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.

Australia

Indonesia
PT. PUNCH INDUSTRY INDONESIA

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and Investor Relations information.

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Inquiries

Corporate Strategy Planning Office, IR&PR Division
Omori Bellport E-5F., 6-22-7 Minami-oi, Shinagawa-ku, Tokyo, 140-0013, Japan

Phone: +81-3-5753-3130 Fax: +81-3-5753-3175
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.

2019
ANNUAL REPORTSUPPOR TING PR ODUCT M ANUFACTUR ING
AR OUND THE WOR LD

Supporting Product Manufacturing
around the World
Performance Highlights

Punch Industry Group’s Strengths

Operating profit /Operating profit ratio

Net sales(Millions of yen)High customer satisfaction(Millions of yen)

Timely andprecise solutions

Abundant lineup of
versatile standard products

5.4%

5.4%

1,986

1,990

3/20163/2017

2,731

2,578
6.3%

36,755 36,648
5.0%Standard products(Millions of yen)

2,843
6.9%

41,025 40,935
34,392

Ordinary profit

2,547

1,874

Special-order products

1,617

1,666

3/20153/2016

1,724

Flexible response tocustomized needs

Integrated production
structure

Customer-oriented
sales structure

Broad responsivenesswith 2,000 machines

Finely tailored response andproposal capabilities

3/20153/20163/20173/20183/20193/2015

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

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

3/20183/2019

Capital investments(Millions of yen)

(Millions of yen)

2,909

3/20173/20183/2019R&D expenditure(Millions of yen)

2,989

443

2,776

11.8%
367
10.1%

9.8%
8.9%

1,188

306

1,788

323

279

1,375
1,249

Driven by the spirit of innovation, we will continue to develop and propose
advanced technologies in response to customer needs, for the beneﬁt ofsociety.

Management
Principles

We will create a vibrant corporate culture that fulﬁlls people’s dreams, byplacing high value on vigorous energy and ﬂexible ideas.

We aim to become the leading brandin the mold and die components
industry and achieve high proﬁtability
by leveraging our competitive
advantage as a comprehensive
manufacturing and sales company.

Corporate
VisionWe will contribute to social development by embracing the spirit ofenvironmental consideration and compliance and promoting soundcorporate activities that are appreciated by society.

Business Fields

01

1,292

3/20153/2016960

3/20153/20163/20173/20183/20193/20173/20183/20193/20153/20163/2017

Europe,the United States, etc.

Southeast Asia
and India

3/20183/2019

6.3%

4.1%

Other

26.0%

Automobile

43.7%

Components for Press Dies

Plastic molds are used in the manufacture of many plastic products, such as
the outercasings of smartphones and digital cameras. Each product is madeby 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 thesemolds.

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!

Punch Industry Co., Ltd.

1,296

*Fiscal year ended March 31, 2015: Net income

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 componentsthat constitute such molds and dies. Deploying strengths amassed over 40 years—advanced technological capabilities, productquality, and meticulous services—we support global manufacturing and people’s comfortable lives.

Components for Plastic Molds

6.0%

Key product : Ejector pins

Key product : Punches

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

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

Key product : Core pins

Key product : 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.

Japan

Sales by Region

China

48.6%

41.0%

Sales by Industry

Consumer electronics &precision equipment

11.8%

Electronic devices &semiconductors

18.5%

Punch Industry Co., Ltd.

02

C E O M E SSA G E

Toward the Full-Scale Start of a
New Group Production System in Fiscal 2019
Aimed at Becoming a Global Enterprisetransfer skills, which includes developing human resources at theother countries, sales of high value-added strategic products

Punch Academy.

have grown to account for 20% of total sales. Meanwhile, inIn ﬁscal 2018, Punch Industry took various steps to counter the increasingly
adverse effects of the external environment that included a slowdown in the
Chinese economy. Despite this, our performance was rather disappointing in both

Additionally, we must take a holistic approach to promoting theJapan we will make effective use of the face-to-face relationships

active roles of women, employing persons with disabilities, andwe have nurtured with customers to accurately identify needs,

providing the opportunity to employees who have reached theclarify concrete challenges, and invest in R&D with the aim ofretirement age yet keep contributing to the value of the Company.

further increasing sales.

We will encourage a wide variety of working styles rather than get

In terms of intensifying efforts in these high-proﬁt businesses,

stuck on the concepts of “regular” and “irregular,” and establish

we need to transfer the production of semi-ﬁnished products andan environment that enables work based on diverse options.

cost-competitive ﬁnished standard products to our Vietnam Plant

I believe that such a unique stance will serve to strategicallyto the greatest extent possible and secure space for highdifferentiate us from the competition over the long term. As partvalue-added special-order products in Japan and certain plants inof this process, I would like to vigorously debate a humanJapan and China. I am conﬁdent that we are heading steadily toward the next stage

China. We are currently shifting the production of ﬁnishedresources strategy that allows us to become a 100-year company.

on the whole, however, in the four priority initiatives outlined in our mid-term

standard products from Japan to our Vietnam Plant under Phasebusiness plan, “Value Creation 2020 (VC2020).” We will spend the remaining two

2 of the project. We will work to steadily get the production

years of the plan working hard to achieve these priority initiatives.

transfer on track and optimize our manufacturing framework

Masaaki Takeda
Representative Director, President and Chief Executive Ofﬁcer

Fiscal 2018 in Review

to constantly raise our technological expertise. In ﬁscal 2018,

U.S.-China trade friction has exacerbated the sense of uncertainty

press dies such as coil springs and reorganized our productin conditions surrounding those two countries as well as Japan.

distribution channels as a means to reinforce sales.

Orders were particularly sluggish in Japan in the ﬁrst half of the

Our digital engineering services, which support new manufacturingﬁscal year after a series of natural disasters. Punch Industry’s

centered on digital measurement, is making progress as well, withsales revenue largely comes from the automobile industry, anda number of inquiries and queries coming from an extremely wide

fewer new model development projects and a year-on-year

range of customers. Since requirements are so diverse, however,decrease in unit production had a signiﬁcant impact on ﬁscal

we will narrow down the domains we will concentrate on in ﬁscal

2018 results. We also felt the effects of a decline in production2019 in an attempt to strengthen business.

volume of smartphones in the electronic device andsemiconductor sectors.

Progress in the Four Priority Initiatives of VC2020
1. Establishment of 5-Pole Sales System

Linkage of Priority Initiatives of Value Creations
Value Creation 15

Value Creation 2020

Globalization

Establishment of
5-pole sales system

Expansion of
new markets

Improvement ofcustomer satisfaction

Conversion to ahigh proﬁtability
business model

Promotion of highproﬁtability business withreinforcement of R&D

Punch Industry has continued to move away from a concentration
on Asia to establish a 5-pole sales system covering Japan, China,
Southeast Asia and India, Europe, and the Americas by

Reform of working stylestrengthening its sales systems in Europe and the United States.

