THK-C1+2+3+4 00.9.20 3:55 PM ページ 2

ANNUAL REPORT 1999

THK ANNUAL REPORT ’99

THK CO ., LTD .

THK-C1+2+3+4 00.9.20 5:46 PM ページ 3

PROFILEIn April 1971, Hiroshi Teramachi (currently THK’s Senior
Advisor) founded Toho Seiko Co., Ltd. in Meguro Ward, Tokyo.
The following year, the Company successfully developed amethod for linear motion (LM) with rolling contact, and began
producing and marketing LM guides, splines and other products
utilizing this new technology. In 1977, Toho Seiko began the
manufacture and sale of ball screws from its newly acquired
Kofu Plant.
The following years saw rapid growth in domestic sales andcorresponding expansion overseas, as marketing capabilities
were established in the United States and West Germany in1981 and 1982, respectively. Reemerging in 1984 as THKCo., Ltd., the Company moved to expand production andmarketing capabilities and create a leading position in LM
guides through a string of activities, including construction of aplant in Yamaguchi, acquisition of plants, investments inrelated companies and establishment of a network of marketingbases.
THK shares began trading on the over-the-counter market inNovember 1989. Building on this momentum, management
launched its next-generation Global 10 21 strategy aimed atremaking THK as a global corporation for the 21st century
through steady expansion of its international production andmarketing network. Results have included a new plant inYamagata, acquisition of a ball screw production company in
the United Kingdom, establishment of a joint venture for ballscrew production in China, and in 1997, launch of a full-scale
LM guide manufacturing company in the United States.
In new products, THK succeeded in development of a nextgeneration LM guide with Caged Ball TechnologyTM in 1996.

CONTENTS
1 CONSOLIDATED FINANCIAL HIGHLIGHTS
2 MESSAGE FROM THE CEO
4 GLOBAL 10 21
6 REVIEW OF OPERATIONS
8 PRODUCTS
12 GLOBAL ACTIVITIES
14 RESEARCH & DEVELOPMENT
15 FINANCIAL SECTION
35 NETWORK
36 CORPORATE DATA
37 BOARD OF DIRECTORS

P
代

A
寺

D
取

S
馬

1971年4月に東京都目黒区において現最高顧問である寺町博が東邦精工株式会社を設立し、翌年直線運動軸受のころがり案内化に成功しＬＭガイド、スプラ
イン等の生産・販売を開始する。1977年甲府工場買収を経てボールねじ製造販

K

売開始、その後国内売上の急成長と共に海外売上も拡大し、1981年米国、1982

武

年西独に海外販売体制を確立する。1984年商号をＴＨＫ株式会社に変更し、以降山口工場新設、工場買収、資本参加および販売拠点の設立により国内生産・販売体制の確立を推進し、直動システムの主導的地位を築く。1989年11月株式店頭公開を果たし、これを機にＴＨＫの次期戦略として「グローバル10 21」を

S
常

A
杉

掲げ、21世紀には世界的企業を実現するための国際的生産・販売体制構築に着手し山形工場新設、英国ボールねじ生産現法買収、中国合弁ボールねじ生産現法の設立を経て、1997年米国にＬＭガイドの本格的生産現法を設立した。また、製品面では1996年次世代型リテーナ入りＬＭガイドの開発に成功し、現在に至る。

A
監

K
遊

(

THK-P1-14 00.9.20 11:54 AM ページ 2

CONSOLIDATED FINANCIAL HIGHLIGHTS

Millions of Yen

NET SALES

Thousands of U.S. Dollars

1997

1998

1999

1999

¥108,007¥122,815¥ 95,006$ 788,105

18,26722,896

11,38594,442

3,024

5,288

4,016

33,314

221,481

222,258

194,385

1,612,484

73,962

79,367

78,242649,042

売上高
OPERATING INCOME

営業利益
NET INCOME

当期利益
TOTAL ASSETS

総資産
TOTAL SHAREHOLDERS’ EQUITY

純資産
Yen

¥ 25.70

NET INCOME PER SHARE

U.S. Dollars¥ 44.93¥ 34.51$0.286

一株当たり当期利益
Note : For convenience only, U.S. dollar amounts in this report have been converted from yen at the rate of ¥120.55=US$1, the approximate rate of exchange prevailing on March 31, 1999.

NET SALESNET INCOME

NET INCOME PER SHARE

売上高

当期利益

一株当たり当期利益

96

97(Millions of Yen

95

百万円)

98

99

96

97

(Millions of Yen

95

百万円)

98

THK ANNUAL REPORT ’99

99

95
(Yen

1

円)

96

97

98

99

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MESSAGE FROM THE CEO

FUNDAMENTAL POLICY FOR THE CURRENT TERM

I believe that we lose our competitiveness when we stop changing—pretending that we can continue
the conventional way or believing that the way of the past is the only way.
With this in mind, we established the following three points as the basis of our fundamental policy
for reform:
1) Reform means disregarding past successes
2) Reform begins with action
3) Reform requires everyone’s involvement
TO BECOME A TRUE GLOBAL PLAYER

THK’s management slogan is Global 10 21 (or Ten Nijuichi as it is pronounced at THK). This means
achieving growth in the 21st century by becoming one of the world’s top ten manufacturers of essentialmachinery components, and then working to solidify our position. However, it also means that for
THK to become a true global player, reform and greater management efforts are essential. Disregarding
previous successes, coolly and accurately analyzing the operating environment and implementing

