some consolidated subsidiaries have posted asset retirement obligations based on a reasonable esti-

1. Summary of Transaction

mate of the cost of removing equipment that used chrome plating, asbestos and certain other materials. These estimates(1) Business activities of the related company:	Holding of stocks or investments in group companies in Europe and supportand management for business activities in Europe(2) Date of business combination:

May 29, 2012

(3) Legal method of business combination:	A transaction under common control was used to transfer stocks and otherinvestments in current European subsidiaries from KYB to the newly established KEH as investments in kind. KEH became an intermediary holding
company for these European subsidiaries, which made these companies subsidiaries of a subsidiary.
(4) Other information concerning summary of transaction:
List of European group companies that became indirectly-owned subsidiaries
		KYB Suspensions Europe, S.A.

		

KYB Manufacturing Czech s.r.o.

		

KYB Advanced Manufacturing Spain, S.A.

		

KYB Steering Spain, S.A.

		

KYB Europe GmbH		KYB Europe Headquarters GmbH2. Summary of Accounting Treatment of Mergers
The Company accounted for these mergers as transactions under common control in accordance with “Accounting Standard
for Business Combinations (ASBJ Statement No. 21, December 26, 2008) and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Divestitures” (ASBJ Guidance No. 10, December 26, 2008).

Asbestos and other laws and regulations.
(2) Method for calculating amount of asset retirement obligations
	The Company and some consolidated subsidiaries calculate balance sheet asset retirement obligations by using an estimated the time of use of 5 to 31 years starting with the time of acquisition and a discount rate of 2.0%.
(3) Change in total asset retirement obligations during FY2011
Beginning of the year
Increase due to purchase of property, plant and equipment
Adjustment for passage of time
Other net increase (decrease)
Decrease in assets retirement obligations
End of the year

Transfer of investments to KYB (China) Investment Co., Ltd. (KCI) as investments in kind and change in current Chinese subsidiaries to indirectly-owned subsidiaries.

2. Asset Retirement Obligations Not Shown on the Consolidated Balance Sheet
Office space used by the Company and some consolidated subsidiaries have leases requiring the payment of the cost to
restore the space to its original condition when the space is vacated. A reasonable estimate of the asset retirement obligations associated with this office space is not possible because the length of time the space will be used is not known andthere are currently no plans to relocate these offices. Consequently, no asset retirement obligations are recognized for theseoffices.
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
1. Asset Retirement Obligations Included in the Consolidated Balance Sheet(1) Summary of asset retirement obligations
mate of the cost of removing equipment that used chrome plating, asbestos and certain other materials. These estimatesare based on the Waste Management and Public Cleaning Act, Ordinance on Prevention of Health Impairment due toAsbestos and other laws and regulations.

1. Summary of Transaction(1) Business activities of the related company:	Holding of investments in group companies in China and support and management for business activities in China
Mar. 29, 2013

(3) Legal method of business combination:	A transaction under common control was used to transfer investments in current Chinese subsidiaries from KYB to KCI as investments in kind. KCI
became an intermediary holding company for these Chinese subsidiaries thatowns 100% of the stock of these companies. As a result, the Chinese subsidiaries became subsidiaries of a subsidiary.
(4) Other information concerning summary of transaction:
List of Chinese group companies that became indirectly-owned subsidiaries		KYB Industrial Machinery (Zhenjiang) Ltd.

		KYB Hydraulics Industry (Zhenjiang) Ltd.

2. Summary of Accounting Treatment of Mergers
The Company accounted for these mergers as transactions under common control in accordance with “Accounting Standard
for Business Combinations (ASBJ Statement No. 21, December 26, 2008) and “Guidance on Accounting Standard for Busi-(2) Method for calculating amount of asset retirement obligations
	The Company and some consolidated subsidiaries calculate balance sheet asset retirement obligations by using an estimated the time of use of 4 to 31 years starting with the time of acquisition and a discount rate of 2.0%.
(3) Change in total asset retirement obligations during FY2012
Beginning of the year
Increase due to purchase of property, plant and equipment
Adjustment for passage of time
Decrease in assets retirement obligations
End of the year(¥ million)
363
31
5
(8)
390

2. Asset Retirement Obligations Not Shown on the Consolidated Balance Sheet
Office space used by the Company and some consolidated subsidiaries have leases requiring the payment of the cost to
restore the space to its original condition when the space is vacated. A reasonable estimate of the asset retirement obligations associated with this office space is not possible because the length of time the space will be used is not known andthere are currently no plans to relocate these offices. Consequently, no asset retirement obligations are recognized for theseoffices.

ness Combinations and Accounting Standard for Divestitures” (ASBJ Guidance No. 10, December 26, 2008).