Beyond 2020

during ﬁscal 2019 so that we will be in a perfect position to

We will continue striving to become a global enterprise. Ourcommence a new Group production system.

direction remains constant. However, we will thoroughly overhaul
our manufacturing underpinning this goal and aim to optimize

we focused on improving the quality of various components for

PUNCH SPIRIT- Return to the founder’s spirit -Challenge
×
Imaginative

4. Working-Style Reforms

production at our plants in Japan, China, Malaysia, and Vietnam.

Punch Industry instituted a new personnel system in April 2019.

To achieve this, we will make sure to launch production at our

We will work to align this system with our working-style reforms

newly established Vietnam Plant and then embark on thesince they are essentially two sides of the same coin andreorganization of our production system in Japan as major

entrench both as cornerstones of our corporate culture.

themes for ﬁscal 2019.

In Japan, it’s essential that we pursue a style of manufacturing

Further, we have identiﬁed three long-term challenges tothat is less dependent on individual skills and place more

address. First, we will enhance quality so we can compete on theemphasis on diversity management amid projections of a labor

global stage. Second, we will commence operation of production

shortage due to the aging society and dwindling birthrate. These

equipment with a view to compact management. Third, we will

will be key challenges in ﬁscal 2019 and beyond.

establish a unique corporate governance system. Our current

Around half of our business stems from the production ofbusiness development is regionally based and uncoordinatedspecial-order products in which manufacturing processes are notglobally. As such, we need to develop a truly global managementﬁxed. In metalworking, the majority of work is reliant onframework in order to band together and compete based on theindividual competency since it’s difﬁcult to make technicalcombined competencies of the Punch Industry Group. By doingdrawings and therefore to computerize processes. It’s extremely

so, I am conﬁdent we can connect the different pieces ofimportant that these manufacturing skills are passed on to theinformation into a coherent whole to boost our collective

younger generation at all times. While certain aspects of work arecapabilities and heighten our presence in the global market.

being automated, it’s also necessary to make sufﬁcient efforts to&Innovative×Open

Concluding Message to Stakeholders&

Honest

It is the overarching mission of a manufacturing company to provide good products that satisfy customers
around the world at a cost that they can accept. On this front, we are constantly striving to makeFiscal 2018 was a year in which we made inroads in efforts to
expand sales in Europe in particular. Tie-ups with key distributors

Punch Group Reforms

improvements. As we look to further develop business globally, we will need to face up to numerous

there have helped us in this endeavor and the deeper and wider

Reform of Self-Consciousness
×
Reform of System×
Reform of Corporate Culture

challenges. We must also reinvigorate discussions internally on how we should think about social

relationships have led to steady growth in business.
In ﬁscal 2019, we established the Marketing Ofﬁce for Europe

contribution and make actions accordingly as a company. It’s important that we express our unique styleand what it means to be the Punch Industry Group by showing the world exactly what we can do in a
speciﬁc manner.

and the Americas to intensify efforts in each region. We are

03

In China, where we have undertaken various initiatives ahead ofWorking toward becoming a truly global enterprise that fulﬁlls our social responsibility in a broader

dedicated to further strengthening sales in Europe and expanding

3. Promotion of High-Proﬁtability Business with Reinforcement

the customer base in the Americas under the direction of this ofﬁce.

of R&Dsense, we aim to be a company with an established presence supporting the prosperous lives of people

Punch Industry is witnessing steady growth in high value-added

around the world, although the mold and die components industry is inconspicuous. To that end,

2. Improvement of Customer Satisfaction

food-, beverage-, and medical-related products—areas of

we aim to realize a management structure that is comparable on the global stage.

In order to remain a company supported by customers, we needstrategic focus that have begun contributing to performance.

Punch Industry Co., Ltd.

We look forward to the continued support of all stakeholders.

Punch Industry Co., Ltd.

04

C S O ME SSA G E
Accelerating Initiatives
to Drive Further Growth with a View
to Value Creation 2020 and Beyond

duties. For the Americas market, although we have established a

In addition, the ofﬁce will increase its handling of products

local subsidiary to handle sales activities, the sheer size of thethrough global sourcing (a function to handle procurement fromregion necessitates the ofﬁce to serve as a control tower to

optimum production sites in Japan, China, Malaysia, and otherdecide which strategy to adopt in coordinating with production

subcontracting plants for orders from Europe, the Americas, andsites in Japan, China, and Malaysia while seeking to deepen ties

Asia) in Malaysia as a strategic move to establish our 5-polewith existing customers and cultivate new customers.

sales system.

Tetsuji Morikubo
Establishment of 5-Pole Sales System (Initiatives in Each Region)

Representative Director, Vice President and Chief Strategy Ofﬁcer

Establishment of Development Headquarters
to Create New Value

Completed expansion of
production systemprocessing.
The Market Development Department will examine theEuropepracticality of taking on challenges in new businesses without
The Development Headquarters was established in April 2019 to

sticking too rigidly to the domains of existing businesses. The

accelerate “promotion of high-proﬁtability business withdepartment will also handle digital engineering services. We

Business growing steadily

reinforcement of R&D.” When an order comes in, manufacturing

have been displaying our products and technologies atsites tend to prioritize production of order items. This renders it

exhibitions and promoting business talks with customers. These

difﬁcult to also focus on the R&D of items with complicatedmoves have resulted in actual orders and contribution to sales

processing requirements that are difﬁcult to accommodate withwhile serving to heighten our presence in the market. Given

the technology on hand despite receiving an inquiry. The

intense competition, however, the department will closely

Strengthen ties with
distributors while
concentrating information into
the Marketing Ofﬁce for Europe
and the Americas to aid informulating speciﬁc strategies
and further reinforcing sales

Development Headquarters was therefore set up as a dedicatedexamine the formulation of strategies that will be deployeddivision for handling R&D.

across the Company.

In addition toChina
automobile-related industries,
enhance the ratio of sales in
non-automobile sectors suchas food-, beverage-, andmedical-related products

The
AmericasJapan

Growth in high value-added
products such as food-, beverage-,and medical-related products
Strengthen R&D and further expand
product lineup

Southeast
Asia andIndia

Solid exports to Europe throughglobal sourcing
Steady increase of sales in Vietnam

Steady increase in new
customers
Deepen ties with existingcustomers and cultivate newcustomers with the MarketingOfﬁce for Europe and theAmericas serving as a control
tower

Create strong ties with partners ineach area and expand sales

The Development Headquarters is divided into the Technology

New Marketing Office for Europe and the Americas
for the Establishment of 5-Pole Sales System

Development Department and the Market Development
Department. The Technology Development Department ischarged with introducing equipment required for inspection and

Formulation of Next Mid-Term Business Plan,“Beyond 2020”

dwindling work force.
If our customers shift their production sites from China toSoutheast Asia, Brazil, and Africa caused by U.S.-China tradeengaging in repeated development with the aim of establishing

The Marketing Ofﬁce for Europe and the Americas has been set

new processing technology. Once processing conditions are set

up to drive ongoing sales expansion in the European andWith the aim of optimizing the Group’s entire production system

friction, we will also need to consider how we deploy ourand orders can be taken, the department will examine theAmericas markets. In Europe, we currently use a mix ofcentered around the Vietnam Plant, in the next mid-term

production system and respond with ﬂexibility.

viability of transferring the equipment to the manufacturing site.

