The Punch 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.

ANNUAL REPORTPUNCH INDUSTRY MALAYSIA SDN. BHD.

Singapore
PUNCH INDUSTRY SINGAPORE PTE. LTD.

Australia

2018

Indonesia
PT. PUNCH INDUSTRY INDONESIA

Introduction to Company Website and IR e-Magazine
Company Website

S U P P O RT I N G P R O D U C T M A N U F A C T U R I N G
AROUND THE WORLDIR e-Magazine
Click onInvestor Relations
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and other IR-related information via e-mail.

https://fofa.jp/punch/a.p/102/
Top page

Investor Relations(Japanese language only)

The Punch Industry website contains various information,
including Company Overview, Business Overview,
and Investor Relations information.

http://www.punch.co.jp/english/
Inquiries

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

Head ofﬁce

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

Omori Bellport E-5F., 6-22-7 Minami-oi,
Shinagawa-ku, Tokyo, 140-0013, Japan

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

Phone: +81-3-6893-8007 FAX: +81-3-5753-3131
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.

Cover photograph: Dalian Plant, completed in January 2018

http://www.punch.co.jp/english/

Supporting Product Manufacturing
around the World

Performance Highlights

Asia, etc.

Other

9.2%

24.2%
Japan

Automobile

41.8%

44.8%

Sales by Region

Sales by Industry

China

49.0%

Management
Principles

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

We aim to become the leading
brand in the mold and die
components industry andachieve high proﬁtability byleveraging 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.

¥

41.0

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 Group makes the components that
constitute such molds and dies. Deploying strengths amassed over 40 years—advanced technological capabilities, product quality,
and meticulous services—we support global manufacturing and people’s comfortable lives.

Components for Plastic Molds

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 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 Group manufactures and sells
components used in these molds.

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

These are what the Punch Group makes!

These are what the Punch Group makes!

01

Punch Industr y C o., Ltd.

Key product : Punches
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.

billion¥+11.9 %

Profit attributable toowners of parent

Ordinary profit

2.8

billion+42.8 %¥

2.7¥

billion+45.7 %

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

1.7

billion+30.0 %

(Millions of yen)

3/20153/20163/20173/2018Net sales

34,39236,75536,64841,025

Operating profit

1,724

1,986

1,990

2,843

Ordinary profit

1,617

1,666

1,874

2,731

Profit attributable to owners ofparent* 1

1,188

1,249

1,375

1,788

Earnings per share (yen)* 2

130.91112.94

62.49

81.61

Total assets

29,62327,33729,451

32,560Net assets

14,205

13,99914,176

16,174

Net assets per share (yen)* 2

1,283.75

1,264.64

646.25736.64Return on equity (ROE) (%)

10.1

8.9

9.8

11.8

Net worth ratio (%)

47.9

51.2

48.1

49.6

1,805

3,187

1,785

3,393

(1,180)(1,159)(2,770)(2,335)1,013(1.901)

1,199

(738)

624

2,028

(985)

1,058

Net cash provided byoperating activities
Net cash used in investing
activities
Net cash provided by (used in)financing activities
Free cash flow

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

Operating profit

Financial Information

Business Fields

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

19.3%

11.7%

Net sales

Driven by the spirit of innovation, we will continue to develop andpropose advanced technologies in response to customer needs, forthe beneﬁt of society.

Electronic devices &semiconductors

Consumer electronics &precision equipment*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 the assumption that the stock split was
implemented at the beginning of the ﬁscal year ended March 2017.

Punch Industr y C o., Ltd.

02

T O P M E S SA G E

1Establishing a mass production system forhigh value-added products,
and moving to the next stage for our growthFiscal 2017 was the second year of our mid-term business plan, “Value Creation 2020,” designed to help the Punch Group
respond swiftly to changing business conditions and deliver steady growth. Over the year, our results greatly exceeded theplan. I feel that speciﬁc measures promoted by the Group as a whole are steadily taking shape, and am very satisﬁed with
our performance.

Masaaki Takeda
Representative Director
President
Chief Executive Ofﬁcer

Linkage of Priority Initiatives of “Value Creation”

Fiscal 2017 in review

Value Creation 15
Globalization

During the year, we made steady progress with various measuresestablishing mass production systems for high value-added
products in new ﬁelds, which we have been advancing in both
Japan and China. As a result, we posted a signiﬁcant
year-on-year increase in revenue.

Value Creation 2020
Establishment of
5-pole sales system

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

Expansion of
new markets

Improvement ofcustomer satisfaction

Conversion to ahigh proﬁtability
business model

Promotion of highproﬁtability business withreinforcement of R&D

Innovative×
Open

Reform of working styleHonest&&Regarding income, the increase in net sales contributed
greatly to earnings growth thanks to our business structurefeaturing a high marginal proﬁt ratio. Our shift towards highvalue-added ﬁeld also led to improvement in the cost to sales

Punch Group Reforms
Reform of Self-Consciousness
×
Reform of System×
Reform of Corporate Culture

expanding the breadth of our business by deploying ourvalue-added domains. This helped stabilize our ordering andcustomer-focused sales and marketing system, a key strength of

production systems, which helped underpin signiﬁcant growth

the Punch Group, while meticulously deepening ties within net sales.

existing customers and cultivating new ones.

In China, automobile-related products were once again themain performance driver. We also enjoyed healthy sales ofelectronic devices and semiconductors, and our high

VC2020: Improvement of customer satisfaction

value-added products achieved growth on a par with Japan.
Responding to healthy orders, we expanded the Dalian Plant tosolve physical issues related to production capacity. Having

In addition to improving customer satisfaction in quality, cost,

started full-scale operations in May 2018, we will accelerate theand delivery, we will expedite new initiatives aimed at achieving

development and production of high value-added products.

our ideal business future ﬁve to ten years down the road.