28(¥ million)
209
141
4
8
(0)
363

	The Company and some consolidated subsidiaries have posted asset retirement obligations based on a reasonable esti-

Transactions under Common Control(2) Date of business combination:

are based on the Waste Management and Public Cleaning Act, Ordinance on Prevention of Health Impairment due to29

Financial Statements

KYB Corporation

15. Real Estate Leases, etc.

Annual Report 2013

3) Reportable Segment Sales, Profits, Assets, and Other Items(¥ million)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

Omitted due to the absence of significant items

Automotive
HydraulicComponents Components

Omitted due to the absence of significant items
16. Segment Information, etc.
1. Segment Information
1) Summary of Reportable Segments

The Company’s reportable segments are organizational units for which separate financial data can be obtained andwhere the Board of Directors conducts regular studies to determine the allocation of resources and evaluate
performance.
The Company has a business headquarters or department for individual products and services. Each headquarters
or department determines comprehensive strategies in Japan and overseas for its products and services and conducts business operations. As a result, the Company has four business categories: Automotive Components,
Hydraulic Components, Special-purpose Vehicles, and Other Products, which consists of activities that do notbelong to the other three segments.
In consideration of the volume standard and other items concerning reportable segments, Special-purpose Vehicles and Other Products are combined into the Other segment for disclosure purposes. Consequently, the Company
has two reportable segments: Automotive Components and Hydraulic Components.
Automotive Components involves the manufacture of automotive hydraulic devices and other products. Major
products are shock absorbers for automobiles and motorcycles and power steering products. Hydraulic Components
involves the manufacture of primarily industrial hydraulic components used in construction machinery.
Segment
Reportablesegment

Other

Segment sales
Outside customers
Intersegment   Total
Segment profits
Segment assets
Other items
Depreciation
Impairment loss
Increase in property, plant andequipment and intangible assets(Note 5)
 Amortization of goodwill and/or
negative goodwill
Gain on negative goodwill

Automotive
Components

Shock absorbers, suspension system, power steering, vane pumps, front folk, oil cushion units,
stay dampers, free lock, and other automotive products

HydraulicComponents

Cylinders, valves, oil damper for railway vehicles, collision shock absorbers, pumps, motors,
equipment for landing systems, flight control systems, and emergency devices for aircraft

Other

Concrete mixer trucks, granule carriers, special-function vehicles, motion simulators, hydraulicsystems, auditorium and stage control systems, naval ships equipment, tunnel borers, environment-friendly equipment, seismic isolation systems and vibration control dampers, electronic
application

2) Method of Calculating Sales, Profits, Assets and Other Items for Each Reportable Segment

The accounting procedure for the reportable segments is based on “Basis of Presentation of Consolidated Financial
Statements.”
The income or loss for each reportable segment is based on operating income or loss.
In principle, prevailing market prices are used for transfers for intersegment transactions.
(Change in depreciation method)As was explained in “Change in accounting policies which are difficult to distinguish from changes in accounting
estimates,” KYB and its domestic consolidated subsidiaries have changed to the depreciation method that complies
with the revised Corporation Tax Act for property, plant and equipment that was acquired on or after April 1, 2012.
Compared with the previous depreciation, this change increased segment profits by ¥73 million in the automotive
components segment, ¥159 million in the hydraulic components segment and ¥14 million in other in FY2012.

