The Punch Industry Group’s Network
Group companies

Sales offices

China

UK
Germany

PUNCH INDUSTRY (Dalian) CO., LTD. (Dalian Plant, Chongqing Plant)
PUNCH INDUSTRY (Wafangdian) CO., LTD.
Japan
PUNCH INDUSTRY (Wuxi) CO., LTD.
PUNCH INDUSTRY CO., LTD.
PUNCH INDUSTRY (Dongguan) CO., LTD.
Korea
(Kitakami Plant, Miyako Plant, Hyogo Plant)
PUNCH SPRING (Dalian) CO., LTD.
Pintec Corporation
TurkeyThailandIndia

PUNCH INDUSTRY INDIA PVT. LTD.

Malaysia

TaiwanPhilippines

USA

PUNCH INDUSTRY USA INC.

Vietnam

PUNCH INDUSTRY VIETNAM CO. LTD.
PUNCH INDUSTRY MANUFACTURING VIETNAM CO. LTD.

PUNCH INDUSTRY MALAYSIA SDN. BHD.

Singapore

PUNCH INDUSTRY SINGAPORE PTE. LTD.

Indonesia

Australia

PT. PUNCH INDUSTRY INDONESIA

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Inquiries

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E-mail: info-corp@punch.co.jp

Disclaimer Regarding Forward-Looking Statements
This annual report contains forward-looking statements regarding Punch Industry’s future plans,
strategies, and forecasts. Such statements are not based on historical fact, but are expectations,estimates, and forecasts based on information currently available. These expectations, estimates,
and forecasts involve many potential risks and uncertainties, including changes to the economy,
exchange rate variations, changes in the competitive environment, the outcome of current or
future litigation, or the continued usefulness of capital procurement. As a result, actual businessresults may differ materially from these statements. Accordingly, investors are cautioned not toplace undue reliance on forward-looking statements. Punch Industry is not obliged to amendthese forward-looking statements based on new information or future events.

(Japanese language only)

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Supporting Product Manufacturing
around the World

Performance Highlights

Net sales
Driven by the spirit of innovation, we will continue to develop and propose
advanced technologies in response to customer needs, for the benefit of society.
We will create a vibrant corporate culture that fulfills people’s dreams, by placing
high value on vigorous energy and flexible ideas.

Management
Principles

We will contribute to social development by embracing the spirit of environmental
consideration and compliance and promoting sound corporate activities that areappreciated by society.

We aim to become the leading
brand in the mold and die
components industry and achieve
high profitability by leveraging ourcompetitive advantage as acomprehensive manufacturing andsales company.

Corporate
Vision(Millions of yen)

41,025(Millions of yen)

40,93535,3482,843

39,35832,4626.9%

3/20183/20193/20203/2021

3/20223/2018(Millions of yen)

2,731

11.8%

Customer-oriented
sales structure

Broad responsivenesswith 2,000 machines

Finely tailored response andproposal capabilities

3/20203/2021

3/2022

2,040
14.2%
960
477

6.0%

712

Flexible response tocustomized needs

3/2019

1,788

2,547

Special-order products

4.0%(3,485)3/2018Integrated production
structure

5.0%(Millions of yen)

3,007

1,676

Abundant lineup of
versatile standard products

1,613

Profit (loss) attributable to owners of parent/
Return on equity (ROE)

Ordinary profit

High customer satisfaction
Timely andprecise solutions

7.7%

6.3%

2.4%

Punch Industry Group’s Strengths

Standard products

3,041
2,578

835

Molds and dies are necessary for making automobiles, electronic equipment, and consumer electronics—essential items in our daily lives—
swiftly, uniformly, and in mass quantities. The Punch Industry Group makes the components that constitute such molds and dies. Deploying
strengths amassed over the years—advanced technological capabilities, product quality, and meticulous services—we support global
manufacturing and people’s comfortable lives.

Business
FieldsOperating profit/Operating profit ratio

3/20193/20203/2021

3/20223/20183/2019

Capital investments(Millions of yen)

Sophisticated technologicalprowess

2,776

3/2021

3/2022R&D expenditure(Millions of yen)

2,989

443

438

3/20193/2020367

2,011

Know-how accumulated since
founding and unceasing R&D efforts

3/2020

490

508

1,149
452

Components for Plastic Molds

Components for Press Dies

Plastic molds are used in the manufacture of many plastic products, such as theoutercasings of smartphones and digital cameras. Each product is made by heating
resin until it melts, injecting the melted resin into a die mounted on an injection
molding machine, and then allowing it to cool and solidify. The Punch Industry Group
manufactures and sells components used in these molds.

Upper and lower press dies are fitted to a press machine, which moves up anddown. Sheet metal is inserted between the two dies, which are then pressed
together to form a product that takes the same shape as the upper and lower
dies. The Punch Industry Group manufactures and sells components used inthese press dies.

These are what the Punch Industry Group makes!

These are what the Punch Industry Group makes!

Key product01

Punch Industry Co., Ltd.

Key productEjector pins

PunchesEjector pins are used to eject andrelease the molded body from a mold.

As key components for press dies, punches areused to make holes in and/or engrave designs on
sheet metal. Punch Industry derives its namefrom these products.

Key productKey productCore pins

Holder guide posts

Core pins are used to mold parts.
Core pins shape and engrave theportions of the part which they penetrate.

Holder guide posts are used to correctlyalign the upper and lower press dies.

3/20183/20193/20203/2021

3/20223/2018

Sales by Region

5.7%
4.3%
38.0%
Inside: 3/2021
Outside: 3/2022

52.0%
China

53.3%

Automobile

Other

6.7%

4.4%

3/2022

Sales by Industry

Europe,the United States, etc.

Southeast Asia
and India

3/2021

41.8%

27.1%

Japan

26.4%

35.6%
Consumer electronics &precision equipment

10.7%

42.1%

Inside: 3/2021
Outside: 3/2022

12.0%
19.5%

Electronic devices &semiconductors

20.4%
Punch Industry Co., Ltd.

02

Special
FeatureMid-Term Business Plans, Value Creation (VC):
Transition from VC2020 Plus to VC2024

P riority Initiatives and D etails

Expanding sales of “special-order products”
in the FA field
Our previous mid-term business plan, Value Creation 2020 Plus (VC2020 Plus) covering a two-year period, was designed to rebuild ourStrengthening ourmanagement foundations

business, which had deteriorated with the growing impact of trade friction between the United States and China. Although the plan got
off to a difficult start amid the global COVID-19 pandemic, we achieved good outcomes in all four priority initiatives outlined in the plan:“Establishment of 5-pole sales system,” “Enhance customer-focused marketing capabilities,” “Optimize the global production system

DX promotion

and strengthen R&D,” and “Working-style reforms and human resource development.” Under our new plan, Value Creation 2024
(VC2024) covering a three-year period, we will further deepen our efforts toward growth.