今年度の基本方針変化に対し「昔から続いている」とか「昔からあたりまえ」と、変化の波を避けた時、私達は競争から落伍してしまいます。
この状況を踏まえ、今年度の基本方針として「変革」をテーマに三つの心得を設定しました。
1)変革は過去の成功を捨てることである。
2)変革は行動することから全てが始まる。
3)変革は一人一人がやらなければならない。

真のグローバル企業になるために

ＴＨＫは経営スローガンとして「グローバル10 21(グローバル テン にじゅういち)」を掲げています。このスローガンは、
21世紀には機械要素部品メーカーとして世界のトップ10に数えられる企業に成長し、その地位を固めよう という私達の決意を表したものです。しかし、もう一方で、ＴＨＫが真のグローバル企業になるためには、今まで以上の経営努力と変革が必要であるとの意味合いも含まれています。つまりは、過去の成功体験を捨て、ＴＨＫの置かれている現状を冷静かつ正確に認識し、将来の発展のための変革が必要不可欠なのです。ＴＨＫは常に変革し続ける企業でありたいと考えています。

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reforms for future business growth are crucial.
We see THK as a company of continuous
innovation.
STRATEGY FOR INCREASING CORPORATE VALUE

THK is a company focused on creation anddevelopment, providing customers with newmechanisms based on or ig inal ideas andtechnology. The core of THK is this policy
sustained by continuous efforts in research anddevelopment. We will concentrate on increasing
corporate value by maintaining this fundamental
stance while promoting such dynamic areas asglobalization and consumer market development.

企業価値の増大を目指して

ＴＨＫは独創的な発想と独自の技術により世にない新しいメカニズムを提案してゆく創造開発型企業であり、たゆまぬ研究開発に支えられたこの姿勢こそＴＨＫの事業基盤であると言えます。私は、これからもこの基本姿勢を貫いていくとともに、グローバル展開や民生分野への進出などの積極経営を推し進め、企業価値の増大を目指していきます。

AKIHIRO TERAMACHI, President and CEO

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GLOBAL 10 21

GLOBAL 10 21

EXPANDING GLOBAL BUSINESSGLOBAL
10 21

Global 10 21 (or Ten Nijuichi as it is pronounced at THK) is about growing into one of theworld’s top ten manufacturers of essential machinery components during the first 15 years of the
21st century, and then working to solidify this position.
The origin of this long-term target dates back to 1989, when shares of THK first began
trading on the over-the-counter market. At that time, we developed a concrete vision of what
we needed to do become a global corporation in the ten years before the 21st century. As such,
this long-term target embodies our renewed efforts for reform.
The combined English-Japanese pronunciation of Global 10 21 reflects management’s
conviction that amid advancing globalization, in addition to clarifying the identity of Japan,
mutual collaboration with countries overseas is essential. Subsequently, English and Japanese
pronunciations are used together in companies throughout the THK Group, including overseas
subsidiaries.

Although overseas sales currently account for 30% of THK Group net sales, penetration of THK
products in overseas markets is unsatisfactory. With overseas markets far larger in scale than theJapanese market, THK has set a target of up to 70% overseas sales as a percentage of Group net
sales.
In addition to strengthening our overseas marketing network, we are simultaneously
building a network of overseas production bases. THK Manufacturing of America, Inc. wasestablished in 1997 in Ohio, U.S.A., and has rapidly built up its production capabilities. THK is
examining the possibility of further production bases in Europe.

『グローバル10 21(テン にじゅういち)』とは21世紀初頭（2015年頃）には機械要素部品メーカーの中で世界の十指に数えられる企業に成長し、その地位を固めようという当社のスローガンです。

この言葉は、ＴＨＫが1989年に店頭市場に公開した際に掲げたものであり、21世紀までの10年で世界企業となるために何をしなければならないか、ということが非常に重要であるとの認識に立ち、変革に取り組む
姿勢を新たにしたという意味も含めています。

「10 21」を テン にじゅういち と発音するのは、グローバル化を進めていく中で、日本という国をしっかりと位置づけ、日本と海外の有機的な融合を図っていかなければならないとの思いを込め、ＴＨＫグル
ープ全体、海外現地法人に至るまで、あえて英語と日本語で発音することにしたのです。
グローバルなビジネス展開

現在、グループ全体の海外売上比率は30％に過ぎず、海外市場における普及があまり進んでいないのが現状です。日本国内に比べてはるかに大きい海外市場において積極的、かつ速やかにビジネス領域を拡大していくことが大命題であり、将来的に海外売上比率を70％にまで引き上げることを目標としています。

海外での販売体制の拡充を進める一方、現地生産拠点の整備についても並行して進めています。1997年設立の米国オハイオ州のTHK Manufacturing of America, Inc.は、急ピッチで生産体制を整えつつあり、また欧州における生産拠点の検討も着々と進めています。

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THK-P1-14 00.9.20 11:55 AM ページ 6

CULTIVATING NEW MARKETS

THK’s products are used in such industries as machine tools, industrial robots and semiconductor
manufacturing equipment. However, we believe that achieving Global 10 21 is impossible if we restrict oursales to capital investment-related industries alone. As such, we have concentrated on cultivating new markets.
Convinced that potential demand in such consumer products fields as kitchen systems and automatic homefurniture systems accounts for trillions of yen, we carried out aggressive PR activities in Japan and overseas—infact all around the world—targeting main industries and industries with special characteristics in each country.
The result has been a steady expansion of our business base.
PROGRESS WITH REFORM

