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TabletoNORITAKE CO., LIMITED

Annual Report
Year Ended March 31, 2018

P

ROFILE

Noritake Co., Limited, including its subsidiaries and associates(Hereinafter “The Noritake Group”, “The Group” or simply “Noritake”)
has developed technologies acquired from ceramics manufacturingexpertise 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 andtechnologies for energy-related industries—including solar cells,
an area of promising growth—Noritake seeks to create new value forcustomers and society.
Mid-term Business Plan
The economic environment in Japan and overseas continued to gradually
improve in the fiscal year under review. However, the outlook is growing
increasingly unclear due in part to concern that discord and conflict, stemmingfrom the rise of trade protectionism in the United States as well as China’s
retaliatory tariffs, could bring the world economy to stagnation. Amid thesecircumstances, the Group will keep working diligently to establish a business
infrastructure that will safeguard stable earnings and growth—one of the aimsof its 10th Mid-term Business Plan.

Management Goals:
Over the long term, we aim to maintain sales growth of 5% per year; operating
margin of 5%; overseas sales ratio of 50%; ROE of at least 5%; and a capitalratio of at least 50%.

Basic Strategies:(1) Expand market share and break into new markets by promoting sales
activities that unite manufacturing, sales and technology.
(2) Enhance competitiveness and expand sales by developing new products
and technologies.
(3) Penetrate overseas markets and upgrade overseas manufacturing bases
to expand business.
(4) Promote a more resilient management structure and upgrade infrastructure.

Contents
1

Six-Year Financial Summary

2

Message from the Management

5

Review of Operations

9

Topics10

Research & Development

12

Corporate Governance

15

Consolidated Financial Review

18

Consolidated Balance Sheets

20

Consolidated Statements of Income

21

Consolidated Statements of Comprehensive Income

22

Consolidated Statements of Changes in Net Assets

24

Consolidated Statements of Cash Flows

26

Notes to Consolidated Financial Statements

56

Report of Independent Auditors

58

Overseas Network /Members of the Board, Audit & Supervisory Board Members and Executive Officers

59

Corporate Data / History of NoritakeS

IX-YEAR FINANCIAL SUMMARY

Years ended March 31,

Millions of yen

Thousands of
U.S. dollars

2018

2017

2016

2015

2014

2013

2018

¥117,928¥108,808¥109,631¥ 99,038¥ 88,687¥ 90,235$ 1,112,528

Operating income

5,097

3,119

3,449

2,191

785

64

48,085

Income before income
taxes and minority interests

16,187

5,263

5,684

3,100

2,485

2,693

152,717

Profit attributable to ownersof the parent

13,432

4,107

4,413

2,059

1,313

1,644

126,717

For the year:
Net sales

Net income per share(yen/U.S. dollars)¥ 935.57¥

286.12¥307.32

¥

14.34

¥

8.91

¥

11.02

$

8.83

Total assets¥156,459¥142,362¥135,932¥145,836¥118,774¥114,419$ 1,476,038

Total net assets

103,026

87,12579,76682,817

69,217

66,580971,953

Capital ratio (%)

63.7

59.0

56.5

54.1

57.8

57.7

63.7

At year-end:

Notes: 1. U.S. dollar amounts have been translated at the rate of ¥106 to US$1.

Net Sales

Operating Income(Millions of yen)

(Millions of yen)

Net Income per ShareProfit Attributable to
Owners of the Parent(Yen)(Millions of yen)
117,928
108,808
109,6315,097

935.57

13,432

99,038

3,449
3,119

2,191
307.3 286.1

4,413 4,107
14.34

2,059

’ 15

’ 16

’ 17

’18

’15

’16

’17

’18

’15

’16

’17

’18

’15

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Note: Most financial figures in the first 17 pages of the report have been rounded down and are presented on the basis of financial reports filed with the Kanto Finance Bureau.
Due to this basis, some line items and categorizations may differ from the Consolidated Financial Statements and Notes presented on pages 18 to 55 of this report.

NORITAKE CO., LIMITED

Annual Report 2018

1M

ESSAGE FROM THE MANAGEMENT

The management of Noritake Co., Limited wishes to express its gratitude
to all stakeholders for their continued support. We would like to take this opportunity
to comment on the Group’s results for fiscal 2018, ended March 31, 2018.

2

Tadashi Ogura

Hiroshi Kato

Chairman &Representative Director

President &Representative Director

Noritake Co., Limited

Annual Report 2018

Performance Overview for Fiscal 2018
In fiscal 2018, the U.S. and European economies remained steady despite
concerns surrounding the situation with North Korea and growing tradeprotectionism in the United States. Although some projections warned of a slowdown, the Chinese economy maintained steady growth. Against this backdrop,
the economy in Japan remained firm and continued to recover.
Amid this favorable economic environment, we continued working to develop new
products, develop overseas markets, and expand our manufacturing bases inJapan and overseas.
As a result, net sales rose 8.4% year on year to ¥117,928 million. Looking at earnings, operating income stood at ¥5,097 million, up 63.4%, and ordinary income
amounted to ¥6,992 million, up 43.8%.
To expand sales and realize the development of new technologies and products,
we released new products in the electronic paste business. Rapid adoption bycustomers in fields expected to expand in the near future provided a boost to sales.
We are working on expanding sales and developing technologies to further enhance
performance. In the Engineering Group, we endeavored to develop andcommercialize kilns and dry furnaces optimized for new materials,
which spurred an increase in orders.
In terms of penetrating overseas markets and upgrading overseas manufacturingbases, we enhanced and expanded our production and sales structure, especiallyin the Industrial Products Group, aligning it better with unique regional
characteristics, such as those in Thailand, China, and the United States.
We are working to build a global business structure.
In regards to enhancing management infrastructure, the back-office sections andproduction sites continue to work together to strengthen manufacturing, improve
services and quality assurance, make operations more efficient, and reduce costs.
In addition, we are actively engaged in activities to ensure compliance, health andsafety, and environmental protection. In regards to the former site of theheadquarters’ plant, sales of land for commercial use have been completed,
and we are moving ahead with deliberations about sales of land for residential use.