distribution channels based on local distributors and a directbusiness plan we are examining the possibility of supplying

Other areas of responsibility include efforts to boost productivity,

sales route from China. Information from these two channels

semi-ﬁnished products and ﬁnished standard products to China

also focus on a human resources strategy to develop personnel

such as by enhancing production methods and reducing costs

will be integrated by the new ofﬁce in an effort to form a more

as Phase 3 of our Vietnam Plant project. In addition, we are also

who can play active roles on the global stage and provide ample

for existing products, as well as identifying new businesscohesive distribution system. We also plan to conduct market

looking at strengthening our production system in Japan, where

support to our global manufacturing framework.

opportunities through the research of new materials with surface

research and create concrete strategies as part of the ofﬁce’s

the business environment remains challenging due in part to a

Based on new production system, transform into high-profitability business structure while accelerating growth by strengthening special-

Phase 1 (FY2016 – 2018)

Japan

Vietnam

China

Phase 2 (FY2019 – 2020)

Cost reduction through use of
low-cost, semi-ﬁnished products

Commencement ofplant operations
Full-scale operations
from October 2016

Transfer of
production ofsemi-ﬁnishedproducts from China

Transfer of
production ofsemi-ﬁnishedproducts to Vietnam

Supplying low-cost,semi-ﬁnishedproducts toJapan plants

Reinforcement of
production capability
for special-orderproducts at China plants

Rather than a strategy aiming solely at boosting sales, we willorder products and establishing 5-pole sales system: Optimization of production system underpinning the realization of VC2020

Phase 1:
Transfer of production of semi-finished products

Phase 3 (FY2020-)

Transfer of productionof ﬁnished standard
products to Vietnam

Further reinforcement of
production capability forspecial-order products
in Japan

Further reinforcement of
production capacity
Expansion and mass productionof special-order products

Special-orderproducts

Transfer of productionof ﬁnished standard
products from Japan

Reinforcement of production
capacity for ﬁnished standard
products and supplying
them to Japan

Supplying semi-ﬁnished products
and ﬁnished standard products
to plants in China

Finished
standard
products

Despite falling behind our initial plan, the Vietnam Plant iscompleted and expected to establish stable operations andsupply lower-cost semi-ﬁnished products in ﬁscal 2019.

Phase 2:
Transfer of production of finished standard products
We began transferring production of ﬁnished standard
products to the Vietnam Plant from Japan in March 2019

In progressSpecial-orderproducts

and gradually increased the number of production items
by July 2019. Everything is running according to plan
without delays. We are planning to supply ﬁnishedstandard products from the site at a lower cost, same as

Malaysia
05

Punch Industry Co., Ltd.

Cemented carbide products, etc.

semi-ﬁnished products.
Punch Industry Co., Ltd.

06

C O O M E SSA G E SStriving to Exceed Customer Satisfaction
and Leave a Lasting Impression by Leveraging the Advantagesof an Integrated Manufacturing and Sales System
to Enhance Our Technological Expertise and Responsiveness

Aiming to Create a Sales System
That Can Be Adapted Globally by Sharing
Information on the Features of
Our Production Sites and Ongoing Projects

Sales Division

Akira Takanashi
Director, Senior Executive Ofﬁcer and Chief Operating Ofﬁcer (Manufacturing)

Yasuhiro Sanada
Director, Managing Executive Ofﬁcer and Chief Operating Ofﬁcer (Sales)

Toward the Creation of the 5-Pole Sales System

Southeast Asia and India
In Southeast Asia, performance has been particularly strong in

Manufacturing Division
Launch of the Vietnam Plant Aimed
at Enhancing Group Profitability

China as business expands. In particular, we are seeing a number of

The Punch Industry Group is steadily expanding sales in Europe

Vietnam. A broad array of industries and businesses in the country

and the United States with the aim of establishing a 5-pole sales

has been invigorated amid the trend to relocate production sites

The Vietnam Plant is a production site with an extremely

Dalian Plant with exceptional technological expertise, skills, andsystem covering Japan, China, Southeast Asia and India,

from China to avoid the impact of U.S.-China trade friction.

important role to play in optimizing the Punch Industry Group’s

know-how. In fact, the samples that were highly evaluated by a

production system from a global perspective.

beverage container manufacturer in the United States were made at

Europe, and the Americas.
Below are details on initiatives in each of the ﬁve regions.
Japan
In Japan, we are making efforts based on alliances withIn Indonesia, we are shoring up ties with joint sales

personnel coming out of the Development Headquarters of thePhase 1 of the project (production transfer of semi-ﬁnishedthe Dalian Plant. We will broadly share such technologies and raiseslowly picking up and an increase in the number of repeat

products) faced delays due to the time required to secure humanthe standard of skills within the Punch Industry Group with the aim

buyers has boosted the sales ratio of such products.

resources and enhance proﬁciency levels as well as stagnatingof expanding our high value-added product lines.

companies and targeting special-order products. This move is

In Malaysia, where we have a production base, exports toperformance in Japan and China. In Phase 2 of the project

Moving ahead, we will strengthen our ability to provide newcustomers. Such initiatives include taking on the production ofEurope have been solid owing to efforts to leverage the beneﬁts(production transfer of ﬁnished standard products), we areproducts by encouraging close links between development andcomponents that was previously handled by die manufacturersof global sourcing and strengthen bonds with local distributors.

progressing well and increasing product varieties every monthproduction division, and also optimize our global production

In India, there has been a shortage of new automobile

without any major problems. Going forward, we will continue

system by promoting cooperation and complementaryand medical-related products that are less susceptible toprojects due to a high number of products with minor changes

aiming for stable operations that produce the results we want.

relationships between our two top Japan and Dalian

ﬂuctuating market conditions, moves to introduce new

despite the rising automobile production volume. Against thisequipment are picking up based on customer needs as withbackdrop, we could see progress in cemented carbide products

other ﬁelds. The ratio of sales of high value-added ﬁelds has(cold forging) and plastic mold and die components.

and commencing supply. In new ﬁelds such as food-, beverage-,

manufacturing sites.