Subtotal

Other(Note 1)

Total

186,664
2,181
188,845
6,154
147,552

137,522
1,945
139,468
14,299138,807324,186
4,126
328,313
20,453286,359

12,971
1,423
14,395989
18,318337,158
5,550
342,70921,443
304,678—(5,550)(5,550)94(3,329)337,158—
337,158
21,537
301,348

7,297
466

5,786
14

13,084481

424—

13,508481——

13,508481

9,378

17,395

26,773398

27,172—

27,172

(1)

16

15

—

15

—

15

—

—

—

—

—

—

—

Notes: 1. The Other category includes special-purpose vehicles and other products that are not included in the two reportable segments.
2. The deduction of ¥94 million in segment profits is due to the elimination of intersegment transactions.
3. The deduction of ¥3,329 million in segment assets is due to the elimination of intersegment transactions.
4. Segment profits have been adjusted for consistency with operating income in the consolidated statement of income.
5. The increase in property, plant and equipment and intangible assets includes long-term prepaid expenses.

(¥ million)

Major Products

30

Elimination ofAmount onintersegment consolidated
transactions
statements(Notes 2 and 3)(Note 4)

Reportable segment

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Elimination ofAmount onintersegment consolidated
transactions
statements(Notes 2 and 3)(Note 4)

Reportable segment
Automotive
HydraulicComponents Components

Segment sales
Outside customers
Intersegment   Total
Segment profits
Segment assets
Other items
Depreciation
Impairment loss
Increase in property, plant andequipment and intangible assets(Note 5)
 Amortization of goodwill and/or
negative goodwill
Gain on negative goodwill

Subtotal

Other(Note 1)

Total

184,8022,424
187,226
5,106
177,681

105,067
2,402
107,469
4,254
131,610

289,8704,826
294,696
9,360
309,292

15,882
1,136
17,018871
22,127305,752
5,962
311,715
10,232
331,420—(5,962)(5,962)241(3,507)305,752—
305,752
10,473327,912

7,394
47

6,642
8

14,03755

516—

14,55455——

14,55455

18,086

17,65935,746

3,469

39,215—

39,215

(0)

—

(0)

—

(0)

—

(0)

—

—

—

—

—

—

—

Notes: 1. The Other category includes special-purpose vehicles and other products that are not included in the two reportable segments.
2. The deduction of ¥241 million in segment profits is due to the elimination of intersegment transactions.
3. The deduction of ¥3,507 million in segment assets is due to the elimination of intersegment transactions.
4. Segment profits have been adjusted for consistency with operating income in the consolidated statement of income.
5. The increase in property, plant and equipment and intangible assets includes long-term prepaid expenses.

31

Financial Statements

KYB Corporation(2) Property, plant and equipment

2. Related Information(¥ million)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

Japan

1) Information for Products and Services

86,944

Omitted because categories of products and services are the same as for reportable segments.
2) Information for Geographic Regions(1) Net sales(¥ million)
Japan

EuropeU.S.A.

China

South East Asia

Other areas

Total

181,935

47,341

27,68433,071

22,341

24,783

337,158

Notes: 1. Net sales are based on the locations of customers and categorized by countries and areas.
2. Regions are based on geographic proximity.
3. Major countries and areas in each region:		 (1) Japan........................ Japan		 (2) Europe...................... Germany, U.K., Spain, Italy, France, Czech Republic, Russia, Poland		 (3) U.S.A........................ U.S.A.
		 (4) China........................ China
		 (5) South East Asia........ Indonesia, Malaysia, Thailand, Vietnam
		 (6) Other areas............... Taiwan, South Korea, U.A.E., Mexico, Brazil, Panama, Canada

68,640U.S.A.

8,860

3,490

China

14,648South East Asia

5,498

9,260

U.S.A.

4,848

China

South East Asia

18,493

11,429Other areas

492

Total

131,469

Notes: 1. Property, plant and equipment are based on the locations and categorized by countries and areas.
2. Regions are based on geographic proximity.
3. Major countries and areas in each region:		 (1) Japan........................ Japan		 (2) Europe...................... Germany, U.K., Spain, Italy, France, Czech Republic, Russia, Netherlands		 (3) U.S.A........................ U.S.A.
		 (4) China........................ China
		 (5) South East Asia........ Thailand, Vietnam
		 (6) Other areas............... Taiwan, U.A.E., Mexico, Panama

Since no single customer accounts for more than 10% of net sales from external customers on the consolidated
statement of income, information for major customers was omitted.

