NORITAKE CO., LIMITED

A nn u al R eport 2 0 1 0Year Ended March 31, 2010

I nd u s trial P rod u ct s

C eramic s & M aterial s

1

E n g ineerin g

Ta b letop

E lectronic sP ro f ile

Noritake Co., Limited has developed technologies acquired from ceramics
manufacturing expertise and has expanded its business into such fields as
grinding and polishing tools, electronic component materials and manufacturing
equipment. With a focus on developing new products and technologies forenergy-related industries—including solar cells, an area of promising
growth—Noritake seeks to create new value for customers and society.

Medium-Term Business Plan
Since the worldwide economic recession, the business environment has enormously changed.
Demand is shifting to emerging countries and environmental problems are seriously worsening.
Confronted with this situation, Noritake formulated a new medium-term business plan, which started in April 2010.
The fundamental points of this plan are:1. Focusing management resources on growing business areas
2. Enhancing unique technologies and new product development to create competitive advantages
3. Developing new markets mainly in emerging countries to raise overseas sales
4. Reducing cost by raising the proportion of overseas production
5. Streamlining management systems and enhancing management structure
Through the above actions, the Noritake Group is taking steps to secure greater corporate value.

C ontent s
1 Six-Year Financial Summary

2 Message from the Management

14 Consolidated Financial Review

5 Review of Operations

17 Consolidated Balance Sheets

20 Consolidated Statements of Cash Flows
34 Overseas Network / Directors and Officers

10 Research & Development

18 Consolidated Statements of Operations

21 Notes to Consolidated Financial Statements
35 Corporate Data / History of Noritake

12 Corporate Governance

19 Consolidated Statements of Changes in Net Assets

33 Independent Auditors’ ReportSix-Year Financial Summary

Millions of yen

Thousands of
U.S. dollars

2010

2009

2008

2007

2006

2005

2010

¥ 87,596¥112,984¥133,368¥129,240¥123,207¥118,315$ 941,892

Operating (loss) income(1,665)808

10,488

9,463

8,361

6,927

(17,904)(Loss) income before income
taxes and minority interests(3,354)(3,059)10,171

10,398

9,009

6,729

(36,065)

Net (loss) income

5,669

5,796

5,031

4,002

(48,398)

For the year:
Net sales(4,501)(6,861)

Net (loss) income per share(yen/U.S. dollars)¥ (31.32)¥ (46.82)

¥

38.36

¥

39.20

¥

33.50

¥

26.43

$

(0.34)

Capital expenditures

¥

¥

¥

5,084

¥

4,080

¥

3,413

¥

3,494

$

31,258

2,907

5,122

At year-end:
Total assets¥109,595¥113,077¥141,644¥148,827¥143,433¥128,288$1,178,441

59,39862,16378,083

79,27076,02566,284

638,689

54.2

55.0

55.1

53.3

53.0

51.7

Total shareholders’ equity
Total shareholders’ equity ratio (%)

Note: The U.S. dollar amounts above have been translated at the rate of ¥93 to US$1.

Net Sales

Operating (Loss) Income

Net (Loss) Income

Net (Loss) Income per Share(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

133,368

10,488

5,669

38.36

112,984

87,596(6,861)(4,501)’09’10(46.82)(31.32)

’09

’10

808
(1,665)

’ 08

’ 09

’ 10

’ 08

’09

’10

’ 08

’08

N orita k e Co. , Limited

Annual Report 2010 Message from the management

Noboru Akahane
Chairman and Representative Director

Hitoshi Tanemura
President and Representative Director

The management wishes to sincerely thank all stakeholders of Noritake Co., Limited for theircontinuous support. We would like to take this opportunity to comment on the Group’s results forfiscal 2010, ended March 31, 2010.

Performance Overview for Fiscal 2010
The business environment in fiscal 2010 was characterized by a deepening of the global recession of the previous year, with dire conditions continuing through to the end of the first half. In thesecond half, however, the economy began on a course of gradual recovery, spurred on by government spending worldwide as well as economic development in China and other emerging nations.
 The Noritake Group was shaken severely by the global downturn in market conditions.
Consolidated net sales fell substantially in the first half, almost 40% compared with the same
period of the previous fiscal year. In the second half, even though traces of economic recovery
could be seen, a drop of over 30% was unavoidable.
As a consequence, factory operation rates in the Industrial Products and other groups fell
sharply and performance deteriorated significantly. The appreciation of the yen and persistently
high raw materials prices were other factors that applied downward pressure to profitability.

 Nori ta ke C o., L imi t ed

Annual Report 2010

 To address these harsh conditions, we took the initiative to move forward, taking further steps
to restructure the Tabletop and Electronics business groups, measures that had been in motion
since the previous year. In tandem with this, we endeavored to promote streamlined manufacturing and marketing in Industrial Products and Ceramics & Materials so as to improve performance.
We also worked to bring about a more efficient management structure by taking a new look at
our current framework of autonomous Group members, and streamlined management by conducting mergers to absorb principal Group companies.
As initiatives in regions worldwide and new growth markets, we made all-out efforts to develop
and expand sales of new products and new technologies. For example, in the solar cell field weare developing electronic paste for use as electrodes on solar cells and diamond wire to slice silicon ingot as well as dry furnaces and kilns for the manufacture of lithium-ion batteries.
As a result of the aforementioned factors, although great efforts were made, in the period
under review the Noritake Group posted a decline of 22.5% in consolidated net sales, to¥87,596 million, and a net loss of ¥4,501 million.

Issues to Be Addressed
The economic climate that surrounds Noritake is emerging from one of the worst periods ofworldwide recession, and signs of recovery are appearing regularly. Even so, it is impossible tobe wholly optimistic about the future.
In confronting these conditions, we at the Noritake Group formulated a medium-term, threeyear business plan that commenced from April 1, 2010. Together with an early return to profitable business results, we are endeavoring to build a new business foundation.
1. Development of Overseas BusinessLooking to the future, expectations are for reductions in the scale of the Japanese and otherdeveloped markets around the world, which means we must undertake the urgent mission ofaddressing the needs of emerging economies experiencing surging growth. We at Noritake will
work to raise competitiveness by securing, as well as building and utilizing, overseas production
sites in Asia and other regions while aggressively moving forward on expansion into new markets.
2. Development of New Products
We must seize the opportunities presented by new and growing demand from emerging markets
and environment-related fields and strengthen the development of unique new technologies andproducts. The solar cell field is an area of particular interest, and we will make concerted efforts
to further develop our diamond wire for cutting silicon ingots, electronic paste, and dry furnaces
and kilns used to manufacture lithium-ion batteries.
N orita k e Co. , Limited

Annual Report 2010 

3. Enhancement of Management Structure
We are moving forward with absorption-type mergers with principal Group companies, aiming toenhance structural and operational efficiency under a unified Noritake framework. At the sametime, we are taking steps to strengthen management infrastructure by reinforcing information andmanagement systems as well as other efforts.
4. Compliance
Based on the Noritake Group’s “Code of Ethics,” the Compliance Committee takes the lead in
conducting activities and working to strengthen the Group’s internal control.

Basic Policy Regarding Earnings Distribution
Noritake has positioned returning profit to shareholders as a key management policy. Based on
this policy, we place emphasis on stable dividend payments over the long term and the distribution of earnings by comprehensively taking into consideration factors that include performance
results, financial conditions and future business development. In addition, we make effective useof retained earnings for development investment aimed at creating new technologies and products that can become a foundation for the Noritake Group’s future strength, as well as for capital
investment for sustainable business development in growth fields. With regard to dividend payments, Noritake distributed ¥2.5 per share as the fiscal year-end dividend, which, when added tothe interim dividend already paid, made for a full-year dividend of ¥5.0 per share.
We sincerely regret the concern caused by the worsening business results. In order to prevailin these difficult times, all employees and officers of the Noritake Group will work in unison, making all-out efforts to improve corporate performance. We ask for your continued understanding
and steadfast support.

Noboru Akahane

Hitoshi Tanemura

Chairman and Representative Director

President and Representative Director

 Nori ta ke C o., L imi t ed

Annual Report 2010

R e v i e w o f Op e r a t i o n sIndustrial Products

Sales

Sales

Sales

(Millions of yen)

(Millions of yen)

(Millions of yen)

46,52833,192

23,24829,51038,717Sal(Millio
Breakdo

Sales(Millions ofofyen)Sales
Breakdown
17,723
21,23328,728

13,11329,028

14,521

33.1
’ 08

’ 09

’ 10

’08

’ 09

’10

Fiscal 2010 Conditions

’08

’ 09

’10

’08

9,386

%

’ 09

’ 10

As a result, consolidated net sales of the Industrial Products

Demand for grinding wheels and cubic boron nitride (CBN) tools

Segment tumbled 25.0% year on year to ¥29,028 million.

from principal customers in the automobile, steel-making andOperating income dropped 100.0% to zero million yen.

bearing industries was sluggish. From mid fiscal 2010, however,
although signs of a rebound could be seen, no significant

Business Strategy

recovery was attained. Also, sales of diamond tools also

In Japan, the primary market for grinding tools, automobile-

declined even though demand in the electronics and semicon-

industry-related demand is expected to decline. Therefore,

33.1

32.8

ductor industries rallied, as this recovery did not extend to other% and export sales of abrasiveindustries. Both domestic
cloth and paper fell due to ongoing logistics-linked

%

16.6

10.7

Noritake is working to develop new technologies and products% into ever-expanding emerging
and step up its forays%

markets and environment-related fields. Specifically,

inventory adjustments. Even the development of

Noritake is looking to build manufacturing bases indiamond wire for slicing silicon ingot, which has

Asia and other regions, develop high profit margin

applications in the growth market of solar cell

products, and to further develop and expand sales

materials, did not sufficiently boost sales in the fis-of such distinctive products as its diamond wire.

cal year under review.
N orita k e Co. , Limited

Annual Report 2010 

3

Ceramics & Materials

1

Sales

Sales

(Millions of yen)

(Millions of yen)

33,192

23,24829,510

Sales(Millions ofofyen)Sales
Breakdown

Sales(Millions ofof
yen)
Breakdown
Sales
17,723

Breakdown

12,677

21,23328,728

10,411
13,113

9,028

14,521

33.1
’10

1%

’ 08

’ 09

’ 10

’ 08

’09

’10

’ 08

9,386

%

’09

’ 10

32.8
’08

5,933

%

’09

’10

Fiscal 2010 Conditions

Business Strategy

Sales of electronic pastes were mostly on par with those of the

Noritake will endeavor to develop and market new technologies

previous fiscal year. In addition to recovery in demand forand products that address needs related to solar cells, electron-

ceramic capacitors, sales of new products in the solar cell field

ics components and other growth markets. The Company will

increased, offsetting declining demand for glass paste for FPD

also seek to cut costs by upgrading and utilizing overseas pro-

TVs. Ceramic materials sales increased on the back of recovery

duction bases in Indonesia and other locations, strengtheningof demand for ceramic capacitors and glass substrates. In

international competitiveness. Having consolidated the

32.8

16.6

Japan, Regional demand was sluggish for thick-film printed%­circuit boards for automobiles,
dental-related products,
catalyst carriers and other ceramic components
and materials.

10.7

Ceramics & Materials Group decreased 2.6% to¥28,728 million. Operating income was down
9.6% year on year to ¥2,941 million.
Annual Report 2010

6.8

% implement standardized produc%
Noritake will thoroughlytion and concentrate on high-value-added markets
to improve profitability.

As a result, consolidated net sales for the Nori ta ke C o., L imi t ed%

Electronics Group into Ceramics & Materials in April 2010,16

0Engineering

Sales

Sales
(Millions ofof
yen)
Breakdown
Sales

Sales
(Millions ofof
yen)
Breakdown
Sales(Millions of yen)
23,24817,723

Breakdown of Sales

Breakdo

12,677

21,23328,728

10,411
13,113
14,521

33.1
’ 10

.8%

’ 08

’ 09

’ 10

’ 08

9,386

%

’ 09

’10

32.8
’08

5,933

%

’09

16.6

%

’10

Fiscal 2010 Conditions

Business Strategy

In the heating business, while sales of large mainstay dry fur-In the area of kilns and dry furnaces, Noritake will advance thenaces and kilns continued in the first half, there was an overall

development and expansion of sales related to the lithium ion

decline for the year due to customer cutbacks in capital invest-

battery and solar cell fields. The Company will also take steps toment. Sales of such machinery as grinding and thin cut masterstandardize filtration equipment and grinding machines, reducemachines as well as filtration equipment for machine tool oil use

costs through overseas production and expand its share of

were sluggish on the back of reduced capital investments inoverseas markets.