NORITAKE CO., LIMITED

Annual Report 20183

Basic Policy Regarding Earnings Distribution
Noritake has positioned returning profit to shareholders as a key management­policy. Based on this policy, we place emphasis on stable dividend payments overthe long term and the distribution of earnings by comprehensively taking into
­consideration factors that include performance results, financial conditions andfuture business development. In addition, we make effective use of retained­earnings for investment aimed at creating new technologies and products that canbecome a foundation for the Noritake Group’s future strength, as well as for­investment for sustainable business development in growth fields. With regard to
dividend payments, Noritake distributed a fiscal year-end dividend of ¥40 per share.
When combined with the interim dividend of ¥30 per share, the full-year dividend
amounted to ¥70 per share. In fiscal 2019, Noritake plans to pay a full-year dividendof ¥80 per share.
Through the concerted efforts of the Noritake Group to steadily implement the core
strategies of the 10th Mid-term Business Plan, Noritake aims to create a growth­trajectory highly responsive to changing times.
We ask for the continued understanding and steadfast support of our stakeholders.

Tadashi Ogura
Chairman & Representative Director

Hiroshi Kato
President & Representative Director

4

Noritake Co., Limited

Annual Report 2018

R

EVIEW OF OPERATIONS

Vitrified bonded wheel forgear grinding “Gear Ace”

Industrial Products
Business Status

Business Strategy

In the domestic market, sales remained firm
due mainly to the strength of the steel industry
and an increase in production in the automotive
and bearing industries—our main customers.
Overseas, sales increased slightly in North
America, meanwhile sales increased asSoutheast Asian markets recovered, especiallythe automotive industry in Thailand, while theChinese market stayed strong, particularly theautomotive and steel industries. However, salesof offset and other general-use grinding wheels
edged down due to slow sales in Indonesia.
As a result, consolidated net sales of theIndustrial Products Group increased 4.2% year
on year to ¥59,404 million. Operating income
grew 69.6% to ¥1,739 million.

We will promote the development of new
products using our unique homogeneous
structure technologies. We aim to build an
efficient marketing structure in Japan andbolster marketing activities overseas.
In manufacturing, we will work to expand
production at overseas plants and aim to build
a production system in Japan that can readily
respond to fluctuations in demand and reduce
manufacturing costs at plants.

Breakdown of Sales

50.4
Sales

(Millions of yen)
57,015’17

NORITAKE CO., LIMITED

Annual Report 2018%

59,404’18

5

R

EVIEW OF OPERATIONSElectronic paste

Ceramics&&
Materials
Breakdown of Sales

Business Status

Business Strategy

Sales of electronic pastes expanded significantly, buoyed by stable demand for inductors andmultilayer ceramic capacitors for use incommunication devices and automobiles.
Sales of gypsum inched up as sales for construction material applications grew in Thailand
despite struggles in the Chinese market. Salesof thick film circuit substrates to major customers declined. Sales of vacuum fluorescentdisplays (VFDs) remained on par with the previous year due to special demand for point-ofsale (POS) applications in North America. Salesof ceramic catalyst carriers were solid in overseas markets. In Electronic Ceramic Materials,
sales remained steady in Japan and overseas,
and, in Ceramic Materials, sales of glass materials for use in liquid crystals increased.
As a result, consolidated net sales of the
Ceramics & Materials Group rose 13.5% year
on year to ¥31,740 million. Operating income
increased 40.7% to ¥2,651 million.

In regard to electronic pastes, we are working
to expand sales for electrode applications,such as for inductors, focusing on markets
expected to expand going forward. As for thickfilm circuit substrates, we will enhance ourmanufacturing structure for boostingproduction for LED and other new applications.
For catalyst carriers, we will develop new nextgeneration catalyst carriers and expand ourmanufacturing facilities. In Electronic CeramicMaterials, we will work to develop particulatematerial for multilayer ceramic capacitors,
materials for fuel cells, and other products.

6

26.9

%

Sales
(Millions of yen)
31,74027,976’17

NORITAKE CO., LIMITED’18

Annual Report 2018

R

EVIEW OF OPERATIONSEngineering

Scrambled Eggs
Manufacturing System

Business Status

Business Strategy

Breakdown of Sales

Sales of mainstay dry-furnaces and kilns
increased due to active capital investment in
the fields of lithium-ion batteries and electronic
components. Sales of mixing equipment
remained level with the previous year whilesales of filtration equipment increased as sales
for bearings recovered from stagnation. Salesof carbide tipped circular sawing machinesremained firm in Japan and overseas as
demand improved and sales of new models got
on track.
As a result, consolidated net sales of theEngineering Group rose 23.4% year on year to¥18,018 million. Operating income grew 53.4%
to ¥1,522 million.

In our mainstay business of dry furnaces andkilns, we will promote development of highly
efficient products in the field of battery m­ aterials
and will promote new product development for
the use of new materials. We will develop new
applications for mixing equipment, and work tostrengthen marketing efforts for filtration­equipment in the automotive and machine tool
fields. In the area of carbide tipped circularsawing machines, we will also work to develop
new applications and enhance our sales­capabilities in Japan and overseas.

15.3

%

Sales
(Millions of yen)
18,01814,606’17

Noritake Co., Limited

Annual Report 2018

’18

7

R

EVIEW OF OPERATIONSDAISYBELL

Tabletop

Business Status

Business Strategy

In Japan, sales for department stores, hotels,
restaurants, and airlines were weak overall.
Turning overseas to the United States, sales
declined due to stagnant sales, especially at
our mainstay department store customers.
In Europe and Asia, sales stayed even withthe previous year as orders from some airlines
expanded but sales to department and­specialty stores were weak.
As a result, consolidated net sales of theTabletop Group declined 4.8% year on year to¥8,765 million. Noritake recorded an operating
loss of ¥817 ­million.

In Japan, we aim to expand sales of­business-use tableware, targeting the hotel
and restaurant market in anticipation of higher
demand being brought about by increasing
numbers of foreign visitors in relation to the2020 Tokyo Olympics. Overseas, we launched
new products in the United States and aim torecover sales. In India and other Asian markets
where growth is expected, we are strengthening our sales structure and working to expand
sales.