(¥ million)
EuropeEurope3) Information for Major Customers(2) Property, plant and equipment
Japan

Annual Report 2013

Other areas

423

Total

(Changes in Presentation)
In FY2012, the United States, which was previously included in North America, became a separate category
because U.S.A. sales were more than 10% of net sales in the consolidated statement of income. To reflect thischange in presentation, “2. Information for Geographic Regions (1) Net sales” for the previous fiscal year has been
restated. Canada, which was included in North America in the previous fiscal year, is now included in Other areas.

101,562

Notes: 1. Property, plant and equipment are based on the locations and categorized by countries and areas.
2. Regions are based on geographic proximity.
3. Major countries and areas in each region:		 (1) Japan........................ Japan		 (2) Europe...................... Germany, U.K., Spain, Italy, France, Czech Republic		 (3) U.S.A........................ U.S.A.
		 (4) China........................ China
		 (5) South East Asia........ Thailand, Vietnam
		 (6) Other areas............... Taiwan, U.A.E., Mexico, Panama

3. Information for Impairment Loss of Fixed Assets by Reportable Segment
FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Omitted because the same information is provided in segment information.
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Omitted because the same information is provided in segment information.

3) Information for Major Customers

4. Amortization of Goodwill and Unamortized Balance of Goodwill by Reportable Segments(¥ million)

Since no single customer accounts for more than 10% of net sales from external customers on the consolidated
statement of income, information for major customers was omitted.

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Reportable segment

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
1) Information for Products and Services

Omitted because categories of products and services are the same as for reportable segments.
2) Information for Geographic Regions(1) Net sales(¥ million)
Japan

EuropeU.S.A.

China

South East Asia

Other areas

Total

162,261

43,64630,59817,87225,58925,784

305,752

Notes: 1. Net sales are based on the locations of customers and categorized by countries or areas.
2. Regions are based on geographic proximity.
3. Major countries and areas in each region:		 (1) Japan........................ Japan		 (2) Europe...................... Germany, U.K., Spain, Italy, France, Czech Republic, Russia, Poland		 (3) U.S.A........................ U.S.A.
		 (4) China........................ China
		 (5) South East Asia........ Indonesia, Malaysia, Thailand, Vietnam
		 (6) Other areas............... Taiwan, South Korea, U.A.E., Mexico, Brazil, Panama, Canada

Goodwill
Amortization of goodwill
Balance at fiscal year end
Negative goodwill
Amortization of goodwill
Balance at fiscal year end

Automotive
Components

HydraulicComponents

Subtotal

Other

Total

0
5

16
—

17
5

—
—

17
5

1
2

—
—

1
2

—
—

1
2

Note : T his table shows amortization of goodwill and unamortized balance of goodwill for negative goodwill resulting from business combinations before
April 1, 2010.

(¥ million)
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Reportable segment

Goodwill
Amortization of goodwill
Balance at fiscal year end
Negative goodwill
Amortization of goodwill
Balance at fiscal year end

Automotive
Components

HydraulicComponents

Subtotal

Other

Total

1
4

—
—

1
4

—
—

1
4

1
0

—
—

1
0

—
—

1
0

Note : T his table shows amortization of goodwill and unamortized balance of goodwill for negative goodwill resulting from business combinations before
April 1, 2010.