A large variety of reform programs are under way as part of companywide efforts to reach management goals.
TAP (THK Advantage Program)
TAP 1 (begun April 1998)
Establish a strong management system for Sales Division; improve the capabilities of each member ofthe sales staff
TAP 2 (begun 1997, reinforced and relaunched August 1998)
Establish production system that can respond to change
TAP 3 (Scheduled to begin 1999)
Create administrative functions to support Sales and Production Divisions
In addition, we are promoting a wide variety of reforms with such programs as CRP(Cost Reduction
Program), for improving cost control and enhancing cost-awareness; Q(Quality)-project for ensuring quality;
and the financial strategy project. These projects are all showing results. One of the goals of these reforms is
embodied in the concept “THK—a Group of self-driven employees.” Through this program, we aim to makeeach of our employees a lively and self-sustaining force at THK.

新市場開拓

THK製品は、主に工作機械、産業用ロボット、半導体製造装置等に使われていますが、THKでは、早くから設備産業主体の販売にとどまっていたのでは『グローバル10 21』の達成はあり得ないと考え、新分野の開拓に目を向けてまいりました。
民生品を含む新市場の潜在需要を数兆円規模と考えており、日本国内・海外を問わず全世界において、その国で特徴的で、かつ強い産業へのピーアールを積極的に展開し、着実にすそ野を拡げてきました。
変革の推進

このような目標を実現するために全社で取り組んでいるものに、各種変革活動があります。
ＴＡＰ（THK Advantage Program）活動の推進
ＴＡＰ１（98年４月スタート）−営業部門のマネジメントシステムの定着と営業マン個々人の能力の向上
ＴＡＰ２（97年スタート、98年８月より一層の強化、推進）−変化に対応できる生産の仕組みの確立
ＴＡＰ３（99年スタート予定）−販売、生産部門に対する管理部門の支援態勢の構築
その他にも原価管理体制の確立と原価意識の高揚を目的としたＣＲＰ(Cost Reduction Program)や、品質の作り込みのためのＱ(Quality)プロジェクトや財務戦略プロジェクト等、多方面において変革活動を推進しており、それぞれ着実に成果をあげています。これらの変革活動の目的の一つには、 自活した社員の集団 ＴＨＫ があり、ＴＨＫに関わる社員一人一人が、自活し、活き活きとしたものとなれるようプログラムされています。

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THK-P1-14 00.9.20 11:55 AM ページ 7

REVIEW OF OPERATIONSOVERSEAS SALES ANDSHARE OF NET SALES
海外売上高・海外売上高比率

29.8
25.8

26.7

23.0
19.7

32,74528,34027,83923,03914,222

96

97(%)(Millions of Yen

95

百万円)

98

99

OPERATING INCOME AND
PERCENTAGE OF NET SALES
営業利益・営業利益率

18.6
16.9

22,896
9.7

4.9

12.0

18,267
11,385

9,724

3,539
96

97

(%)
(Millions of Yen

95

百万円)

98

99

REVIE
OF
OPERA

Consolidated net sales for the fiscal year ended March 31, 1999, decreased 22.6%
to ¥95,006 million (US$788.1 million). Demand for THK products contracted as
private investment in Japan declined amid a general feeling of excess capacity,and major customers in capital investment-related industries cut back on
production after a rapid strengthening of the yen in the second half of the term.
Overseas, although sales in Europe grew robustly on the back of strong
economic fundamentals, demand for THK products fell in Asia, chiefly due to a
prolonged recession caused by the regional currency crises and financial turmoil,
and sluggish export activity in the U.S. manufacturing industry resulting from thisrecession.
Demand for the Company’s mainstay LM guides and ball screws was stagnant
due to controls on capital investment and adjustments to production output inthe semiconductor manufacturing device and machine tool industries. In
addition, readjusted production output in the robotics, automotive and transport
equipment-related industries led to a drop in demand for conventional bearings.
Although sales declined substantially from the previous term, the Company’sefforts to promote TAP (THK Advantage Program) resulted in reduced costs in
production, sales and distribution. Consequently, the increase in cost of sales as apercentage of net sales was held to 1.7 percentage points, from 66.1% to 67.8%.
We believe this represents a move towards comparatively smaller increases in cost

営業概況
NET SALESBY GEOGRAPHICAL SEGMENT
地域別売上高構成比

1999年3月31日に終了した当会計年度の連結売上高は前期に比較して22.6％減の950億6百万円となりました。国内においては設備過剰感の高まりから民間設備投資が大幅に減少した
ことや下期より急激に円高に転じた為替の影響により主力ユーザーが減産を強化したため、

1.2

当社製品の需要も大幅に落ち込みました。海外におきましては、欧州においては総じて底

12.0

堅い経済情勢に支えられ順調に売上を伸ばしたものの、通貨・金融危機に端を発した経済

12.3

不況が依然続く東南アジア諸国や、その影響を受けて輸出の低迷する米国の製造業におけ74.5

る当社製品の需要は減少を余儀なくされました。
主力製品であるＬＭガイドおよび送りねじ類につきましては半導体製造装置業界、工作機械業界等の生産調整ならびに設備投資の抑制により、また、特殊軸受についてもロボッ