In other regions, our global sourcing (optimum procurement)

One initiative is our digital engineering services. Pursuingsystem, which we set up in Malaysia to allocate procurement

various initiatives over the past two years, we have expanded

to suitable production bases, had a positive impact. Deploying

from reverse engineering—which here means restoring an

Consequently, we greatly exceeded our targets for the second

this system, we have been successful in strengthening

object to its originally envisaged form—into business ﬁelds thatyear of our mid-term business plan, “Value Creation 2020

collaboration with sales distributors and the like, leading touse shape-measurement data in multiple ways. Accordingly, we

double-digit sales growth in Europe for consecutive two years.

changed the name of these offerings to “digital engineering

In conjunction with these activities, the business scale ofservices.” Many customers need these services, and orders areratio, leading to a dramatic jump in income despite an increasein expenses stemming from forward-looking investments.

(VC2020).”

VC2020: Establishment of 5-pole sales system

The launch of the Vietnam Plant, a major management

PUNCH INDUSTRY MALAYSIA SDN. BHD. has been steadily

increasing as a result. We are making upfront investments, as

to our ambitious approach to embracing new challenges.

In Japan, we beneﬁted from recovery in automobile-related

expanding. In addition, our joint venture sales company in

we expect this business to play a very important role in our plan

However, we are making steady progress and feel that ﬁscal

sectors and good results in sectors related to electronic devices

Indonesia achieved proﬁtability and gradually grew. In the United

to establish a targeted solutions business in the future.

2017 was a year to underscore good results.

and semiconductors. We also made steady progress inStates, where we established a sales company in April 2017, theConsequently, we will continue working to enhance ourstrengthening our production system for food-, beverage-, andnumber of orders has steadily increased. We aim to continueorder-response capabilities and increase reputation in the market.

priority under VC2020, is taking more time than expected owing

03

medical-related products, on which we are focusing as highPunch Industr y C o., Ltd.

Punch Industr y C o., Ltd.

04

T O P M E S SA G E

2

we will make ﬁnished products and reinforce production capacity

goal of sustainable growth does not end there. We need to makeOutlook for fiscal 2018at the Vietnam Plant.
We will also promote measures in aerospace-related sectors

renewed capital investments and strengthen R&D at our otherproduction bases, including in Japan, China, and Malaysia.

VC2020: Promotion of high-profitability
business with reinforcement of R&D

to expand business in industries less susceptible to economic

With respect to food- and beverage-related products, which we

obtained certiﬁcation under the JIS Q 9100:2016, the quality

are emphasizing as highly proﬁtable businesses, we have done

management standard for the aerospace industry. This will

well in Japan especially with plastic bottle manufacturing

strengthen our negotiating position. Most importantly, embracing

we plan to improve performance by stepping up efforts tomeasures we will take in each region. In the lead-up to 2025,

products, and in China with can manufacturing products. We will

challenges in these areas will increase opportunities to work withpromote new high value-added products. In China, we lookwhen we celebrate our 50th anniversary, we will continue

step up these initiatives while deepening ties with our customers.

new materials and raise interest in novel development themes,

forward to business growth somewhat larger than economic

discussions for formulating our next mid-term business plan,

In the medical-related ﬁeld, we are working to reinforce R&D due

which will potentially lead to broader business opportunities.

growth. We are taking a slightly restrained approach in light ofwhile considering how to further energize our in-house systems.

to the increasingly sophisticated levels of technology required inGoing forward, we will continue our strategic offensive with thevarious factors, including U.S.-China trade relations and foreign

recent years.

Punch Group’s accumulated and developing technologies,

exchange risk, as well as geopolitical issues such as the situation

narrowing our areas of focus.

with North Korea.

ﬂuctuations, and expected to grow in the future.
As one catalyst for the next stage of our evolution, we have

Establishing the Vietnam Plant will be pivotal to making

At the same time as the full-scale operation of the Vietnam
We have not changed our targets for year-on-year increases in

Plant, we will initiate a comprehensive discussion from ﬁscal

revenue and earnings despite the viewpoint in some circles that2018 through ﬁscal 2019 to decide the best direction forbusiness growth is slowing down compared with ﬁscal 2017.

optimizing our production system. Here, we will adopt a global

Although the Japanese market is not on a growth trajectory,

approach based on a 10-year time frame, taking into accountPunch-style governance system

As for other regions, our business volumes remain small inprogress with these initiatives in Japan and China.

Europe and the United States. Nevertheless, we will cultivate new

In Phase 1, at the Vietnam Plant, we started manufacturing

VC2020: Reform of working stylesemi-ﬁnished products that had previously been manufactured in
China, representing a major step toward optimizing Groupbusinesses and continue making investments with an emphasis

For nearly 10 years since we started preparing for public listing,on marketing tailored to individual markets. In addition, we will

we have been promoting the improvement of governancecarry out upfront investments in establishing a production

mechanisms and systems, striving to raise the level of thelater, we will transfer the manufacture of some ﬁnished standard

We have been implementing initiatives to enhance awarenesssystem for Phase 2 of the Vietnam Plant, which will start in ﬁscal

systems. As part of this, we are reafﬁrming and entrenching the

products, currently made in Japan, to the Vietnam Plant. Then,

about the need for working-style reforms while adopting a

2019. Through these aggressive investments, together with the“Punch Spirit”—with the key words “Challenge,” “Imaginative &we will allocate vacant space at each of our plants in Japan andbottom-up approach of helping employees realize theirassociated depreciation expenses, the year-on-year increase in

Innovative,” and “Open & Honest”—which embodies the

China to reinforce R&D on high value-added products andaspirations. Some themes have proven effective and are moving

proﬁts will be slight.