32

33

Financial Statements

KYB Corporation

5. Gains on Negative Goodwill in Reportable Segments

3

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)

Annual Report 2013

Consolidated Supplementary Information

1. Corporate Bonds

Not applicableNot applicable

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

2. Loans Payable, etc.

Not applicable

Beginning of fiscal year(¥ million)

End of fiscal year(¥ million)

Average interest rate(%)

Repayment deadline

Short-term loans payable
Current portion of long-term loans payable
Leases obligations due within one year

17,94817,212341

26,37520,824
401

1.7
1.7
—

—
—
—

Long-term loans payable(excluding current portion)

43,22645,7191.7	2014.4.25 to2025.6.30

Lease obligations(excluding current portion)

1,464

1,683

—

	2014.4.1 to2018.11.30

325

333

0.0

—

80,51895,338——

6. Related Parties

Category

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
Not applicable
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Not applicable
17. Special Purpose Companies Subject to Disclosure

Other interest-bearing debts:

FY2011 (Apr. 1, 2011 – Mar. 31, 2012) Security deposits payable(“Others” in noncurrent liabilities)

Not applicable

Total

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

Notes: 1. The average interest rate is the weighted average interest rate for loans payable as of the end of the fiscal year.
2. T he average interest rate for lease obligations is not shown because lease obligations in the consolidated balance sheet are prior to the deductionof the interest portion that is included in total lease payments.
3. T otal repayments in each of the next five fiscal years for long-term loans payable and lease obligations (excluding the current portions) and otherinterest-bearing debts are as follows:

Not applicable
18. Per Share Data

Net assets per share (¥)
Net income per share (¥)(¥ million)

FY2012 (Apr. 1, 2012 – Mar. 31, 2013)

FY2011 (Apr. 1, 2011 – Mar. 31, 2012)
453.0062.87

Diluted net income per share is not shown because there are nocommon stock equivalents.

Category512.1835.24

Net assets per share (¥)
Net income per share (¥)

Due after one year
through two years

Long-term loans payable
Lease obligations

Diluted net income per share is not shown because there are nocommon stock equivalents.

Due after two years Due after three years Due after four years
through three years through four years
through five years Due after five years

11,151357

14,996274

12,656
177

6,595
872

319
1

Note: Security deposits payable are not shown because there is no repayment deadline.

3. Asset Retirement Obligations

Note: Base of calculations for net income per share are as follows:	Asset retirement obligations as of April 1, 2012 and March 31, 2013, did not exceed 1% of the sum of liabilities and net assets on
FY2011(Apr. 1, 2011 – Mar. 31, 2012)

FY2012(Apr. 1, 2012 – Mar. 31, 2013)

Net income (¥ million)
Amount not attributable to common shares (¥ million)
Net income related to common shares (¥ million)

13,897—
13,897

7,789
—
7,789

Average number of common shares outstanding in fiscal year
(Thousands)

221,064

221,046

19. Subsequent Events
FY2012 (Apr. 1, 2012 – Mar. 31, 2013)
Not applicable

this date. Consequently, a list of these obligations is not presented as provided for in Article 92-2 of the Consolidated Financial
Statement Regulations.
4. OtherQuarterly information
Cumulative
first quarter

Cumulative
second quarter

Cumulative
third quarter

FY2012

Net sales (¥ million)

77,922

154,347

224,650

305,752

Income before income taxes and minority
interests (¥ million)

4,490

6,248

8,800

12,994

Net income (¥ million)
Net income per share (¥)

3,105
14.05

3,929
17.78

5,262
23.81

7,789
35.24

First quarter

Net income per share (¥)

34

14.05

35

Second quarter

3.73

Third quarter

6.03

Fourth quarter

11.43

Major Subsidiaries and Affiliates

KYB Corporation

Annual Report 2013

As of March 31, 2013

Consolidated Subsidiaries

North America and South America

Japan

KYB Manufacturing Czech s.r.o.

KYB Steering (Thailand) Co., Ltd.

— Manufacturing and sales of shock absorbers for automobiles
U Panasonicu 277, Stare Civice, 530 06 Pardubice,
Czech Republic
Tel: 420-466-812-232
Fax: 420-466-812-861

̶ Manufacturing and sales of pumps for power steering
700/829 Moo 6 (Amata Nakorn Industrial Estate) T. Nongtamlueng
A.Panthong Chonburi 20160, Thailand
Tel: 66-3-818-5559
Fax: 66-3-818-5552

KYB Middle East FZEKYB (Thailand) Co., Ltd.