(%)

日本

Japan

ト業界、自動車およびその他輸送機器関連の生産調整に伴い総じて需要が低迷しました。

America

米国

一方、損益の状況につきましては、売上高が前期に比較して大幅に落ち込んだものの、Europe欧州

ＴＡＰ（THK Advantage Program）活動の推進により、生産コスト、販売・物流コストの

Asia

アジアその他削減に努め、売上原価率は前期の66.1％から当期は67.8％と、比較的少ない上昇率に抑えることが出来たものと考えます。しかしながら売上高減少の影響は大きく、営業利益は前期

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CAPITAL EXPENDITURESEWF
RATIONS
設備投資額

7,076

5,664

of sales. However, the substantial impact of slumping sales resulted in a 50.3%
decline in operating income to ¥11,385 million (US$94.4 million) and a 43.1%
decrease in income before income taxes to ¥7,698 million (US$63.8 million).
Net income fell 24.1% to ¥4,016 million (US$33.3 million).
On a non-consolidated basis, the Company posted a net loss of ¥10,411
million (US$86.3 million) for the fiscal year ended March 31, 1999, as a result ofa ¥13,603 million (US$112.8 million) extraordinary loss due to a write-down inshares of an affiliated company. However, on a consolidated basis, the shares ofthis affiliate had already been valued in accordance with equity per share.
Consequently, the non-consolidated write-down had no effect on consolidated
results.
VIEW FOR THE FUTURE

Amid the waves of change currently roiling industry, management cannot afford
even a slight delay in building a strong revenue base and financial structure. To
face these circumstances, the Company is planning aggressive development of
new products that meet environmental standards, while reorganizing its structure
to rapidly establish competitiveness in world marketing. With an accurate graspof user needs, THK is committed to providing products that satisfy customers,
and creating and expanding new demand.

比50.3％減の113億8千5百万円、経常利益は前期比43.1％減の76億9千8百万円、当期純利益は
前期比24.1％減の40億1千6百万円となりました。

3,895

96

97

(Millions of Yen

95

百万円)

4,687
3,911

98

99

DEPRECIATION AND AMORTISATION
減価償却費

5,488

5,385

5,281

95

96

97

(Millions of Yen

百万円)

5,480

5,450

98

99

R&D EXPENSES
研究開発費

なお、単独決算における当期純損益は、特別損失に関係会社株式評価損として136億3百万円を計上したことなどにより104億1千1百万円の当期純損失となっておりますが、評価損を1,096計上することとなった関係会社株式につきまして、過年度連結決算において既に1株あたり954の純資産額にて評価を行っており、当年度の連結決算には影響はございません。
680
520

今後の展望
325

様々な変革の波に晒されている現代において、より強固な事業基盤の構築を推進していくには一刻の猶予もありません。このような状況に対して、当社といたしましては、世界市場を視野に入れた競争力を早期に確立するために、機構改革・構築を計ると共に、環境対策に配慮した新製品の開発と、ユーザーニーズを的確に捉えた顧客満足の得られる製品
提供で、新しい需要の創造拡大に努めて参ります。

THK ANNUAL REPORT ’99

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96

97

(Millions of Yen

95

百万円)

98

99

THK-P1-14 00.9.20 11:55 AM ページ 9

PRODUCTSLM GUIDES
LMガイド

LM guides, the Company’s mainstay product, have led the world with originaltechnology enabling linear motion through rolling contact. Compared with previous
systems utilizing a sliding mechanism, THK’s LM guides possess numerous merits,
including:1) Compact size coupled with the ability to support large loads
2) Ability to realize systems with high positioning accuracy
3) Ease of assembly that reduces total cost
Since the development of LM Guides, these essential machinery components havebecome the core of the mechatronics industry and are widely used in such areas asmachine tools, industrial robots and manufacturing equipment for semiconductors andliquid crystals. In line with the increased demand for consumer products, LM guides
have also found other diverse uses, from Japan Railway limited-express carriages,
amusement facility machines and medical equipment like CT scanners, to earthquakeproofing systems in plants, condominiums and residential housing projects.
At an early stage, we began efforts to develop next-generation systems thatcomply with essential environmental policies, culminating in release of LM guides
with Caged Ball TechnologyTM in 1996, which dramatically enhanced LM guide
functions. To a degree previously impossible, ball cages eliminate friction between
balls and realize quiet operations. As they can run without lubrication devices, whichwere previously essential, the new LM guides with Caged Ball TechnologyTM can also
run for long periods with only initial greasing and without the need for frequent
maintenance.
As an essential product for user and environmentally friendly devices, LM guides
with Caged Ball TechnologyTM have elicited a strong response from a variety of areas.
We continue to upgrade this product with new series released annually.