Establishment of a Mass-Production System
for High Value-Added Products

expanded on the back of the speedy development of new
products and mass production of ﬁnished products. We are

EuropeKey Points from the Perspectiveof Raising Customer Service

Transferring the production of ﬁnished standard products fromcontinuing to receive a high number of requests from customers

In Europe, we are making efforts to boost sales ofJapan to the Vietnam Plant frees up both human resources andOngoing themes at Punch Industry focus on the pursuit ofand will look to expand product lines while taking into accountautomobile-related electronic components in particular byplant space, which we plan to utilize for the expansion and mass

high-class performance in terms of quality, cost, and delivery as acapital investment and future prospects.

reinforcing close ties with local distributors. Based on the

production of special-order products, particularly at the Kitakami

company with manufacturing sites and plants, as well as on the

In addition, in the aerospace-related industry, we areinformation distributors gather, we have been continuously

Plant and Miyako Plant. Around the end of 2019, we plan todevelopment of human resources. In addition, our competitive

continuing to explore the possibility of products with highproviding sales support such as regularly accompanying theirenhance skills and make capital investment to expand

advantage comes from being an integrated manufacturing andafﬁnity to our business that we can target. We have beensales calls, which is helping to steadily enhance performance.

special-order products at these two plants in Japan. From ﬁscal

sales company and our ability to handle both ﬁnished standard

2020 onward, we will endeavor to increase their ratio of

products and special-order products. These capabilities mean thatthe industry and are currently making progress with joint

Europe and the Americas to undertake concrete research andspecial-order products by targeting the food-, beverage-, andour customers often provide us with diverse technicalindustry-academia collaborations.

investigation into future developments for the untapped food-,

medical-related ﬁelds.

requirements. Further heightening our technological expertise andcontacted with concrete development themes from companies in

Meanwhile, we have established the Marketing Ofﬁce forbeverage-, and medical-related ﬁelds.
China
In China, where we expanded the Dalian Plant to provide for a

The Americas

Further, we will try our hand at processing components other

responsiveness to meet these needs will lead to better customer

than molds and dies to drive more growth for the future. One area

service. To achieve this, we never consider the status quo to beof focus will be the aerospace-related industry. We will take ourthe best place to be. Instead, it’s extremely important to be aware

time and move cautiously here.

and observant each day, which includes making continuous

higher-capacity production system, we have been undertaking

In the Americas, we are opening up new opportunities on theeight projects aimed at boosting sales of high value-added

back of positive assessments of our sample products from a

In China, we have started to strengthen our canning line for

products as we seek to further increase operations. On top ofbeverage container manufacturer with extremely strict quality

food and beverages and took steps to reﬁne our target market andthis, we started a new project in January 2019 in arequirements.

products, setting us along a growth track. We have also beenin the course of daily work, but it is also imperative that we raise

improvements, in order to drive further growth.
Passing along advanced skills is something we endeavor to do

receiving an increasing number of inquiries regarding new

the level of technology so that we can respond precisely to new

initiatives to alleviate issues facing customers thanks to a ﬁnely

steadily increasing number of new customers. From arounddevelopment and mass-production projects that cannot be

requirements to grow the company further. “If you can’t dotuned sales system, and we are beginning to see the fruits of oursummer 2018, we started sales of semi-ﬁnished products toprocessed with conventional equipment and technology. Demandsomething, learn that particular skill from someone who can.”efforts emerge. We are also progressing smoothly in the focus

local companies as well. We will leverage our production

for such high value-added strategic products has grown lately in

Based on this approach, we will proactively share technology

areas of food and beverages such as canning, and our quality

capacity and look into OEM supply of ﬁnished standard products

regions outside China as well. For these reasons, we decided towithin the Punch Industry Group and with business partners while

has been highly acclaimed for products targeting China and theas we expand our initiatives.

expand the Dalian Plant.

accepting greater guidance from customers. Our ultimate goal isnon-automobile industry. We have found success in our

Americas.

In addition, we have a positive prospect for the future with a

From a skills perspective, Japan forms the backbone of ourbusiness with a proven track record of more than 40 years at a high07

level. Meanwhile, the breadth of technologies has been growing in

Punch Industry Co., Ltd.

to produce results that have an impact, exceeding customer
satisfaction and leaving a lasting impression.
Punch Industry Co., Ltd.

08

C F O M E SSA G E

Capital Investments/Depreciation

Recognizing the Reorganizationof Financial Affairs to Be Our Biggest Challenge
in a Difficult Business Environment

Dividend Per Share and Payout Ratio(Millions of yen)

FY2015FY2016FY2017FY2018FY2019(Plan)

Capitalinvestments

1,292

2,909

2,776

2,989

2,200

Depreciation

1,432

1,396

1,597

1,729

1,700

26.1
20.8

12.5

13.0

FY2015FY2016

20.5
16.75

16.75

16.80

FY2017FY2018FY2019(Plan)On January 1, 2018, we implemented a 2-for-1 stock split.
Dividend calculations for each ﬁscal year assume that the stock split was implemented
at the beginning of ﬁscal 2014.

Financial and Human Resources Strategies(ROE) was 6.0% and return on assets (ROA) was 3.0%, down

Efforts to Improve Assets Turnoversigniﬁcantly year on year due in part to the impact of recording

who do their best will be recognized and treated accordingly. We
have overhauled our rating system, evaluation system, andFiscal 2018 was a very difﬁcult one for different reasons in eachan impairment loss at the Vietnam Plant. Excluding the impact ofThe non-current assets turnover rate fell from 3.78 times in thecompensation system to reﬂect the achievement of businesshalf of the year. In the ﬁrst half, Japan was faced with the impact

the impairment loss, however, ROE was around 11%, down

previous ﬁscal year to 3.56 times due to the decline in sales

objectives, behavioral assessments, and a framework enablingof natural disasters while in the second half the economy slowed

slightly on the 11.8% posted in the previous ﬁscal year. This

despite improving every year since we were listed on the stock

the pre-registry of business and non-business goals that andue in part to U.S.-China trade friction.

employee may wish to try.

makes it clear that the rising cost ratio has negatively affectedexchange. Even though this is the result of continuously

Although net sales only declined by ¥89 million year on year,

proﬁtability. To overcome this issue, we have reafﬁrmed theproactive investment, we still need to increase sales and proﬁt to

Additionally, we introduced a career planning system and aoperating proﬁt was down by approximately ¥260 million due toneed to further boost our sensitivity to return on investment.

a level exceeding investment in order to improve the turnoverself-assessment system as frameworks to further invigorate ourrate of facilities, which requires us to remain conscious ofhuman resources. Going forward, we will strive to strengthen

recovering investment while paying attention to changes in the

management capabilities through evaluator training and a more

turnover rate.

effective interview cycle while encouraging a change ina rising cost ratio stemming from a slump in operations at
plants in both Japan and China. We take this year-on-year

Capital Investments and Depreciation

decline very seriously although we already achieved our initial
target for operating proﬁt under “Value Creation 2020

In ﬁscal 2018, we made two major investments, namely Phase 2

On the other hand, the turnover rate of accounts receivable,

awareness among those in managerial positions. We will also

(VC2020).”of the Vietnam Plant project (production transfer of ﬁnishedwhich was hardly improving in recent years, was up from 3.47

take heed of employees’ opinions at every opportunity, and when

We are aiming for an operating proﬁt ratio in the double-digit

standard products from Japan) and expansion of the Daliantimes in the previous ﬁscal year to 3.54 times. We maderequired, ﬁne-tune and revise the content and operating method

range as our medium- to long-term target, but the result for

Plant in China. Capital investments for the year amounted to

improvements in the turnover rate overseas, especially in China,of these systems.