Fi n an c i al s t r at e g y

Review of VC2020 Plus (April 2020–March 2022)
Establishment of 5-pole sales system: We made steady progress instrengthening our presence in the Southeast Asian market, establishing a
European sales structure, and expanding business partners in theAmericas. As the world recovered from the COVID-19 pandemic, wereported sales growth in China, Southeast Asia, Europe, the UnitedStates, and other regions, while Japan also followed a recovery trajectory.
Enhance customer-focused marketing capabilities: We worked tostrengthen our sales proposal capabilities, including technical aspects,
by relocating manufacturing department staff to sales offices in Japan.
Due to COVID-19, however, we faced challenges with respect tovisiting customers’ business sites. Nevertheless, we made good
progress in improving our ordering system, which we expect will
become operational in 2022.

S u s t ai n ab i l i t y

Optimize the global production system and strengthen R&D:
Regarding optimization of our domestic production system forstandard and special-order products, we transferred production offinished products to the Vietnam Plant, achieved the stabilizing
production and turned a profit. Our focus on expanding medicalrelated sales also had very positive results. In addition, we madesteady progress in strengthening R&D, especially for projects
involving proprietary technologies.

Expansion of new
and existing businesses

Working-style reforms and human resource development: We
successfully introduced diverse working styles, including telecommuting, and made continuous efforts to promote women’s empowerment,
develop global human resources, and improve employee engagement.

BREA

K IT!

Cha

We will fully utilize our overseas production resources by combining ourown and partner factories to expand sales of products made at our Vietnam
Plant and increase the volume of overseas purchases by our Japanprocurement division.

Development of the Group’s production system

Strengthening
the production system

We will target improvements in production capacity, technology, and quality
through capital investments in our overseas plants. At the same time, we will
aim to improve production efficiency by transferring production and making
capital investments in four domestic plants, including those of Group
companies, to increase sales of special-order products and other items madein Japan.

Productivity improvement through automation,
labor saving, etc.

Automation and labor-saving demand as the new growth engine

We will use IT tools to improve production efficiency at all 12 Punch Industry
Group plants.

〜 Always be the “customer’s first choice” 〜

Responding to the growing demand for automation and labor saving at
manufacturing sites with “‘special-order products’ in the FA* field”

llen
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&
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Ima ative
v
Inno
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Hon
n&

Ope

Punch Industry Co., Ltd.

In Southeast Asia, we will establish a sales company in Malaysia and add
sales offices in Vietnam to promote local production for local consumption.
In the United States, we will increase the number of dealers, and in Europe
we will accelerate moves to establish dealers in regions with high demand formold and die components in order to expand new sales channels.

!

hS
Punc

03

We aim to improve customer convenience and strengthen our customer
follow-up system by refining our ordering system, established as part of ourcustomer service, while increasing the Web order rate with the newly
released “PunchCoco” and expanding our lineup of new products.

Global sourcing

P r i o r i t y i ni ti at i ve s

“Our Ideal State”“Strengthening R&D” as our three priority initiatives. To strengthen
our management foundation that supports these initiatives, we will
work to promote digital transformation (DX), implement soundfinancial strategy, and emphasize sustainability. As we work to achieve
our ideal state, we will engage in ongoing upward-spiraling activities
while constantly aiming higher and changing tactics as necessary. In
the process, we will demonstrate our presence as a behind-the-scenes
supporter of global manufacturing and chart a new growthtrajectory.

Enhancing customer service for ordering system

Expanding sales network outside Japan and China

Toward the Realization of VC2024 (April 2022–March 2025)
Beyond a V-shaped recovery, our path to sustainable growth lies in
our ability to formulate a growth strategy for the Punch Industry
Group, build a track record of successes, and move forward with firm
commitment.
VC2024 sets forth our “ideal state,” which is to always be the“customer’s first choice.” We will achieve this by positioning
automation and labor-saving demand in manufacturing as our new
growth engine. We have identified “Expansion of new and existing
businesses,” “Strengthening the production system,” andWe view the ever-expanding FA market as a growth area and will apply ourtechnological capabilities, cultivated through the manufacture of special-ordermold and die components, to expand our business in four steps: (1)Precision parts, precision jigs, and tools, (2) Assembled precision parts, (3)Simplified, powered equipment, and (4) Production line equipment.

pirit

Through the continuous development of new technologies and services,
we will establish a firm position in the mold and die components business
Enhancing corporate value through SDGs and ESG solutions to social
issuesStrengthening R&D

P-Bas (new processing method)→Page 8Manufacture and sales of products otherthan mold and die components→Page 8Strengthening the aerospace field→Page 8

*FA refers to Factory Automation.

Punch Industry Co., Ltd.

04

CEO MESSAGE
targets, however, we reflect that we had no clear criteria forindustry by supporting manufacturing in Japan and around the

judging whether we have successfully achieved these twoworld while considering the manufacture and sale of equipment

priority initiatives. In our new mid-term business plan, Value

used in production lines. To share this intention, we have set

Creation 2024 (VC2024), we have set specific numerical targets“automation and labor-saving demand as the new growthwhich has great growth potential,

for each priority initiative. These were announced both internallyengine—always being the customer’s first choice” as our ideal

while continuously developing new technologies

and externally to enable visualization of the targets and thestate. Here, we will implement three growth strategies: (1)progress status of each initiative.

Responding to the growing demand for automation and labor

We will strengthen initiatives in the factory automation (FA) field,

and services and resuming growth investments aimed
at strengthening our supply capabilities.
Tetsuji Morikubo
Representative Director, President, Chief Executive Officer

In fiscal 2019, we formulated a management restructuring plan called Value Creation 2020 Plus (VC2020 Plus) in responseto the impact of the U.S.–China trade friction. Since fiscal 2020, the plan has steadily produced results despite very difficult
conditions due to the COVID-19 pandemic. In fiscal 2021, we achieved increased year-on-year sales in all five sales regions
and posted the highest profits since the Company was listed on the stock exchange. I appreciate the hard work of all our
employees in delivering these results.

saving at manufacturing sites with special-order products in the
FA field, (2) Through the continuous development of new

the manufacturing industry. We have been offering FA products

technologies and services, we will establish a firm position infor 20 years and still sell such items, mainly standard products,

the mold and die components business, and (3) Enhancing

in China. In Japan, however, in 2011, we closed our Chiba Plant,

corporate value through SDGs and ESG solutions to social

which made FA standard products, and stopped selling standard

issues.

products domestically altogether. This time, we decided to step

Although we have narrowed down our strategic investments

up development of special-order products by cross-laterally

for new growth over the past two years, we believe we need toapplying the know-how we have cultivated in the mold and die

strengthen our supply capabilities, including by expanding thecomponents business to the FA field. Over the next three years,

machining range of our machine tools and building a

we will expand our presence in Japan and China with the aim ofhigher-capacity production system to ensure stable supplies.

growing this business to around ¥5 billion, or 10% of

Our aim is to increase the angle of our growth curve by

consolidated net sales.

returning Groupwide capital investment to its previous level ofIn the future, we intend to energize the manufacturing¥5 billion over three years.