16.6

principal industries.

10.7% net sales for the Engineering
As a result, consolidated

Group fell 31.6% year on year to ¥14,521 million.

%

6.8

As of October 1, 2009, this group’s name was changed from the%Environmental EngineeringGroup to the Engineering Group.

Operating income declined 77.1% to ¥420 million.

N orita k e Co. , Limited

Annual Report 2010 

1

Tabletop

Sales(Millions of yen)
Breakdownof SalesSales(Millions of yen)
Breakdownof Sales
17,723

Breakdown of Sales

Breakdown of Sales

Breakdown

12,677
10,411
13,113

4,521

33.1
10

6%

’08

9,386

%

’09

32.8

’10

’08

5,933

%

16.6

%

10.7

%

’10

’09

Fiscal 2010 Conditions

Business Strategy

Economic stagnation in both the domestic and overseas mar-While markets shrink worldwide and fierce competition contin-

kets led to overall anemic demand, and even in emerging mar-ues, new demand is arising from emerging economies. In addi-

kets where growth had been anticipated, demand from wealthytion to improving profitability by thoroughly streamlining

customers slackened. Other factors included the reorganization

business operations, Noritake aims to open up new markets byof tableware sales with regard to underperforming airlines.

developing and introducing everyday items, luxury goods andAs a result, the Tabletop Group posted a decline in consoli-

10.7

6.8

dated net sales of 28.4% to ¥9,386 million, while the operating
loss was ¥376 million.% Nori ta ke C o., L imi t ed

Annual Report 2010%

other new products.

6

Electronics

Sales(Millions of ofyen)Sales
Breakdown

Breakdown of Sales

Breakdown of Sales

Breakdown of Sales

12,677
10,411

3

9,386

%

’ 10

.7

32.8
’08

5,933

%

16.6

%

10.7

6.8

%

%

’ 10

’ 09

Fiscal 2010 Conditions

Business Strategy

In the domestic market, sales and orders declined, reflecting the

From April 2010, the Electronics Group was consolidated into

impact of the sluggish economy as well as a reorganization of

the Ceramics & Materials Group.

the product lineup to eliminate underperforming items and concomitant concentration on products with a high added value.
Overseas, we withdrew from the production of automobile-use
vacuum fluorescent displays (VFDs), and sales fell across the%

6.8

board for medical equipment, consumer appliances andaudio equipment.

%

As a result, consolidated net sales for theElectronics Group dropped 43.0% year on year to¥5,933 million. Operating income declined 51.3%
to ¥221 million.

N orita k e Co. , Limited

Annual Report 2010 

RESEAR C H & D EVELO P MENTThe R&D activities of theIndustrial Products

Ceramics & Materials

Noritake Group primarily revolvearound the Research andDevelopment Center, which isprincipally involved in basic
research, and the Strategy
Development Center, which promotes the commercialization ofprojects that are directly connected to the business divisions.
Noritake carries out productMega-life wheel

Electronic paste

development for new technologies and new fields in collaboration with each business division
and Group company.
The R&D expenditures of the
Noritake Group amounted to

To increase market competitiveness,

The Ceramic and Materials Group

Noritake has been focusing its efforts on

stepped up its efforts in the develop-

strengthening its development capabili-ment of electronic paste to meet theties by relying on basic technologies

high-tech needs of the electronic device

and developing differentiated products.

and environmental energy fields as wellParticularly in the areas of solar cells

as its activities in related fields that uti-

and energy-saving semiconductors,

lize ceramic technology.

both promising growth fields, Noritake is

Noritake Kizai Co., Ltd. developed

vigorously pushing the development ofvarious electronics materials, including

ecologically friendly, high-quality, high-super-thin-layer electronic paste to

For basic research, Noritake isperformance products. In the key auto-

meet the needs of next-generation elec-

engaged in elemental technolog-

mobile and bearing fields, we havetronic components, along with paste fordeveloped products that respond very

solar cells aimed at high conversion effi-

precisely to customer needs with high-ciency. Noritake Ceramics Co., Ltd.

quality processing and lower cost.

developed high-performance ceramic¥2,887 million in the fiscal year
under review.

ical research into mesoporousand fuel cell materials.

The R&D expenditures in the Industrial

Core basic R&D expenditures
amounted to ¥393 million.

catalyst carriers for chemical plants andProducts segment amounted to ¥603

thick-film, multi-layer substrates formillion in the fiscal year under review.

automobiles. Noritake Dental Supply
Co., Limited. is developing CAD/CAM
system products for manufacturing
ceramic frames, including those forwhich dental porcelain is used, as wellas products in response to the increas-

R&D Expenditure

ing prevalence of ceramics in dental(Millions of yen)
2,925

2,828

2,887

materials.
KCM Corporation is developing particulate material compounds for use in
the growth field of multilayer ceramic
capacitors (MLCCs), as well as materials for fiber optic communication components.
The R&D expenditures in this segment totaled ¥1,623 million.

’08

’09

10 N ori take Co ., L imi t ed

’10

Annual Report 2010

Engineering

RHK Simulator

Tabletop

Electronics“Imperial Suite”
Noritake Bone China

Dot character VFD module withbrightness gradation

The Engineering Group carries out

The Tabletop Group continues to work

Noritake Itron Corporation is continuingresearch into facilities and equipment,

to develop new decorating technology

its research into vacuum fluorescentfocusing primarily on energy-related

and enhance the quality of porcelain.

display (VFD) tubes and VFD module

The R&D expenditures in this seg-

products. Its research into assembly

ment totaled ¥64 million in fiscal 2010.

and system products based on VFD

fields, such as lithium-ion batteries andsolar cells, and the electronics andsemiconductor industries.
The R&D expenditures in this segment amounted ¥143 million.

modules resulted in the commercialization of a VFD message display that utilizes LED back lights for use in stores aswell as for information and reception
displays in public places. In the development of products featuring low environmental impact, Noritake Itron isdeveloping fluorescent materials that
contain no environmentally harmful
materials and is continuing to improvetheir properties.
The R&D expenditures in the Electronics
Segment totaled ¥58 million.

N orita k e Co. , Limited

A n n u a l R e p o r t 2 0 1 0 11

C OR P ORATE GOVERNAN C E(1) Corporate Governance Structure(iii) Status of internal control system upgrades(i) Overview of corporate governance structure

Since fiscal 2007, the Noritake Group has been working to build andComprising its corporate governance structure, Noritake has posi-

maintain a framework in which it forms project-based structures,

tioned the Board of Directors as the body that decides on important

advances the documentation of adherence to rules and operational

matters, including those stipulated by management’s basic policy andprocesses and addresses the systemization of internal controls related

the law. Noritake has also introduced an executive officer system toto financial reporting. Furthermore, with regard to the stipulation of inter-clarify executive responsibilities and to delegate authority with the objective

nal control rules, and the status of their maintenance and implementa-of further reinforcing the execution of business based on decisions madetion, Noritake conducts monitoring from the perspective of the risk ofby the Board of Directors. In addition to executive officers involved inmaterial misstatements related to financial reporting, among other mea-

business operations, the Board of Directors meets, in principle, oncesures, as it strives to preserve and improve its internal control system.

a month to ensure uniformity of understanding across the entire Group.

 Through the Compliance Committee and the activities of persons

Furthermore, such matters as surplus dividends and items stipulated inappointed to have compliance responsibilities under the committee’s

Article 459-1 of the Corporation Law are addressed as matters for res-authority, the Company is working to bolster its internal controls systemolution by the Board of Directors, unless otherwise stipulated by law,from the compliance standpoint.

with the aim of being able to flexibly return profits to shareholders.
With regard to important management matters, Noritake has estab-(iv) Status of risk management system upgrades

lished a structure to perform accurate and quick decisions after careful

Strengthening the ongoing compliance structure of the Group as adeliberation at the Executive Council, which meets weekly, in principle.

whole, Noritake works to maintain risk management systems to pre-Directors are elected at the Company’s Annual General Meeting ofvent the Group from entering into a crisis situation due to misconduct

Shareholders, which is attended by at least one-third of the shareholders with exercisable voting rights, and after a majority of said voting

associated with the violation of the law.
Should the Group be faced with any risk that might damage its cor-rights is obtained, although not by cumulative voting. Noritake limits theporate value, such as a case of misconduct, an accident or disaster,number of directors to 18. The tenure of directors at Noritake and the“Risk Management Regulations” have been formulated to minimize

Group has been set at one year. The purpose of this system is to makelosses and to enable operations to continue with minimal disruption. In

possible the active building of a management structure optimally suitedthe event that a crisis does arise, a task force will be established in

to today’s turbulent business environment and to clarify management

immediate response.

responsibilities anew with each fiscal year.
Board of Directors’ meeting resolution, Noritake decided that it would(2) Status of Internal Audits and Audits by
Corporate Auditors and Independent Auditors

be able to exempt directors and auditors (including former directors

The Audit Office (comprising four personnel) serves as the Company’s

and auditors) from liabilities for damages incurred as a result of the exe-internal audit department and implements operational and accounting

cution of their duties, within the limit of laws and regulations, with theaudits. Audit results are reported to the divisional head and the generalaim of having them fully perform the roles expected of them by the

manager in charge of business operations, and, in the event that any

Board of Directors and auditors.

significant problems are identified, the Audit Office is required to notify

In accordance with Article 426-1 of the Corporation Law and by

Noritake aims to affect smooth operations by reducing the quorum

the Executive Council.

necessary for extraordinary resolutions at the General Meeting of The Board of Auditors is composed of two full-time corporate audi-

Shareholders. Resolutions proposed for approval at the Company’s

tors and two outside auditors. Besides stipulating such matters as

Annual General Meeting of Shareholders, in accordance with the provi-

audit guidelines and the division of duties, the Board of Auditors

sions of Article 309-2 of the Corporation Law, must be ratified by areceives reports from each auditor providing the actual audit status andtwo-thirds majority vote of shareholders in attendance whose total vot-

results and expedites the flow of information between the Board ofing rights account for one-third or more of all exercisable voting rights.

Directors and the Audit Office, which serves as the internal audit

Although the establishment of a “company with committees” is rec-department. In addition to working to gather information, auditors

ognized, Noritake decided to use a corporate auditor system.

attend meetings of the Board of Directors and Executive Council aswell as other important meetings, where they receive status reports on(ii) Reasons for applying corporate governance system

the execution of executives’ duties and ask for explanations when theWith the advancing globalization of business, the effects of corporateneed arises. Furthermore, Noritake’s accounting auditors maintain theiractivities are being held to increasingly strict standards of corporate

independence and confirm the implementation of appropriate audits.

social responsibility. Each Group executive and employee is heir to the

The Board of Auditors receives status reports from the accounting

spirit of Noritake’s founder, on which basis the Noritake Groupauditors on the execution of duties and requests explanations when theStatement of Corporate Ethics was formulated. In observing and put-need arises.

ting that statement into practice, they apply this corporate governanceIn the Audit Office, auditors and accounting auditors work in close col-structure to realize a Noritake Group with even higher standards of cor-laboration to maintain the effectiveness of internal audit implementation.

porate ethics.

12 N ori take Co ., L imi t ed

Annual Report 2010

Noritake’s independent auditor is KPMG AZSA LLC (name changed
from KPMG AZSA & Co. as of July 1, 2010), as established by contractual ties, which assigns managing partners to Noritake to implement
audits from an independent perspective.
 In the fiscal year under review, the managing partners assigned to
Noritake by the then KPMG AZSA & Co. were as follows:(4) Compensation to Directors and Auditors(i) Total executive compensation by executive officer category,
total compensation by type, and number of officers eligible
Executive
Officer
Category

Compensation
Amount(Millions of yen)

Total Compensation by Type(Millions of yen)

Basic
Stock
Compensation Options(Specified employees and managing partners)

No. ofOfficers
Eligible

Contribution Retirement
Benefits		

CPA Kanemaru Yasui

Director

347

255

—

—

91

10

		

CPA Chika Matsumoto		

CPA Hideki Saito

Auditor (excl. outside auditors)

52

37

—

—

15

3

Outside auditor

10

10

—

—

—

2

(Assistants)		

Five CPAs and 18 others(3) Outside Directors and Auditors
Noritake has two outside auditors.
No personal, capital or business relationships or other conflicts ofinterest exist between Noritake and its outside auditors Kazuya
Okamoto and Yasuji Moriyama, who were in office for the fiscal year
under review.