Breakdown of Sales

7.4

%

Sales
(Millions of yen)
9,211

’17

8

Noritake Co., Limited

8,765

’18

Annual Report 2018

T

opics

Thin Cut Master2

Ceramic catalyst carriers

1

A cut section of thin-wall pipe

Launched Sales of the New Thin Cut Masterfor Cutting Thin-Wall Pipes

Boosted Production Capacity
for Ceramic Catalyst Carriers

Noritake has launched sales of the Thin Cut Master, a carbide

Our catalyst carriers are used as the platform onto which

automotive components, construction materials, and similar

catalysts are affixed to set off chemical reactions when pro-applications. We realized improvements over our previously

ducing the raw materials needed for PET bottles, detergents,

released sawing machines. With the new machine, it is now

chemical fibers, and other products. The chemical industry,

possible to cut thin-wall pipes (down to a minimum thickness ofwhich uses these carriers, is currently experiencing a boom,

0.5 mm) without causing defects or deformation. Furthermore,with a projected outlook for continuing growth. We cancompared to conventional models, we also succeeded intherefore expect an expansion in demand and are making

improving production efficiency and have made it possible toplans to boost production capacity for our catalyst carriers

markedly shorten cutting time. We have garnered praise fromwith the aim of expanding sales. In addition, we will continue

the automotive industry, which has been processing moreworking to develop new next-generation catalyst carriers.

­thin-wall pipes recently to meet demand for lighter vehicles.

Indian Garden, one of the sets from the Hearth Collection

3

Released the Hearth Collectionof Dinner Sets
for the Indian Market

tipped circular sawing machine that cuts thin-wall pipes used in

Noritake Garden’s Craft Center and Noritake Museum

4

The automatic guide system

Began Multilingual Support for the Automatic Guide
System at the Noritake Garden’s Craft CenterWe began offering multilingual support for the automatic guide system at the

We released a collection of dinner sets geared

Craft Center in the Noritake Garden (Nishi-ku, Nagoya). The center provides

toward average households in India and aligned

visitors with an overview of the processes for manufacturing bone china.

with their needs. India’s economy continues to

We have installed visual display panels for each of the processes to provide

steadily grow, even compared to other emerging

explanations with audio and video. We originally only offered support for two

nations, and its purchasing power is rising inlanguages: audio in Japanese and subtitles in English. However, to appeal totandem. In addition, the country maintains aa broader range of foreign visitors, especially the recently growing segment

tradition of living in large families, which meansfrom Asia, we have expanded support to a total of four languages: audio andwe can expect demand to increase going

subtitles in Japanese, English, Chinese, and Korean.

­forward. We opened a showroom in our

Visitors can use the automatic guide system by touching the multilingual­distributor in Delhi in September 2017display on the monitor near an exhibit, selecting the desired language for theand are currently working to bolster sales.

audio and subtitles, and watching the accompanying video. In addition,­visitors with smartphones can scan the QR code on the sign next to themonitor to enjoy the audio and video on their own device. Looking ahead,
Noritake Garden will continue working to enhance support for visitors fromoverseas, as well as those from the local neighborhood.

Noritake Co., Limited

Annual Report 2018

9

R

ESEARCH & DEVELOPMENT

R&D for New Products
R&D Expenditure

The Research and Development Center acts as the central organ of(Millions of yen)
2,797

the Noritake Group’s R&D activities.
2,443

2,491
2,491

The center is involved in basic research but also carries out thecommercialization of projects, as well as product development for
new technologies and new fields, in collaboration with eachbusiness division and Group company.
The R&D expenditures of the Noritake Group amounted to¥2,491 million in the fiscal year under review.

’16

’17

’18

Ceramics&
amics&s&&
Materials
erialsIn electronic materials, the Ceramics & Materials segment is

Industrial
Products

developing insulating and electrode pastes mainly for

To respond to expanding sectors and market changes,

chemical plants. We also continued to develop “°C Monarc”,

Noritake has been focusing its efforts on strengthening its

a ceramic core used in precision casting that featuresdevelopment capabilities by relying on basic technologies

superior heat resistance. The development of thick-film,

and developing differentiated products. Noritake ismultilayer substrates for LEDs has proceeded from the R&D

augmenting the development of ecologically friendly tools

stage to the launch of mass production.

in such growth areas as magnetic materials for automotives

ceramic substrates used in LEDs, electrode pastes for
touch panels, and electrode pastes for electronic
components installed in smartphones and tablet PCs.
In ceramics, we developed and promoted the ongoing
marketing of high performance ceramic catalyst carriers for

KCM Corporation is advancing the development ofand LEDs. In the transportation equipment field (which

particulate material compounds for use in the growth field

includes automobiles, railways and aircraft) and also in theof multilayer ceramic capacitors, zirconium materials andmedical field, we are promoting the development of higher

materials used in fuel cells.

performance, lower-cost products with the aim ofaddressing market changes.
The R&D expenditures in the Industrial Products
segment amounted to ¥498 million in the fiscal year underreview.

10

In VFD tubes and VFD module products, we are currently
developing VFD message displays, mainly used in stores,
information and reception displays in public places,and disaster-related wireless systems.
The R&D expenditures in this segment were ¥1,290 million.

NORITAKE CO., LIMITED

Annual Report 2018and Technologies
The Development & Engineering Group engages in development operations with a basic policy of focusing oncommercialization. Specifically, to achieve its development goals, the Group will enhance basic technologies and work
hard to strengthen elemental technologies, which are the most important. In addition, Noritake actively promotes joint
R&D and technological exchanges with outside companies, universities and research institutions as it works toestablish a system that can rapidly develop differentiated technologies. As for development projects, we built upon ourelemental technology for porous ceramics to develop ultrafine bubble generator materials. In addition, we are working
on developing grinding tools for semiconductors and fuel cell materials.
Core basic R&D expenditures totaled ¥608 million.

Engineering
The Engineering segment conducts research into
products and equipment for future growth fields that
include energy, electronics and automotive products.
The R&D expenditures in this segment amounted to¥19 million.

Tabletop
The Tabletop segment continues to work to develop new
decorating technology and materials related to tableware.
The R&D expenditures in this segment totaled ¥73 million.

NORITAKE CO., LIMITED

Annual Report 201811

C

ORPORATE GOVERNANCE(1) CORPORATE GOVERNANCE STRUCTURE(ii) Reasons for applying corporate governance system(i) Overview of corporate governance structureWith the advancing globalization of business, the effects ofcorporate activities are being held to increasingly strict standards of corporate social responsibility. Each Group executive
and employee is heir to the spirit of Noritake’s founder, on
which basis the Noritake Group Statement of Corporate Ethics
was formulated. In observing and putting that statement into
practice, they apply this corporate governance structure to
realize a Noritake Group with even higher standards ofcorporate ethics.