aspirations of our founder and illustrates our proactive

strengthen production capacity to bolster orders.

in a positive direction. However, there are limitations to the

production and reducing costs. In Phase 2 which will be starting

Fiscal 2018 is a year of important preparations during whichgovernance approach that actively supports challenges andOur greatest challenge in getting the Vietnam Plant operation

bottom-up approach. As society undergoes changes at an

we will act aiming at achieving the targets for ﬁscal 2020 set

encourages innovation. It is important that we combine defensive

is “people.” This means “people” who work at the production site

accelerated pace, we need to reafﬁrm the signiﬁcance of theunder VC2020, and making greater strides thereafter.

and offensive governance approaches to achieve sustainable

and “people” who provide education and guidance and aim toreforms and present a clear vision while pursuing top-down

growth. By defensive governance, we mean fulﬁlling our social

establish a system free of inadequacies and omissions from both

initiatives to further stimulate transformation.

responsibilities and ensuring legal compliance, with the

Beyond VC2020

of those perspectives. In ﬁscal 2018, we will focus on humanperspectives of all stakeholders in mind.

resource development while strengthening support systems fromthe Japan side to achieve a successful completion of Phase 1.
Under VC2020, we aim to establish a new production system forThis will lead us into the smooth start of Phase 2, during which

the entire Group, starting with the Vietnam Plant. However, ourValue Creation 2020

Performance Results
Sales(Billions of yen)

Value Creation 15

Establish a new production base in Vietnam !

Batonon exx c hange z on
o e

50

41.0
40

34.3

Operating
proﬁt

36.7

36.6

2.8
6.9%

(Billions of yen)

47.0
42.0
2.9

4

3.3
7.0%

7.0%
3

Concluding message to stakeholders

29.4
30

1.7

Net sales
Operating proﬁt
Proﬁt attributable toowners of parent

1.9

1.9

5.4%

5.4%

2.0

1.7

1.1

20

4.9%

2

4.9%

1.1

3.5%

1.2

3.2%

1.3

3.8%

1

0.7

ROE

05

Punch Industr y C o., Ltd.

mold and die components industry is inconspicuous, we aim to be a groupwith a global presence—a highly proﬁtable one that shines brightly from the

2.4%0

in order to realize “The World’s Punch.” We attribute the progress we havemade so far to all of our stakeholders, and we are very thankful. Although the

4.4%

3.9%

10

Five years have passed since we publicly listed our shares in December 2012,

2.3

5.0%

FY2013(Result)

FY2014(Result)

FY2015(Result)

FY2016(Result)

FY2017(Result)

FY2018(Forecast)

FY2020(Plan)

9.6%

10.1%

8.9%

9.8%

11.8%

12.5%

11%

0

sidelines and promotes prosperous lives for people around the world.
We look forward to the continued support of all stakeholders.

Punch Industr y C o., Ltd.

06

C O O M E S SA G E

Production system creating added value (Japan)

Dalian Plant (China) where expansion was completed
Purposes of plant expansion
Establish a line of strategic
products

We will swiftly optimize the Group’s production
system with the aim of increasing
our capacity to supply highvalue-added products.

Increase space for R&D
Secure space for further expansionof facilities in the future

Kitakami Plant
Installation status of new
equipment
Food- and beverage-related
equipment installed

Yasuhiro Sanada

Content of R&D

Director
Managing Executive Ofﬁcer
Chief Operating Ofﬁcer

Southeast Asia and India

Establishing a five-pole sales system

In Vietnam, where we have started supplying semi-ﬁnishedproducts, we are proceeding with preparations to manufacture

Increasing supply capacity throughoptimization of the production systemﬁnished products. Manufactures of appliances, like air
Japan

EV-related, aerospacerelated, etc.

Miyako Plant

in Japan to the Vietnam Plant and focus on high value-added
products. In light of the declining workforce, we must build aproduction system that makes full use of people without being
overly dependent on them. To this end, we hope to actively

conditioners and refrigerators, are making successive inroads

Our customers are increasing at an accelerated pace alongside

introduce automated equipment, as well as IoT and AI

In addition to posting increased orders for electronic devices

into Vietnam in line with that nation’s economic growth, and theworldwide growth in demand for molds and dies. Currently, thetechnologies.

and semiconductors, we focused on initiatives in new ﬁelds,

market is growing as a result. Following an increase of

Punch Group has a world-leading production capacity in terms

including those related to food and beverages. Since ﬁscal 2016,

production capacity targeted under VC2020, we will draw on ourof scale, enabling it to supply a comprehensive range of items,

we have established a production system to manufacture

experience in mass production of mold and die components forfrom standard mold and die components to special-ordermulti-cavity products at the Kitakami Plant and Miyako Plant.

appliances in Japan and China, and move to the next phase to

products and multi-cavity products. While we have strengthened

capture demand for such items.

our production systems to date, we continue to operate at full

We are also taking steps for the in-house production of molds

R&D and new technology development

In Malaysia, where the beneﬁts of global sourcing arecapacity. As the number of production plants increases, we canAs we speed up product development as a matter of course, wemanufacturers. To achieve this, we introduced equipment

increasing, we are dramatically improving productivity as theearn the trust of customers, but not properly meet their needs.

will launch initiatives in the ultra-precision ﬁeld as new

designated by them into our plants, and receive direct technicalcorporate culture of the Punch Group resonates.