To our stakeholders

billion and operating income of ¥5 billion by the year ending

In light of geopolitical risks, such as the Ukraine issue andMarch 2025, which is the final year of VC2024 and includes the

Review of fiscal 2021 performance

all regions. This is because, in our case, an increase in sales

China’s zero-COVID-19 policy, combined with soaring raw

50th anniversary of our founding.

translates directly to higher factory utilization. In Japan, whilematerial and resource prices, we feel we may need to review our

The world mold and die industry is on a recovery trend afterorders remained below pre-COVID-19 pandemic levels,

current sales prices. Despite such challenges, it is essential thatprices, putting pressure on people’s livelihoods. To raise salaries

bottoming out in fiscal 2020, and we expect China to continue

operating conditions improved from the previous year, and thewe meet customer expectations and do not lose competitivenessand bonuses, we will focus not only on business growth, but also

leading the global manufacturing sector in the future. In Japan,

growth rate for special-order products was higher than that ofthrough price increases. While we are more aware of ouron improving our corporate value by solving global environmental

however, the number of establishments in the industry has

standard products. In addition, our efforts to reduce costs andcompetitors than before, we believe we must continue striving toand social issues on the premise of securing solid profits. As avisibly declined year by year, especially those with nineeliminate failure costs were successful, contributing significantly

change the way we make and think.

behind-the-scenes force behind the world’s manufacturing

employees or less, despite no significant change in the nation’s

to profit improvement.

total mold and die production value. This indicates that the

Another factor in our better-than-expected results was the

In terms of performance, we have achieved a V-shaped
recovery, with profits having bottomed in fiscal 2019 and sales

amount of production per business establishment is increasing,

yen’s depreciation, which had a positive impact on net sales ofin fiscal 2020, but the real challenges lie ahead. Over theso we assume that major consolidation is under way due toaround ¥2.3 billion compared with the conversion rate of themedium and long terms, we assume that the manufacturingindustry restructuring. Accordingly, we recognize the need to put

previous year.

industry, including the mold and die industry, is on a recovery

From VC2020 Plus to VC2024

trend. With this in mind, we will steadily implement VC2024,

in consolidated net sales. Of this amount, ¥4.0 billion was

Of the four priority initiatives set forth in VC2020 Plus, we madewith initiatives in the FA field, which has particularly high growth

generated in China (up 24% year on year), where sales of bothparticularly good progress in “optimizing the global production

potential. Our aim is to achieve consolidated net sales of ¥50

standard and special-order products grew more than 20%, andsystem and strengthening R&D,” evidenced by the transfer of¥1.7 billion was generated in Japan (up 14%). In other regions,production to the Vietnam Plant. With regard to “working-stylesales rose 60% year on year in Europe, 39% in the Americas,

reforms and human resource development,” we promoted

and 29% in Southeast Asia.

diverse work styles in response to COVID-19 with theeven more effort into developing major customers.
In fiscal 2021, we posted a ¥6.9 billion year-on-year increase

By segment, sales of automobile-related products, which

introduction of telecommuting. We also earned external

account for around 40% of total net sales, increased 20% year

recognition for actively promoting the women's empowerment,on year, while sales of semiconductor-related products jumped

and we received financing due to excellent promotion of the

27% thanks to the global increase in semiconductor production.

SDGs. We regard these as major steps forward.

Growth rates for other industrial machinery and equipment andmedical-related products also remained high.
We also reported improved profitability due to sales growth in05

When formulating VC2024, we envisaged significant growthof the FA field along with the increasing need for automation in

Punch Industry Co., Ltd.

We also achieved a certain degree of success with respect to“establishment of 5-pole sales system” and “enhancing
customer-focused marketing capabilities.” As for the respective

The global surge in raw material prices has driven up all kinds ofindustry, we remain committed to being a company that meets
customers’ expectations and is their first choice.

which revolves around our growth strategies. Here, we will start

Strengthening governance to ensure fair and transparent management
Following our transition to a company with audit andevaluate the effectiveness of the Board, previously thesupervisory committee in June 2021, we increased thesecretariat of the Board of Directors prepared and administeredcombined number of External Directors, Directors who arequestionnaires, compiled and analyzed the responses, andAudit and Supervisory Committee Members, and Non-executive

reported the results to the Board. For the fiscal 2021 evaluation,

Directors in the Board of Directors to six, representing a

however, we contracted these tasks to a third-party organization

majority, compared with four Executive Directors. This has

and initiated discussions for improvement. Going forward, we

created a greater sense of tension in our Board meetings. To

will continue striving for even stronger levels of governance.

Punch Industry Co., Ltd.

06

COO MESSAGE
Sales Division

Manufacturing Division
Yasuhiro Sanada

Akira Takanashi

Director, Managing Executive Officer,
Chief Operating Officer (Sales)

Director, Senior Executive Officer,
Chief Operating Officer (Manufacturing)

We will contribute to manufacturing around the world,
aiming to always be the customer’s first choice.

We are committed to creating new value and targeting growthby providing products that are truly valuable to our customers.

Review of VC2020 Plusin India due to stagnant economic activity, we made good

Establishing a global production system

In Japan, sales of EV batteries, semiconductors, andprogress with respect to “Establishment of 5-pole sales system.”

Amid a series of lockdowns and restricted operations at various

Regarding efforts to “Enhance customer-focused marketingproduction bases, we focused on fulfilling our responsibility toas opposed to mold components with cooling water pipes

capabilities,” we made our Web ordering system even more

supply our customers and established an emergency production

manufactured by metal 3D printers. With various advantages, it

increased sales to the automobile industry. This was despiteuser-friendly with plans to launch a new service in 2022 called

support system. While this caused a slight delay in thepromises to benefit the productivity improvement and cost

being unable to increase the composition ratio within Groupwide“PunchCoco.”development of our production system, we revised our plans

reduction efforts of customers. Since fiscal 2021, we have been

and took other measures to achieve good progress andusing sintering technology to develop original new materials byoutcomes. For example, we improved the capabilities of thea powder metallurgy process, and we will accelerate thisVietnam Plant, which since March 2019 has been making

development through joint research with external organizations.

medical-related products grew significantly, and our expanded
satellite office was well received by customers. We also posted

net sales due to customers’ procurement difficulties caused bylockdowns in various countries, as well as an increase in remotebusiness negotiations that led to delays in new customer

P-Bas is targeted at technology development using bonding

In the growing battery-related business for EVs, we aim to

Punch-brand punches and dies for Japanese customers. In June

increase orders in China for products developed in Japan while

2022, that plant also started making some of our new standard

and die components, we started working with the Japan

expanding beverage, medical-related, and other existingproducts. We also relocated some equipment between our

Aerospace Exploration Agency (JAXA) in Japan in fiscal 2021.

semiconductor-related products. Demand for products for medical

businesses. In a new business initiative, we will broaden ourplants in China, which is starting to produce results with respect

Through our efforts in the aerospace field in Japan and China,

test kits and toys was also firm, leading to strong overall sales.

product lineup to include sub-materials, for which we haveto improved processing of special-order products, shorter

we aim to further improve our skills and expand the range of
products we support.

development and inactive customer recapturing.
In China, we enjoyed brisk demand for automobile-related
products, as well as significant growth in demand for battery- andreceived many inquiries. We will also establish a systemdelivery times for local customers, and increased sales. Under

customers through social media and other means andenabling us to accept orders for products other than mold and

VC2024, we will continue reviewing and considering the bestdeveloping dealers through participation in trade shows. In fiscal

die components, thereby improving customer convenience. We

products for each of our production bases.