Comprising its corporate governance structure, Noritake has
positioned the Board of Directors as the body that decides onimportant matters, including the management’s basic policy
and those stipulated by the law. Noritake has also introduced
an executive officer system to clarify executive responsibilities
and to delegate authority with the objective of further reinforcing
the execution of business based on decisions made by the
Board of Directors. Having executive officers involved in business operations come on board, the Board of Directors meets,in principle, once a month to ensure uniformity of understanding
across the entire Group. Furthermore, such matters as surplus
dividends and items stipulated in Article 459-1 of the Company
Law are addressed as matters for resolution by the Board of
Directors, unless otherwise stipulated by law, with the aim ofbeing able to flexibly return profits to shareholders.
With regard to important management matters, Noritake has
established a structure to realize quick, accurate decisionmaking after careful deliberation at the Executive Council,
which meets weekly, in principle.
Directors are elected at the Company’s Annual General
Meeting of Shareholders, which is attended by at least onethird of the shareholders with exercisable voting rights, and after
a majority of said voting rights is obtained, although not by
cumulative voting. Noritake limits the number of directors to 18.
The tenure of directors at Noritake and the Group has been set
at one year. The purpose of this system is to make possible theactive building of a management structure optimally suited to
today’s turbulent business environment and to clarify
management responsibilities anew with each fiscal year.
In accordance with Article 426-1 of the Company Law,
Noritake decided that it would be able to exempt directors andAudit & Supervisory Board Members (including former directors
and Audit & Supervisory Board Members) by Board of
Directors’ meeting resolution, from liabilities for damages
incurred as a result of the execution of their duties, within thelimit of laws and regulations, with the aim of having them fully
perform the roles expected of them.
Noritake aims to affect smooth operations by reducing thequorum necessary for extraordinary resolutions at the General
Meeting of Shareholders. Resolutions proposed for approval at
the Company’s Annual General Meeting of Shareholders,in accordance with the provisions of Article 309-2 of theCompany Law, must be ratified by a two-thirds majority vote ofshareholders in attendance whose total voting rights accountfor one-third or more of all exercisable voting rights.
Although the establishment of other governance structures(e.g. “company with committees” and “company with aSupervisory & Audit Committee”) is recognized, Noritake
decided to use the Audit & Supervisory Board system.
12(iii) Status of internal control system upgrades
Since fiscal 2008, the Noritake Group has been working tobuild and maintain a framework in which it forms project-based
structures, advances the documentation of adherence to rules
and operational processes, and addresses the systemization ofinternal controls related to financial reporting. Furthermore, withregard to the stipulation of internal control rules, and the statusof their maintenance and implementation, Noritake conducts
monitoring from the perspective of the risk of material
misstatements related to financial reporting, among othermeasures, as it strives to preserve and improve its internal
control system.
Through the Compliance Committee and the activities of
persons appointed to have compliance responsibilities under
the committee’s authority, the Company is working to bolster
its internal controls system from the compliance standpoint.
Furthermore, at the Board of Directors’ meeting held on
May 12, 2015, Noritake resolved to revise its basic policy on
establishing an internal controls system. The main revisions
were to adopt clear, concrete terms in describing the system toensure the appropriateness of the Group’s operations and audit
system, in line with a reassessment of the Group’s current
needs, as well as revisions to laws and regulations.
(iv) Status of risk management system upgrades
Strengthening the ongoing compliance structure of the Group
as a whole, Noritake works to maintain risk management systems
to prevent the Group from entering into a crisis situation due tomisconduct associated with the violation of the law.
Should the Group be faced with any risk that might damage
its corporate value, such as a case of misconduct, an accident
or disaster, “Risk Management Regulations” have beenformulated to minimize losses and to enable operations tocontinue with minimal disruption. In the event that a crisis does
arise, a task force will be established in immediate response.
(v) Status of system to ensure the appropriateness ofoperations at subsidiaries
To ensure the appropriateness of operations at its subsidiaries,
the Company is taking measures to ensure legal and regulatorycompliance through the activities of the Compliance
Committee, as well as by promoting awareness of and
NORITAKE CO., LIMITED

Annual Report 2018

compliance with the Noritake Group Statement of Corporate
Ethics. In addition, the Company has established internal
controls and works to ensure the appropriateness of financial
reporting by, for example, continually monitoring the adequacy
and implementation of these internal controls.

(2) STATUS OF INTERNAL AUDITS AND
AUDITS BY AUDIT & SUPERVISORY BOARD
MEMBERS AND INDEPENDENT AUDITORSThe Audit Office (five employees) serves as the Company’s
internal audit department and implements operational andaccounting audits. Audit results are reported to the divisional
head and the general manager in charge of business
operations, and, in the event that any significant problems are
identified, the Audit Office is required to notify the Executive
Council.
The Audit & Supervisory Board is composed of two full-time
Audit & Supervisory Board Members and two outside Audit &Supervisory Board Members. Besides stipulating such matters
as audit guidelines and the division of duties, the Audit &Supervisory Board receives reports from each Audit &Supervisory Board Member providing the actual audit status
and results, and expedites the flow of information between the
Board of Directors and the Audit Office. In addition to working
to gather information, Audit & Supervisory Board Members
attend meetings of the Board of Directors and Executive
Council as well as other important meetings, where they receive
status reports on the execution of executives’ duties and ask
for explanations when the need arises. Furthermore, the Audit &Supervisory Board, in addition to confirming that Noritake’s
accounting auditors maintain their independence andimplement the appropriate audits, receives status reports fromthe accounting auditors on the execution of duties and requests
explanations when the need arises.
The Audit Office works in close collaboration with Audit &Supervisory Board Members and accounting auditors tomaintain the effectiveness of internal audit implementation.
As established by contractual ties, Noritake’s independent
auditor is KPMG AZSA LLC, 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 KPMG AZSA LLC wereas follows:• Specified employees and managing partners
CPA Yasushi Yokoi
CPA Hiroyuki Okuya
CPA Satoshi Zengame• Assistants
22 CPAs and 20 others