Through global sourcing, we are expanding sales channels in thechallenges. In addition, we have uncovered new R&D themes

United States and Europe, but the main sources of supply arethrough our expansion into aerospace-related ﬁelds, and we will

still Japan and China, so we need to increase our supply

accelerate efforts to deliver further high added value.

and dies previously made by our customers who are dedicatedguidance from those manufacturers in production. Suchoutsourcing projects are steadily increasing, and we are receiving

The United States

positive feedback from customers, whom we are targeting as

In the year since we established our U.S. sales company, orders

capacity. With the Vietnam Plant as a starting point, we are

Our future-oriented digital engineering services havepartners. We also believe that acquiring such new technologies

from new customers have steadily increased, underscoring good

optimizing our Groupwide production system. In addition, we

gradually increased in popularity, and large projects began inwill play a positive role in accessing new opportunities.

progress. Although it is difﬁcult to predict the future due towill consider capacity upgrades at each production base as aﬁscal 2018. Our customers have very high expectations, andcurrent trade issues between the United States and China, wepriority of our next mid-term business plan.

success in this will greatly impact our future performance, so we

China
We completed relocation of equipment to the new Dalian Plant

will further strengthen cooperation with Japan and China, andaim for steady growth.

to expand orders for can manufacturing products and other highvalue-added products, and strengthen our production system for

The smooth launch of the Vietnam Plant is essential toare undertaking rigorous, in-depth educational activities—from

Europeaim to build a solid track record.

increasing capacity, and fostering human resources is key. We
training new people, to education on production and product

Importance of quality control to support
product manufacturing

special-order products. In the former plant, we will bring

In Europe, sales are growing faster than planned, thanks toquality—in a Punch style. These activities have been

together manufacturing lines, which previously were dispersed,

friendly relationships we have with multiple sales agents inwell-received in the ﬁeld, leading to good outcomes. We will

and expand production lines for special-order products. These

Germany. We believe that sales activities with close customer

send instructors from Japan to the site to complete relocating

It is our obligation and responsibility as a manufacturer toefforts towards layout changes and production increase areties are more necessary than ever for obtaining opinions fromthe semi-ﬁnished manufacture of products in the second half ofsupply high-quality products that customers can use with peace

expected to deliver maximum operational beneﬁt in October

local customers, and reﬂecting them in our plants. For thisﬁscal 2018. In the meantime, we will prepare to startof mind. The Punch Group rescinded its ISO 9001 certiﬁcation2018 onwards.

reason, we will continue strengthening relationships with sales

manufacturing ﬁnished standard products in ﬁscal 2019.

for quality management systems in 2010 and switched to its

To increase the number of orders of high value-added
products, we are advancing initiatives based on our strengths.
Speciﬁcally, our R&D Department has started making prototype
samples for evaluation by customers, leading to an

own Punch Quality Management System (PQMS). However, we

agents while considering the establishment of a local subsidiary.

Focus on high value-added products
and highly profitable businesses

have started activities aimed at obtaining the ﬁscal 2015 versionof ISO 9001 certiﬁcation. This is because a revision of ISO 9001
in ﬁscal 2015 brought that standard to a higher level of quality
management, and we wanted to increase awareness about theincrease in the number of cases earmarked for production.
While we have a corporate vision of becoming a highly proﬁtable

importance of quality.

company, I believe that a company that can post a gross margin
in excess of 40% is deﬁnitely highly proﬁtable. For this, we needto quickly relocate production of standard items currently made07

Punch Industr y C o., Ltd.

Punch Industr y C o., Ltd.

08

C F O M E S SA G E

Dividend Per Share and Payout Ratio
22.1
19.1

While implementing large-scale strategic investments,
we will maintain our upward income trend.
Our aim is a double-digit operating
profit ratio in the near future.

Revenue and earnings increases
greatly exceeding our plan

20.5

Payout ratio (%)

21.7
20.5

Dividend (Yen)

Takao Murata

Director
Senior Executive Ofﬁcer
Chief Financial Ofﬁcer

20.8

Fiscal 2018 dividends

16.75
12.5

12.5

13.0

FY2014FY2015FY2016FY2017

Interim and year-end dividends of ¥10.25/share each
= Annual dividends of ¥20.50/share(up ¥3.75 from FY2017)

FY2018(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.

depreciation of ¥1.6 billion, we were able to reduce
interest-bearing debt by ¥0.5 billion. Net funds also declined to

Nevertheless, we will continue targeting increases in revenue,

Efforts to improve assets turnover

earnings, dividends, and the payout ratio to establish aminus ¥2.5 billion, bringing us a step closer to becoming afoundation for maintaining a robust ﬁnancial position. Having

debt-free company, despite various investments. Compared withachieved that, we will consider other measures to increase theIn ﬁscal 2017, consolidated net sales increased approximately

when our interest-bearing debt was over ¥10 billion and our

We are steadily improving the turnover rate of non-current¥4,400 million year on year, while gross proﬁt rose ¥1,217

ﬁnancial base was evaluated as weak, our current ﬁnancial baseassets and accounts receivable. The non-current assets turnover

million, and enhanced capacity utilization of plants in Japan andhas truly stabilized. However, there is room for further

rate has improved year by year, from 3.23 times ﬁve years ago

overseas had a ¥249 million positive effect on cost of sales.

streamlining in areas such as inventories and accounts

to 3.78 times in ﬁscal 2017. This is the result of widespread

However, a rise in selling, general, and administrative (SG&A)

receivable. We will forge ahead with these efforts while also

in-house efforts related to recovery of investments.

expenses had a ¥613 million downward impact on proﬁt. As afurther improving capital investment efﬁciency to maintain aresult, overall earnings increased ¥852 million year on year. The

stable ﬁnancial position.

value of our shares, including share buybacks.

Attracting, fostering, and energizing humanresources and reforming working styles

However, the turnover rate for accounts receivable has
improved slightly. The main factor here is growth in sales to the

In addition to ﬁnancial matters, I have a bird’s-eye view of

automobile industry, known for its long recovery period,

administration. I recognize that our most important management

particularly in China. We are conﬁdent that awareness aboutpriority is to attract, foster, and energize human resources.

debt collection is proliferating at our sales bases, not only inTo this end, we established the Punch Academy last year.

manufacture of high value-added special-order products while

Japan but also in China, Southeast Asia, India, and elsewhere.