2021, we added more dealers and posted increased sales.

plan to start selling some of these products in Japan in 2022

In the United States, we were successful in attracting new

For in-house production in Japan, we will shift our emphasis

With a view to making and selling products other than moldTo our stakeholders
We believe that continuous R&D is extremely important for thefrom high-mix, low-volume production to small-mix,

long-term enhancement of a company’s corporate value, andWe will also embrace the great challenge of “Expanding sales ofhigh-volume production in order to improve productivity while

active entry into new businesses is also crucial. With this in

special-order products in the FA field” targeting the robotics industry.

promoting automation and labor saving throughout the Group.

mind, we disclosed externally our initiative of “Expanding sales

To enhance customer service for our ordering system, we will

We also plan to make capital investments totaling ¥5 billionof special-order products in the FA field,” based on demand forelsewhere, there are indications that the suspension ofincrease the number of Web-based orders and shorten the time(including ¥3 billion overseas) over the next three years toautomation and labor saving, which is a challenge for design

operations of European automakers’ electrical component

required to address quotations for special-order products. We

improve quality and expand production capacity.

development and technology development. We consider this a

In Europe, sales of medical test kit-related products grew
substantially, to the extent that we enlisted the support of our
Kitakami Plant in Japan and Dalian Plant in China to complement
the efforts of our Malaysia Plant. In Eastern Europe andwith a view to an overseas rollout in the future.

Going forward, we will strengthen global procurement by fully

major step forward. Our aim is to provide new value by

suppliers will begin to have an impact. Nevertheless, we will

have also started a new service, called “3D Measurement

consider establishing a European agent outside of Germany inPartners” (see page 11), which utilizes 3D scanners. This is forutilizing our overseas production resources, including both our

combining the precision parts processing technology and sales

customers who have products that, despite being madeown and partner factories. Over the next three years, we plan to

network we have developed over the years with businessaccording to design drawings, are not demonstrating

increase sales of the Vietnam Plant by 35% from the current

alliances and M&As with FA equipment manufacturers. We

struggling due to lockdowns. In response, we began engaging insatisfactory functionality and performance, leading to significant

level, while also raising overseas purchases by 35% for the Japan

believe that our commitment to continuously providing products

local sales to address potential demand in addition to meetingtime lags between prototyping and mass production.

procurement division as a whole. However, we will take a flexibleof value to our customers is what differentiates us from ourapproach, taking into account exchange rate fluctuations that arecompetitors. My role is to spearhead the pursuit of this goal incurrently weakening the yen. Looking further ahead, we will seekorder to be recognized as a company that remains indispensable
to customers and society.

order to further expand sales channels.
In Southeast Asia, our business in Malaysia had been

firm demand from Europe. Going forward, we will reorganize oursales expansion system. In Vietnam, the activities of our sales

07

Priority initiative of VC2024:“Expansion of new and existing businesses”

several years, and are now able to disclose it to the public.

To our stakeholders

company were also severely affected by lockdowns, but we plan

Our company will change in the future. While our manufacturing

to diversify geopolitical risks by developing partner factories into add sales offices in anticipation of future market growth.

and sales structures focusing on mold and die components will

Southeast Asia under our next mid-term business plan.

Despite harsh operating restrictions, our Vietnam Plant continued

remain the same, we will develop frameworks enabling
special-order products to be purchased via the Web ordering

Strengthening R&D

mission the primary role of the manufacturing division is toshipping products and posted increases in sales and profits. In

improving quality and productivity while developing humanresources to underpin these efforts.

Singapore, we reported strong sales driven by demand forsystem, in our quest to always be the customer’s first choice.

Our R&D and technology development activities have generally

products for semiconductor equipment, and in Indonesia sales of

We value the opinions of our customers and will makeproceeded according to plan. Of particular note, we applied for a

special-order products for Japanese manufacturers made aGroupwide efforts to meet their needs while placing the utmost

patent for our new P-Bas (Punch Bonding and sintering)

significant contribution. Although we continued facing challenges

importance on customer convenience.

process (see page 11) that we have been developing for the past

Punch Industry Co., Ltd.

A company’s mission is to grow sustainably, and within thatgenerate profits. Accordingly, we will continue focusing on

Punch Industry Co., Ltd.

08

CFO MESSAGE

Capital Investments/Depreciation

Finance & Human Resources Strategies

Dividend per Share and Payout Ratio
38.1(Millions of yen)

FY2018FY2019FY2020

FY2021

FY2022(Plan)

Capitalinvestments

2,989

2,011

452

1,149

1,600

Depreciation

1,729

1,674

968

971

1,000

16.75

Takao Murata
Director, Senior Executive Officer,
Chief Financial Officer

FY2018

13.7

13.9

2.00

2.00

13.00

13.00

FY2019FY2020

FY2021

FY2022 (Plan)

Strengthening our management foundation
under VC2024

further enhance corporate value. In July 2022, we established

While our top priority has been to improve the soundness of ourspearhead efforts to address the material issues we havefinancial base, we are now virtually debt-free, so it is time toidentified and disclose the status of our activities to the outside

believe we will need to allocate more resources to shareholder

move to the next important phase and consider how to allocate

world. As part of this effort, we will also engage in “humanreturns and growth investments.

the funds we have generated. The value of a company lies incapital management,” which is a continuation of the

our Sustainability Committee (see page 12), which will

Our asset turnover ratios, traditionally an area of focus, all

how much money it can create, that is, whether it can generate“working-style reforms and human resource development”

improved significantly due to the sales recovery, with a fixedcash flow beyond the amount of funds raised and the cost ofactivities we have pursued to date. Here, we will reaffirm ourIn the previous fiscal year, the COVID-19 pandemic led toasset turnover ratio of 5.57 times (from 4.50 times in fiscal

capital it incurs.

belief that employees are not a cost but “human capital” thatsignificant declines in sales and profits and a low level of2020), accounts receivable turnover ratio of 3.78 times (fromproduct launches, so we regard our performance in fiscal 2021,

3.32 times), and total asset turnover ratio of 1.47 times (fromperformance indicator that measures earning power and capitaltime and money spent on human resource training and examine

when we posted year-on-year rises in sales and profits in all

1.29 times). Going forward, we intend to further improve ourefficiency, in order to increase corporate value through growthmethods to measure performance.

regions, as a natural outcome. In Japan, however, market

asset efficiency not only by improving our asset turnover ratios,

investments and ensure stable dividend payments, and aim forrecovery was somewhat delayed, and we were unable to deliver

but also by increasing our return on invested capital (ROIC)

ROIC management that enhances corporate value by increasing

Management issues and shareholder returns

pre-COVID-19 results. Nevertheless, we noted solid market

through improvements in our cash conversion cycle (CCC).