NORITAKE CO., LIMITED

Annual Report 2018(3) OUTSIDE DIRECTORS AND
AUDIT & SUPERVISORY BOARD MEMBERS
Noritake has two outside directors and two outside Audit &Supervisory Board Members.
No personal, capital or business relationships or otherconflicts of interest exist between the Company and its outside
Audit & Supervisory Board Members Ryuichi Murata andTatsuhiko Saruwatari, and its outside directors Kosaku Yamada
and Tetsuo Komori, respectively. Tetsuo Komori owns 1,000
shares of Noritake, but this is not deemed to present a conflictof interest.
The outside directors bring a wealth of experience and broad
insight regarding business management. They were brought onboard to provide thorough counsel on matters spanning theentire business to the Board of Directors in an effort to strengthen
oversight and increase transparency in the decision-making
process.
Furthermore, the outside Audit & Supervisory Board Members
reflect their wealth of experience and broad insight as businessadministrators in Noritake audits.
When outside directors oversee business operations or when
the outside Audit & Supervisory Board Members conduct operational audits, they may conduct internal and corporate audits asneeded in addition to collaborating with accounting auditors andthe internal control department through such means as theappropriate sharing of information and exchange of opinions.
Together with the two full-time Audit & Supervisory Board
Members, the outside Audit & Supervisory Board Members aremandated to audit the directors in the execution of their duties
and the operations and assets of Noritake and its subsidiaries.
In addition, the outside Audit & Supervisory Board Members
conduct audits based on reports received from the independentaccounting auditors regarding the Company’s consolidated
financial statements. In addition, working closely with the Audit
Office, the outside Audit & Supervisory Board Members
contribute to efficient internal audits.
The Company appoints outside directors and Audit &Supervisory Board Members with the expectation that they will
perform their oversight duties and audits in an appropriate andobjective manner based on their specialized knowledge.
Although the Company’s rules and regulations do not stipulate
the independence of outside directors and Audit & Supervisory
Board Members, we appoint them in line with our basic
philosophy that they have no conflict of interest with ordinary
shareholders.
The Company concludes limitation of liability contracts witheach outside director and Audit & Supervisory Board Member
in accordance with the provisions of Article 423-1 of theCompany Law. As such, the maximum amount of liability
stipulated by the aforementioned contracts is the minimum
amount determined by law.
13

With regard to management and decision-making functions
as well as its Board of Directors, which fulfills the management
oversight function in terms of the business execution of its
directors, Noritake strengthens management oversight byhaving two of four Audit & Supervisory Board Members fromoutside the Company. In corporate governance, Noritake
places the utmost importance on external, objective and neutral
management oversight functions. The external management
oversight function is adequately performed by the system thatis in place with the two outside Audit & Supervisory Board
Members. Noritake has appointed two outside directors tofurther secure the oversight function of the Board of Directors
as well as ensure transparency in the decision-making process.

(4) COMPENSATION TO DIRECTORS AND
AUDIT & SUPERVISORY BOARD MEMBERS

The performance-based stock compensation is decided
based on the rules regarding the issuance of shares and inaccordance with such factors as the achievement of mediumto long-term corporate performance targets, within the limit
approved by the meeting of shareholders.
Furthermore, outside directors only receive fixed monthly
compensation in consideration of the role they play insupervising management from an independent position.
Audit & Supervisory Board Members only receive fixedmonthly compensation decided by deliberations of the Audit &Supervisory Board Members within the limit approved by themeeting of shareholders.*2
Notes: 1. At the 109th Annual General Meeting of Shareholders, which was held on
June 28, 1990, the decision was taken to limit Noritake’s total executive
compensation to ¥40 million or less per month for directors.
2. At the 109th Annual General Meeting of Shareholders, which was held on
June 28, 1990, the decision was taken to limit Noritake’s total executive
compensation to ¥6 million or less per month for Audit & Supervisory Board
Members.

(i) Total executive compensation by executive officer
category, total compensation by type, and number ofofficers eligible
Executive
Officer
Category

Compensation Total Compensation by Type
Amount(Millions of yen)
(Millions of yen)
Basic
Stock
Compensation Options

Directors (excl.
outside director)

329

Audit & Supervisory
Board Members(excl. outside Audit& Supervisory
Board Members)

40

Outside directors
and Audit &Supervisory Board
Members

36

246

40

36

—

—

—

No. ofOfficers
Eligible

Bonus

Performancebased stockcompensation

—

—

—

83

—

—

(i) Details of independent auditor compensation, etc.
Category
76

2. Performance-based stock compensation is the amount recorded as an
expense for the fiscal year ended March 31, 2018, based on the resolution to
introduce a performance-based stock compensation system for directors andother officers that was passed at the 135th Annual General Meeting of
Shareholders held on June 29, 2016.

(ii) Policy details and decision-making processwith regard to executive compensationand its methods of calculation
The compensation of the Company’s directors comprises fixedmonthly compensation and performance-based stockcompensation.
After hearing the opinions of the outside directors and Audit& Supervisory Board Members, the representative directors
determine the appropriate amounts of fixed monthly
compensation by executive officer category within the limit*1
approved by the meeting of shareholders. These amounts arethen finalized at the Board of Directors’ meeting.

Previous Consolidated
Accounting Year

Consolidated Accounting
Year under Review

Compensation
Compensation
Compensation
Compensation
Based on Audit
Based on Non- Based on Audit
Based on NonCertification Services Auditing Services Certification Services Auditing Services(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

3

Notes: 1. The figures above include compensation for two directors and one Audit &Supervisory Board Member who retired upon the conclusion of the 136th
Annual General Meeting of Shareholders, which was held on June 29, 2017.

14(5) DETAILS OF COMPENSATIONPAID TO INDEPENDENT AUDITOR, ETC.

Parent company

70

—

70

2

Consolidated
subsidiary

17

—

17

—

Total

87

—

87

2

(ii) Other significant details regarding compensation
Noritake Co., Inc., a Noritake subsidiary, paid compensation
based on audit certification services of ¥9 million to KPMG LLP,
which belongs to the same corporate network as theCompany’s independent auditor, in the consolidated accounting
year under review. In the previous consolidated accounting
year, the amount for such services had totaled ¥8 million.
(iii) Details of non-auditing services provided to
the Company by the independent auditor
In the year ended March 31, 2018, the non-auditing services
provided by the independent auditor and for which compensation was paid were financial due diligence activities. In the year
ended March 31, 2017, there were no relevant 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 the special characteristics of Noritake’s size andoperational characteristics.

NORITAKE CO., LIMITED

Annual Report 2018

C

ONSOLIDATED FINANCIAL REVIEWSCOPE OF CONSOLIDATION
Composed of 24 subsidiaries and 7 associates,
the Noritake Group is engaged in the
manufacture and sale of products in fourbusiness segments—Industrial Products,
Ceramics & Materials, Engineering, andTabletop—as well as the provision of services
related to these segments.