In addition to training new employees, the Academy has

making capital investments, which helped improve the cost of

Now is the time to consider our next move.

achieved positive results in other areas, such as stratiﬁed

main driver of our revenue growth was China, where our sales
increased in excess of the local economic growth rate. At our
production bases in Japan and China, we emphasized theCapital investments and depreciation

sales ratio. The increase in SG&A expenses stemmed mainly

In ﬁscal 2018, we plan to make capital investments of aroundtraining for employees and manufacturing-related training forfrom R&D expenses, as well as capital investments and¥3.2 billion, including in Phase 2 of the Vietnam Plant, withsales employees. Veteran employees set to leave the front lines

personnel increases in the new ﬁeld of digital engineering

about ¥1.8 billion in depreciation expense. Combined with ¥2.9

services. Despite signiﬁcant increases in revenue and earnings,

billion in ﬁscal 2016 and ¥2.8 billion in ﬁscal 2017, this will

we have not achieved our ultimate target for proﬁt ratio.

bring total capital investments under VC2020 to around ¥8.9

Fiscal 2017 cash flows and intended uses

serve as instructors. We will continue using the Punch Academy
to implement various measures to expand the range of training
activities.

The increase in earnings pushed return on equity (ROE) tobillion. Given total planned capital investments of ¥14 billion

In ﬁscal 2017, net cash provided by operating activities

11.8%, ahead of our target under VC2020. For our next step, weunder VC2020, ¥5.1 billion is available for further investment.

amounted to ¥3.4 billion, boosted greatly by record-high proﬁt,

working-style reforms. Thanks to the grassroots activities of ourare targeting a double-digit ﬁgure for return on assets (ROA),

By region, ¥2 billion of the ¥14 billion was earmarked for

as well as depreciation. Net cash used in investment activities

Working-Style Reform Committee set up in 2016, we have seen

We strive to energize our human resources throughwhich was 6.6% in ﬁscal 2016 and 8.8% in ﬁscal 2017. To

Vietnam and several hundred million to Malaysia, with thetotaled ¥2.3 billion, bringing the net free cash inﬂow to ¥1.1

progress in modifying employees’ awareness about making

achieve this, we need to raise our operating proﬁt ratio to double

remainder going to Japan and China. Our plan is to upgrade

billion. Net cash used in ﬁnancing activities was ¥0.7 billion,changes for self-improvement, and I feel that communications

digits from the current 6.9%. Accordingly, we will implement

production facilities in China in the ﬁrst half of ﬁscal 2018, andmainly reﬂecting the repayment of interest-bearing debt. As abetween layers of the Company have opened up. For the next

our high value-added strategies and reduce costs, while forging

Japan in the second half.

result, cash and cash equivalents at ﬁscal year-end were ¥0.4

step, we will elevate these initiatives by one level, and consider

billion higher than the year prior.

how to incorporate them in Groupwide activities. In ﬁscal 2018,ahead with efforts to improve the productivity of the sales andSince we plan to make ongoing growth-oriented investments,

control departments to maintain earnings growth to achieve

the trend of capital investments greatly exceeding depreciation

Going forward, we will use cash to enhance shareholder

we introduced a new personnel evaluation system, as well as a

double-digit operating proﬁt ratio in the near future.

will continue for the time being. It is extremely important that

return through growth investments and dividend payments. We

new work-at-home system. We also added internal regulations

increases in earnings continue to exceed rises in depreciation

believe that growing the Company and earning a positivethat require employees to take ﬁve days of paid vacation

despite making these investments. For this reason, we will

evaluation from the stock market will satisfy our shareholders

annually—one year ahead of the passing of Japan’s “Work Styleadvance with a ﬁrm emphasis on investment efﬁciency andmore than cash dividends, so we will continue making proactive

Reform Bill.” In these and other ways, we are making good

recoverability of investments.

investments in growth.

progress to reform working styles.

Financial position

As for dividends, we aim to gradually raise the payout ratio

09

Our achievement of record-high operating proﬁt considerablyfrom the current 20% level while maintaining annual increases

contributed to our ﬁnancial position. Although we made capital

accompanying proﬁt growth. In ﬁscal 2017, the proﬁt exceeded

investments of ¥2.8 billion, which greatly exceeded annual

our forecast, so the payout ratio was lower than expected.

Punch Industr y C o., Ltd.

Punch Industr y C o., Ltd.

10

Special Feature

Moving toward a foundation of high profitability while establishing a five-polesales system by accelerating growth through reinforcement of special-orderproducts, with the Group’s new production system as the cornerstone

Establishment of a five-pole sales system
Mold and die market trends and initiatives in each country

Under VC2020, we strive to strengthen production of special-order products that leverage the competitive advantages of the
Punch Group’s integrated manufacturing system. We aim for high proﬁtability and sustainable growth by strengthening ourJapanoverseas sales structure through the establishment of our ﬁve-pole sales system while balancing the production system with

China

(Billions of yen)(Billions of yen)sales and marketing activities.
3,400

1,100

3,000

900

Optimization of production system
Phase 1 (FY2016 – 2018)

Japan

Vietnam

Transfer of production
items among Japan
plantsTransfer of
production ofsemi-ﬁnishedproducts from China

Supplying low-cost,semi-ﬁnishedproducts toJapan plants

0

FY2015
ActualPhase 2 (FY2019 – 2020)

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

Commencement ofplant operations
Full-scale operations
from October 2016

0

Further reinforcement of
production capability forspecial-order products
in Japan

FY2016
Actual

FY2017
Actual

FY2018(Forecast)

FY2015
ActualStrengthen orders in the robust electronic device
and semiconductor sectors
Special-orderproducts

Transfer of production items
among China plants

Malaysia

Southeast Asia and India

Europe and the United States(Billions of yen)Japan accounts for over 40% of our sales. In addition tostrengthening orders in the robust electronic device andsemiconductor sectors, we are stepping up efforts in new, highvalue-added ﬁelds, such as the medical sector and the food andbeverage sector, which is diversifying with plastic bottles. Punch
Industry’s strength in proposal-based sales that capture customer
needs, along with a ﬂexible and stable production system, areessential to our business. We have therefore created a systemcapable of efﬁciently producing multi-cavity products at the Kitakami
Plant and Miyako Plant.