— Sales of shock absorbers and hydraulic equipment
715 Corey Road Hutchinson, Kansas 67504-1642, U.S.A.
Tel: 1-620-663-1790
Fax: 1-620-663-1797

̶ Sales of shock absorbers
LOB 16-302, Jebel Ali Free Zone, P.O. Box 261819,
Dubai, United Arab Emirates
Tel: 971-4-887-2448
Fax: 971-4-887-2438

KYB Latinoamerica, S.A. de C.V.

LLC KYB Eurasia

̶ Manufacturing and sales of shock absorbers
700/363 Moo 6, Amata Nakorn Industrial Park 2, BangnaTrad Road, K.M. 57, Tambol Don Hua Roh, Amphur Muang,
Chonburi 20000, Thailand
Tel: 66-3-846-9999
Fax: 66-3-845-8331

Kayaba System Machinery Co., Ltd.

KYB Americas Corporation— Manufacturing and sales of stage equipment and seismicbase isolation and vibration control dampers
Sumitomo Fudosan Shiba Daimon Bldg., 5-5,
Shibadaimon 2-chome, Minato-ku, Tokyo 105-0012, Japan
Tel: 81-3-5733-9441
Fax: 81-3-5733-9504— Manufacturing and sales of shock absorbers for automobiles
2625 North Morton, Franklin, Indiana 46131, U.S.A.
Tel: 1-317-736-7774
Fax: 1-317-736-4618

KYB Engineering and Service Co., Ltd.
— Sales of shock absorbers and hydraulic equipment
Landmark Plaza, 6-7, Shibakoen 1-chome, Minato-ku,
Tokyo 105-0011, Japan
Tel: 81-3-6895-1260
Fax: 81-3-6895-1270

KYB Trondule Co., Ltd.
— Manufacturing and sales of electronic equipment
3909 Ura, Nagaoka City, Niigata 949-5406, Japan
Tel: 81-258-92-6903
Fax: 81-258-92-6921

KYB Kanayama Co., Ltd.
— Manufacturing of shock absorbers and hydraulic equipment
	4350-130 Aza-Funeno Tobe, Kanayama-cho, Gero-shi,
Gifu 509-1605, Japan
Tel: 81-576-35-2201
Fax: 81-576-35-2204

TSW Products Co., Inc.

— Sales of shock absorbers
Av. de Las Palmas #731, Despacho 1301, Col. Lomas de 		
Chapultepec, C.P. 11000, Mexico D.F.
Tel: 52-55-5282-5770
Fax: 52-55-5282-5661

KYB Panamá, S.A.
— Sales of shock absorbers
P.H. World Trade Center Piso 17, Oficina 1705, Marbella, 		Panamá, República de Panamá, P.O. Box 0832-0075
Tel: 507-213-8300

EuropeKYB-CADAC Co., Ltd.
— Manufacturing and sales of casting and metal mold products	1088 Higashijou, Chikuhoku-mura, Higashi Chikuma-gun,
Nagano 399-7502, Japan
Tel: 81-263-66-2150
Fax: 81-263-66-2608

KYB Europe Headquarters B.V.
— Headquarters of KYB’s European baseGodsweerdersingel 77 6041 GK Roermond The Netherlands

KYB Europe Headquarters GmbHKYB-YS Co., Ltd.
— Manufacturing and sales of shock absorbers andhydraulic equipment
9165 Sakaki, Sakaki-machi, Hanishina-gun,
Nagano 389-0688, Japan
Tel: 81-268-82-2850
Fax: 81-268-82-2857

Takako Industries, Inc.
— Manufacturing and sales of hydraulic pump components
and electronic machine parts
32-1, Housono-Nishi 1-chome, Seika-cho, Souraku-gun,Kyoto 619-0240, Japan
Tel: 81-774-95-3336
Fax: 81-774-95-3337

KYB Logistics Co., Ltd.
— Packaging and delivery of shock absorbers andhydraulic equipment
1790, Dota, Kani-shi, Gifu 509-0206, Japan
Tel: 81-574-26-6427
Fax: 81-574-26-8389— Headquarters of KYB’s European base
Kimpler Strasse 336, 47807 Krefeld, Germany
Tel: 49-2151-9314380
Fax: 49-2151-9314330