THKが独創技術により世界に先駆けて直線運動のころがり化を実現したＬＭガイドは、従来のすべりによる直線案内機構に比べて①コンパクトなサイズで、大きな荷重を受ける事が出来る。
②位置決め精度が高い装置を実現することが出来る。
③組立が容易で、トータルコストを削減することが出来る。
など多くのメリットがあり、開発以来メカトロニクス産業の中核を担う機械要素部品として、Ｎ
Ｃ工作機械、産業用ロボット、半導体・液晶製造装置等に幅広く使用されています。
近年民生品分野の需要も増え、ＪＲ各社の特急車両やアミューズメント機器、ＣＴスキャナ等の医療機器から、工場・マンションおよび戸建住宅用の免震装置など多方面で幅広く使用されています。
また次世代装置に不可欠な環境対策にも早くから取り組み、「ＬＭガイド」の性能を飛躍的に向上させた「ボールリテーナ入りＬＭガイド」を1996年に開発し発表しました。この製品は、ボールリテーナを組み込むことによりボール同士の摩擦を解消し、今までにない、音が静かで、かつ従来必要だった潤滑油供給装置を使用しなくても長期メンテナンスフリーを実現しました。
ボ−ルリテ−ナ入りＬＭガイドは、地球と人に優しい装置に不可欠な製品として、各方面から大きな反響を呼び、シリーズを毎年充実させています。
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BALL SCREWS
ボールねじ

The ball screw is a driving force transmission device that provides extremely smoothrolling motion through balls that, positioned between the screw shaft and the nut,
allow movement with rolling contact thus maintaining friction resistance to aminimum. With high transmission efficiency, ball screws are not only able to convert
rotary motion into linear motion, but can also convert linear motion into rotary
motion without difficulty. Like LM guides, this product is also used widely inmechatronics engineering systems, and has become an indispensable essential machinecomponent for precision positioning devices. Ball screws are used in a wide range ofindustries and contribute to enhanced capabilities for numerically controlled (NC)machine tools, industrial robots, manufacturing devices for semiconductors and liquid
crystals and a variety of automatic assembly machines and conveyance systems.
With an increasing number of companies obtaining ISO 14000 certification, we
believe that demand for efficient, energy-saving ball screws will also increase, due to
growing concern for the environment in 21st century and the emerging
environmental awareness of society.
Ball screws are divided into two broad categories based on differences in the levelof precision and manufacturing methods: precision (ground) ball screws and rolled ballscrews.

ボールねじは、ねじ軸とナットの間でボールがころがり運動するため、摩擦抵抗の少ない、極めて滑らかな回転運動が得られる駆動力伝達機器です。伝達効率の良いボールねじは、回転運動
を直線運動に変えるばかりでなく、直線運動を回転運動に変えることも容易に行えるため、先端メカトロニクス装置に多数採用されており、ＬＭガイド同様、精密位置決め装置には不可欠な機械要素部品となっています。
ボールねじも各種産業に幅広く採用されており、ＮＣ工作機械、産業用ロボット、各種組立自動機、搬送装置、半導体・液晶製造装置等の性能向上に貢献しています。
ISO14000認証取得企業が増えている現在、地球環境調和型社会を構築し、21世紀環境宣言をするために、効率がよく省エネルギーに貢献するボールねじの需要が増えています。
精度と製法の違いにより「精密（研削）ボールねじ」と「転造ボールねじ」に大別されます。

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9THK-P1-14 00.9.20 11:55 AM ページ 11

SPHERICAL JOINTS
各種球面ジョイント

Spherical joints are used for connecting components in a variety of link structures,
including construction machinery, automobiles, agricultural machinery, packing
equipment and food machinery, and a variety of rolling-support, parallel motion
structures. These products come in a variety of materials and formats depending on
their application.
Lightweight, highly durable, anticorrosive and resistant to abrasion, the Link Ballutilizes an original manufacturing process whereby the holder is formed by die castingaround a high-precision steel ball as the core. As a result, the spherical shape of theball replicates the holder, and full contact is achieved on the entire surface areas ofboth components. Due to the absence of a gap between these components, themotion is extremely smooth. Furthermore, because it permits lightweight structuralcomponents, there has been a surge in demand for Link Balls from both domestic andoverseas automotive manufacturers, which use the component in the hubs ofautomotive wheels.
In line with this increase in demand, we established a production base in the U.S.
state of Ohio, THK Manufacturing of America, to ensure supply of this product tooverseas automobile manufacturers and overseas subsidiaries of Japanese automobile
manufacturers. The facility has already begun deliveries.
In addition, to spark businesses targeting users of automobiles and other vehicles,
we created a special division, the Future Automotive Industry (FAI) Business Group.
The FAI Business Group not only carries out marketing activities but also provides
integrated coverage of the industry, from manufacturing and technology to
production and quality control.
The Link Ball is being positioned as an effective marketing tool for expanding
sales to the automotive industry.

建設機械、自動車、農業機械、包装機械、食品機械等の各種リンク機構や、回転支点、平行運動機構等の接続部に使用され、その用途により様々な材質や形状の製品があります。
軽量、高強度、耐食性、耐摩耗性に優れたリンクボ−ルは、高精度軸受鋼球をそのまま中子に用いてダイカスト鋳造でホルダを成形するという独特の製法により、鋼球の鏡面がホルダの球面部に転写されて互いに全面接触し、なめらかな動きを実現しています。また構成部品の軽量化が図れるため、自動車の足回り部品として国内外の自動車メーカーからの需要が急増しています。
それにともないまして、海外自動車メーカー、および日本の海外進出メーカーへの供給をまかなえるよう、米国オハイオ州コロンバスにＴＭＡ(THK Manufacturing of America, Inc.)を現地生
産拠点として設立し、既に納入を開始しています。また自動車等の車両関係ユーザーへのビジネ
スを軌道に乗せるべく、専門のＦＡＩ（Future Automotive Industry）事業部を組織し、営業活
動はもとより、製造、技術、生産、ならびに品質管理に至るまで一貫してカバーする態勢を整えました。
リンクボールは、車両関係への販売拡大を促進させる有効なセールスツールとしての位置づけを担っています。