Transfer of productionof ﬁnished standard
products from Japan

Reinforcement of production
capability for ﬁnishedstandard products

Finished
standard
products

800
2,000
760
0

In progress

11

Punch Industr y C o., Ltd.

FY2016
Actual

FY2017
Actual

FY2018(Forecast)

Carry out optimization of the Punch Group
production system starting at the Vietnam Plant,
expand export business to Europe and the UnitedStates, and establish our position in growthmarkets

Special-orderproducts

Cemented carbide products, etc.

The United States
China
China accounts for approximately 49% of our sales. This is an enormous
market with ever-growing demand, even though it already represents morethan 30% of the world’s mold and die market. Orders for the Punch Group are
growing amid expanding demand for more advanced, high-precision mold anddie components. In the medical sector, where demand is increasing, we are
steadily providing products and seeing the effects of mass production. The new
Dalian Plant began full-scale operations in May 2018. We will accelerate efforts
at the facility for high value-added products such as can manufacturing
products and step up reinforcement of special-order products to expand ourmarket share and raise proﬁtability.

Southeast Asia and India
Optimization of the entire Group production system is necessary toaccelerate the development and production of special-order products inJapan and China. The Vietnam Plant will play a signiﬁcant role in thisprocess. It has already started supplying to Japan semi-ﬁnished items
previously manufactured in China. The transfer of production isscheduled to complete on time, in the second half of ﬁscal 2018. We arealso preparing to transfer production of some of the ﬁnished products
currently manufactured in Japan, starting in ﬁscal 2019.

(Billions of yen)

4,000

Initiatives in each regionJapan

FY2018(Forecast)

Proactive efforts in new ﬁelds, such as the foodand beverage sector

FY2015
ActualChina

FY2017
ActualWork on high value-added products and reinforce
production of special-order products at Dalian
Plant, which began full-scale operations in May
2018 after expansion was completed0

Reinforcement of
production capability
for special-orderproducts at China plants

FY2016
ActualThe business in Malaysia is expanding steadily owing to growth inlocally manufactured cemented carbide products and the addition of
products manufactured in Japan and China through the establishment of
the Global Sourcing Department.
In India, we are capturing demand for mold and die components in
the growing automotive ﬁeld. The second pillar of business involves
efforts to establish cemented carbide components and plastic mold anddie components in non-automotive ﬁelds.

Since the sales company started business in 2017, the amount of orders
has accumulated steadily, including ones from existing customers
combined with solid growth from new customers.

In Japan, we are bolstering efforts in high value-added ﬁelds suchas the food and beverage and medical sectors, in addition tostrengthening orders in the robust electronic device andsemiconductor sectors. Following the transfer of production ofﬁnished standard products to the Vietnam Plant in 2019, we aim toreorganize the production system at each plant, while improving
productivity and expanding production capabilities for special-orderproducts through automation, etc.
We will actively embrace the challenge of creating value for new
corporate growth over the next 10 years, as Japan’s rapidly
decreasing population, declining birthrate and aging society becomea reality.

EuropeEuropeEuropeEuropeThe
UnitedStatesThe
UnitedStatesThe
UnitedStatesThe
UnitedStates

FY2015
Actual

FY2016
Actual

FY2017
Actual

FY2018(Forecast)Strengthen sales and marketing activities mainly
for special-order products in sectors including
electronic devices and medical in the United States
Further expand sales channels in Europe and theUnited States utilizing the Global Sourcing
Department that allots procurement to the mostsuitable production facilities

EuropeSales are expanding faster than planned based on our friendly
relationships with German agents. Sales in Europe increased
signiﬁcantly, with double-digit growth for two consecutive years, via the
Global Sourcing Department established in Malaysia.

Markets in Southeast Asia, particularly Indonesia and thePhilippines, have seen double-digit growth year on year. We seek tocultivate new ﬁelds and further expand our market share throughcustomer-focused sales and marketing activities, as we leverage ourbroad network that includes local subsidiaries and agents.
Customers in Europe place a high value on relationships basedon trust. Long partnerships are expected once that trust has been
won after providing high quality and precision. We will maintain
good relationships with local agents and others, while continuing
our efforts focused on maintaining and improving quality anddelivery timelines.

Akira Takanashi

Tetsuji Morikubo

Director
Senior Executive Ofﬁcer
In charge of Domestic Businesses

Director
Senior Executive Ofﬁcer
In charge of Corporate Strategy/
In charge of Southeast Asia

Punch Industr y C o., Ltd.

12

Technology

Human Resources Development and Diversity

R&D and technology: the source of value creation for manufacturing companies

Fostering human resources to be the source of value creation
The Punch Group considers employees’ development to be the strongest force driving the Group forward. We strive to provide meticulous,
rank-speciﬁc training and development initiatives to encourage employees to embrace challenges as professionals, with the aim of ensuring thatevery employee can work enthusiastically, fully utilize their talents, and have a real sense of growth.