INDUSTRIAL PRODUCTS SEGMENT
In the Industrial Products Segment, grinding
wheel manufacturing and fabrication are
performed by five subsidiaries and two
associates in addition to the Company, while
diamond tool manufacturing is undertaken by
one subsidiary in addition to the Company.
Coated abrasives are produced by thesubsidiary Noritake Coated Abrasive Co., Ltd.
and one associate; a portion of these items aresupplied to the Company.
In addition to the sales activities of theCompany and one subsidiary in Japan andoverseas, the Industrial Products Segment’s
domestic sales are handled by Zen Noritake
Co., Ltd. and one other subsidiary. The U.S.based Noritake Co., Inc. and three othersubsidiaries undertake sales in overseas
markets. Noritake Coated Abrasive Co., Ltd.
conducts direct sales of most of its own
products both in Japan and overseas.

CERAMICS & MATERIALS SEGMENT
In the Ceramics & Materials Group,
manufacturing of electronic paste and thick film
circuit substrates is conducted by theCompany. Such activities are bolstered by P.T.
Noritake Indonesia along with one subsidiaryand one associate. VFD tubes are produced
and supplied to the Company by the subsidiary
Noritake Itron Corporation. In addition, thesubsidiary KCM Corporation and its
subsidiaries produce ceramic raw materials, a
portion of which are supplied to the Company.
In addition to the Company’s own sales
activities for electronic paste and other ceramic
products of the Ceramics & Materials Group,sales activities for VFD tubes and related products, both domestic and overseas, are mainly
conducted by the integrated manufacturing
and sales subsidiary Noritake Itron Corporation.

NORITAKE CO., LIMITED

Annual Report 2018

In addition, the U.S.-based Noritake Co.,
Inc. and three other subsidiaries conduct sales
for the Ceramics & Materials Group in overseas
markets. KCM Corporation undertakes direct
sales of most of its own products both in Japanand overseas.

Net Sales &Overseas Sales Ratio
Net sales (Millions of yen)Overseas sales ratio (%)
117,928
109,631108,808

37.8

39.1

38.8

’16

’17

’18

Moreover, the Company’s associate,
Kuraray Noritake Dental Inc., engages in the
manufacture and sale of dental-related
products.

ENGINEERING SEGMENT
In the Engineering Segment, the Company
manufactures segment products. Various typesof industrial furnaces are produced andsupplied to the Company by the subsidiary
Noritake TCF Co., Ltd. The Company’s
Taiwanese subsidiary Noritake Taipei Co., Ltd.
manufactures and supplies static mixers to theCompany.
Sales activities in Japan and overseas areundertaken by the Company and one of its
subsidiaries. In addition, the U.S.-based
Noritake Co., Inc. and another subsidiaryconduct sales for the Engineering Segment inoverseas markets

Ordinary Income
Ordinary income (Millions of yen)

6,992

4,780

4,861

’16

’17

TABLETOP SEGMENT
In the Tabletop Segment, in addition to theCompany’s production activities, porcelaintableware is manufactured by Noritake Lanka
Porcelain (Private) Limited located in Sri Lanka
and one associate, which is supplied to theCompany.
The Company conducts sales for the
Tabletop Segment in domestic and overseas
markets. In addition, the U.S.-based Noritake
Co., Inc. and three other subsidiaries undertake
sales in overseas markets.
Service operations in other areas arehandled by Noritake Garden Co., Limited andone associate.

’18

Profit Attributable to
Owners of the Parent &Net Income Ratio
Profit Attributable to Ownersof the Parent (Millions of yen)
Net income ratio (%)
13,432

11.4

4,413

4,107

4.0

3.8

’16

’17

’18

15

Net Income per Share(Yen)

935.57307.3’17

FINANCIAL POLICIESConsolidated net sales rose ¥9,119 million, or8.4%, year on year to ¥117,928 million.

The Noritake Group, in principle, funds general
operations and capital expenditures throughinternal reserves and borrowings or the issue ofcorporate bonds. In particular, working capitalfor general operations is provided by short-termborrowings 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 to a basic policy of procuring operating
funds themselves in their respective local
currencies.

Ordinary income increased ¥2,130 million
from the previous fiscal year to ¥6,992 million
mostly due to increased net sales.
Extraordinary income totaled ¥10,779
million, with gain on sales of fixed assets
amounting to ¥10,624 million. Extraordinary
losses came to ¥1,584 million, with impairment
loss totaling ¥839 million.

286.1

’16

PERFORMANCE ANALYSIS’18

The Company conducted a reverse
stock split at a ratio of one share forevery ten shares on October 1,2016.
Figures for net income per share arepresented on the assumption that theCompany conducted the reverse
stock split at the beginning of the
fiscal 2016 (April 1, 2015).

As a result of the aforementioned, profit
before income taxes for the fiscal year underreview amounted to ¥16,187 million. Afteraccounting for income taxes and non-controlling interests, profit attributable to owners of theparent totaled ¥13,432 million.
Additionally, net income per share increased
to ¥935.57 and the return on equity rose from
5.1% in the previous consolidated fiscal year to
14.6%.

Total Assets

CASH FLOW ANALYSIS(Millions of yen)

As of March 31, 2018, cash and cash
equivalents stood at ¥16,087 million, a year on
year increase of ¥7,177 million. For the year,
negative free cash flows amounted to ¥18,153
million.

156,459
135,932

142,362

Net cash provided by operating activities
increased ¥555 million year on year to ¥9,684
million. Operating cash flow improved as werecorded ¥16,187 million in profit before
income taxes.

’16

’17

’18

Net cash provided by investing activities
totaled ¥8,468 million compared with net cashused in investing activities of ¥2,546 million in
the previous fiscal year. Factors included¥12,921 million in proceeds from sales of property, plant and equipment and intangible assetsthat offset ¥4,349 million in purchase of property, plant and equipment and intangible assets.
Net cash used in financing activities
increased ¥5,081 million year on year to¥11,056 million. Cash flows used in financing
worsened due to repayments of borrowings
leading to a decrease of ¥6,101 million in shortterm borrowings and ¥3,946 million in longterm borrowings in addition to dividend
payments of ¥877 million.

16

As of March 31, 2018, the balance of shortterm borrowings totaled ¥3,597 million, most ofwhich is denominated in yen, with theremainder in two other currencies. Noritake, in
principle, uses its internal reserves for capital
expenditures and other long-term investmentswith a portion covered by long-term debt. As of
March 31, 2018, the balance of unsecured
long-term loans amounted to ¥9,516 million,
most of which is denominated in yen, with theremainder in one other currency.