With this in mind, we decided to introduce ROIC, aforms a source of corporate value, and we will set targets forprofits that exceed funding costs from capital markets andWhile Japan’s economic recovery was slow in fiscal 2021, werecovery in all regions, especially China where we posted

At the end of 2021, we issued share acquisition rights withfinancial institutions. Our goal is to maintain ROIC of at leastachieved a significant overall recovery in our businessrecord-high sales. Overall, therefore, we made very good

the aim of raising around ¥1.2 billion over the next three years.

10%, which is above the Group’s WACC (a weighted average

performance, but we understand that our cash dividend level isprogress.

Of this amount, we plan to use ¥700 million for production

cost of capital) of approximately 6%. Our actual ROIC in fiscal

not adequate. Even in the face of multiple challenges, such as

Our sales recovery in all regions, together with increased

facilities in Japan and overseas, ¥300 million to promote digital

2021 was 11%, and we considered setting a higher future target.

the situation in Ukraine and other geopolitical risks as well asfactory utilization rates, led to an improvement in the cost oftransformation, and ¥200 million to develop new products andHowever, given the risk that overemphasizing this point mightsoaring raw material costs, we will aim to normalize dividends

sales ratio, which fully offset the increase in personnel and othertechnologies. By issuing share acquisition rights, we intend tolead to curtailed investment in growth, we decided to maintain a

as soon as possible by charting a solid growth trajectory andexpenses and led to substantial year-on-year increases in all

maintain the Company’s financial strength and increase thecertain ROIC level to place the highest priority on growth. We

securing profits.

profit categories. Thanks also to lower depreciation stemming

number of tradable shares, thereby raising our total market

will use the ROIC tree as a performance indicator of eachfrom impairment losses recorded over the past two years, wecapitalization.

department and achieve them through departmental activities.

achieved our highest profits since our listing. While this does
not reflect 100% of actual performance, we recognize that

Review of VC2020 Plus

recovery toward a new growth trajectory is well underway.

Under our mid-term business plan, VC2024, we will work on
ROIC management and human capital management. Our goal is

Meanwhile, “sustainability” has never been more important into establish internal mechanisms to increase corporate value bycorporate activities. From now on, companies will be required to

first focusing on cash flow, then increasing the value ofWith regard to “working-style reforms and human resource

distance themselves from a profit-driven mindset. More thanintangible assets other than cash, especially our valuable human

Financial position

development,” a priority initiative, we introduced telecommuting

ever, they will need to balance their business activities withcapital, which will lead to increased corporate value. I believe

to address the COVID-19 pandemic. Telecommuting is now fully

efforts to address global environmental and social issues, and tothat my role as CFO is to systematize and visualize the value

In fiscal 2021, we continued our policy of rigorous investment

established at our head office, contributing to improved work-lifeview solutions to these issues as business opportunities tocreation process and firmly entrench it within the Company.

restraint, with capital investments of ¥1.1 billion andbalance for employees. We will continue deploying its advantages

depreciation of ¥1.0 billion. In fiscal 2022, we will once again

as we move forward. In human resource development, we

step up growth investments, with forecasts of ¥1.6 billion andreviewed our overall training system as part of a Business¥1.0 billion, respectively. Although the benefit of lower

Planning Project that began last year. Although we are still

depreciation due to impairment losses in previous fiscal years

halfway through the process, it is gradually beginning to takewill gradually disappear, we will compensate for this by making

shape. We have also achieved some successes in promoting theeffective investments that contribute to increased profits.

women's empowerment. For example, we received “Eruboshi”

Regarding our financial position, we posted net cash provided

09

9.1

Payout ratio (%)

Due to the loss recorded in fiscal 2019, a figure for payout ratio is not provided for that year.

We will systematize and visualize the value creation process
through ROIC management and human capital management
in order to enhance corporate value.
Increased sales and profits in all regionsin fiscal 2021; highest profits since
our public listing

Dividend (Yen)certification based on the Act on Promotion of Women’s

6,000
4,000
2,000
0

by operating activities of ¥2.9 billion, of which we used around

Participation and Advancement in the Workplace (see page 13),-2,000¥1.1 billion for capital investments, ¥1.5 billion for loan

and we were selected as a “Women’s Advancement Certified-4,000

repayments, and ¥100 million for dividend payments. By fiscal

Company of Iwate” by Iwate Prefecture. However, the ratio of-6,000

year-end, therefore, we had a positive net cash position for the

women in executive and managerial positions remains low, and-8,000first time and virtually debt-free operations. In the future, we

we believe that further efforts are needed.

-10,000

Punch Industry Co., Ltd.

Net Cash (FY2013–2021)(Millions of yen)

995
-905

-2,108-3,526-3,853-2,561-3,499-3,065FY2018FY2019Cash and deposits
Interest-bearing debt
Net cash-6,216FY2013

FY2014FY2015FY2016FY2017

FY2020

FY2021

Punch Industry Co., Ltd.

10

Technology Development and R&D

Sustainability and ESG

The Punch Industry Group proactively engages in technology development and R&D, the source of value creation fora manufacturing company.

The Punch Industry Group considers ESG (environmental, social, and governance) and the SDGs to be

R&D and Marketing Creating New Value
The Punch Industry Group’s R&D bases in Japan and China work with each other to develop new construction methods and products.
Our business environment is undergoing remarkable changes due to advances in digitalization and electrification, as well as businessmodel innovations. In this context, our aim is to stay close to the market in order to understand new needs and create new value, as well as
new businesses and products for the next generation.

important management priorities and is working to address them.
Of the 17 SDGs, the entire Group is working on seven goals that are particularly
relevant to our business, including those already being implemented by individualGroup companies.