ﬁscal 2018 put us a step backward from our target. Even thoughapproximately ¥3.0 billion, which is a signiﬁcant investment

on the back of strong efforts to recover accounts receivable

we manifest steady growth in high value-added products that

under our VC2020 plan advocating proactive investment. The

despite declining sales.

lead to enhanced proﬁtability, a key condition for reﬂecting thisVietnam Plant project has now entered its third year. Although

result in overall performance is to maintain plant operations. In

we had some difﬁculties getting Phase 1 of the project up and

The rate was expected to improve thanks to the continued

environment that really values our people. To achieve this, we

ﬁscal 2018, we were unable to make the best of the situation.

running, the situation picked up in Phase 2. The Vietnam Plant

reduction of accounts receivable. It was, however, basically on par

will further promote our human resources development strategy

Since there is no point in turning to the external environment

posted a considerable impairment loss after running afoul ofwith the level generally seen in other years of around 1.30 times,

beginning with efforts at the Punch Academy and view this year

alone to lay the blame, I believe the time has come to reconsider

accounting standards. This has lessened the burden on

due to a deterioration in the turnover rate of non-current assets.

as a time to change direction toward revitalizing our human

our business strategy for realizing medium- to long-term growthdepreciation, however, and employees at the Vietnam Plant are

as well as our ﬁnancial strategy and human resources strategy

staying positive, expressing their resolve to move on and turnsupporting this.

things around. In China, where we expanded our plant, we are

Financial Position

As a result, the turnover rate for total assets was 1.28 times.

With the introduction of the new personnel system, we will
make ﬁscal 2019 the ﬁrst year of our renewed consciousness
toward Punch Industry personnel and strive to build an

resources so they can fully display the “Punch Spirit.”

Human Resources Strategy and Working-Style Reforms

Turning to productivity reform, we realize that enhancing
productivity is not something we can achieve in a day.

faced with a decelerating economy just as we completed

My role involves overseeing not only ﬁnance but also all

Non-manufacturing departments have started a method to reform

preparations for a full-scale increase in orders. Conditions

administrative departments, and it goes without saying that it isworking styles using email and introduced robotic process

remain at a standstill there despite our continued and varied

our employees who will lead the Company into the future. If we

automation (RPA) aimed at automating operations as part ofInterest-bearing debt increased by ¥700 million and net funds

sales activities. We are waiting for the economy to recover once

liken a company to a living organism, its employees would makesystem-support efforts. Meanwhile, manufacturing departments

decreased by ¥900 million compared with the beginning of thethe U.S.-China trade friction settles down or for positive effects

up each of the cells. I believe that happy and vibrant employees

will take steps to enhance efﬁciency and reform working styles

ﬁscal year since we were unable to generate enough operatingof the Chinese government’s measures to spur the economy.

are an absolute must for a happy and vibrant company. The

through small group activities aimed at improving costs as an

well-being of each employee is therefore extremely important,extension of quality control (QC) circle initiatives.

cash ﬂow to cover the investment we outlaid of approximately

In ﬁscal 2019, we are planning capital investments of around¥3.0 billion. In the past two years of VC2020, we have

¥2.2 billion, which are required to upgrade existing facilities andand my policy is to aim to ensure the well-being of every

succeeded in improving our ﬁnancial position while continuing

secure new orders. The amount is moderate compared with theindividual through work. This goes beyond balancing work andto make proactive investments. In ﬁscal 2018, however, ourpast three years.

private life. Performing well at work is bound to enrich one’s

ﬁnancial condition worsened slightly, a result we take very

Shareholder Return

home/private life. These two components are not mutually

We consider diverting retained earnings for reinvestment andseriously. In business, there is a time for being aggressive and abillion. The same ﬁgure is projected for ﬁscal 2019. Our investment

exclusive but rather impact one another, and that’s why I’d likelinking it to greater corporate value in addition to dividends andtime for being defensive. There is no change to our belief thatamount has signiﬁcantly exceeded depreciation over the last three

to increase the number of employees who can maintain a way ofshare buybacks are excellent ways for shareholder return. In

now is the time to be aggressive, but we will take the time toyears. Although we don’t think it’s necessary to bring these twoworking and living that continues to generate synergy between

this context, total shareholder return (TSR), which must be

reexamine and follow up on whether or not the investments weindicators to equilibrium, it is becoming more important than ever

the two. We are currently pushing ahead with the reform of ourdisclosed in securities reports, is the optimum indicator ofmake are likely to generate cash ﬂow in the future.

to make investment decisions in consideration of return on

personnel system as a means to make this a reality.

overall shareholder return. We will continue aiming to improve

In terms of ﬁnancial indicators, our net worth ratio was
50.4%, barely exceeding 50%. Despite this, return on equity
09

22.1

Takao Murata

Director, Senior Executive Ofﬁcer and Chief Financial Ofﬁcer

Fiscal 2018 an Extremely Tough Year

38.1

Payout ratio (%)
Dividend (Yen)

Punch Industry Co., Ltd.

Depreciation in ﬁscal 2018 amounted to approximately ¥1.7

invested capital, bearing in mind that the combination of proﬁt anddepreciation needs to cover investment.

If I were to sum up the features of the new personnel system
introduced in April 2019, it is a system whereby those people

our TSR by increasing revenue, earnings, dividends, and thepayout ratio.
Punch Industry Co., Ltd.

10

Technology and R&D

Human Resources Strategy

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

Human resources are the foundation of business activities. Invigorating our human resources andencouraging personal growth are the biggest driving forces behind the Punch Industry Group’s progress
and the enhancement of corporate value. We strive to develop our human resources and promote
work-style reform based on this philosophy.

R&D and Marketing Creating New Value
The Punch Industry Group has R&D bases in Japan and China that cooperate with one another on the development of new production methods and products.
In Japan, we newly established the Development Headquarters in ﬁscal 2019 to identify new market-based needs as well as create new value andnext-generation businesses and products amid a signiﬁcantly changing management environment, including advancing digitization, progressing
electriﬁcation, and shifting business models. The Development Headquarters will conduct marketing focused on new businesses and products, and develop
technologies and perform R&D enabling this as part of a future growth strategy.

Technology Development and R&D Bases

Digital Engineering Service

Human Resources Development
Punch Industry established the Punch Academy in April 2017 with themain aims of nurturing human resources ﬁlled with the “Punch Spirit”
and passing on the skills amassed in the Group over the years to young
employees. In ﬁscal 2018, a total of 545 people took 41 courses at theacademy that included new employee training, rank-based training,training to boost skills, and manufacturing-related training for sales
personnel. In addition, courses focused on compliance, harassment
prevention, and information security were conducted via e-learning for
all employees.

Work-Style Reform
Kitakami, Japan

Dalian, China

At this base, we are mainly striving to“cultivate and foster new business,”“improve production methods and reduce
costs,” and “develop processing technology
and surface processing.” These are areasthat leverage one of our strengths, namely
our processing technology prowess.

We enhanced our production structure in
China by expanding the Dalian Plant in2018. The new base promotes thedevelopment of high value-added strategic
products as well as new products andproduction methods. Quality levels havebeen highly acclaimed by customers.

This new manufacturing support service focuses on digital
measurement, including 3D CAD data production,
component production via reverse engineering, and test
data for quality assurance. We exhibit the technologies aspart of our proactive public relations strategy. The service
has been well received by numerous customers.