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

NORITAKE CO., LIMITED

Annual Report 2018

Exchange Rate Fluctuation Risk

Technology-Related Risk

The export ratios of the Ceramics & Materials
Group and the Tabletop Group are high incomparison to Noritake’s other businesssegments. Accordingly, unfavorable trends incurrency exchange rates—more specifically,

The Noritake Group is increasingly concentrating its management resources in such growthfields as the electronics, semiconductor andenergy industries. These industries are characterized by the rapid pace of their technologicalinnovation and dynamic demand fluctuations,which cause participants to experience technology and product obsolescence at shorter
intervals than other industries. Accordingly, inthe event that any of the Noritake’s main products becomes obsolete, or Noritake fails tolaunch new products in a timely manner, its
business performance and financial position
may be negatively affected.

the yen’s rapid appreciation—may negatively
impact the performance of these businesssegments, and, consequently, the entire
Company’s performance and financial position,
despite the Company’s best efforts to minimize
risk through forward exchange contracts andother measures.
Disaster Risk
With business bases in Japan and overseas,
the Noritake Group is taking steps to build up
an effective disaster management system by,for example, setting up relevant guidelines,
rules and procedures. In the event that thesebusiness bases, particularly manufacturingbases, are damaged by earthquake, fire orother disaster, their operations may have to besuspended for a certain period of time, and thiswould adversely affect Noritake’s businessperformance and financial position.

Risks and factors that could have adverse
effects on the Noritake Group’s businessperformance and financial position are notlimited to those described above. The analysis
of risks is based on information available to theCompany’s management as of March 31,
2018.

Capital Ratio
(%)

63.7
56.5

’16

’17

’18

Return on Equity
(%)

14.6

5.7

Overseas Risk

5.1

The Noritake Group is actively promoting
overseas operations. Deteriorations in public
safety and security, coupled with changes inpolitical conditions, in one of the countries
where Noritake operates may restrict theCompany’s operations. In particular, in the caseof war, civil disturbance, terrorist attack and thelike, the Company’s operations may have to besuspended for a certain period of time. Should
this be the case, the Noritake Group’s businessperformance and financial position may be
negatively impacted.

NORITAKE CO., LIMITED

59.0

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’17

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REPORT OF INDEPENDENT AUDITORS56

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NORITAKE CO., LIMITED

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57

OVERSEAS NETWORKMEMBERS OF THE BOARD, AUDIT &SUPERVISORY BOARD MEMBERS
AND EXECUTIVE OFFICERS(As of June 26, 2018)(As of June 26, 2018)

INDUSTRIAL PRODUCTS GROUPNORITAKE CO., INC.
4990 ALLIANCE DRIVE, MASON, OH 45040, U.S.A.
Tel: 1-513-234-0770(ATLANTA BRANCH)
490 SUN VALLEY DRIVE, SUITE #102, ROSWELL,
GA 300076 U.S.A.
Tel: 1-770-518-8233
NORITAKE EUROPA GmbHKURHESSENSTRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-44
NORITAKE SHANGHAI TRADING CO., LTD.
ROOM 701 AETNA TOWER NO. 107,ZUN YI ROAD, CHANG NING DISTRICT,SHANGHAI, 200051, CHINA
Tel: 86-21-6237-5667( GUANGZHOU BRANCH)
2510, GOLDLION DIGITAL NETWORK CENTER,
138 TIYU ROAD EAST,GUANGZHOU 510620, CHINA
Tel: 86-20-3877-2253( DALIAN BRANCH)
22K, INTERNATIONAL FINANCE BUILDING, No.15
RENMIN ROAD ZHONGSHAN DIST DALIAN
116001, CHINA
Tel: 86-411-825-06065
NORITAKE ABRASIVES (SUZHOU) CO., LTD.
688 TAISHAN ROAD, NEW AREA OF SUZHOU,SUZHOU 215129, CHINA
Tel: 86-512-6672-6682
NORITAKE SA (THAILAND) CO., LTD.
NO.56 MOO7, NONGPLAKRADI ROAD,NONGPLING, NONGKHAE, SARABURI, 18140,
THAILAND
Tel: 66-36-373085( BANGKOK OFFICE )222 VORAVIT BUILDING 9TH FL., UNIT B
SURAWONG ROAD, SIPRAYA, BANGRAK,BANGKOK 10500, THAILAND
Tel: 66-2-235-1688
DIA RESIBON (THAILAND) CO., LTD.
1/1 MOO 5, ROJANA INDUSTRIAL PARK,ZONE E. TAMBOL U-THAI AMPHUR U-THAI,AYUTTHAYA 13210, THAILAND
Tel: 66-35-741-660-5
SIAM COATED ABRASIVE CO., LTD.
AMATA CITY INDUSTRIAL ESTATE 7-126 MOO 4,
T. MABYANGPORN, A. PLUAKDAENG,RAYONG 21140, THAILAND
Tel: 66-3-865-0150

NORITAKE SCG PLASTER CO., LTD.
NO. 32 MOO 7 NONGPLAKRADI ROAD,NONGPLING, NONGKHAE,SARABURI, 18140, THAILAND
Tel: 66-36-373578
PT. NORITAKE INDONESIABLOK A-II NO. 9A, KAWASAN BERIKAT,
KOTA BUKIT INDAH, PURWAKARTA 41181,
JAWA BARAT, INDONESIA
Tel: 62-264-351311
NORITAKE CO., LIMITED( TAIPEI OFFICE )7F-2, NO.46, CHUNG SHAN N. ROAD, SEC. 2,
TAIPEI 104, TAIWAN, R.O.C.
Tel: 886-2-2511-7500
ITRON (U.K.) LIMITEDVANTAGE HOUSE, HARFREYS ROAD,
HARFREYS INDUSTRIAL ESTATE,GREAT YARMOUTH, NORFOLK, NR31 0LS,
UNITED KINGDOM
Tel: 44-1493-601144

Tadashi Ogura
PRESIDENT &REPRESENTATIVE DIRECTOR
Hiroshi Kato
VICE PRESIDENT &DIRECTOR
Hisaya Ogura
DIRECTORS
Kozo Kato
Akira Higashiyama

ENGINEERING GROUPDIRECTORS (Outside)