“P-Bas” Metal Integration Technology
P-Bas (Punch Bonding and sintering) is a term coined by the Punch
Industry Group that combines bonding and sintering. It is a technology
used to integrate multiple metal parts and/or materials initiallyprocessed in sections by pressurizing and heating them with special
equipment. Currently, we are using sintering to develop new materials
and using bonding to develop a technology to manufacture mold anddie components (trademark registration pending).
Development of Bonding Technology
Parts with complex shapes, such as cooling water pipes, are difficult tomachine and previously had to be fabricated using metal 3D printers.
With this in mind, we are developing a technology that enables suchparts to be machined by first separating and bonding them. Comparedwith metal 3D printer fabrication, using bonding to make parts has
several advantages. These include fewer manufacturing man-hours,
lower material costs, more material options, and higher productstrength, which together help improve productivity and reduce costs
for customers.
In addition, we have applied for a patent for a technology that uses
a bonding process to prevent rust and impurities from accumulatingon the cooling water pipe sections of mold components.
Technology to bond multiple components machined in sections
Component manufacturingin multiple parts

Bonding componentparts

End processing
after bonding

Water
pipe

Water
pipe

Using Sintering to Develop New Materials
Materials frequently used in mold and die components arealloy-designed by specialty steel manufacturers with mass production
in mind, so the optimal material for the customer’s desired application
is not always available in the lineup. Compared with components forpress dies, for example, materials used in components for plastic
molds require a combination of characteristics depending on the
product to be fabricated. These include abrasion resistance, highthermal conductivity, polishability, non-magnetic properties, anti-rustproperties, and surface treatment compatibility. In addressing theserequirements, we identified many areas that are not covered by

11

Punch Industry Co., Ltd.

existing materials and decided to develop a new material specificallyfor use in components for plastic molds. In this regard, we signed ajoint research agreement with the Hakodate Regional Industry
Promotion Organization (Hokkaido Industrial Technology Center) in
June 2022.
The new material developed will be used in the Company’s moldcomponents, and we also plan to sell it to customers upon request.

“3D Measurement Partners”:
New Service Using 3D scanners
In January 2022, we launched “3D Measurement Partners,” a newservice that utilizes measurement technology based on 3D scanners,
on a full-scale basis. It involves measuring object “shapes” thatconventional dimensional measurements cannot accurately determineor requires time to accomplish, then makes proposals to help
customers “establish manufacturing perfection” in their productdevelopment and production processes.
Since 2016, we have provided a “reverse engineering” service thatreconstructs parts and the like by converting actual products into 3D
data, even if there are no drawings available. This service has been
well received by customers who have problems with discrepancies
between drawings and actual products, caused by loss of drawings
due to corporate restructuring or refinements stemming from onsite
manual finishing.
“3D Measurement Partners” is a further development of our reverse
engineering technology. In addition to measuring actual molds anddies and formed products, it includes analysis of data acquired from
3D scans and proposals for solutions to customer issues. Through thisservice, we aim to further reduce development lead times and improve
manufacturing quality.

Establishment of Sustainability Committee
Outside of the Punch Industry Group’s operating domain, the social environment and the broader global environment arefacing various challenges, including global warming.
The Punch Industry Group will work actively to resolve these issues and fulfill its corporate social responsibility whileat the same time generating self-growth and increasing corporate value. In July 2022, we established the Sustainability
Committee, chaired by the Representative Director, President, Chief Executive Officer to promote cross-divisional efforts
toward sustainability, identified as a key measure to strengthen our management foundation under Value Creation 2024,
our mid-term business plan. We have also specified five material issues that we will tackle on a Groupwide basis going
forward: Consider the global environment, respect human rights, enhance human capital, pursue quality and value inproducts and services, and strengthen corporate governance.

Environment
Introduction of EVs

Using Digital Tools

Measures shapes and acquires 3D scan data

For company vehicles used at our sales offices in Japan, weare gradually switching to hybrid vehicles with low
environmental impact.

We are reducing CO2 emissions from business trips byintroducing web conferencing systems at all domestic andoverseas bases. We are also digitizing paper documents,
such as internal application forms, and some departments
have introduced wireless LAN and laptop computers formobile work on-site. In these ways, we are eliminating
paper-based materials for meetings and the like.

Analyzes 3D scan data (Example) Data processing with CAD

Punch Industry Co., Ltd.

12

SocialGovernanceCorporate Governance

Skills Contest
Every year, we hold a skills contest for the purpose of
improving employees’ technical skills and interacting withother departments. In fiscal 2021, around 70 participantsfrom various plants in Japan competed in seven categories,
including grinding, wire EDM, and packaging, in skills thattranscended boundaries among divisions. We will continue
with this initiative while considering changes in categories
and the participation of Group companies.

Punch Family Salon
Since 2020, we have held Punch Family Salon, a web-basedsocial event for employees (both male and female) onmaternity or paternity leave. The purpose of this event is toalleviate employees’ anxiety during leave of absence throughchats and consultation, allowing a smoother return to work. It
provides an opportunity for experienced mothers and fathers
to provide advice on balancing work and childcare andexchange information on using the Company’s systems. An
active childcare teacher is also invited to address questions
and concerns raised by employees. In these ways, we help
employees balance their work and childcare commitments.

13

Punch Industry Co., Ltd.

the Board of Directors and to speed up managerial decision-making. In addition, in order to separate the monitoring andsupervision of management by the Board of Directors from business execution by the management team, and to enable prompt
decision-making by the management team, we have enhanced the Executive Officer system, abolished Directors with executive
titles except for the Chairman of the Board, and established a system to select the President and Executive Officers with executive
titles from among Executive Officers.

Initiatives to Strengthen Corporate Governance
3/2013President

3/20143/20153/20163/20173/20183/20192013- Masaaki Takeda

Chairperson of
the Board of Directors

3/2021

3/2022

2016- 2 persons

2021- 4 persons

2015- Nomination & Remuneration Advisory Committee

2021- Nomination &Remuneration Committee

Formulation of policy for nomination of Directors and Executive Officers
Review of Board members’ remuneration system
Formulation of policies, standards and procedures for nomination anddismissal of Board members, etc.

2012- Company with audit & supervisory board

2021- Company withaudit and supervisorycommittee

2017- Enhanced the Executive Officer system

Basic Policy on
Corporate
Governance

Providing Opportunities to Learn
The Company offers workplace tours and internships tostudents attending local schools to provide them with
opportunities to learn about the community and to consider
their own career paths through learning. As part of our efforts
to contribute to communities and foster our future local
leaders, we provide guidance
to nearby high schools to
help them acquire national
manufacturing-related
qualifications.

Established in 2021

Basic Policy
The Punch Industry Group makes dedicated efforts to enhance corporate
governance practices to comply with laws and sincerely fulfill the corporatesocial responsibility, to ensure the soundness and transparency of management,
to protect the interests of all shareholders, customers, and other stakeholders,
and to continuously increase the corporate value, under the following concepts:

Groupwide No Tobacco Day

1. Securing shareholders’ rights and equality
2. Appropriately cooperating with all the stakeholders
including shareholders
3. Ensuring transparency by appropriate information
disclosure
4. Supervising business execution by the Board of
Directors
5. Engaging in constructive dialogue with shareholders

General Meeting of Shareholders
Appoint/Dismiss

Accounting
AuditorAccounting
audit

Appoint/Dismiss

Determine
proposal
for appointment
and dismissal

Appoint/Dismiss

Audit
Audit/and Supervisory
Supervise
Committee
Directors

Directors(Audit and Supervisory
Committee Members)

Coordinate
Audit

Corporate Audit
OfficeNomination &Remuneration
Committee(excluding Audit and Supervisory
Committee Members)

Auditing
OfficeAppoint/
Dismiss
Supervise

ReportExecutive Board
CEO

Issue instructions/Report

Internal audit/
Internal control support

Inquire/ReportBoard of Directors(Chairperson: External Director)

Issue instructions/Report

Seeking to build a tobacco-free society
and promote the health of our employees,
we participate in anti-smoking activities
set by each Group company on World No
Tobacco Day. In Japan, as well, we
engage in regular anti-smoking activities,
having designated the 22nd of every
month as “Groupwide No Tobacco Day.”