Intellectual Property Strategy
Punch Industry established the Intellectual Property Strategy Committee in order to advance our intellectual property strategy together with ourmanagement strategy and business strategy. The committee works together with related divisions that include R&D, sales, and production to strengthen theprotection, utilization, and acquisition of patents and trademarks, and to foster and enhance awareness of intellectual property among employees. The aimsof these actions are to expand business, advance into new domains, and drive corporate growth.

Patent Application for a Coating Selection Tool for Stamping Punches
In recent years, goods being processed with press dies have become increasingly complex andsophisticated. This has led to a greater number of processes that cause significant stress on themold components. In turn, the use of coating to enhance the durability of the mold components
has risen. At the same time, there is still only minimal information available to help determine themost effective coating for this purpose. In addressing this problem, we created a tool that canquantify to a certain extent coating selection as opposed to relying on past experiences.
We applied for a patent for this technology in fiscal 2018.

Punch Industry aims to realize a work style that continuously generates synergies by striking a harmonious balance between work life and private life.
In Japan, we have introduced paid leave that can be taken in hourly units, telecommuting, and the extended period for child-care leave. These and otherinitiatives have served to establish a work environment that encourages diverse work styles. In addition, we have proactively incorporated IT to propel theshift to a work style that takes improvements in efﬁciency and productivity into account. A paperless environment and the introduction of robotic process
automation have raised efﬁciency and automation in non-manufacturing operations.

Initiatives for HealthManagement
Punch Industry is striving to maintain andenhance the health of employees so that they
can work with vitality and maximize theirpotential through improved performance. As
one way to achieve this, we establishedhealth consultation ofﬁces at major businesslocations in Japan. At these ofﬁces, industrial
physicians and public health nurses regularly
help employees with health management.
They conduct follow-ups to health checkups,
individual consultations for health concerns,
education on health promotion, mental healthcare, and individual guidance and training onsuch matters as smoking and lifestylediseases.

Diversity
Promoting Employment of Persons
with Disabilities
In order to further deepen understanding of
manufacturing and working among persons
with disabilities, in ﬁscal 2018 we received avisit from administrative staff and students of
the Morioka School for the Deaf and provided
a tour of the workplace using sign language.

Encouraging Active Roles for Women
Punch Women’s Forum (PWF) was founded inﬁscal 2018 to consider the work styles offemale employees and promote their activerole in the Company. PWF holds seminars on
work-life balance and health maintenance andenhancement, while focusing on creating apleasant workplace environment for womenand promoting a change of awareness from afemale perspective.

A lineup of punches with different types of coating

Reform of Corporate Culture
Environmental Initiatives
The Punch Industry Group exhaustively considers the definition of “eco-friendly products”
and rigorously examines them, under its environmental principle that plays a significant partin social development by protecting Earth’s irreplaceable nature and developing eco-friendly
products. We have acquired the Environmental Management System certification to promote
continual improvement, as well as carrying out regular training and education to enhance
employees’ awareness of the environment.

11

Punch Industry Co., Ltd.

Punch Industry has
established its own
eco-friendly mark for
products that meet the
RoHS Directive andother environmental
laws and regulations.
The mark appears in
our product catalogs.

Punch Industry undertakes various initiatives to reform corporate culture with theaim of becoming a motivating company in which each employee plays a leadingrole. In ﬁscal 2018, we engaged in volunteer activities at each plant, carried out
a program to beautify the workplace with ﬂowers, and set up a green curtain by
growing bitter gourds.
Volunteers supporting
wheelchair-bound athletes in a triathlon

Program to beautify the workplace withﬂowersPunch Industry Co., Ltd.

12

Corporate GovernanceTo continue being an entity that is highly regarded by society,

2. Audit & Supervisory Board and its members

3. Nomination & Remuneration Advisory Committee

the Punch Industry Group will further improve the transparency and soundness of management

The Audit & Supervisory Board is composed of four members (including
two external members). The Audit & Supervisory Board monitors theCompany’s governance practices and implementation status, andconducts an audit of daily activities, including the execution of duties by
the directors. The external members are attorneys, and are responsible
for monitoring management practices from the perspective ofcompliance. In addition, Punch Industry has established the Auditing
Ofﬁce and allocates dedicated staff to ensure smooth audit engagement.

Punch Industry sets the Nomination & Remuneration Advisory
Committee, composed of all external ofﬁcers and directors who oversee
management, as an advisory body of the Board of Directors to clarify
basic policies and standards and enhance fairness and transparency ofthe decision-making process when nominating directors and executiveofﬁcers and determining their remuneration.

4. Risk Management Committee

5. Remuneration of Board Members, etc.

The Risk Management Committee, consisting of executive ofﬁcers, andthe chief of the Corporate Audit Ofﬁce, works to establish, maintain, andimprove the Company’s risk management and legal compliance systems.

The total amount of the remuneration of directors and Audit &Supervisory Board members is approved by the General Meeting of
Shareholders. The Board of Directors decides the speciﬁc amount of
remuneration for each director upon the examination of appropriatenessat the Nomination & Remuneration Advisory Committee, and the Audit &Supervisory Board decides the speciﬁc amount of remuneration for each
Audit & Supervisory Board member.

by reinforcing corporate governance and maintaining rigorous compliance.
Initiatives to Strengthen Corporate Governance
3/20143/20153/20163/20173/20183/2019President

2013- Masaaki Takeda

Charman of the Board of Directors

President serves concurrently as Chairman

2016- An external director serves as Chairman

External Director(s)2013- 1 person

2016- 2 persons

Advisory Committee, etc.

2015- Nomination & Remuneration Advisory* Formulation of policy for nomination of management executives* Planning for and monitoring of successor
Since public listing:
Risk and Compliance Committee

Risk Management

Basic Policy

2015- Name changed to the Risk Management Committee

1. Securing shareholders’ rights and equality

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

Compliance/Risk Management

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

Monitoring/supervisory

Accounting
AuditorAppoint/Dismiss

Determine proposal
for appointment
and dismissal

Audit &
Supervisory Board

Appoint/Dismiss
Audit

Members: 4 (including 2
external members)

Auditing
OfficeCoordinate
Accounting
audit

Board of Directors
Members: 7 (including 2
external directors)
Chairman: External director

Appoint/Dismiss
Supervise

ReportInquire/Report

Nomination &Remuneration
Advisory Committee

Issue instructions/Report

Audit

Issue instructions/Report

Corporate Audit
OfficeIssue instructions/Report

Business
execution
Internal audit/
Internal control support

Executive Board
Members: 11 (5 serving as
directors)
CEO

Risk
Management
Committee

Issue
instructions/
ReportCSO
COO/Sales
COO/Manufacturing
CFO

Monitoring
Issue instructions

ReportOperating Division/Administration Division/Group companies

1. Board of Directors & Business Execution Structure
Punch Industry is a company with an Audit & Supervisory Board. The
Company has strengthened its executive ofﬁcer system to separate themonitoring/supervision of management by the Board of Directors
and executive functions of management and to enable prompt
decision-making by management. We abolished titled positions for
directors except for the chairman, and have adopted a system of
selecting the president and titled executive ofﬁcers from among theexecutive ofﬁcers.