NORITAKE CO., INC.
2635 CLEARBROOK DRIVE,
ARLINGTON HEIGHTS, IL 60005, U.S.A.
Tel: 1-847-439-9020

Kosaku Yamada
Tetsuo Komori

NORITAKE TAIPEI CO., LTD.
NO. 37 ALLEY 105, LANE 514,
JUNG JENG ROAD, XINZHUANG DISTRICT,NEW TAIPEI CITY 242, TAIWAN, R.O.C.
Tel: 886-2-2907-1221
TABLETOP GROUPNORITAKE CO., INC.
15-22 FAIR LAWN AVENUE,
FAIR LAWN, NJ 07410, U.S.A.
Tel: 1-201-796-2222
NORITAKE EUROPA GmbHKURHESSENSTRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-18
NORITAKE LANKA PORCELAIN ( PRIVATE )LIMITEDWARAKAMURA, MATALE, SRI LANKA
Tel: 94-66-2244130( NORITAKE CITY STORE )CERAMICS & MATERIALS GROUPNORITAKE CO., INC.
2635 CLEARBROOK DRIVE,
ARLINGTON HEIGHTS, IL 60005, U.S.A.
Tel: 1-847-439-9020

NORITAKE (AUSTRALIA) PTY LTD.
UNIT 4, 153 BEAUCHAMP ROAD,
MATRAVILLE, N.S.W. 2036, AUSTRALIA
Tel: 61-2-9316-7123( NEW JERSEY BRANCH)NORITAKE SHANGHAI TRADING CO., LTD.
ROOM 701 AETNA TOWER NO. 107,ZUN YI ROAD, CHANG NING DISTRICT,SHANGHAI, 200051, CHINA
Tel: 86-21-6237-5789( LOS ANGELES BRANCH)CHAIRMAN &REPRESENTATIVE DIRECTORNORITAKE EUROPA GmbHKURHESSENSTRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-0

77, DHARMAPALA MAWATHA,COLOMBO 7, SRI LANKA
Tel: 94-11-2301334

15-22 FAIR LAWN AVENUE, FAIR LAWN,
NJ 07410, U.S.A.
Tel: 1-201-475-5200

MEMBERS OF THE BOARD

AUDIT & SUPERVISORY
BOARD MEMBERS
Satoshi Aoki
Naoyuki Shiraishi
Ryuichi Murata
Tatsuhiko Saruwatari
EXECUTIVE OFFICERS
Hiroshi Kato*
Hisaya Ogura*
Kozo Kato*
Kenichi Horaguchi
Akira Higashiyama*
Koji Sato
Shuji Shite
Kenji Ito
Seiya Ogata
Seiji Ishida
Akira Nagata
Masahiko Horie
Hiroshi Yorita
Yuko Fuma* Also hold the position of director

21081 SOUTH WESTERN AVENUE,SUITE 180 TORRANCE, CA 90501, U.S.A.
Tel: 1-310-320-1700
58

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Annual Report 2018

C O R P O R AT E D AT A

H I S T O RY O F N O R I TA K E(As of June 26, 2018)(As of June 26, 2018)

HEAD OFFICE1876 Ichizaemon Morimura established3-1-36, Noritake-Shinmachi
Nishi-ku, Nagoya, Aichi
451-8501, Japan
Tel: +81-52-561-7111
Fax: +81-52-561-9721

DATE OF ESTABLISHMENT
January 1904

Morimura-kumi in Tokyo, and Toyo
Morimura and others establishedthe Hinode Shokai (Morimura Brothers)
in New York1995 Established Pt. Noritake Indonesia
1997 Established Itron (U.K.) Ltd. inin-house use

1914 Succeeded in production of the first

NUMBER OF EMPLOYEES

become TOTO Ltd.

5,012 (Consolidated)

Established Nippon Toki Co., Ltd.

1919 Electric insulator division spun off tobecome NGK Insulators Ltd.

1932 Began production of first bone china

Nagoya Stock Exchange

in Japan1939 Began full-scale production of industrial
ADMINISTRATOR OF SHAREHOLDERREGISTRY
Mitsubishi UFJ Trust and Banking
Corporation
4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

grinding wheels

1943 Tableware production stopped on
account of World War II, changed to fullproduction of grinding wheels(only bone china production continued
to preserve technique)1945 Production of tableware resumed

100-8212, Japan

1947 Established Noritake Co., Inc. in
the United States

ANNUAL MEETING OF
SHAREHOLDERS
The annual meeting of shareholders of theCompany is normally held in June each year
in Nagoya, Japan.

extraordinary meeting of shareholders

the United Kingdom

2002 Established Noritake Bonded
Abrasive Co., Ltd.

2005 Established Noritake Shanghai Trading
Co., Ltd.

2009 Made Nippon Resibon Corporation its
associate by acquiring additional sharesof the stock of the company.
Absorbed Noritake Engineering Co.,
Ltd., Noritake China Mfg. Co., Limited,
Noritake Tableware Co., Ltd. and Tokyo
Toishi Co., Ltd.

2010 Absorbed Noritake Kizai Co., Ltd. and
Noritake Ceramics Co., Ltd.

2011 Absorbed Noritake Bonded Abrasive
Co., Ltd. and Noritake Super Abrasive
Co., Ltd.
Established Noritake SA (Thailand) Co.,
Ltd. in Thailand

2012 Made KCM Corporation its wholly-owned

1956 Began production of cutleryware

subsidiary via a stock swap

1958 Established Noritake (Australia) Pty. Ltd.

Established Noritake Abrasives (Suzhou)Co., Ltd. in China

in Australia

1960 Began production of resinoid grinding
wheels at the Kamori Plant

In addition, the Company may hold an

Taiwan1993 Opened the Noritake Gallery

1907 Began production of grinding wheels for1917 Sanitary ware division spun off toTokyo Stock Exchange

in Germany

1988 Established Noritake Taipei Co., Ltd. in

1904 Established Nippon Toki Gomei Kaisha

dinner set in Japan

STOCK EXCHANGE LISTINGS

1987 Established Noritake Europa G.m.b.H.

1961 Began production of crystal glassware

2014 Made Nippon Resibon Corporation its
consolidated subsidiary by acquiring
additional shares through a tender offer

Began production of melamine ware

whenever necessary by giving at least two

1962 Began production of grinding machines

weeks’ advance notice to shareholders.

1963 Began production of belt and

INDEPENDENT AUDITORS

1969 Began production of electronic products

fabric abrasives

1970 Began production of fine ceramic indus-

KPMG AZSA LLC

trial products

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

1973 Began production of diamond tools
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

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.

NORITAKE CO., LIMITED

Annual Report 201859

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