3/20232016- External Director serves as Chairperson

2013- 1 person

Advisory
Committee, etc.
Risk Management
Organization, etc.

3/20202019- Tetsuji Morikubo

President serves concurrently as Chairperson

Independent
External Director(s)Business execution

The Punch Industry Group’s environmental philosophy is tofoster the advancement of society through the manufactureof environmentally friendly products. As part of this effort,
we display the “Environmentally Friendly” mark on products
in our catalog that comply with the RoHS Directive andother environmental laws and regulations. We also promote
continuous improvement through theacquisition of environmental
management systems and conductperiodic training to raise employee
awareness of environmental issues.

In July 2021, the Company was awarded 3-star “Eruboshi”
certification, the highest grade, by Japan’s Minister of Health,Labour and Welfare. The award recognizes our efforts toempower female employees under the Act on Promotion of
Women’s Participation and Advancement in the Workplace.
“Eruboshi” is a three-level rating system that gives points
to companies according to how well they satisfy criteria in fiveevaluation categories: Recruitment, continued employment,
working hours, proportion of women in managerial positions,and diversity of career courses. We will continue promoting
women’s empowerment by strengthening career support andother measures while striving to create a workplace that isrewarding for all employees regardless ofgender. Our aim is to become a company
where diverse human resources can playeven more active roles.

The Company has adopted the system of a company with audit and supervisory committee to enhance the supervisory function of

Monitoring/supervisory

Creating Environmentally
Friendly Products“Eruboshi” Certification Received Basedon the Act on Promotion of Women’sParticipation and Advancement in the
Workplace

COO/Sales
COO/Manufacturing
CFO
Executive Officer

Issue instructions

ReportIssue instructions/
ReportIssue instructions/
ReportIssue
instructions/
ReportRisk
Management
Committee

Issue
instructions/
ReportSustainability
Committee

Monitoring

Issue instructions/Report

Operating Division/Administration Division/Group companies

Punch Industry Co., Ltd.

14

Honorary Chairman, Directors, and Executive Officers (As of June 23, 2022)
1. Board of Directors

The Board of Directors is composed of 10 Directors (including four External
Directors), and more than one-third of the Directors are independent
External Directors. An independent External Director serves as the
Chairperson of the Board of Directors to enhance the supervisory function.
The Board of Directors makes decisions on basic management
policies, matters stipulated by laws and regulations, and other importantmatters related to management. The Board of Directors holds regularmeetings monthly, as well as extraordinary meetings and meetings forexchange of opinions by the members of the Board of Directors whennecessary.

2. Audit and Supervisory Committee

The Audit and Supervisory Committee of the Company is composed ofthree Directors (including two External Directors) and has one full-time
Audit and Supervisory Committee Member. The Audit and Supervisory
Committee meets once a month in principle, and holds extraordinary
meetings when necessary, for the purpose of conducting fair andobjective audits.
Audit and Supervisory Committee Members attend meetings of theBoard of Directors and other important meetings to express theiropinions, as necessary, on the status of business execution by Directors(excluding Directors who are Audit and Supervisory Committee
Members) and important decision-making. In addition, they conduct
rigorous audits through hearings and reports from Directors (excluding
Directors who are Audit and Supervisory Committee Members),
Executive Officers, and others.
In addition, to conduct audits utilizing the Company’s internal control
system, the Audit and Supervisory Committee works closely with theinternal audit division, and regularly receives reports on the status andresults of internal audits and requests reports from the businessexecution divisions as necessary. In order to assist the Audit andSupervisory Committee in the smooth execution of its duties, theCompany has established the Auditing Office and assigned specialized
staff to assist the Committee in its duties.

3. Executive Board

As a decision-making body for business execution, the Executive Board,
composed of all Executive Officers, meets once a month to deliberate
and make decisions on business execution, including matters delegatedby the Board of Directors, to the extent legally allowed.

4. Nomination & Remuneration Committee

The Nomination & Remuneration Committee has been established as anadvisory body to the Board of Directors to clarify basic policies andstandards and enhance fairness and transparency of thedecision-making process when nominating, dismissing, and when
determining remuneration for Directors and Executive Officers.
The Committee is composed of members nominated by the Board of
Directors. A majority of such members are selected among independent
External Directors to ensure the independence of the Committee. The
authority of the Committee includes the nomination and dismissal of
Directors and Executive Officers in consultation with the Board of
Directors; the remuneration proposal for Directors (excluding Directors
who are Audit and Supervisory Committee Members) and Executive
Officers; the commission and remuneration proposal for the Honorary
Chairman, Advisors and Counselors; and other related basic policies andregulations. The Committee deliberates on the above matters andreports to the Board of Directors.

Skill Matrix of the Board of Directors
Experience and knowledge beneficial
for management and business operations
Name

Manufacturing/Technology/Quality●◎●

Yasuhiro Sanada

Chief Operating
Officer (Sales)◎●

Takao Murata

Chief Financial
Officer

Akira Takanashi

Chief Operating
Officer(Manufacturing)

Susumu Sugita

Director

Naruhiko Takatsuji

External Director●

Mariko Ohsato

External Director◎

Minoru Kawano

Director(Audit andSupervisory
Committee Member)

Yoriatsu Matsue

External Director(Audit andSupervisory
Committee Member)Tomoo Suzuki

External Director(Audit andSupervisory
Committee Member)

Sales/Marketing

●

Legal
Personnel/Compliance /Labor/Human/Risk
resources
management development

●

●

◎

Financialaccounting

●

●

●

●

●

●

6. Risk Management Committee

The Risk Management Committee, consisting of Executive Officers, thechief of the Corporate Strategy Planning Office, persons in charge ofmajor affiliates, and the General Manager of the Corporate Audit Office,works to prevent the occurrence of risks and minimize damage by
establishing a risk management system.

7. Remuneration of Board Members, etc.

The total amount of the remuneration of Directors is approved by theGeneral Meeting of Shareholders. The Board of Directors decides the
specific amount of remuneration for each Director (excluding Directors who
are Audit and Supervisory Committee Members) upon the examination of
appropriateness at the Nomination & Remuneration Committee. The Audit
and Supervisory Committee decides the specific amount of remuneration foreach Director who is an Audit and Supervisory Committee Member.