(ii) Policy details and decision-making process with regard to
executive compensation and its methods of calculation
At the 109th Annual General Meeting of Shareholders, which was heldon June 28, 1990, the decision was taken to limit Noritake’s total executive compensation to ¥40 million or less per month for directors and¥6 million or less per month for auditors.

Furthermore, they reflect their wealth of experience and broad insightas business managers in Noritake audits.
 Together with the two full-time corporate auditors, the outside auditors are mandated to audit the Board of Auditors in the execution of its
duties and the operations and assets of Noritake and its subsidiaries. In
addition, the outside auditors conduct audits based on reports(5) Details of Compensation Paid to Independent
Auditor, etc.
(i) Details of independent auditor compensation, etc.
Category

Previous Consolidated
Accounting Year

Consolidated Accounting
Year under Review

Compensation
Based on Audit
Certification
Services (Yen)

Compensation
Based on Audit
Certification
Services (Yen)received from the independent accounting auditors regarding theCompany’s consolidated financial statements and financial statements.
In addition, working closely with the Audit Office, the outside auditors
contribute to efficient internal audits.

Compensation
Based on NonAuditing Services(Yen)

Compensation
Based on NonAuditing Services(Yen) The Company concludes limitation of liability contracts with eachParent company

57,000,000—

57,000,000—

outside auditor in accordance with the provisions of Article 423-1 of theConsolidated
subsidiary

21,000,000—

21,000,000

—

Total

78,000,000—

78,000,000—

Corporation Law. As such, the maximum amount of liability stipulatedby the aforementioned contracts is the minimum amount determinedby law.
 The outside auditors, Kazuya Okamoto and Yasuji Moriyama,
stepped down from their posts at the 129th Annual General Meeting of
Shareholders, which was held on June 29, 2010. On the same day,
Yasumasa Gomi and Mitsuo Kinoshita were newly appointed as outside auditors.
With regard to management and decision-making functions as wellas its Board of Directors, which fulfills the management oversight function in terms of the business execution of its directors, Noritake
strengthens management oversight by having two of four auditors fromoutside the Company. In corporate governance, Noritake places theutmost importance on external, objective and neutral management
oversight functions. On the grounds that audits are implemented by
two outside auditors, Noritake has not elected any outside directors as
the external management oversight function is adequately performedby the system that is in place.

(ii) Other significant details regarding compensation
Noritake Co., Inc., a Noritake subsidiary, paid compensation based on
audit certification services of ¥21 million to KPMG LLP, which belongs
to the same corporate network as the Company’s independent auditor,
in the consolidated accounting year under review. In the previous consolidated accounting year, the amount for such services had totaled¥24 million.
(iii) Details of non-auditing services provided to the Company by
the independent auditor
No applicable items(iv) Policy for determining compensation to independent auditors
The Company calculates compensation to be paid to its CPAs, etc. taking into account such factors as the number of days of the audit and thespecial characteristics of Noritake’s size and operational characteristics.

N o r i ta k e C o . , L i m i t e dAnnual Report 201013

C o n s o l i d at e d F i n a n c i a l R e v i e w

Net Sales &Overseas Sales Ratio

SCOPE OF CONSOLIDATION
Composed of 34 subsidiaries and 8 affiliates,
the Noritake Group is engaged in the manufacture and sale of products in five businesssegments—Industrial Products, Ceramics &Materials, Engineering, Tabletop and Electronics—
as well as the provision of services related tothese segments.

Net sales (Millions of yen)Overseas sales ratio (%)
133,368
112,984
87,596

29.0

29.8

31.2

08

09

10

Operating (Loss) Income &Operating (Loss) Income Ratio
Operating (loss) income (Millions of yen)
Operating (loss) income ratio (%)
10,488

7.9

808
0.7
(1,665)
(1.9)

08

09

10

Net (Loss) Income &Net (Loss) Income Ratio
Net (loss) income (Millions of yen)
Net (loss) income ratio (%)
5,669

4.3

(5.1)
(6.1)

(4,501)(6,861)08

09

Industrial Products Segment
In the Industrial Products Segment, grinding
wheel manufacturing is performed by Noritake
Bonded Abrasive Co., Ltd., four other subsidiaries, and one affiliate, while diamond tool
manufacturing is the province of Noritake Super
Abrasive Co., Ltd. and another subsidiary. They
then supply these products to the Company.
Abrasive cloth and papers are produced by thesubsidiary Noritake Coated Abrasive Co., Ltd.
and one affiliate, and a portion of their output
comes to the Company.
	The Industrial Products Segment’s domestic
and overseas sales are primarily handled by the
integrated manufacturing and sales subsidiaries
Noritake Bonded Abrasive Co., Ltd. and
Noritake Super Abrasive Co., Ltd., with theCompany as the distributor. In addition, Zen
Noritake Co., Ltd. conducts sales in the domestic market, and Noritake Co., Inc. of the UnitedStates and four other subsidiaries carry out
sales in overseas markets. Noritake CoatedAbrasive Co., Ltd. conducts direct sales of mostof these products both in Japan and overseas.
Ceramics & Materials Segment
Manufacturing in the Ceramics & Materials
Group is conducted by Noritake Kizai Co., Ltd.,
which, together with three other subsidiaries
and two affiliates, produces electronics pastes
and ceramic materials and supplies them to
the Company. In addition, the subsidiary KCM
Corporation and its subsidiaries produce­ceramic materials, a portion of which is sup­plied to the Company.
	Domestic sales are handled by the subsidiary
Noritake Dental Supply Co., Limited, together
with the integrated manufacturing and sales
subsidiary Noritake Kizai Co., Ltd. and one othersubsidiary, with the Company as the distributor.
Noritake Co., Inc. of the United States and

10

14 N oritake Co., Limited

Annual Report 2010

another subsidiary conduct sales for the
Ceramics & Materials Group in overseas markets. Noritake Kizai Co., Ltd. and another subsidiary also conduct overseas sales, with theCompany as the distributor. KCM Corporation
conducts direct sales of most of these products
both in Japan and overseas.
Engineering Segment
In the Engineering Segment, Noritake Engineering
Co., Ltd. and two other subsidiaries manufacture
filtration equipment and supply it to the Company.
	The integrated manufacturing and sales subsidiary, Noritake Engineering Co., Ltd., conducts
domestic and overseas sales, with the Company
as the distributor. Noritake Co., Inc. of theUnited States conducts sales for the Engineering
Segment in overseas markets.
Service operations for the above are handled
by Noritake Garden Co., Ltd and another subsidiary. Two affiliates are also active in this area.
Tabletop Segment
In the Tabletop Segment, porcelain tableware ismanufactured by Noritake China Mfg. Co., Ltd.,
two other subsidiaries and two affiliates who
supply these products to the Company.
Noritake Tableware Co., Ltd. and anothersubsidiary conduct sales for the Tabletop
Segment in the domestic market. Noritake Co.,
Inc. of the United States and three other subsidiaries conduct sales in overseas markets, as
does integrated manufacturing and sales subsidiary Noritake China Mfg. Co., Ltd., with theCompany as the distributor.
Electronics Segment
In the Electronics Segment, Noritake Itron
Corporation manufactures vacuum fluorescentdisplay tubes and other products, which it supplies to the Company and its sales subsidiaries.
Sales in Japan and overseas markets arehandled by the integrated manufacturing andsales subsidiary, Noritake Itron Corporation, with
the Company as the distributor. Noritake Co.,
Inc. of the United States and five other subsidiaries undertake sales for the Electronics
Segment in overseas markets.

Performance Analysis
Consolidated net sales fell 22.5% year on yearto ¥87,596 million, mainly due to ongoing harsheconomic conditions that led to dramatic cutbacks in production in customer industries andworsened segment performance across the board.
	The cost of goods sold declined 21.9% year
on year to ¥65,658 million in line with the reduction in net sales. Selling, general and administrative expenses fell 16.0% year on year to¥23,603 million. As a result, operating income
plummeted from ¥808 million in the previous
fiscal year to an operating loss of ¥1,665 million.
	Other income (expenses) amounted to
expenses of ¥1,689 million, a ¥2,178 million
improvement from the previous fiscal year.
Major contributing factors included the absenceof a loss relating to foreign currency translation
adjustments recorded in the previous year anda significant fall in severance pay to employees
under an early retirement plan.
	As a result of the aforementioned, loss before
income taxes and minority interests amounted
to ¥3,354 million. After accounting for income
taxes and minority interests, net loss totaled¥4,501 million, a 34.4% improvement that, inturn, raised return on equity from negative 9.8%
in the previous fiscal year to negative 7.4%. Net
loss per share amounted to ¥31.32.
Financial Position Analysis
Total assets stood at ¥109,595 million, down
3.1%, or ¥3,482 million, from the previous fiscal
year-end. Current assets totaled ¥56,352 million, down ¥3,127 million, while non-current
assets amounted to ¥53,243 million, down ¥355
million. A major factor contributing to thedecrease in current assets was a fall in inventories. The decrease in non-current assets wascaused primarily by a decline in property, plantand equipment following the sale, disposal andamortization of assets.
	Total liabilities as of the end of the con­solidated fiscal year under review stood at¥42,884 million, down 2.3% year on year, or¥1,001 million. The major factor contributing to
the decline was a drop in the employee retirement benefit liability.

Net assets as of the end of the consolidated
fiscal year under review amounted to ¥66,711
million, down 3.6% year on year, or ¥2,481 million. A major factor for the decrease was a
decline in retained earnings.
	As a result, shareholders’ equity per sharetotaled ¥413.33, down ¥19.16 compared withthe previous consolidated fiscal year-end. The
shareholders’ equity ratio declined to 54.2%
from the 55.0% of the previous fiscal year-end.
Cash Flow Analysis
Cash and cash equivalents on a consolidated
basis at the end of the fiscal year under review
showed a net increase of ¥265 million to¥11,834 million. Contributing factors included
a decrease in inventories and an increase intrade payables.
Free cash flows as of the end of the consolidated fiscal year under review totaled ¥932 million.
Net cash provided by operating activities
decreased ¥353 million year on year to ¥5,335
million. Contributing factors included a turnaround from a ¥7,779 million decrease in trade
payables during the previous fiscal year to anincrease of ¥844 million, as well as reversal fromincome taxes paid of ¥4,556 million in the previous fiscal year to a reimbursement of ¥312 million. On the other hand, the Company recordeda ¥2,114 million increase in trade receivables
compared to a decrease of ¥12,871 in the previous fiscal year as well as a higher decrease inemployee retirement benefit liability, which grew
¥1,073 million.
Net cash used in investing activities
decreased ¥973 million year on year to¥4,403 million. The decrease was due mainly tothe net increase in property, plant and equipment totaling ¥3,140 as well as a ¥1,038 million
increase in short-term investments.
Net cash used in financing activities amounted to ¥825 million compared with ¥9 million provided by financing activities in the previous fiscal
year. Contributing factors included the recordingof a ¥9 million net decrease in short-term loanscompared with a net increase of ¥1,978 million
in the previous year and a ¥900 million retreat in
the increase in long-term debt that helped to offset a ¥1,329 million decrease in purchase oftreasury stock and fractional shares.

Net (Loss) Income
per Share
(Yen)

38.36

(31.32)(46.82)

08

09

10

Total Assets(Millions of yen)

141,644

113,077

109,595

09

10

08

Total Shareholders’Equity(Millions of yen)

78,08362,16308

N o r i ta k e C o . , L i m i t e d

09

59,398

10

Annual Report 201015

Total Shareholders’Equity Ratio
(%)

55.1

08

55.0

09

54.2

10

Return on Equity
(%)

7.2

(7.4)

(9.8)
08

09

10

FINANCIAL POLICIESThe Noritake Group, in principle, funds general
operations and capital expenditures throughinternal reserves and borrowings. In particular,
working capital for general operations is provided
by short-term borrowings with a maturity of one
year or less. In Japan, Noritake has adopted
a cash management system under which theCompany centrally procures funds and thenallocates the procured funds to consolidated
subsidiaries in need of operating funds. Overseas,
individual consolidated subsidiaries adhere toa basic policy of procuring operating funds
themselves in their respective local currencies.
	As of March 31, 2010, the balance of shortterm borrowings totaled ¥11,084 million, mostof which is denominated in yen, with the remainder in five other currencies. Noritake, in principle,
uses its internal reserves for capital expendituresand other long-term investments with a portion
covered by long-term debt. As of March 31,
2010, the balance of long-term debt amounted
to ¥7,169 million.