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ACTUATORS
アクチュエータ

Actuators are mechatronics products that combine LM systems and motor regulating
devices into a single compact format. As a manufacturer of essential machinerycomponents, THK has worked to develop and commercialize LM guides and ballscrews, the main components of actuators. As such, the Company has used its
extensive experience to create a variety of actuators ranging from the compact to thelarge-scale, including a few designed specifically for customer needs.
These products cut down on labor for machine design and are easily assembled,
earning them a strong reputation among users. Although originally used inconveyance systems and assembly devices, with the development of compact, energysaving motors and multifunction regulating devices, and new combinations of ultarigid LM systems, actuators have recently been adopted for use in areas where
precision and sanitary operating conditions are required, such as manufacturing
devices for semiconductors and liquid crystals, inspection equipment and electronic
component mounting devices.
In addition, from the standpoint of energy-saving and environmental friendliness,
we continue to lead the mechatronics engineering field with development of new,original products. These include a new actuator that uses THK’s original LM guidewith Caged Ball TechnologyTM; the Super FA series, a low-cost model for a diverse
range of user needs; and the Linear Motor Actuator, which employs a linear motorand is attracting attention as a next-generation motor.

アクチュエータは直動システムとモータ制御機器等をコンパクトに一体化したメカトロニクス製品です。ＴＨＫは機械要素部品メーカーとして、アクチュエータを構成するＬＭガイドとボールねじを開発し製品化しているため、豊富な実績と経験からお客様に最適なアクチュエータを提供することが可能であり、「機械設計の手間が省ける」、「組み立てが簡素化出来る」とお客様より好評を頂いています。従来は主に搬送装置や組立装置で使用されてきましたが、近年の小型省エネルギーモータや多機能制御機器と剛性の高い直動システムとの組合せ等により、高精度でクリーンな作業を必要とする半導体・液晶製造装置や、検査装置、電子部品実装機等にも使用されるようになりました。
省エネルギー、環境保護の観点から、新製品「ボールリテーナ入りＬＭガイド」を採用した製品や、ユーザーニーズの多様化に合わせて、ローコストな「スーパーＦＡシリーズ」、次世代モータとして注目されているリニアモータを採用した「リニアモータアクチュエータ」等独自の新製品も開発し、メカトロニクス業界をリードしています。

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THK-P1-14 00.9.20 6:52 PM ページ 13

GLOBAL ACTIVITIESEUROPETHK G.m.b.H has been engaged in expanding sales of linear motion (LM) guides
in Europe since its establishment in 1982. By 1993, LM guides had become wellknown in the entire European market, and sales continue to expand today. In thesecircumstances, the company also has achieved steady growth in Europe. To meet代表取締役社長
寺町 俊博
the expanding market, the company established a branch office last year in thesuburbs of Stockholm, Sweden—the seventh sales office in Europe–and
subsequently opened an eighth branch in Linz, Austria, in May 1999. In addition, our new LM guides with Caged Ball
Technology TM are gaining strong recognition from European users for their exceptional capabilities. THK Europe willconcentrate on developing more for the future.
THK EUROPE B.V. / THK G.m.b.H
Toshihiro Teramachi, President

THK G.m.b.Hは1982年の設立以来欧州においてＬＭガイドの普及活動に努めて参りました。本格的な普及が始まったのは1993年頃からで、現在も欧州市場は成長を続けております。業容の拡大に伴い、欧州では7ヶ国目の拠点となるスウェーデン支店を98年末にストックホルム郊外に開設し、99年の5月にはリンツ市にオーストリア支店を開設しております。新製品のボールリテーナ入りＬＭガイドは、その卓越した性能を欧州ユーザーに認知されてきております。私は今後も欧州におけるＬＭガイド市場の拡大と、THK G.m.b.Hの更なる発展に努力いたします。

Since joining the THK Group in 1992, PGM has worked to establish a position asa world-class manufacturer of precision and rolled ball screws.
In response to increasingly advanced information technology, spreading
globalization and further integration of production technology, PGM works with代表取締役社長
鈴木 国隆
the parent company in Japan to strengthen its expertise in cost-saving, cutting-edge
technologies. In addition, all of our staff members are improving their minds, theorganization and its technology to provide customers with better quality, lower cost and faster delivery.
PGM BALLSCREWS LTD. / PGMBALLSCREWS IRELAND LTD.
Kunitaka Suzuki, President

1992年にＴＨＫグループ入りしたＰＧＭ社は、精密及び転造ボールねじにおいて世界レベルの専門メーカーの地位を確立すべく、欧州で頑張っております。
高度情報化、グローバル化、製品技術インテグレート化の時流の中で先進生産技術ノウハウの蓄積を強化し、お客様に「より良い品を、より安く、より早く」お届け出来るよう、社員一同「意識と組織と技術の変革」に邁進中です。