Kitakami Plant acquires JIS Q 9100:2016 certification
The Punch Group is pursuing efforts in the aerospace-related industry in line with reducing its
exposure to changing economic conditions and expanding its dealings with companies in othersectors earmarked for future growth.
The Kitakami Plant obtained JIS Q 9100:2016 certiﬁcation in May 2018 for the “Manufactureof compression pin of mold for aspherical lens.” The certiﬁcation is the international standard
for quality management systems speciﬁc to the aerospace and defense industries.

Fostering human resources and active roles for senior employees atPunch Academy
The Punch Academy was established in April 2017 with the primary aim of fostering humanresources who are ﬁlled with the “Punch Spirit” and passing on to young employees the skills
cultivated by the Group over the years. During ﬁscal 2017, 39 courses were held with 347
employees attending. Content included training for new employees, rank-speciﬁc training,
improving skills, and manufacturing training for sales employees.
Veteran employees who are nearing retirement age serve as instructors who hand down
techniques to the next generation. They move from the front lines of manufacturing to the front
lines of education to take on the challenge of fostering human resources as a new mission.

Nurturing new businesses for future growth that creates new value

Fostering human resources
through Groupwide
collaboration
The Punch Group as a whole isdedicating efforts to nurturing humanresources. In particular, the China
Group set up “Punch Classes” at
vocational schools and supports theeducation of outstanding students.
We also share information about
training methods and curriculum
content among Group companies tomake improvements.

Digital Engineering Service MxM combining the latest 3D
technology with Punch Industry’s manufacturing capabilities
The reverse engineering business launched in 2016 was remade into the Digital Engineering
Service MxM (Measuring x Multipurpose) in April 2018, as its ﬁeld of business expanded,with a higher level of recognition and an increase in the number of orders.
MxM is a new engineering service centered on digital measurement. Punch Industry is
promoting the service with its in-depth experience and extensive expertise in the
manufacture of a wide range of mold and die components. Taking advantage of various
precision-measuring techniques and data recording technology from contact methods tonon-contact scanning, the service creates objects according to various speciﬁcations
requested by customers and utilizes form measurement data in multiple applications, suchas creating 3D CAD data, manufacturing components through reverse engineering, and as
inspection data for quality assurance. These new manufacturing support services have been
well received by customers.
Furthermore, we are making efforts to expand service facilities and consider overseas
rollouts, due to the large number of customers requiring these services.

COLUMN

Diversity initiatives
We, the Punch Group, believe we can further invigorate our corporate activities by bringing together human resources with various backgrounds
and values, and ensuring that all employees can fully utilize their capabilities. Accordingly, we are actively striving to create a workplace where
diverse human resources can work together, through measures such as promoting wider roles for female employees, recruiting foreign nationals,
and hiring people with disabilities.

The website was also updated.

Punch Women’s Forum (PWF)

Supporting sports for people with disabilities

The Group launched the PWF to consider the working styles offemale employees and how to promote women’s participation in theworkplace. We held the ﬁrst session in April 2018 with female
managers from Japan and China in attendance. They exchanged

The 17th National Sports Festival for People with Disabilities: Smiling
Faces of Love in Ehime was held in October 2017, following the
National Sports Festival in Ehime. A Punch Industry employee
participated in the 100-meter and 200-meter track and ﬁeld events,
winning the silver medal in both. He also gives talks at elementary

opinions on topics including
current issues and policies for
future activities.

Received FY2017 Minister of Health, Labour andWelfare’s Award for Excellent Human Resources
Development at a Business Establishment
The Kitakami Plant received the Minister of Health, Labour and Welfare’s
Award for Excellent Human Resources Development at a Business
Establishment.
The award is presented each year to promote human resources
development by recognizing individuals who have made great
contributions and business establishments that serve as a model toothers with respect to implementing accredited vocational training or
holding national trade skills tests.

13

Punch Industr y C o., Ltd.

schools and other venues todeepen understanding of people
with disabilities and to raiseinterest in sports for the disabled.

Environmental initiatives
The Punch Group exhaustively considers the deﬁnition of “eco-friendly products” andrigorously examines them, under its environmental principle that plays a signiﬁcant part insocial 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.

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

Punch Industr y C o., Ltd.

14

Corporate GovernanceTo continue being an entity that is highly regarded by society,
the Punch Group will further improve the transparency and soundness of management

4. Risk Management Committee

5. Remuneration of Board Members, etc.

The Risk Management Committee, consisting of directors, full-time audit& supervisory board members, executive ofﬁcers, and the chief of the
Corporate Audit Ofﬁce, works to establish, maintain, and improve theCompany’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 and Remuneration Advisory Committee, and the Audit& Supervisory Board decides the speciﬁc amount of remuneration foreach audit & supervisory board member.

by reinforcing corporate governance and maintaining rigorous compliance.

Compliance/Risk Management

Basic Policy

1. Securing shareholders’ rights and equality
2. Appropriately cooperating with all the stakeholders
including shareholders

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

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

Nomination andRemuneration
Advisory Committee

Issue instructions/Report
Select/Dismiss/Supervise

ReportIssue instructions/Report

Executive Board

Issue instructions/Report

President,
Executive Officer

Internal audit/
Internal control support

Inquire/Report

Member: 7 (including 2
external directors)

Audit

Corporate Audit
OfficeBoard of Directors

Auditing
OfficeCoordinate

Business
execution

Audit

Member: 4 (including 2
external members)

Accounting
audit

Appoint/Dismiss

Issue
instructions/
ReportRisk
Management
Committee

Managing Executive Ofﬁcer: 1
Senior Executive Ofﬁcer: 3
Executive Ofﬁcer: 6

The Company has established the internal audit divisions, 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 also carried out via
e-learning to ensure that all employees engage in appropriate and fairbusiness activities.