Disaster Risk
The Noritake Group has a number of businessbases in Japan and overseas. In the event thatthese business bases, particularly manufacturingbases, are damaged by earthquake, fire or otherdisaster, their operations may have to be suspended for a certain period of time, and thiswould adversely affect Noritake’s business performance and financial position.

BUSINESS AND OTHER RISKS
Raw Material and Fuel Price Risk
The Noritake Group conducts operations
centered on ceramic engineering. Like otherindustries, the ceramics industry is subject tomanufacturing cost increases attributable to therise in raw material and fuel prices. While continually working to improve productivity and reduce
costs, Noritake is strategically implementing
upward revisions of its product prices to compensate for such cost increases. However, in theevent that the Company cannot carry out effective measures to deal with sudden cost increases, its business performance and financial
position may be adversely affected.

Technology-Related Risk
The Noritake Group is increasingly concentrating
its management resources in such growth fields
as the electronics, semiconductor and energy
industries. These industries are characterized by
the rapid pace of their technological innovationand dynamic demand fluctuations, which cause
participants to experience technology and product obsolescence at shorter intervals than otherindustries. Accordingly, in the event that Noritake
fails to launch new products in a timely manner,
its business performance and financial position
may be negatively affected.
	Risks and factors that could have adverse
effects on the Noritake Group’s business performance and financial position are not limited
to those described above. The analysis of risks
is based on information available to theCompany’s management as of March 31, 2010.

Exchange Rate Fluctuation Risk
The export ratios of the Tabletop Segment andthe Electronics Segment are high in comparison to Noritake’s other business segments.
Accordingly, unfavorable trends in currency
exchange rates—more specifically, the yen’s
rapid appreciation—may negatively impact theperformance of these business segments, and,
consequently, the entire Company’s performance and financial position.

16 N oritake Co., Limited

Annual Report 2010

Overseas Affairs Risk
The Noritake Group is actively promoting overseas operations. Deteriorations in public safety
and security, coupled with changes in politicalconditions, in one of the countries where
Noritake operates may restrict the Company’s
operations. In particular, in the case of war, civil
disturbance, terrorist attack and the like, theCompany’s operations may have to be suspended for a certain period of time. Should thisbe the case, the Noritake Group’s business performance and financial position may be negatively impacted.

C o n s o l i d at e d B a l a n c e S h e e t s
NORITAKE CO., LIMITED and Consolidated Subsidiaries
March 31, 2010 and 2009

Assets:Current assets:
Cash and cash equivalents (Note 3)
Short-term investments (Notes 3 and 6)
Notes and accounts receivable, net of allowance for doubtful accounts (Notes 3 and 4)
	Inventories (Note 5)
	Deferred tax assets (Note 14)
	Other current assets
			Total current assets
Investments and other assets:
	Investment securities (Notes 3 and 6)
	Investments in unconsolidated subsidiaries and affiliates (Note 3)
	Deferred tax assets (Note 14)
	Other
			Total investments and other assets
Property, plant and equipment:
Land
Buildings and structures
	Machinery and equipment
Construction in progress			Total property, plant and equipment
Less accumulated depreciation
			 Net property, plant and equipment
			Total assets
Liabilities:
Current liabilities:
Short-term borrowings (Notes 3 and 8)
Current portion of long-term debt (Notes 3 and 8)
Notes and accounts payable (Notes 3 and 7)
	Accrued expenses (Note 3)
	Income taxes payable (Note 3)
	Deferred tax liabilities (Note 14)
	Other current liabilities
			Total current liabilities
Long-term liabilities:
Long-term debt (Notes 3 and 8)
	Employee retirement benefit liability (Note 9)
	Accrued severance indemnities for directors and corporate auditors
	Deferred tax liabilities (Note 14)
	Other noncurrent liabilities
			Total long-term liabilities
			Total liabilities
Net assets (Note 13):
Shareholders’ equity:
		 Common stock: 397,500,000 shares authorized		  and 158,428,497 shares issued
		 Capital surplus
		Retained earnings
		 Less treasury stock, at cost: 14,723,582 shares		  in 2010 and 14,696,939 shares in 2009
			Total shareholders’ equity
	Accumulated losses from valuation and translation adjustments
	Minority interests
			Total net assets
			Total liabilities and net assets

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

¥ 11,834
1,917
27,561
12,451433
2,156
56,352¥ 11,569
884
25,713
15,893511
4,909
59,479$ 127,247
20,612
296,355
133,882
4,656
23,183605,935

17,331
1,526
491
2,828
22,17613,999
561
1,272
4,058
19,890186,355
16,4095,280
30,408238,452

11,891
32,83739,720674
85,122(54,055)
31,067¥109,595

12,19933,45139,064
1,318
86,032(52,324)
33,708¥113,077

127,860
353,086
427,097
7,247
915,290(581,236)
334,054$1,178,441¥ 11,084
1,445
13,561
2,360
447
—
1,249
30,146¥ 11,104
1,134
13,279
2,455
323
33
1,258
29,586$ 119,183
15,538145,817
25,376
4,806—
13,430324,150

7,169
1,772
694
3,075
28
12,73842,884

7,448
3,491
827
2,324
209
14,29943,88577,086
19,054
7,462
33,065
301
136,968
461,118

15,632
18,83332,10915,632
18,83337,329168,086
202,505345,258(6,504)60,070(672)
7,313
66,711¥109,595(6,497)65,297(3,134)
7,029
69,192¥113,077(69,935)
645,914(7,225)78,634
717,323$1,178,441

See accompanying Notes to Consolidated Financial Statements.
N o r i ta k e C o . , L i m i t e dAnnual Report 201017

C o n s o l i d at e d S tat e m e n t s o f O p e r at i o n s
NORITAKE CO., LIMITED and Consolidated Subsidiaries
For the Years Ended March 31, 2010 and 2009

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

¥87,596¥112,984$941,892

Operating revenue:
Net sales (Note 15)
Operating costs and expenses (Note 15):
Cost of goods sold

65,65884,076706,000

Selling, general and administrative expenses

23,603

28,100253,796

89,261

112,176

959,796(1,665)808(17,904)

	Interest and dividend income

312

488

3,355

	Interest expense

(192)

(200)

(2,064)

—

216

—

(210)

(955)

(2,258)

(782)

(131)

(8,409)(96)(1,458)(1,032)—(1,436)

—

(373)

—

(4,011)

(348)

(391)

(3,742)(1,689)(3,867)(18,161)(3,354)(3,059)(36,065)

Current

733

1,390

7,882

	Deferred

184

2,198

1,978

			Total income taxes

917

3,588

9,860

Less minority interests in net income of consolidated subsidiaries

230

214

2,473

¥ (4,501)¥ (6,861)$ (48,398)

Yen

U.S. dollars(Note 1)

			Operating (loss) income
Other income (expenses):Gain on sales of marketable securities
	Impairment loss on fixed assets
Loss on sales and disposals of property and equipment
	Extraordinary severance pay to employees under early retirement plan
Loss relating to foreign currency translation adjustments
Loss from misappropriation
	Other, net
			Loss before income taxes and minority interests

Income taxes:

Net loss

Per share:
Net loss
Cash dividends
See accompanying Notes to Consolidated Financial Statements.

18 N oritake Co., Limited

Annual Report 2010

¥ (31.32)¥ (46.82)

5.00

7.00

$

(0.34)
0.05

C o n s o l i d at e d S tat e m e n t s o f C h a n g e s i n N e t A s s e t s
NORITAKE CO., LIMITED and Consolidated Subsidiaries
For the Years Ended March 31, 2010 and 2009

Shareholders’ equity

Balance at March 31, 2008
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2009
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2010

Total
shareholders’equityNumber ofshares ofcommon stock
issuedCommonstock

CapitalsurplusRetainedearnings

Treasurystock

158,428,497——¥15,632——¥18,835——¥45,521(6,861)(1,330)¥(5,170)——¥74,818(6,861)(1,330)

—

—

(2)

(1)

(1,327)(1,330)—158,428,497———
15,632———
18,833———37,329(4,501)(719)—(6,497)———65,297(4,501)
(719)

—

—

—

—

(7)

(7)

—
158,428,497—¥15,632—¥18,833—¥32,109—¥(6,504)—¥60,070$168,086——$202,505——$401,387(48,398)(7,731)$(69,860)——$702,118(48,398)(7,731)

—

—

—

(75)

(75)

—
$168,086—$202,505—$345,258—$(69,935)—$645,914

Total
net assets

Millions of yen

Thousands of U.S. dollars (Note 1)

Balance at March 31, 2009
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2010

Accumulated (losses) gains from valuationand translation adjustments
Net unrealized
gains onavailable-for-salesecurities

Foreigncurrencytranslation
adjustments

Total accumulated(losses) gains
from valuationand translation
adjustments

Minority
interests

Balance at March 31, 2008
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2009
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2010

¥6,916——¥(3,651)——¥ 3,265——¥7,825——¥85,908(6,861)(1,330)

—

—

—

—

(1,330)(5,024)
1,892——(1,375)(5,026)——(6,399)(3,134)
—
—

(796)
7,029
—
—

(7,195)69,192(4,501)
(719)

—

—

—

—

(7)

1,927
¥3,819535¥(4,491)

2,462¥(672)

284¥7,313

2,746¥66,711

Balance at March 31, 2009
Net loss for the year
Cash dividends
Purchases of treasury stock	  and fractional shares, net
Net changes in items other than
	  shareholders’ equity
Balance at March 31, 2010

$20,344——$(54,043)——$(33,699)——$75,581——$744,000(48,398)(7,731)

—

—

—

—

(75)

20,721$41,065

5,753$(48,290)

26,474$(7,225)

3,053$78,634

29,527$717,303

Millions of yen

Thousands of U.S. dollars (Note 1)

See accompanying Notes to Consolidated Financial Statements.
N o r i ta k e C o . , L i m i t e dAnnual Report 201019

C o n s o l i d at e d S tat e m e n t s o f C a s h F l o w s
NORITAKE CO., LIMITED and Consolidated Subsidiaries
For the Years Ended March 31, 2010 and 2009

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

¥ (3,354)¥ (3,059)$ (36,065)

3,861

4,215

41,516

		Impairment loss on fixed assets

210

955

2,258

		

Loss from misappropriation

373

—

4,011

		

Loss relating to foreign currency translation adjustments

—

1,436

—

		

Gain on sales of marketable securities

—

(216)

—

		

Loss on sales and disposals of property and equipment

782

131

8,409

Cash flows from operating activities:
Loss before income taxes and minority interests
	Adjustments for:		Depreciation

		Decrease in employee retirement benefit liability(1,727)(654)(18,570)		

(2,114)

12,871(22,731)

3,537

3,351

38,032844(7,779)9,075

		Other, net

2,487(1,300)26,742

			

4,899

9,951

52,677(Increase) decrease in trade receivables

		Decrease in inventories
		Increase (decrease) in trade payables
Subtotal

		Interest and dividends received

321

490

3,452

		Interest paid

(197)

(197)

(2,118)

		Income taxes refunded (paid)

312(4,556)

3,355

5,335

5,688

57,366(3,140)(5,438)(33,763)

(923)

(837)

(9,925)

—

(503)

—

	Decrease in property and long-term investments

769

1,370

8,269

(Increase) decrease in short-term investments(1,038)116(11,161)

			Net cash provided by operating activities

Cash flows from investing activities:
	Increase in property, plant and equipment
	Increase in long-term investments and loans receivable
Purchase of additional shares of consolidated subsidiaries

	Other, net

(71)

(84)

(764)

(4,403)(5,376)(47,344)

	Increase in long-term debt

1,100

2,000

11,828

	Repayment of long-term debt

(1,100)(1,200)(11,828)

(23)

1,978

(247)

(719)

(1,330)(7,731)(9)(1,338)(97)

	Other, net

(74)

(101)

(796)

			

(825)

9

(8,871)

			Effect of exchange rate changes on cash and cash equivalents

158

(920)

1,698

			

Net increase (decrease) in cash and cash equivalents

265

(599)

2,849

			

Cash and cash equivalents at beginning of year			Cash and cash equivalents at end of year			Net cash used in investing activities

Cash flows from financing activities:

Net (decrease) increase in short-term borrowings
	Dividends paid
Purchase of treasury stock and fractional shares
Net cash (used in) provided by financing activities

See accompanying Notes to Consolidated Financial Statements.