The Board of Directors is composed of seven directors (including two
external directors), with ﬁve executive directors concurrently serving as
executive ofﬁcers. The Executive Board, composed of all executiveofﬁcers (ﬁve executive directors concurrently serving as directors andsix executive ofﬁcers), convenes at least once a month as thedecision-making body for business execution. The Board engages indeliberation and makes decisions related to execution of business,
including matters legitimately delegated by the Board of Directors.

The Company has established the internal audit division that reports
directly to the president and chief executive ofﬁcer, which conducts
regular audits regarding the state of compliance with laws andregulations, the Articles of Incorporation, and internal rules andregulations. The Company has also set up the Punch Hotline, an internalreporting system for reporting and consultations if compliance-related
issues are discovered. Adhering to a set of rules on whistleblowing, we
strive to uphold internal controls and improve the system of in-housechecks and balances.
Compliance education is carried out via new employee andrank-based training to ensure that all employees engage in appropriate

and fair business activities. In ﬁscal 2018, compliance education wasprovided to all ofﬁcers and employees via e-learning also.
Furthermore, the Company stipulates its basic policy and system
for managing risks involved in operations in the Risk Management
Guidelines and strives to deal appropriately with risk by enhancing thissystem. The Risk Management Committee met four times during ﬁscal
2018 to conﬁrm the status of internal reporting and deliberate on issues
and measures related to promotion of risk management across theGroup, accurately understanding and evaluating risks, and implementing
appropriate control. The Board of Directors regularly receives reports
about the results of the Committee’s activities.

Messages from External Directors
In addition to its orientation as asupervisory board, Punch
Industry’s Board of Directors
takes on the role of amanagement board. Eachmember examines what needs tobe decided by the Board of
Yukiko Mitsuhashi
Directors and where responsibility
External Director
ought to lie with respect tobusiness execution. A healthy
sense of tension exists in discussions between executive directors
and external directors. The Company has an external director
serving as chairman, and I have once again been elected to thisposition for ﬁscal 2019. As chairman, I aim to strike the optimalbalance between selecting the agenda and managing proceedings
in order to raise corporate value.

Punch Industry established a
corporate governance structure inﬁscal 2015 and has worked toenhance its effectiveness while
making improvements each year.
Since being appointed external
director in 2018, I have madeKazuyoshi Tsunoda
efforts to improve theExternal Director
appropriateness, efﬁciency, andeffectiveness of management,
although I haven’t always been totally satisﬁed with the results.
This can be attributed to numerous areas in which I was unable tofully realize my goals due to a lack of follow-up. In ﬁscal 2019,
I hope to contribute to management by setting trigger points for
execution plans and heading into the ﬁeld to strengthen my ability
to gather management-related information. I will also make
improvements to my method of monitoring, pursue discussion
on medium- and long-term management planning andimplementation, and be sure to conduct follow-up actions.

Punch Industry’s corporate governance website

13

Punch Industry Co., Ltd.

https://www.punch.co.jp/english/companyinfo/governance.html
Punch Industry Co., Ltd.

14

Honorary Chairman, Directors, Audit & Supervisory Board Members,
and Executive Officers (As of June 18, 2019)
Reasons for Appointment of Directors and Audit & Supervisory Board Members and Meeting Attendance
Independent
director

Honorary Chairman

Directors

Attendance at Board of
Directors and Audit &Supervisory Board
meetings in FY2018

Directors

Name

Reason for appointment

Masaaki Takeda

Following his appointment as a director in June 2011, the Company listed its shares on the Tokyo Stock
Exchange and Mr. Takeda assumed the position of representative director and president. In the eight years
since, he has worked as a director of the Company, helping to realize major increases in sales and income
under Value Creation 15 and taking on a signiﬁcant leadership role in the current mid-term business plan“Value Creation 2020.” We have deemed it suitable to appoint him as chief executive ofﬁcer capable ofcontinuously enhancing corporate value.

Attended 14 of 14
Board of Directors
meetings

Tetsuji Morikubo

Mr. Morikubo formerly held important positions in the Company and the Punch Industry Group in China,
and supervised business in Southeast Asia as the person responsible for the Punch Industry Group in
Malaysia, contributing greatly to improved performance there. Since being appointed director in June
2018, he has built up a successful track record as the person in charge of corporate strategy. We have
deemed it suitable to appoint him as a director capable of overseeing overall Group business as CSO andtaking a lead role in Europe/U.S. strategy and development strategy.

Attended 10 of 10
Board of Directors
meetings

Yasuhiro Sanada

Mr. Sanada has worked as a director for the past seven years following his appointment in June 2012 and hasleveraged his business experience in the Company and the Punch Industry Group in China to drive the
mid-term business plan “Value Creation 2020” as a person in charge of the Punch Industry Group’s business.
We have deemed it suitable to appoint him as a director capable of overseeing Group operations in light of
his experience and track record.

Attended 14 of 14
Board of Directors
meetings

Akira Takanashi

In addition to many years of experience in the Manufacturing Division, Mr. Takanashi has supervised all
aspects of manufacturing, sales and management as a director, signiﬁcantly enhancing performance.
Since his appointment as a director in June 2018, he has actively assisted the CEO and COO overseeing
Group business in Japan. We have deemed it suitable to appoint him as a director capable of overseeing
the Group’s manufacturing.

Attended 10 of 10
Board of Directors
meetings

Yuji Morikubo

Masaaki Takeda

Tetsuji Morikubo

Yasuhiro Sanada

Founder, Honorary Chairman

Chief Executive Ofﬁcer

Chief Strategy Ofﬁcer

Chief Operating Ofﬁcer(Sales)Akira Takanashi

Takao Murata

Yukiko Mitsuhashi

Kazuyoshi Tsunoda

Chief Operating Ofﬁcer(Manufacturing)

Chief Financial Ofﬁcer

External Director

External Director

Audit & Supervisory Board Members

Takao Murata

Mr. Murata has worked as a director for seven years following his appointment in June 2012. He utilizes
his many years of experience and vast insight in the ﬁnance and accounting ﬁelds in his role supervising
the Administration Division. We have deemed it suitable to appoint him as a manager with uniﬁed control
over the Group’s personnel, assets and cash, and with responsibility for promoting working-style reforms.

Ms. Mitsuhashi has extensive knowledge in general legal affairs as a lawyer as well as experience as anexternal director at another company in addition to work experience in a business corporation. We have

Yukiko Mitsuhashi
therefore deemed it suitable to appoint her as an external director capable of realizing proactive(External)
governance. The Company also receives suitable advice from her regarding initiatives to promote diversity

Attended 14 of 14
Board of Directors
meetings

Attended 14 of 14
Board of Directors
meetings

from her perspective as a female.

Mr. Tsunoda has management experience as an executive ofﬁcer and experience in auditing as a director(responsible for auditing) and corporate auditor in addition to extensive experience and knowledge in

Kazuyoshi Tsunoda
manufacturing at a business corporation. He takes on important roles for the Company such as monitoring(External)
business execution and providing appropriate advice on key management decisions. We have therefore

Attended 10 of 10
Board of Directors
meetings

Norio Kitsui

Susumu Sugita

Ryoichi Ando

Yoriatsu Matsue

Full-time Audit & Supervisory
Board Member

Full-time Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

External Audit & Supervisory
Board Member

Makoto Kume

Hiroshi Fujisawa

Hirohisa Morikubo

Hideki Kinumatsu

Minoru Kawano

Joji Kawasaki

Executive Officers

deemed it suitable to appoint him as an external director.