The introduction of ROIC management and the enhancement of special-orderproducts in the FA field were included in the Value Creation 2024 mid-termbusiness plan. As a member of the Board of Directors, I am committed toenhancing corporate value to realize the Company’s unique niche growth story in
the future, where we will develop our advanced technological capabilities in our
special-order products according to customer needs, as well as theirtechnological applications.
In May 2022, I attended a financial results briefing for analysts and institutional
investors as an External Director. Although there are few instances of External
Directors attending financial results briefings, we will continue
our efforts to encourage better dialogue with our
stakeholders to make the Company’s
appeal widely known both inside andNaruhiko Takatsuji
outside the Company.
External Director

In order to increase corporate value, I believe that
corporate governance should strike a balance between
offensive and defensive measures. How much risk should
we take at this point in time? Should we hold back this timeto ensure sustainable growth? It is precisely in situations
where difficult decisions must be made that we need tobring together the strengths of diverse people—no matter
gender or race. To thrive in the global competition andfulfill our social responsibility, I will make every effort touse my experience and knowledge topush the Company in the right
direction.

Punch Industry’s corporate governance website

Punch Industry Co., Ltd.

GlobalChief Executive
Officer

5. Internal Audits

Internal audits are conducted by the Corporate Audit Office (six internal
audit staff), an organization under the direct control of the President andChief Executive Officer, in accordance with the annual internal audit plan
approved by the Board of Directors. In conducting audits, the Officecooperates with the Audit and Supervisory Committee, including theexchange of audit information. The Office regularly reports the status ofactivities, including audit reports, to the President, the Board of
Directors, and the Audit and Supervisory Committee.

Corporate
management/Businessstrategy

Tetsuji Morikubo

Messages from External Directors

15

Position

Experience and knowledge
for the foundation of management

Mariko Ohsato
External Director

●

●

●

●

●

●

●

●

●

●

●

1. ◎ indicates an individual with top management experience at a company (including a subsidiary). 2. The descriptions include the main experience, knowledge, and expertiseof each Director, and are not a comprehensive list.

Honorary Chairman

Executive Officers

Yuji Morikubo

Hirohisa Morikubo

Hideki Kinumatsu

Joji Kawasaki

Tomoki Katamura

Makoto Kume

Fumio Tsuruma

https://www.punch.co.jp/english/companyinfo/governance.html

Punch Industry Co., Ltd.

16

Company Profile (As of March 31, 2022)

5-Year Financial and Non-Financial Highlights
Financial information

3/20183/20193/20203/2021

3/2022

Fiscal Year (Millions of yen)Company name

PUNCH INDUSTRY CO., LTD.

Business

Manufacture and sale of mold and die components

Main banks

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited

Net sales

41,02540,93535,34832,46239,358Established

1975

Gross profit

11,658

11,472

9,187

9,086

11,444

Capital2,944.77 million yen

Selling, general and administrative expenses

8,814

8,893

8,351

7,473

8,403

3,979 (consolidated)

367

443

438

490

508

Number of employees

R&D expenditure
Operating profit

2,843

2,578

835

1,613

3,041

Head office

Ordinary profit

2,731

2,547

712

1,676

3,007

Omori Bellport E-5F.,
6-22-7 Minami-oi,
Shinagawa-ku, Tokyo

Capital investments

2,776

2,989

2,011

452

1,149

Depreciation

1,597

1,729

1,674

968

971

Profit (loss) attributable to owners of parent

1,788

960

(3,485)

477

2,040

Investor Information (As of March 31, 2022)

Net cash provided by operating activities

3,393

3,185

2,490

2,942

2,941

Stock Information

Net cash used in investing activities(2,335)(3,253)(1,788)(670)(1,099)

Free cash flow

1,058

(68)

701

2,272

1,841

Net cash provided by (used in) financing activities

(738)

74

(772)

(1,684)(1,600)Cash flows (Millions of yen)

At year-end (Millions of yen)

Total number of shares authorized

80,000,000

Total number of shares issued

22,332,400

Number of shareholders

5,161

Stock exchange listing

Prime Market, Tokyo Stock Exchange

Total assets

32,56031,15525,576

24,702

28,774

Net assets

16,174

15,734

11,747

12,436

16,307

Cash and cash equivalents

3,689

3,516

3,366

3,962

4,669

Security code

6165

Interest-bearing debt

6,332

7,079

6,455

4,997

3,820

Number of shares per trading unit

100

Shareholders’ equity

15,096

15,50011,913

12,355

14,378Per share information (Yen)
Net income (loss)*

81.61

43.92

(160.01)

21.90

93.36

Net assets*

736.64721.49536.64568.26737.40Cash dividends*

16.75

16.75

2.00

2.00

13.00

Dividend payout ratio (%)

20.5

38.1

―

9.1

13.9

Key indices

Breakdownof
Shareholders(From April 2022)

Transfer agent

Sumitomo Mitsui Trust Bank, Limited

Accounting auditor

PricewaterhouseCoopers Aarata LLC

Number ofshares held

Percentage ofshares held (%)

Gross profit margin (%)

28.4

28.0

26.0

28.0

29.1

MT Kosan Co., Ltd.

3,804,900

17.25

Operating profit margin (%)

6.9

6.3

2.4

5.0

7.7

10.98

11.8

6.0

―

2,422,900

Return on equity (ROE) (%)

4.0

14.2

CACEIS BANK S. A., GERMANY BRANCH - CUSTOMERACCOUNT

Return on assets (ROA) (%)

5.8

3.0

―

1.9

7.6

Master Trust Bank of Japan, Ltd. (trust account)

2,130,900

9.66

Net worth ratio (%)

49.6

50.4

45.8

50.2

56.5

3.85

14.09

12.93

―

849,191

Price-to-earnings ratio (times)

27.76

5.34

Punch Industry Employees’ Stock Ownership
SchemeOverseas sales ratio (%)

58.2

59.0

58.8

62.0

64.4

Custody Bank of Japan, Ltd. (trust account)

811,500

3.68

Yuji Morikubo

663,000

3.01

Tetsuji Morikubo

663,000

3.01

Michiko Kamba

431,000

1.95

Non-financial information

3/20183/20193/20203/2021

3/2022

Number of employees (persons)

4,298

4,282

4,020

4,006

3,979

Overseas employee ratio (%)

75.6

75.2

73.6

74.3

74.8

Hirohisa Morikubo

264,764

1.20

Ratio of females among new graduates hired (non-consolidated) (%)

42.1

47.8

44.0

26.3

14.2

Shinji Kamba

249,000

1.13

17

Punch Industry Co., Ltd.

3,251,400

Other domestic companies

4,042,000

Foreign companies

4,208,886

Securities companies

591,60845.85%
14.56%
18.10%
18.85%
2.65%

Note: “Individuals and others” includes treasury stock.

Trading volume (right axis)(Yen)(Thousand shares)

800

4,000

600

3,000

400

2,000

200

1,000

0

* On January 1, 2018, the Company implemented a 2-for-1 split of shares of common stock. Figures in the above table are calculated on the assumption that the stock
split was implemented at the beginning of the fiscal year ended March 2018.

10,238,403

Financial institutions

Stock Prices and Trading Volumes

Major Shareholders (Top 10)
Name

Individuals and others

Note: Treasury stock (275,868 shares) is excluded from calculations of “Percentage of shares held.”

12/
2020

4/
2021

8/
2021

12/
2021

3/
2022

0

Punch Industry Co., Ltd.

18