20 N oritake Co., Limited

Annual Report 2010

11,56912,168124,398¥11,834¥11,569$127,247

N o t e s t o C o n s o l i d at e d F i n a n c i a l S tat e m e n t s
NORITAKE CO., LIMITED and Consolidated Subsidiaries

1. Basis of Consolidated Financial Statements
The accompanying consolidated financial statements of NORITAKE CO., LIMITED (the “Company”) and its consolidated subsidiaries(together with the Company, the “Noritake Group”) have been prepared in accordance with the provisions set forth in the Financial
Instrument and Exchange Law of Japan and its related accounting regulations and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements fromInternational Financial Reporting Standards.
The accompanying consolidated financial statements have been reformatted and translated into English, with some expanded descriptions,from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate
Local Finance Bureau of the Ministry of Finance as required by the Financial Instrument and Exchange Law of Japan. Certain supplementary
information included in the statutory Japanese language consolidated financial statements is not presented in the accompanying consolidated financial statements.
The translation of the Japanese yen amounts into U.S. dollar amounts has been included solely for the convenience of readers outside
Japan, using the prevailing approximate exchange rate at March 31, 2010, which was ¥93 to U.S. $1. The translation should not be construed as a representation that the Japanese yen amounts have been, could have been or could in the future be converted into U.S. dollars
at this or any other rate of exchange.
Certain comparative figures have been reclassified to conform to the current year’s presentations.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and its significant subsidiaries. Investments insignificant unconsolidated subsidiaries and affiliates are accounted for by the equity method. Investments in unconsolidated subsidiaries andaffiliates not accounted for by the equity method are stated at cost. The differences between the acquisition cost of investments in subsidiaries and the underlying equity in the net assets adjusted based on the fair value at the time of acquisition are principally deferred as goodwill
or negative goodwill and amortized over five years on a straight-line basis. All intercompany accounts and transactions have been eliminated on consolidation.
The numbers of consolidated subsidiaries, unconsolidated subsidiaries and affiliates for the years ended March 31, 2010 and 2009 were as
follows:
2010

2009

Consolidated subsidiaries:
	Domestic

15

22

	Overseas

13

14

Affiliates accounted for by the equity method32

Unconsolidated subsidiaries stated at cost

6

6

Affiliates stated at cost55

During the year ended March 31, 2010, four domestic wholly owned consolidated subsidiaries were merged into the Company in order toconcentrate management resources and make the structure of the Noritake Group more efficient. This transaction was accounted for using
accounting treatment for business combinations under the common control in accordance with “Accounting Standard for Business
Combinations,” issued by the Business Accounting Council of Japan (“BAC”) on October 31, 2003, and “Implementation Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures,” Accounting Standards Board ofJapan (“ASBJ”) Guidance No. 1, revised on November 15, 2007. In addition, three domestic consolidated subsidiaries were merged into
other domestic consolidated subsidiaries and one overseas consolidated subsidiary was liquidated during the year ended March 31, 2010.
The Company’s overseas consolidated subsidiaries close their books on December 31, three months earlier than the Company and thedomestic consolidated subsidiaries. The Company has consolidated these subsidiaries’ financial statements as of their December 31 yearend because the difference between their fiscal year-end and that of the Company and the domestic consolidated subsidiaries was not
more than three months. Significant transactions during the period between these subsidiaries’ year-end and the Company’s year-end are
adjusted for on consolidation.

N o r i ta k e C o . , L i m i t e dAnnual Report 201021

(Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements)
Until the year ended March 31, 2008, the overseas consolidated subsidiaries applied accounting principles generally accepted in theirrespective countries, and no adjustments to conform to accounting principles generally accepted in Japan were made to their financial
statements on consolidation, as allowed under previous accounting principles and practices generally accepted in Japan. On March 17,
2006, ASBJ issued Practical Issues Task Force No. 18 (“PITF No. 18”) “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements.” PITF No. 18 requires that the accounting policies and procedures applied bya parent company and its subsidiaries to similar transactions and events under similar circumstances should, in principle, be unified for the
preparation of the consolidated financial statements. PITF No. 18, however, as a tentative measure, allows a parent company to prepare consolidated financial statements using its foreign subsidiaries’ financial statements prepared in accordance with either International Financial
Reporting Standards or U.S. generally accepted accounting principles. In this case, adjustments for the following six items are required in the
consolidation process so that the impact on net income is accounted for in accordance with Japanese GAAP unless the impact is not material.
(a) Goodwill not subject to amortization(b) Actuarial gains and losses of defined-benefit retirement plans recognized outside profit or loss(c) Capitalized expenditures for research and development activities(d) Fair value measurement of investment properties, and revaluation of property, plant and equipment and intangible assets(e) Retrospective treatment of a change in accounting policies(f) Accounting for net income attributable to minority interests
The Noritake Group has adopted PITF No. 18 effective from the year ended March 31, 2009. The adoption of PITF No. 18, however, had nomaterial effect on the consolidated financial statements for the year ended March 31, 2009.
(b) Cash equivalents
The Noritake Group considers cash equivalents to be highly liquid debt instruments purchased with an original maturity of three months or
less.
(c) Investments and marketable securities
The Noritake Group classifies certain investments in debt and equity securities as “held-to-maturity,” “trading” or “available-for-sale.” Theclassification determines the respective accounting method as stipulated by the accounting standard for financial instruments. According to
the investment policy of the Noritake Group, its securities portfolio consists of available-for-sale securities other than trading or held-tomaturity. The accounting standard requires that available-for-sale securities for which fair value is available be stated at fair value and thatnet unrealized gains and losses on such securities be recorded as a component of net assets, net of applicable income taxes. Gains andlosses on the disposition of available-for-sale securities are computed by the moving average method. Available-for-sale securities without
available fair value are carried at cost determined by the moving average method. Adjustments in the carrying values of individual investment
securities are charged to income through write-downs when a decline in value is deemed other than temporary.
(d) Accounting for derivatives
The Noritake Group is a party to derivative instruments such as foreign currency forward exchange contracts and interest rate swap contracts in the ordinary course of business for hedging purposes to reduce its exposure to fluctuations in exchange rates and interest rates.
Foreign currency forward exchange contracts are accounted for by translating foreign currency denominated assets and liabilities at thecontract rate as an interim measure if certain hedging criteria are met. According to the special treatment permitted by the accounting standard for financial instruments, hedging interest rate swap contracts are accounted for on an accrual basis and recorded net of interest
expense generated from borrowings on the hedged items if certain conditions are met. In addition, during the years ended March 31, 2010
and 2009, the Company had a derivative contract outstanding to hedge the risks associated with the occurrence of an earthquake. As thefair value of such a contract was not considered determinable, that derivative contract was not accounted for at fair value.
(e) Inventories
Effective April 1, 2008, the Company and its domestic consolidated subsidiaries have adopted ASBJ Statement No. 9, “AccountingStandard for Measurement of Inventories,” issued on July 5, 2006. As permitted under the previous accounting standard and practices, until
March 31, 2008, the Noritake Group stated inventories at cost determined principally by the first-in, first-out method, unless the market
value of inventories declined significantly and was deemed not recoverable. In such cases, costs were reduced to recoverable amounts.
The new accounting standard requires that inventories held for sale in the ordinary course of business be measured at the lower of cost or
net realizable value. If the net realizable value falls below cost at the end of the period, the cost basis is reduced to net realizable value andis regarded as decreased profitability of inventories. As a result of the adoption of this new accounting standard, operating income
decreased by ¥140 million and loss before income taxes and minority interests increased by ¥140 million for the year ended March 31,
2009 from the amounts that would have been recorded with the previous accounting method.
(f) Allowance for doubtful accounts
The allowance for doubtful accounts has been provided for in the aggregate amount of estimated credit loss based on an individual financial
review approach for certain doubtful or troubled receivables and a general reserve for other receivables based on the historical loss experience for a certain past period.
(g) Property, plant and equipment and depreciation
Property, plant and equipment, including significant renewals and additions, are stated at cost and depreciated principally by the straight-line
method for overseas consolidated subsidiaries and by the declining-balance method for the Company and its domestic consolidated

22 N oritake Co., Limited

Annual Report 2010s­ ubsidiaries at rates based on the estimated useful life of the assets. Buildings of the Company and its domestic consolidated subsidiaries
acquired on and after April 1, 1998, however, are depreciated by the straight-line method.
Effective from the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries also have reassessed and changed
the estimated useful lives of equipment in accordance with the amended Corporation Tax Law of Japan. As a result, for the year ended
March 31, 2009, operating income decreased by ¥104 million and loss before income taxes and minority interests increased by ¥104 million
from the amounts that would have been recorded with the previous accounting method.
Repairs and maintenance expenses are charged to current operations as incurred.
(h) Leases
Effective from the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries adopted “Accounting Standard forLease Transactions” (ASBJ Statement No. 13) and “Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16),
originally issued by BAC on June 17, 1993 and by the Japanese Institute of Certified Public Accountants on January 18, 1994, respectively,
and both revised by ASBJ on March 30, 2007. The revised accounting standards require that all finance lease transactions be accounted
for in a manner similar to that used for ordinary sale or purchase transactions. Prior to April 1, 2008, finance leases which did not transfer
ownership of the leased assets to the lessee were accounted for by an accounting treatment similar to that used for operating leases, as
permitted by the previous accounting standard. From the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries capitalize the assets used under finance leases commenced on or after April 1, 2008 as lessee at an amount equivalent to total lease
payments, except for the certain immaterial or short-term finance leases which are accounted for as operating leases in accordance withthe revised standard. Depreciation of the leased assets is calculated using the straight-line method over the lease term with the assumption of no residual value. As permitted by the revised standard, finance leases as lessee which commenced prior to April 1, 2008 and havebeen accounted for with the accounting treatment similar to that used for operating leases, continue to be accounted for with an accounting treatment similar to that used for operating leases with disclosure of certain “as if capitalized” information. (See also Note 10.) The adoption of the revised standard had no material effect for the year ended March 31, 2009.
(i) Impairment of fixed assets
The Company and its domestic consolidated subsidiaries have adopted “Accounting Standard for Impairment of Fixed Assets” issued by
BAC and the related practical guidance issued by ASBJ. The standard requires that fixed assets be reviewed for impairment whenever eventsor changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss should be recognized in
the income statement by reducing the carrying amount of the impaired asset or a group of assets to the recoverable amount, measured as
the higher of the asset’s net selling price or value in use. Fixed assets include intangible assets, as well as land, plants, buildings and otherforms of property, and are to be grouped at the lowest level for which there are identifiable cash flows separate from those of other groupsof assets. For the purpose of recognition and measurement of an impairment loss, fixed assets of the Company and its domestic consolidated subsidiaries are grouped principally into cash-generating units based on the business division under managerial accounting classification.
The Noritake Group determines if assets are impaired by comparing their undiscounted expected cash flows to the carrying amounts in theaccounting records. An impairment loss is recognized if the undiscounted expected cash flows are less than the carrying amount of theasset. Recoverable amounts are measured based on net selling prices primarily from appraisal valuations.
The Noritake Group recognized impairment loss for the years ended March 31, 2010 and 2009 as follows:
Millions of yen

Buildings
Machinery and equipment
Other

Thousands of
U.S. dollars

2010

2009

2010

¥129
70
11

¥240
434
281

$1,387
753
118

¥210

¥955

$2,258(j) Employee retirement benefits
Employees who terminate their service with the Noritake Group are entitled to retirement benefits generally determined by reference to basic
rates of pay at the time of retirement, length of service and the conditions under which the termination occurred.
The Noritake Group principally recognizes retirement benefits, including pension cost and related liability, based on the actuarial present
value of the projected benefit obligation using the actuarial appraisal approach and the fair value of pension plan assets available for benefits
at the fiscal year-end. Unrecognized actuarial differences from changes in the projected benefit obligation or value of pension plan assets
resulting from actual amounts being different from the projected amount and from changes in assumptions upon which the projectedamounts were based are amortized principally on a straight-line basis over ten years, a period within the average remaining service years of
employees, from the year following the year in which they arise. Past service cost is recognized in a single year as incurred.
(k) Accrued severance indemnities for directors and corporate auditors
The Noritake Group may pay severance indemnities to directors and corporate auditors, subject to the approval of the shareholders. The
Noritake Group has provided for this liability at the amount which would have been payable assuming all directors and corporate auditors
had terminated their service at the respective balance sheet dates.