ASIA
Established in 1989 in Taipei, Taiwan, THK Taiwan markets LM systems throughits Taipei and Taichung Offices. The company supplies customers with THK LM
guides for manufacturing advanced machine tools. Contributing to the businessdevelopment of these customers provides our primary job satisfaction.
理事兼総経理藤野 延孝
In addition, THK LM guides contribute to Taiwan’s economic growth bysupporting the backbone of its technology-driven economy, including such highgrowth areas in the information equipment industry as semiconductor manufacturing equipment and computers.
THK TAIWAN CO., LTD.
Nobutaka Fujino, President

ＴＨＫ台湾は1989年に台北市に設立され、現在は台北事務所ならびに台中事務所においてＬＭシステムの販売を行っております。ＬＭガイドを採用されたお客様が最高水準の精密工作機械を製造し、その会社が発展される事が私達の喜びです。
今後、急成長が期待されている半導体製造装置およびコンピューターを中心とした情報機器産業に代表される技術立国台湾を裏で支え、更なる台湾経済の発展に貢献できるよう努力して参ります。

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THK-P1-14 00.9.20 6:52 PM ページ 14

Amid the breathtaking pace of economic development in China, the governmentled promotion of hi-tech industry has been especially striking. Founded in 1997,
Dalian THK produces precision ball screws that meet international quality
大連蒂業技凱瓦軸工業有限公司
standards—a highly valued feature in China. In the current growth market, these
董事兼総経理林田 哲也
products are expected to become increasingly competitive. Located in a region
with strong potential as both a new market and a production base, Dalian THK
takes full advantage of THK’s advanced technologies and unique properties.
DALIAN THK CO. LTD.
Tetsuya Hayashida, President

巷間で語られている以上に中国の先進化の速度は凄まじく、殊にハイテク製品の分野は中央政府の奨励もあってその様が顕著であります。この様な状況の中1997年設立された当社が現在手掛けている精密ボールねじは、中国国産品としては稀少な国際標準品質を備えたものであり、これを採用することで中国製品の競争力が今後益々高まるであろう、との期待から熱い注目を集めております。市場として、また生産拠点として共に大きな可能性を有するこの地で、ＴＨＫの先進技術と独創性は存分に発揮されつつあります。

AMERICATHK America, Inc., established in 1981, has positioned itself as a leader in the
promotion and application of LM systems. THK America’s innovative products,
strategies and efforts have resulted in rapid growth and expansion into wide anddiversified markets in North America.
代表取締役社長
山田 孝雄
THK’s products have contributed to advances in the industrial technology
industry and, since its beginning, to the industry’s economic growth. The company
will continue to aggressively promote and market its advanced technologies, and continue to be a driving force in automobiles,
machine tools, industrial robotics, semiconductor manufacturing equipment, medical equipment and electronically controlled
devices in a variety of other fields.
THK AMERICA, INC.
Takao Yamada, President

1981年に設立した当社は、アメリカ合衆国においてＬＭガイドの普及に努め主導的地位を確立しております。ＬＭガイドの販売を通じてアメリカの産業技術の向上に貢献してきたことは我々の誇りであり、今後も自動車設備、工作機械、産業用ロボット、半導体製造装置、医療機器などの分野で貢献できることを確信しております。

Established in 1997 in Ohio (U.S.A.) based on THK’s global strategy, TMA is thefirst LM guide manufacturing company to be located outside Japan. Currently
producing mainly LM guides and ball joints, the company plans to expand its
product lineup and build a new facility in two years. Japanese and American staff
work hard with a spirit of cooperation and a belief in business success.
TMA takes its role as a vanguard for global corporate success very seriously as
the Group’s production network expands steadily. The company will continue providing products and services that satisfy
customers the world over, and will make strong efforts to contribute to global development through its products.
THK HOLDINGS OF AMERICA,
L.L.C. / THK MANUFACTURING OF
AMERICA, INC.
Mikio Matsui, President
代表取締役社長
松井 幹夫

ＴＭＡは、1997年にＴＨＫがグローバル展開の中で初めてアメリカ（オハイオ州）に作った生産工場です。現在生産しているＬＭガイドとボー
ルジョイントを柱に、日米社員が協力しあい、夢を持って生産活動に励んでおりますが、今後は品種拡大と、２年後の工場の拡張を計画しております。ＴＨＫグループが海外生産拠点の拡充を目指す中で、当社がグローバル企業として成功する為の先陣の役割であることを肝に銘じ、今後も世界のお客様に満足して頂ける製品とサービスを提供し続け、ＴＨＫの製品が世界の発展へ寄与出来る様頑張って参ります。

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THK-P1-14 00.9.20 11:56 AM ページ 15

RESEARCH & DEVELOPMENT

Since its inception, THK has envisioned growth in mechatronics engineering
and worked aggressively in research and development of highly original, newtechnologies, chiefly in linear motion (LM) systems. We have the pioneer
spirit, and we have leveraged this spirit to gain numerous patents in Japan andoverseas, building a strong reputation as a world-leading company driven bycreative development. A tireless seeker, THK does not believe that productR&D is ever complete.
THK development follows the slogan “Stick to the principles, but apply
them in a bold and creative manner.” With an uncompromising design stancein product development, we plan to extend our product applications into avariety of fields, surpass the limits of established thinking and consistently takethe lead in the precision machinery industry.
Recently, we adopted the development concept, “Cubic E (Ecological,
Economical, Endless),” which has led to the development and launch of suchproducts as LM guides with Caged Ball Technology TM and the QZ
lubrication system.
R&D is also working to shorten the time it takes for development. We
are improving systems and processes to enhance speed with the ultimate goalof reducing by 50% the time that it takes us to develop new products—from
one year to six months.
The Engineering Department plans to continue promoting globalizationand to eventually realize concurrent engineering with corresponding
departments overseas. THK is committed to building a system for developing
better products and bringing those products to market faster.
Endless