KYB Europe GmbH— Sales of shock absorbers
Kimpler Strasse 336, 47807 Krefeld, Germany
Tel: 49-2151-931430
Fax: 49-2151-9314320

KYB Steering Spain, S.A.
— Manufacturing and sales of pumps for power steering
Poligono Industrial de Ipertegui No. 2, nave 12, CP-31160, 		
Orcoyen (Navarra), Spain
Tel: 34-948-321004
Fax: 34-948-321005

KYB Suspensions Europe, S.A.
— Manufacturing and sales of shock absorbers for automobiles
Ctra. Irurzun S/No. 31171, Ororbia (Navarra), Spain
Tel: 34-948-421700
Fax: 34-948-322165

KYB Advanced Manufacturing Spain S.A.
— Manufacturing and sales of shock absorbers for automobiles
Poligono Industrial Perguita Calle B, No. 15,
31210 Los Arcos (Navarra), Spain
Tel: 34-948-640338
Fax: 34-948-640328

36̶ Import and sales of shock absorbers
56, Profsoyuznaya Str., Moscow, 117393, Russia
Tel: 7-495-781-88-52
Fax: 7-495-781-88-53

Asia

KYB Asia Co., Ltd.
̶ Sales of shock absorbers
105/1-2 Moo 1, Bangna-Trad Road, K.M. 21, Srisajorakaeyai,
Bangsaothong, Samutprakarn 10540, Thailand
Tel: 66-2-769-2140
Fax: 66-2-769-2144

KYB Manufacturing Vietnam Co., Ltd.

KYB (China) Investment Co., Ltd.
̶ Headquarter of KYB's China baseWei 3 Road 121, Dingmao, Zhenjiang New Zone, Zhenjiang,
Jiangsu 212009, People’s Republic of China
Tel: 86-511-8888-2057
Fax: 86-511-8888-7615

KYB Industrial Machinery (Zhenjiang) Ltd.
̶ Manufacturing and sales of shock absorbers for automobiles
Wei 3 Road 38, Dingmao, Zhenjiang New Zone, Zhenjiang, 		
Jiangsu 212009, People’s Republic of China
Tel: 86-511-8889-1008
Fax: 86-511-8888-6848

̶ Manufacturing and sales of shock absorbers for motorcycles
Plot I 10-11-12, Thang Long Industrial Park,
Dong Anh District, Hanoi, Vietnam
Tel: 84-4-881-2773
Fax: 84-4-881-2774

Takako Vietnam Co., Ltd.
̶ Manufacturing of internal parts for hydraulic equipment
27 Dai Lo Doc Lap, Vietnam Singapore Industrial Park, 		Thuan An District, Binh Duong, Vietnam
Tel: 84-650-378-2954
Fax: 84-650-378-2955

KYB Hydraulics Industry (Zhenjiang) Ltd.
̶ Manufacturing and sales of hydraulic equipment forindustrial use
Wei 3 Road 121, Dingmao, Zhenjiang New Zone, Zhenjiang,
Jiangsu 212009, People’s Republic of China
Tel: 86-511-8889-7200
Fax: 86-511-8888-7222

Wuxi KYB Top Absorber Co., Ltd.
̶ Manufacturing and sales of shock absorbers for motorcycles
No. 2 Xikun North Road, Singapore Industrial Zone, Wuxi
New District, Jiangsu 214028, People’s Republic of China
Tel: 86-510-8528-0258 Fax: 86-510-8528-0616

KYB Trading (Shanghai) Co., Ltd.
̶ Sales of shock absorbers and supplies components
B1008-1009 Far East International Plaza, 317 Xianxia Road, 		Shanghai 200051, People’s Republic of China
Tel: 86-21-6211-9299
Fax: 86-21-5237-9001

KYB Manufacturing Taiwan Co., Ltd.
̶ Manufacturing and sales of shock absorbers
No. 493, Kuang Hsing Road, Bade City, Taoyuan Pref.
33450, Taiwan
Tel: 886-3-368-3123
Fax: 886-3-368-3369