N o r i ta k e C o . , L i m i t e dAnnual Report 201023

(l) Translation of foreign currency accounts
Receivables, payables and securities, other than stocks of subsidiaries and certain other securities, are translated into Japanese yen at theexchange rate effective at the fiscal year-end. Transactions in foreign currencies are recorded based on the prevailing exchange rate on thetransaction date. Resulting translation gains or losses are included in current earnings.
In respect to financial statement items of overseas consolidated subsidiaries, all asset and liability accounts are translated into yen by applying the exchange rate in effect at the fiscal year-end. All income and expense accounts are translated at the average rate of exchange forthe fiscal year. Translation differences, after allocating portions attributable to minority interests, are reported as foreign currency translation
adjustments in a component of net assets in the accompanying consolidated balance sheets.
(m) Research and development expenses
Expenses related to research and development activities are charged to income as incurred. Such research and development expenses were
included in cost of goods sold and selling, general and administrative expenses in the accompanying consolidated statements of operations
and amounted to ¥2,887 million ($31,043 thousand) and ¥2,828 million for the years ended March 31, 2010 and 2009, respectively.
(n) Enterprise taxes
When levied as size-based corporate taxes for local government enterprise taxes, the enterprise taxes are calculated based on the “added
value” and “capital” amounts and are recorded in selling, general and administrative expenses.
(o) Income taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases andoperating loss carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable
income in the years in which the temporary differences are expected to be recovered or settled. The effect of a change in tax rates ondeferred tax assets and liabilities is recognized in the period that includes the enactment date.
(p) Directors’ bonuses
The Noritake Group has adopted ASBJ Statement No. 4, “Accounting Standard for Directors’ Bonuses.” Under the standard, the directors’
bonuses, including those for corporate auditors, are accounted for as an expense of the accounting period in which the bonuses accrued.
(q) Appropriation of retained earnings
Cash dividends are recorded in the fiscal year when a proposed appropriation of retained earnings is approved by the Board of Directors.
(r) Per share data
Net loss per share is computed by dividing loss available to common shareholders by the weighted average number of shares of common
stock outstanding during the respective year. Cash dividends per share shown for each fiscal year in the accompanying consolidated statements of operations represent dividends declared as applicable to the respective year.
3. Financial Instruments
Effective from the year ended March 31, 2010, the Company has adopted ASBJ statement No. 10, “Accounting Standard for Financial
Instruments,” revised on March 10, 2008, and ASBJ Guidance No. 19, “Guidance on Disclosures about Fair Value of Financial Instruments,”
revised on March 10, 2008.
(a) Qualitative information on financial instruments
The Noritake Group does not permit the investment of surplus funds in transactions other than short-term bank deposits and uses indirect
financing from corresponding banks to satisfy short-term and long-term funding requirements.
The Noritake Group is exposed to credit risk primarily with respect to trade receivables. In order to reduce the credit risk of these receivables, the Noritake Group performs credit management on a customer by customer basis, including the monitoring of credit balances ofmajor customers on a semi-annual basis and reviewing the credit capacity of customers on a timely basis.
The Noritake Group holds investments in equity securities which have market risk. However, the fair values of such equity securities, whose
issuers principally have a business relationship with the Company, are monitored on a quarterly basis.
Although trade payables and bank borrowings have a liquidity risk, the Noritake Group performs effective cash flow management.
The Noritake Group is a party to derivative instruments such as foreign currency forward exchange contracts and interest rate swap agreements in the normal course of business principally for hedging purposes in order to reduce its own exposure to fluctuations in exchange
rates and interest rates. These transactions include certain anticipated export sales and import purchases for which foreign exchange forward contracts are used and bank borrowings for which interest rate swap contracts are used. The Noritake Group does not hold or issue
derivative financial instruments for trading purposes. Pursuant to the Noritake Group’s financial management policies, contract balances ofcurrency derivatives are limited to certain anticipated export sales or import purchases and interest rate swap transactions are matched withthe cash flows of the related bank borrowings. The Noritake Group is also exposed to credit risk in the event of nonperformance by counterparties. However, the Noritake Group does not expect nonperformance by counterparties because the counterparties to the derivativetransactions are limited to major banks with relatively high credit ratings.

24 N oritake Co., Limited

Annual Report 2010

(b) Fair values of financial instruments
The following table is a summary of the carrying values and fair values of financial instruments, other than unlisted equity securities for which
the fair value is extremely difficult to determine, at March 31, 2010:
Carrying values

Fair values

Differences
Millions of yen

Financial assets:
Cash and time deposits¥13,730¥13,730¥—

	Trade receivables

27,43627,436—

		Available-for-sale securities
		Investments in affiliates
			Total

16,768884¥58,818

16,768804¥58,738

—
(80)
¥(80)

Financial liabilities:
	Trade payables¥12,918¥12,918¥—

Short-term borrowings

11,084

11,084—

Payables included in accrued expenses

1,364

1,364

—

447
8,400
¥34,213447
8,429¥34,242

—
29
¥ 29

—

—

—

	Investment securities:

	Income taxes payable
Long-term bank loans, including current portion
			Total
Derivative instruments

Thousands of U.S. dollars

Financial assets:
Cash and time deposits$147,634$147,634$ —	Trade receivables

295,011

295,011—		Available-for-sale securities
	Investments in affiliates
			Total

180,301
9,506$632,452

180,301
8,645$631,591—(861)$(861)

Financial liabilities:
	Trade payables

	Investment securities:$138,903$138,903$ —Short-term borrowings

119,183

119,183—

Payables included in accrued expenses

14,667

14,667—

4,806
90,323$367,882

4,806
90,635$368,194

—
312
$ 312

—

—

—

	Income taxes payable
Long-term bank loans, including current portion
			Total
Derivative instruments

Notes: 1.	Details of the methods and assumptions used to estimate fair value of financial instruments are summarized below
		The fair values of financial instruments include the values based on quoted market prices, or values based on reasonable estimates and assumptions if quoted market prices are not available. Actual results could differ from these estimates.
		 (i) 	The fair value of cash and time deposits, trade receivables, trade payables, short-term borrowings, payables included in accrued expenses andincome taxes payable are approximately equal to their carrying value due to their short-term maturities.
		 (ii)	The fair value of equity securities is based on quoted market prices in active markets.
		 (iii)	The fair value of long-term interest-bearing bank loans is estimated based on discounted cash flow analysis using current interest rates considered to be applicable to similar loans.
		 (iv)	See Note 12 for the calculation method for the fair value of derivative instruments such as interest rate swaps or foreign currency forward
exchange contracts.
2. 	Unlisted equity securities of ¥1,096 million ($11,785 thousand) were not included in the table above because they had no quoted market price on
securities exchanges and their fair values were considered extremely difficult to determine.

N o r i ta k e C o . , L i m i t e dAnnual Report 201025

3. Contractual maturities of financial instruments
		 The following table presents the contractual maturities of the Noritake Group’s financial instruments at March 31, 2010:
Due in 1 year or lessDue after 1 year
through 5 years

Due after 5 years
through 10 years

Due after 10 years
Millions of yen

Financial assets:
Cash and time deposits¥13,730

¥—

¥—

¥—

	Trade receivables

27,436———

		Total¥41,166

¥—

¥—

¥—

Thousands of U.S. dollars

Financial assets:$147,634$—$—

	Trade receivables

Cash and time deposits

295,011

—

—

$—
—

		Total$442,645

$—

$—

$—

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥ 5,812
21,624¥ 6,640
18,986$ 62,495
232,516

309
(184)

202
(115)

3,323
(1,979)¥27,561¥25,713$296,355

Millions of yen

Thousands of
U.S. dollars

4. Notes and Accounts Receivable
As of March 31, 2010 and 2009, notes and accounts receivable consisted of the following:

Trade notes receivable
Trade accounts receivable
Other
Less allowance for doubtful accounts

5. Inventories
As of March 31, 2010 and 2009, inventories consisted of the following:

Merchandise and finished goods
Work in process
Raw materials and supplies

2010

2009

2010

¥ 5,875
3,713
2,863

¥ 8,198
4,618
3,077

$ 63,17239,92530,785¥12,451¥15,893$133,882

6. Investments
As of March 31, 2010 and 2009, short-term investments consisted of time deposits with an original maturity of more than three months.
At March 31, 2010 and 2009, investment securities consisted of the following:

Available-for-sale securities with fair values:	Equity securities
Other securities without fair values

26 N oritake Co., Limited

Annual Report 2010

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥16,768563¥13,463536$180,301
6,054¥17,331¥13,999$186,355

Available-for-sale securities with fair values are stated at fair value with unrealized gains and losses, which are excluded from current earnings, and reported as a net amount within the net assets account until realized. As of March 31, 2010 and 2009, gross unrealized gains andlosses for available-for-sale securities with fair value were summarized as follows:
Cost

Gross
unrealized gains

Grossunrealized losses

Fair andcarrying value
Millions of yen

Available-for-sale equity securities:
	As of March 31, 2010

¥10,561¥6,717¥ (510)¥16,768

	As of March 31, 2009

10,686

4,669(1,892)

13,463Thousands of U.S. dollars

Available-for-sale equity securities:
	As of March 31, 2010

$113,559$72,226$(5,484)$180,301

The Noritake Group sold available-for-sale securities and recorded a net loss of ¥18 million ($194 thousand) for the year ended March 31,
2010 and a net gain of ¥216 million for the year ended March 31, 2009. The Noritake Group recorded a loss on the write-down of availablefor-sale securities in the amount of ¥83 million ($892 thousand) and ¥25 million due to other-than-temporary impairment for the years ended
March 31, 2010 and 2009, respectively.
7. Notes and Accounts Payable
As of March 31, 2010 and 2009, notes and accounts payable consisted of the following:
Millions of yen

Trade notes payable
Trade accounts payable
Other

Thousands of
U.S. dollars

2010

2009

2010

¥ 6,471
6,447
643¥ 7,290
4,892
1,097

$ 69,580
69,323
6,914¥13,561¥13,279$145,817

8. Short-term Borrowings and Long-term Debt
As of March 31, 2010 and 2009, short-term borrowings consisted principally of unsecured bank overdrafts and bank loans with interest at
average rates of 0.91% and 1.20% per annum, respectively.
 As of March 31, 2010 and 2009, long-term debt consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

Unsecured loans from banks and insurance companies due through November 2014
with interest at average rate of 1.04% per annum at March 31, 2010
Capitalized lease obligations¥8,400214¥8,400182$90,323
2,301

Less current portion

8,614(1,445)

8,582(1,134)

92,624(15,538)¥7,169¥7,448$77,086

Millions of yen

Thousands of
U.S. dollars¥1,445
43
43
5,939
1,124
20
¥8,614$15,538
462
462
63,861
12,086215$92,624

The aggregate annual maturities of long-term debt are summarized as follows:Year ending March 31,

2011
2012
2013
2014
2015
Thereafter

As is customary in Japan, substantially all bank borrowings are subject to general agreements which provide, among other things, that thebanks may under certain circumstances request additional security for these loans and may treat any security so furnished, as well as cash
deposited with them, as security for all present and future indebtedness. The banks have never requested the Company or its subsidiaries
to submit such additional security. Also, as is customary in Japan, the Company and certain of its subsidiaries may have time deposits withthe banks from which they have short-term and long-term borrowings. However, there are no agreements with any banks which would
require maintaining such deposits.
N o r i ta k e C o . , L i m i t e dAnnual Report 201027

9. Employee Retirement Benefits
The Noritake Group has defined benefit pension plans and lump-sum retirement benefit plans which substantially cover all employees.
Thirteen domestic consolidated subsidiaries have joined the Company’s defined benefit pension plans. A consolidated subsidiary located in
the United States has a similar defined benefit plan. Four domestic consolidated subsidiaries also participate in a certain corporate pension
plan under a multi-employer pension program (see note below).
 The following table reconciles the benefit liability and net periodic retirement benefit expense as of and for the years ended March 31,
2010 and 2009:

Reconciliation of benefit liability:
Projected benefit obligation
Less fair value of pension plan assets at end of year		 Projected benefit obligation in excess of pension plan assets
Unrecognized actuarial differences
Prepaid pension cost		 Balance of employee retirement benefit liability recognized		  on the consolidated balance sheets

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥18,980(13,102)
5,878(5,591)287
1,485¥19,627(12,392)
7,235(6,842)393
3,098$204,086(140,882)
63,204(60,118)
3,086
15,968¥ 1,772¥ 3,491$ 19,054

Notes: 1.	The projected benefit obligation of certain consolidated subsidiaries with less than 300 employees was calculated using the simplified calculation
method permitted by the accounting standard for employee retirement benefits.
2.	Some of the Company’s consolidated subsidiaries participate in a certain corporate pension plan under a multi-employer pension program established by the subsidiaries together with other employers. As information that would allow a determination of whether the value of the pension plan
assets has been reasonably calculated in the proportion to the contributions made by the subsidiaries is not available, the Noritake Group records
the required contributions as net periodic retirement benefit expense for the period, in accordance with the amended accounting standard for
employee retirement benefits (ASBJ Statement No. 14). The above table excluded the portion of the pension plan assets under the multi-employer
pension program.
		 Information regarding the funded status of the entire corporate pension plan available as of the latest calculation period-ends is as follows:
Millions of yen

Thousands of
U.S. dollars

2010

2010

2009

March 31, 2009:

March 31, 2008:

Pension plan assets¥ 93,998¥116,373

Related benefit obligation under the program(148,469)(147,188)(1,596,441)

		Difference, resulting primarily from unamortized past service cost

¥ (54,471)¥ (30,815)$ (585,710)

3.1%

2.9%

Latest calculation period-end

Ratio of subsidiaries’ contributions to the total contributions to the entire plan

Components of net periodic retirement benefit expense:
Service cost	Interest cost
	Expected return on pension plan assets
	Amortization of actuarial differences
	Amortization of past service cost		 Net periodic retirement benefit expense$1,010,731

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥1,345
317
(135)
1,106
(45)
¥2,588¥1,415
387
(205)
730
(39)
¥2,288$14,462
3,409(1,452)
11,893(484)$27,828

Major assumptions used in the calculation of the above information for the years ended March 31, 2010 and 2009 were as follows:
2010

2009

	Straight-line
method2.0%

Straight-line
method
2.0%

2.0%

2.0%

Amortization of actuarial differences

10 years

10 Years

Amortization of past service cost

1 year

1 yearMethod attributing the projected benefits to periods of service
Discount rate
Expected rate of return on pension plan assets

28 N oritake Co., Limited

Annual Report 201010. Lease Commitments
As lessee, the Noritake Group has entered into various rental and lease agreements, principally for office spaces, that are noncancelable orcancelable with a few months’ advance notice. A lessee, the Noritake Group also leases machinery, office equipment, and vehicles underleases which are not usually cancelable. As disclosed in Note 2(h), finance leases that do not transfer ownership of the leased assets to thelessee which commenced prior to April 1, 2008 and have been accounted for with the accounting treatment similar to that used for operating leases continue to be accounted for with the accounting treatment similar to that used for operating leases, with disclosure of certain“as if capitalized” information, and are not capitalized. The aggregate future minimum payments under such finance leases, including imputed interest, and operating leases as of March 31, 2010 and 2009 were as follows:

Finance leases:
	Due within one year
	Due after one year

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥ 66
64
¥130

¥130
131
¥261

$ 710
688
$1,398

¥ 94
139

¥105
167

$1,001
1,494

¥233

¥272

$2,505

Operating leases:
	Due within one year
	Due after one year

11. Contingent Liabilities
There were no contingent liabilities at March 31, 2010 and 2009.
12. Derivative Instruments
At March 31, 2010 and 2009, all derivative instruments, except for one, were accounted for by hedge accounting. The one exception was aderivative contract of the Company to hedge the risks associated with the occurrence of an earthquake that was outstanding at March 31,
2010 and 2009. That derivative contract was not accounted for at fair value because the fair value of such contracts was not considered
determinable. Derivative financial instruments to which hedge accounting was applied as of March 31, 2010 are summarized as follows:
Notional principal or contract amounts (Note 3)
Total

Over 1 year

Fair value
Millions of yen

At March 31, 2010:
Foreign currency exchange contracts (Note 1):		Forward - Selling

¥ 252

—

*

		

Forward - Buying

2

¥

—

*

3,000
1,200

3,000
1,200

*
*

	Interest rate swap contracts (Note 2):				

Fixed rate receipt, floating rate payment
Floating rate receipt, fixed rate payment

Thousands of U.S. dollars

At March 31, 2010:
Foreign exchange contracts (Note 1):		Forward - selling$ 2,710—*		Forward - buying

22

$

—

*

32,25812,90332,25812,903**

	Interest rate swap contracts (Note 2):				

Fixed rate receipt, floating rate payment
Floating rate receipt, fixed rate payment

Notes: 1.	As derivative instruments, foreign currency forward exchange contracts are accounted for by hedge accounting such that the derivative instruments
are not separated from the hedged receivables or payables. Therefore, the fair value of such derivative instruments is reflected in the calculation of
the fair value of related account. (See Note 3 below.)
2.	As derivative instruments, interest rate swap contracts are accounted for by hedge accounting such that the derivative instruments are not separated from the hedged bank loans. Therefore, the fair value of such derivative instruments is reflected in the calculation of the fair value of related bankloan. (See Note 3 below.)
3.	The contract amounts of derivatives which are shown in the table above do not represent the amounts exchanged by the parties and do not measure the Company’s exposure to credit and market risk.

At March 31, 2009, information on derivative financial instruments to which hedge accounting was applied was not required to be disclosed
under the previous disclosure requirements.
N o r i ta k e C o . , L i m i t e dAnnual Report 201029

13. Net Assets
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, acompany may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the issue price of the new sharesas additional paid-in capital, which is included in capital surplus.
Under the Japanese Corporate Law (“the Law”), in cases in which a dividend distribution of surplus is made, the smaller of an amount equal
to 10% of the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve
must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in theaccompanying consolidated balance sheets. Under the Law, legal earnings reserve and additional paid-in capital can be used to eliminate
or reduce a deficit by a resolution of the shareholders’ meeting. Additional paid-in capital and legal earnings reserve may not be distributed
as dividends. All additional paid-in capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
At both March 31, 2010 and 2009, capital surplus principally consisted of additional paid-in capital, and retained earnings included legal earnings reserve of the Company in the amount of ¥3,480 million ($37,826 thousand).
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial statements of theCompany in accordance with Japanese laws and regulations.
During the year ended March 31, 2010, the Company paid interim dividends of ¥2.50 per share, amounting to ¥359 million ($3,860 thousand.) In addition, on May 10, 2010, the Board of Directors of the Company resolved to pay cash dividends as an appropriation ofretained earnings amounting to ¥359 million ($3,860 thousand, ¥2.50 per share) to the shareholders as of March 31, 2010. The appropriation was not accrued in the consolidated financial statements as of March 31, 2010.
14. Income Taxes
The tax effects of temporary differences that gave rise to a significant portion of deferred tax assets and liabilities as of March 31, 2010 and2009 were as follows:

Deferred tax assets:
	Intercompany unrealized gains on property
	Accrued bonuses to employees
	Employee retirement benefit liability
	Accrued severance indemnities for directors and corporate auditors
	Inventories

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥ 200

¥ 420

$ 2,151

398

485

4,280

4,242

4,275

45,613

281

333

3,021

590

366

6,344

5,419

2,662

58,269	OtherLess valuation allowance

1,964(8,238)2,392(5,889)21,118(88,581)		Total deferred tax assets
Deferred tax liabilities:

4,856

5,044

52,215

3,289

3,289

35,366

2,147
1,571

755
1,574

23,086
16,892

Net operating loss carryforwards

Gain on transfer of investment securities to trusts for retirement benefit plans
Unrealized gains on available-for-sale securities
	Other		Total deferred tax liabilities

7,007

5,618

75,344

		

¥2,151¥ 574$23,129

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

Deferred tax assets:
Current

¥ 433

¥ 511

$ 4,656

Noncurrent

491

1,272

5,280

Net deferred tax liabilities

As of March 31, 2010 and 2009, deferred tax assets and liabilities were recorded as follows:

Deferred tax liabilities:
Current
Noncurrent

30 N oritake Co., Limited

Annual Report 2010

—

33

—

3,075

2,324

33,065

In assessing the realizability of deferred tax assets, the management of the Noritake Group considers whether some portion or all of thedeferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable
income during the periods in which the temporary differences become deductible. At March 31, 2010 and 2009, a valuation allowance wasprovided to reduce deferred tax assets to the amount the management believed was realizable.
For the years ended March 31, 2010 and 2009, the reconciliation of the differences between the Japanese statutory effective tax rate and theactual effective income tax rate on pretax income was not disclosed as a loss before income taxes and minority interests was recorded.
15. Segment Information
A summary of information classified by the lines of business of the Noritake Group for the years ended March 31, 2010 and 2009 is asfollows:
Industrial
Products

Ceramics &Materials

Engineering

Tabletop

Electronics

Total

Elimination

Consolidated
Millions of yen

For the year 2010:
	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers¥29,02827
29,05529,055¥
0¥28,728313
29,041
26,100¥ 2,941¥14,521538
15,05914,639¥ 420¥9,386
26
9,412
9,788
¥ (376)¥5,933
2
5,935
5,714
¥ 221

¥87,596906
88,50285,296¥ 3,206

¥

—
(906)
(906)
3,965
¥ (4,871)¥ 87,596—
87,59689,261¥ (1,665)¥27,400
1,362
48¥30,206
1,122—¥ 8,035311—¥8,883430—¥5,205215
162¥79,7293,440
210¥29,866
421—¥109,595
3,861
210

1,031

1,046

203

354

35

2,669

238

2,907

¥29,510759
30,26927,017¥ 3,252¥21,233
1,066
22,29920,469¥ 1,830¥13,11339
13,152
14,739¥ (1,587)¥10,4110
10,411
9,958¥ 453¥112,984
1,900
114,884
109,124¥ 5,760¥

	Operating costs and expenses
			Operating income (loss)¥38,71736
38,75336,941¥ 1,812—(1,900)(1,900)3,052¥ (4,952)¥112,984—
112,984
112,176¥808

	Identifiable assets
	Depreciation
	Impairment loss on fixed assets
Capital expenditures¥28,326
1,491
139
2,240

¥26,325
1,152
—
1,375

¥13,361272
5
434¥11,898
593
338
343

¥ 6,168
400
473
167

¥ 86,078
3,908
955
4,559

¥26,999307—
564¥113,077
4,215
955
5,123

	Operating costs and expenses
			Operating income (loss)
	Identifiable assets
	Depreciation
	Impairment loss on fixed assets
Capital expenditures
For the year 2009:	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers

Thousands of U.S. dollars

For the year 2010:
	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers
	Operating costs and expenses
			Operating income (loss)
	Identifiable assets
	Depreciation
	Impairment loss on fixed assets
Capital expenditures$312,129 $308,903 $156,140 $100,924
290
3,366
5,785
280
312,419
312,269
161,925
101,204
312,419
280,645
157,409105,247$
0 $ 31,624 $ 4,516 $ (4,043)$63,796
21
63,81761,441$ 2,376$941,892 $— $ 941,892
9,742(9,742)—
951,634(9,742)
941,892
917,161
42,635
959,796$ 34,473 $ (52,377) $ (17,904)$294,623 $324,796 $ 86,398 $ 95,516
14,645
12,064
3,344
4,624
516
—
—
—

$55,968
2,312
1,742

$857,301 $321,140
36,989
4,527
2,258
—

11,086

11,247

2,183

3,807

376

28,6992,559$1,178,441
41,5162,258
31,258Notes: 1.	Operating costs and expenses in the elimination column represent unallocated corporate operating expenses such as general and administrative
expenses of the Company, net of intersegment transactions.
2.	Identifiable assets in the elimination column represent unallocated general corporate items such as cash and short-term and long-term investments insecurities and general managed property, net of intersegment balances.