Audit & Supervisory Board Members

15

Norio Kitsui

Mr. Kitsui has worked eight years as an Audit & Supervisory Board member since his appointment in June
2011. He fulﬁlls his work responsibility as an Audit & Supervisory Board member with advanced expertisein ﬁnancial management backed up by experience as an executive ofﬁcer in charge of ﬁnancial
management prior to his appointment. We have therefore deemed it suitable to appoint him as an Audit &Supervisory Board member.

Attended 14 of 14
Board of Directors
meetings and 16 of 16
Audit & Supervisory
Board meetings

Susumu Sugita

Mr. Sugita fulﬁlls his work responsibilities as an Audit & Supervisory Board member by utilizing his
extensive expertise in the Group’s business as a senior managing director prior to his appointment as an
Audit & Supervisory Board member in June 2015. We have therefore deemed it suitable to appoint him as
an Audit & Supervisory Board member.

Attended 14 of 14
Board of Directors
meetings and 16 of 16
Audit & Supervisory
Board meetings

Ryoichi Ando
(External)

Mr. Ando contributes to ensuring the objectivity and impartiality of management through fair judgment
based on his many years of experience and knowledge as a lawyer. We have therefore deemed it suitable
to appoint him as an external Audit & Supervisory Board member.

Attended 14 of 14
Board of Directors
meetings and 16 of 16
Audit & Supervisory
Board meetings

Yoriatsu Matsue(External)

Mr. Matsue has an outstanding track record and extensive knowledge in corporate legal affairs to perform
appropriate audits based on his expert insight as a lawyer. We have therefore deemed it suitable toappoint him as an external Audit & Supervisory Board member.

Attended 14 of 14
Board of Directors
meetings and 16 of 16
Audit & Supervisory
Board meetings

Punch Industry Co., Ltd.

Punch Industry Co., Ltd.

16

5-Year Financial and Non-Financial Highlights
Financial information

3/2015Company Profile (As of March 31, 2019)
3/20163/20173/20183/2019Fiscal 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

34,39236,75536,64841,02540,935

Established

1975

Gross proﬁt

9,361

10,178

10,191

11,658

11,472

Capital2,897.73 million yen

Selling, general and administrative expenses

7,637

8,191

8,201

8,814

8,893

Number of employees

4,282 (consolidated)

R&D expenditure

279

306

323

367

443

Head office

Operating proﬁt

1,724

1,986

1,990

2,843

2,578

Ordinary proﬁt

1,617

1,666

1,874

2,731

2,547

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

Capital investments

1,296

1,292

2,909

2,776

2,989

Depreciation

1,316

1,432

1,396

1,597

1,729

Proﬁt attributable to owners of parent

1,188

1,249

1,375

1,788

960

Net cash provided by operating activities

1,805

3,187

1,785

3,393

3,185

Net cash used in investing activities(1,180)(1,159)(2,770)(2,335)(3,253)

624

2,028

(985)

1,058

(68)

1,013

(1,901)

1,199

(738)

74

Cash flows (Millions of yen)Free cash ﬂow
Net cash provided by (used in) ﬁnancing activities

At year-end (Millions of yen)
Total assets

29,62327,33729,451

32,56031,155

Net assets

14,205

13,99914,176

16,174

15,734

Cash and cash equivalents

3,302

3,235

3,269

3,689

3,516

Interest-bearing debt

7,155

5,429

6,857

6,332

7,079

Shareholders’ equity

11,67912,586

13,59815,096

15,500Investor Information (As of March 31, 2019)
Stock Information

Total number of authorized shares

80,000,000

Total number of shares issued

22,122,400

Number of shareholders

6,482

Stock exchange listingFirst Section, Tokyo Stock Exchange

Security code

6165

Breakdownof
Shareholders

Number of shares per trading unit

100

Transfer agent

Sumitomo Mitsui Trust Bank, Limited

Accounting auditor

PricewaterhouseCoopers Aarata LLC

58.22%
14.15%
3,015,300 13.63%
2,781,300 12.57%
317,243
1.43%

Individuals and others

12,879,557

Financial institutions

3,129,000

Foreign companies
Other domestic companies
Securities companies

Note: “Individuals and others” includes treasury stock.

Per share information (yen)Net income*1

130.91112.94

62.49

81.61

43.92

Net assets*2

1,283.75

1,264.64

646.25736.64721.49Cash dividends per share*2

25.0

25.0

13.0

16.75

16.75

Dividend payout ratio (%)

19.1

22.1

20.8

20.5

38.1

Key indices
Gross proﬁt margin (%)

27.2

27.7

27.8

28.4

28.0

Operating proﬁt margin (%)

5.0

5.4

5.4

6.9

6.3

Return on equity (ROE) (%)

10.1

8.9

9.8

11.8

6.0

ROA (%)

4.4

4.4

4.8

5.8

3.0

Net worth ratio (%)

47.9

51.2

48.1

49.6

50.4

Price-to-earnings ratio (times)

9.89

6.79

9.26

14.09

12.93

Overseas sales ratio (%)

55.8

57.5

56.6

58.2

59.0

Non-financial information

3/20153/20163/20173/20183/2019Number of employees (persons)

3,833

3,836

3,959

4,298

4,282

Overseas employee ratio (%)

74.1

73.8

74.1

75.6

75.2

Ratio of females among new graduates hired (%)

15.4

33.3

52.6

42.1

47.8

*1 Fiscal year ended March 31, 2015: Net income*2 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 theassumption that the stock split was implemented at the beginning of the ﬁscal year ended March 2017.

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Punch Industry Co., Ltd.

Major Shareholders (Top 10)

Stock Prices and Trading Volumes

Name

Number ofshares held

Percentage ofshares held (%)

MT Kosan Co., Ltd.

2,823,900

12.99

Yuji Morikubo

1,644,000

7.56

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

1,120,700

5.15

Punch Industry Employees’ Stock
Ownership Scheme

906,700

4.17

Tetsuji Morikubo

663,000

3.05

CACEIS BANK S. A., GERMANY BRANCH CUSTOMER ACCOUNT

446,400

2.05

Michiko Kamba

431,000

1.98

THE BANK OF NEW YORK 134088

359,100

1.65

Mitsuo Nomura

340,000

1.56

Japan Trustee Services Bank, Ltd.
(trust account)

320,900

1.48

Note: Treasury stock (380,336 shares) is excluded from calculations of “Percentage of shares held.”

Trading volume (right axis)

(Yen)
2,000

(Thousand shares)
5,000

1,600

4,000

1,200

3,000

800

2,000

400

1,000

0

12/
2017

4/
2018

8/
2018

12/
2018

3/
2019

0

* On January 1, 2018, the Company implemented a 2-for-1 split ofshares of common stock. Stock prices and trading volumes havebeen adjusted retroactively, considering the stock split.

Punch Industry Co., Ltd.

18