Equity-Method Affiliates
Towa Industry Co., Ltd.
̶ Manufacturing of hydraulic cylinders and jacks
5-2, Kawai-cho 4 cho-me, Minokamo-shi, Gifu 505-0022 Japan
Tel: 81-574-25-3828
Fax: 81-574-27-1021

P.T. Kayaba Indonesia
̶ Manufacturing and sales of shock absorbers
JL, Jawa Blok II No. 4, Kawasan MM 2100,
Cikarang Barat 17520, Indonesia
Tel: 62-21-8981456
Fax: 62-21-8980713

KYB-UMW Malaysia Sdn. Bhd. /KYB-UMW Steering Malaysia Sdn. Bhd.
̶ Manufacturing and sales of shock absorbers andhydraulic equipment
Lot 8, Jalan Waja 16, Telok Panglima Garang, 42500 Kuala
Langat, Selangor Darul Ehsan, Malaysia
Tel: 60-3-3122-6222
Fax: 60-3-3122-6677

KYB-Mando do Brasil Fabricante de Autopeças, S.A.
̶ Manufacturing and sales of shock absorbers for automobiles
Rua Francisco Ferreira da Cruz, 3000, Fazenda Rio Grande PR,
CEP 83820-000, Brazil
Tel: 55-41-2102-8200
Fax: 55-41-2102-8210

37

Corporate Information

Shareholder Information

As of March 31, 2013

As of March 31, 2013

Head Office:World Trade Center Bldg., 4-1, Hamamatsu-cho 2-chome,		

Minato-ku, Tokyo 105-6111, Japan		

Tel: 81-3-3435-3511

		Common Stock Issued:

222,984,315 shares

Number of Shareholders:

13,008

URL: http://www.kyb.co.jp

Transfer Agentand Registrar:

Mizuho Trust & Banking Co., Ltd.

Date of Establishment:

November 25, 1948		2-1, Yaesu 1-chome, Chuo-ku, Tokyo 103-8670, Japan

Fiscal Year:

April 1 to March 31

Paid-in Capital:¥19,113 million

Number of Employees:

12,306 (Consolidated basis)

Securities Traded:

Tokyo Stock Exchange (First Section)

Plants:Sagami, Kumagaya, Gifu North, Gifu South, Gifu East

R&D Centers:

Basic Technology R&D Center, Production Technology R&D Center

Sales Branches:

Fax: 81-3-3436-6759

Major Shareholders:

Nagoya, Osaka, Fukuoka, Hamamatsu, HiroshimaComposition of
Shareholders:(Thousands)

Name

Shareholding(Thousand)

Percent of Total
Shares Issued

Toyota Motor Corporation

19,654

8.81

Japan Trustee Services Bank, Ltd. (Trust Account)

12,459

5.59

The Master Trust Bank of Japan (Trust Account)

12,311

5.52

Meiji Yasuda Life Insurance Company

10,046

4.51

Hitachi Construction Machinery Co., Ltd.

8,920

4.00

Mizuho Corporate Bank, Ltd.

7,163

3.21

Trust & Custody Services Bank, Ltd. as trustee for Mizuho
Bank, Ltd. Retirement Benefit Trust Account re-entrusted by
Mizuho Trust and Banking Co., Ltd.
Ogaki Kyoritsu Bank, Ltd.

6,115

2.74

5,914

2.65

KYB suppliers’ stock ownership

5,856

2.63

Japan Trustee Services Bank, Ltd. (Trust Account 9)

4,799

2.15

Total

93,23841.81

1,947 (0.9%)
23,822 (10.7%)
Financial institutions

52,296 (23.5%)

Other domestic companies

89,247 (40.1%)

Individuals and others
Foreign companies
Treasury stock

55,050 (24.8%)

Monthly Stock
Price Range:(Tokyo Stock Exchange)

Stock price (¥)
800
700
600
500
400
300
200
100
Trading volume(Share)060,000,000
40,000,000
20,000,000
038

FY2008FY2009FY2010FY2011FY2012High (¥)

520

356

745

690

508

Low (¥)

110

127

309

333

245

At year-end (¥)

125

345

669

503

460

39

KYB Corporation

Printed in Japan