N o r i ta k e C o . , L i m i t e dAnnual Report 201031

Information summarized by the geographic segments of the Noritake Group for the years ended March 31, 2010 and 2009 is as follows:
North
AmericaJapan

Europe

Asia

Other

Total

Elimination

Consolidated
Millions of yen

For the year 2010:
	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers¥6,373
68
6,441
6,604
¥ (163)¥1,560
60
1,620
1,555
¥ 65

¥1,312
1,761
3,073
2,962
¥ 111

¥320
6
326
323
¥ 3

¥87,596
7,850
95,446
97,125¥ (1,679)¥

	Operating costs and expenses
			Operating income (loss)¥78,031
5,955
83,986
85,681¥ (1,695)—(7,850)(7,850)(7,864)¥14¥ 87,596—
87,59689,261¥ (1,665)

	Identifiable assets¥80,072¥4,646¥1,222¥2,689¥497¥89,126¥20,469¥109,595

	Operating costs and expenses
			Operating income (loss)¥ 97,630
9,195
106,825
105,712¥ 1,113¥9,657
57
9,714
9,759
¥ (45)¥2,550
121
2,671
2,639
¥ 32

¥2,729
2,492
5,221
5,733
¥ (512)

¥418
11
429
417
¥ 12

¥112,984
11,876
124,860
124,260¥
600¥—(11,876)(11,876)(12,084)¥208¥112,984—
112,984
112,176¥808

	Identifiable assets¥ 84,957¥4,651¥1,090¥2,496¥390¥ 93,584¥19,493¥113,077

For the year 2009:	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers

Thousands of U.S. dollars

For the year 2010:
	Operating revenue—net sales:
		External customers
		Intersegment sales/transfers
	Operating costs and expenses
			Operating income (loss)$839,043 $68,527 $16,774
64,032731
645
903,075
69,25817,419921,301
71,011
16,720$ (18,226) $ (1,753) $ 699$14,108
18,93633,04431,850$ 1,194$3,440
65
3,505
3,473
$ 32

$ 941,892
84,4091,026,301
1,044,355$ (18,054)— $ 941,892(84,409)—(84,409)941,892(84,559)
959,796$
150 $ (17,904)

	Identifiable assets$860,989$28,914$5,344$ 958,344$220,097$49,957$13,140$$1,178,441

Note: Identifiable assets in the elimination column represent unallocated general corporate items such as cash and short-term and long-term investments in securities, net of intersegment balances.

For the years ended March 31, 2010 and 2009, overseas sales, which included export sales from Japan and net sales of overseas consolidated subsidiaries in countries other than Japan, were summarized as follows:
Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

North America
EuropeAsia
Other¥ 6,770
2,060
18,013467¥27,310¥10,840
3,399
18,667790¥33,696$ 72,796
22,151
193,688
5,021$293,656

Percentage of overseas sales to total consolidated net sales

31.2%

29.8%

32 N oritake Co., Limited

Annual Report 2010

Independent Auditors’ Report

N o r i ta k e C o . , L i m i t e dAnnual Report 201033

Overseas Network

DI R E C TO R S AND
OFFICERS(As of June 29, 2010)(As of June 29, 2010)

Industrial Products Group

Ceramics & Materials GroupNORITAKE CO., INC.

NORITAKE CO., INC.

CHAIRMAN4990 ALLIANCE DR.,2635 CLEARBROOK DRIVE,MASON, OH 45040, U.S.A.

ARLINGTON HEIGHTS, IL 60005, U.S.A.

Noboru Akahane*Tel: 1-513-234-0770

Tel: 1-847-439-9020 Fax: 1-847-593-2285

Fax: 1-513-234-0743

ITRON (U.K.) LIMITEDPRESIDENT
Hitoshi Tanemura*

NORITAKE EUROPA GmbHVANTAGE HOUSE, HARFREY’S ROAD,

KURHESSENSTRASSE 3, D-64546

HARFREY’S INDUSTRIAL ESTATE,MÖRFELDEN-WALLDORF, GERMANY

GREAT YARMOUTH, NORFOLK NR31 0LS,

Tel: 49-61-05-2092-40/41

UNITED KINGDOM

Fax: 49-61-05-2092-99

Tel: 44-1493-601144 Fax: 44-1493-600343

NORITAKE SHANGHAI TRADING CO., LTD.

NORITAKE EUROPA GmbH

ROOM 701 AETNA TOWER NO.107,

KURHESSEN STRasse. 3, D-64546

ZUN YI ROAD, CHANG NING DISTRICT,MÖRFELDEN-WALLDORF, GERMANY

Kazutaka Nakayama

SHANGHAI, 200051 CHINA

Tel: 49-6105-2092-20 Fax: 49-6105-2092-99

Satoru Shimazaki

Tel: 86-21-6237-5667 Fax: 86-21-6237-5790

DIRECTORS
Kouichi Saburi
Minoru Murata
Tadashi Ogura

NORITAKE (Thailand) CO., LTD.

Hisaya Ogura

NORITAKE (Thailand) CO., LTD.

1096 NEW ROAD, KWAENG BANGRAK,

Masahiro Nakagawa

1096 NEW ROAD, KWAENG BANGRAK,KHET BANGRAK, BANGKOK 10500,

KHET BANGRAK, BANGKOK 10500, THAILAND

THAILAND

Tel: 66-2-235-1688, 236-2364

Tel: 66-2-236-2364

Fax: 66-2-236-2365

Fax: 66-2-236-2365

SIAM COATED ABRASIVE CO., LTD.

THE SIAM MOULDING PLASTER CO., LTD.

AMATA CITY INDUSTRIAL ESTATE 7-126

NO. 32 MOO7 NONGPLAKRADI ROAD,

STATUTORY AUDITORS

MOO 4, T. MABYANGPORN, A. PLUAKDAENG,NONGPLING, NONGKHAE, SARABURi, 18140,

RAYONG 21140, THAILAND

THAILAND

Kazunari Ando

Tel: 66-3-865-0150 Fax: 66-3-865-0158

Tel: 66-36-373578 Fax: 66-36-373577
PT. NORITAKE INDONESIA

Tabletop GroupBLOK A-II NO. 9A, KAWASAN BERIKAT,*Representative Director

Masatoshi Fujii
Yasumasa Gomi
Mitsuo Kinoshita

NORITAKE CO., INC.

KOTA BUKIT INDAH, PURWAKARTA, 41181,

15-22 FAIR LAWN AVENUE,

JAWA BARAT, INDONESIAEXECUTIVE OFFICERSFAIR LAWN, NJ 07410, U.S.A.

Tel: 62-264-351311 Fax: 62-264-351314

Hitoshi Tanemura

Tel: 1-201-796-2222 Fax: 1-201-796-9155
Engineering GroupNORITAKE CANADA LIMITED

Kouichi Saburi
Minoru Murata

90 NUGGET AVENUE, AGINCOURT,NORITAKE TAIPEI CO., LTD.

ONTARIO, M1S 3A7, CANADA

NO. 37, ALLEY 105, LANE 514, JUNGJENG RD.,

Takashi Horiguchi

Tel: 1-416-291-2946 Fax: 1-416-292-0239

SHINJUNG CITY, TAIPEI, TAIWAN 242, R.O.C.

Tadashi Ogura

Tel: 886-2-2907-1221 Fax: 886-2-2905-1529

Kazutaka Nakayama

DUBAI REPRESENTATIVE OFFICENORITAKE CO., LIMITED

Tamio Marubayashi

P.O. BOX 18013, DUBAI, U.A.E.

SHANGHAI OFFICE

Tel: 971-4-8811491 Fax: 971-4-8871443

ROOM 701 AETNA TOWER NO. 107,

Satoru Shimazaki

NORITAKE CO., LIMITEDNORITAKE (AUSTRALIA) PTY. LIMITEDUNIT 4, 153 BEAUCHAMP ROAD,
MATRAVILLE, N.S.W. 2036, AUSTRALIA
Tel: 61-2-9316-7123 Fax: 61-2-9316-7085

Hisaya Ogura

SHANGHAI, 200051 CHINA

Kouhei Kato

Tel: 86-21-6237-5789 Fax: 86-21-6237-5790

Kenji Hayasaka
Masahiro Nakagawa
Yoshitaka Mabuchi

NORITAKE EUROPA GmbHKURHESSENSTRASSE. 3, D-64546
MÖRFELDEN-WALLDORF, GERMANY
Tel: 49-61-05-2092-20 Fax: 49-61-05-2092-99
NORITAKE LANKA PORCELAIN (PRIVATE)LIMITEDCOLOMBO OFFICE/SHOW ROOM
No.580, NEGOMBO ROAD, MABOLE, WATTALA,SRI LANKA
Tel: 94-11-2946149 Fax: 94-11-2946144

34 N oritake Co., Limited

ZUN YI ROAD, CHANG NING DISTRICT,

Annual Report 2010

Hiroshi KatoC orporate D ata

H i s tor y o f N O R I T A K E(As of June 29, 2010)(As of June 29, 2010)

Head Office

1876	Ichizaemon Morimura established1-36, Noritake-Shinmachi

Morimura-kumi in Tokyo, and Toyo

3-chome, Nishi-ku, Nagoya

Morimura and others established451-8501, Japan

the Hinode Shokai (Morimura Brothers)

Tel: +81-52-561-7112

in New YorkFax: +81-52-561-9721

Date of Establishment

1904	Established Nippon Toki Gomei Kaisha
1907	Began production of grinding wheels
for in-house use

January 1904

1914	Succeeded in production of the first

Number of Employees

1917	Sanitary ware division spun off todinner set in Japan
4,176 (Consolidated)become TOTO Ltd.
	Established Nippon Toki Co., Ltd.

Stock Exchange Listings

1919	Electric insulator division spun off toTokyo Stock Exchange

become NGK Insulators Ltd.

Nagoya Stock Exchange

1932	Began production of first bone china
in Japan

Transfer Agent and Registrar
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome,1939	Began full-scale production of industrial
grinding wheels

1943	Tableware production stopped on

Chiyoda-ku, Tokyoaccount of World War II, changed to full

100-8212, Japanproduction of grinding wheels(only bone china production continued

Annual Meeting of
Shareholders
The annual meeting of shareholders of theCompany is normally held in June each year in
Nagoya, Japan.
In addition, the Company may
hold an extraordinary meeting of shareholders
whenever necessary by giving at least two
weeks’ advance notice to shareholders.

to preserve technique)1945	Production of tableware resumed
1947	Established Noritake Co., Inc. in
the United States

1956	Began production of cutlery
1958	Established Noritake (Australia) Pty.
Ltd. in Australia

1960	Began production of resinoid grinding
wheels at the Kamori Plant

1970	Established Noritake (U.K.) Ltd. in the
United Kingdom
	Began production of fine ceramicindustrial products

1971	Began production of filtration equipment
1972	Established Noritake Lanka Porcelain(Pvt.) Ltd. in Sri Lanka

1973 Began production of diamond tools
1974	Established Noritake Porcelana Mfg.,
Inc. in the Philippines

1979 Began operation of the Craft Center	Began production of materials andequipment for the ceramics industry

1981	Changed the Company name to
Noritake Co., Limited

1987	Established Noritake Europa G.m.b.H.
in Germany

1988	Established Noritake Taipei Co., Ltd. in
Taiwan1991	Established Noritake Hong Kong Ltd.
1992	Established Noritake Singapore Pte. Ltd.
1993 Opened the Noritake Gallery
1995	Established Pt. Noritake Indonesia
1996	Established Noritake (Siam) Co., Ltd. in
Thailand1997	Established Itron (U.K.) Ltd. in
the United Kingdom

1998	Established Noritake Dental Supply
Co., Limited.

2001	Established Noritake Gypsum Co., Ltd.
Opened the Noritake Garden

2002	Established Noritake Bonded

1961	Began production of crystal glassware

	Abrasive Co., Ltd.

independent Auditors	Began production of melamine ware2005	Established Noritake Shanghai Trading

KPMG AZSA & Co.

1962	Began production of grinding machines1963	Began production of belt andCo., Ltd.

fabric abrasives

1968	Established Noritake Canada Ltd.
in Canada

1969	Began production of electronic products

Caution with respect to forward-looking statements
This annual report includes forward-looking statements pertaining to expectations, plans, strategies, management goals, future performance,
expenses, revenues, income and other forecasts formulated on past experiences. Forward-looking statements necessarily entail some degree of
uncertainty, and the content conveyed in the results as well as underlying factors identified in the report may differ materially from actual results
depending on changes in those factors.

Nor i ta k e Co. , L im i t e d

A n n u a l R e p o r t 2 0 1 0 35

Printed in Japan