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, chaired by the executiveofﬁcer in charge of risk management, met every quarter during ﬁscal
2017 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 receive reports
about the results of the Committee’s activities.

Establishment of Corporate Governance Office and Corporate Audit Office
We recognize that improving corporate governance will lead to anincrease in corporate value. To date, we have appointed numerous
external directors, taken initiatives to energize the Board of Directors,
and sought to reform the executive remuneration system. Reﬂecting ourbelief that corporate governance will become increasingly important in
the future, we established a dedicated Corporate Governance Ofﬁce.

We also integrated the Risk Management Ofﬁce, responsible forwide-ranging overall risk management, into the Internal Audit Ofﬁce inﬁscal 2018 and renamed it the Corporate Audit Ofﬁce. By combining theresources of both organizations, we intend to strengthen the corporate
governance system for internal audits and risk management in line withthe globalization and diversiﬁcation of our business.

Messages from External Directors
Monitoring

Issue instructions

ReportOperating Division/Administration Division/Group companies

1. Board of Directors & Business Execution Structure

2. Audit & Supervisory Board and its members

Punch Industry has strengthened its executive ofﬁcer system to separate
the monitoring/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 Company has also established the Executive
Board, composed of all its executive ofﬁcers. This is thedecision-making body for business execution, which engages indeliberation and makes decisions related to execution of business,
including matters legitimately delegated by the Board of Directors.

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.

3. Nomination & Remuneration Advisory Committee
Punch Industry sets the non-statutory Nomination and Remuneration
Advisory Committee as an advisory body of the Board of Directors
centering on external directors and external audit & supervisory board
members to clarify basic policies and standards, and enhance fairness
and transparency of decision-making process, for determining on thenomination and remuneration of directors and executive ofﬁcers, and for
determining the nomination of audit & supervisory board members.

Aiming to enhance
corporate value

Expanding operations while
conducting business
which prioritizes
the front line

Yukiko Mitsuhashi

Kazuyoshi Tsunoda

External Director

External Director (New appointment)

The Corporate Governance Code seems to be making
considerable inroads into Japanese companies. The Group does
not follow the Code as a mere formality. We actively incorporate
its intentions as well. For example, the Code places emphasison the nomination and remuneration processes for ofﬁcers.
Accordingly, the Nomination and Remuneration Advisory
Committee, centered on the external ofﬁcers, engages in lively
debate on this matter. To strengthen the monitoring function of
the Board of Directors, a non-executive director serves aschairman of the Committee, and I have been elected chairman at
this time. I will continue working to improve our governancestructure to enhance corporate value.

I have experience in manufacturing, control, and management
at a materials and components manufacturing company
serving the electronics market. Using this experience, I aim tomonitor management effectiveness to increase compliance,
appropriateness, and efﬁciency. Aiming to help the Group
expand its operations as a components company that supports
consumers’ lives through world-leading precision ofprocessing technologies and services that customers love, as
an external director, I plan to engage in compelling discussions
while conducting business which prioritizes the front lines.

Punch Industry’s corporate governance website

15

Punch Industr y C o., Ltd.

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

Punch Industr y C o., Ltd.

16

Honorary Chairman, Directors, Audit & Supervisory Board Members,
and Executive Officers (As of June 26, 2018)
Honorary Chairman

Directors

Yuji Morikubo

Masaaki Takeda

Yasuhiro Sanada

Takao Murata

Founder, Honorary Chairman

Chief Executive Ofﬁcer

Chief Operating Ofﬁcer

Chief Financial Ofﬁcer

Company Profile (As of March 31, 2018)
Company name

PUNCH INDUSTRY CO., LTD.

Business

Manufacture and sale of mold and die components

Established

1975

Main banks

Capital2,897.73 million yen

Number of employees

4,298 (consolidated)

Head office

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

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

Investor Information (As of March 31, 2018)
Stock Information

Akira Takanashi

Tetsuji Morikubo

Yukiko Mitsuhashi

Kazuyoshi Tsunoda

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

External Director

External Director

Audit & Supervisory Board Members

Total number of authorized shares

80,000,000

Total number of shares issued

22,122,400

Number of shareholders

5,321

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

49.62%
24.08%
3,004,997 13.58%
2,363,900 10.69%
449,145
2.03%

Individuals and others

10,978,258

Financial institutions

5,326,100

Foreign companies
Other domestic companies
Securities companies

Note: “Individuals and others” includes treasury stock.

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

Name

Executive Officers

Makoto Kume

Major Shareholders (Top 10)

Hiroshi Fujisawa

Hirohisa Morikubo

Stock Prices and Trading Volumes
Number ofshares held

Percentage ofshares held (%)

Japan Trustee Services Bank, Ltd.
(trust account)

2,753,000

12.56

MT Kosan Co., Ltd.

2,180,000

9.94

Yuji Morikubo

1,644,000

7.50

Tetsuji Morikubo

1,300,000

5.93

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

1,035,700

4.72

Punch Industry Employees’ Stock
Ownership Scheme

978,000

4.46

BNYMSANV RE BNYMSANVDUB RE YUKI ASIA

747,500

3.41

Michiko Kamba

436,000

1.99

Japan Trustee Services Bank, Ltd.
(trust account 5)315,100

1.44

Mitsuo Nomura

300,000

1.37

Note: Treasury stock (200,098 shares) is excluded from calculations of “Percentage of shares held.”

Hideki Kinumatsu

17

Punch Industr y C o., Ltd.

Minoru Kawano

Joji Kawasaki

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

2,000

5,000

1,600

4,000

1,200

3,000

800

2,000

400

1,000

0

12/
2016

4/
2017

8/
2017

12/
2017

3/
2018

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 Industr y C o., Ltd.

18