Ecological

Maintenance

Recycling

Cubic E

Minimum Cost

Economical

THK Cubic E Concept
1. EcologicalHeartful technology for humankind
and the earth
2. Economical
Exceptional cost performance
3. EndlessHigh enduranceLong-life

NUMBER OF PATENTS AND UTILITY MODELS GRANTED OR PENDING• IN JAPANPatents granted: 247 Patents pending: 314
Utility models granted: 39 Utility models pending: 4• OVERSEAS
Patents granted: 420 Patents pending: 167(As of March 31, 1999)

ＴＨＫは、創業以来メカトロニクス分野の発展を予見し、「直動システム」を中心とする独創性の高い新技術の研究開発に積極的に取り組んでいます。そのパイオニアスピ
リッツは国内及び海外において多数獲得した特許権に結実し、世界でも類を見ない創造開発型企業として揺るぎない評価を得ています。
当社の開発理念は「基本原理に忠実に、応用は大胆かつ斬新に」であり、あくなき探求心に終わりはありません。妥協のない設計思想で開発されたTHK製品は、既成概念を超越することで、その応用分野を拡大しつつ、常に精密機械業界をリードしていきます。
近年は、『Cubic E (Ecological, Economical, Endless)』 の開発コンセプトに基づき、リテーナ入りLMガイド，ＱＺ潤滑装置などの製品を開発し市場に供給しています。
従来は１年だった開発期間を6カ月に半減することを目標に、仕組みや手法を改善しスピード化をはかります。
また、技術部門でのグローバル化についても推進し、海外技術部門とのコンカレント
エンジニアリングを実現してまいります。
特許・実用新案許可および申請中の件数
国内／特許許可＝247件
申請中＝314件
実用新案許可＝39件 申請中＝4件●海外／特許許可＝420件
申請中＝167件●

THK Cubic E 開発理念
1. エコロジカル→環境保全
2. エコノミカル→高付加価値
3. エンドレス→高寿命（1999年3月31日現在）

THK ANNUAL REPORT ’99

14

FINANCIAL SECTION

16 CONSOLIDATEDFINANCIAL REVIEW

18 CONSOLIDATEDBALANCE SHEETS

20 CONSOLIDATED STATEMENTS
OF INCOME

21 CONSOLIDATED STATEMENTS
OF SHAREHOLDERS’ EQUITY

22 CONSOLIDATED STATEMENTS
OF CASH FLOWS

23 NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

34 REPORT OF THE INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
ON THE CONSOLIDATED FINANCIAL
STATEMENTS

THK ANNUAL REPORT ’99

15

CONSOLIDATED FINANCIAL REVIEWOPERATING RESULTS

Net sales for the fiscal year ended March 31, 1999, declined 22.6% to ¥95,006
million (US$788.1 million). The primary cause of this decline was lower
TOTAL ASSETS

202,251 209,848

production in the capital investment-related industries, the Company’s main
source of demand, as capital investment plunged amid a slumping Japanese

221,481 222,258
194,385

economy. Sales in Japan (excluding export sales) were down 26.0% to ¥66,666
million (US$553.0 million). Overseas sales (including exports plus sales byoverseas consolidated subsidiaries) contracted 13.5% to ¥28,340 million (US$235.1
million) as economic turmoil in Asia resulted in a decrease in sales in that region,
and a resulting downturn in the United States manufacturing industry lowered
sales in the United States. However, amid continued promotion of the

95

96

97

98

99

Company’s Global 10 21 strategy for growth as a global corporation, overseas sales
as a percentage of net sales increased 3.2 percentage points to 29.8%.

(Millions of Yen)

Gross profit fell 26.5% to ¥30,563 million (US$253.5 million), reflecting lower
TOTAL SHAREHOLDERS’ EQUITY

net sales and a 1.7 percentage-point increase in the ratio of cost of sales to net sales
to 67.8%. Selling, general and administrative expenses rose 2.5% to ¥19,178

69,866

73,199 73,962

79,367 78,242

million (US$159.1 million). As a result, operating income contracted 50.3% to¥11,385 million (US$94.4 million).
Net non-operating losses declined 60.6% to ¥3,687 million (US$30.6 million).
Specifically, loss on sales of property and equipment, write-down of long-term
investment securities and interest expenses were substantially reduced, and bad
debts loss was eliminated. Retirement and severance payment to directors totaled¥1,323 million (US$11.0 million).

95

96

97

98

99

Income before income taxes fell 43.1% to ¥7,698 million (US$63.9 million).
Net income declined 24.1% to ¥4,016 million (US$33.3 million) and net income(Millions of Yen)

per share-fully diluted was ¥33.20.
EQUITY RATIOLIQUIDITY AND FINANCIAL RESOURCES

40.2
34.5

34.9

33.4

35.7

To ensure smooth execution of its reform strategies, THK worked at improving
its financial position in the fiscal year ended March 31, 1999.
Cash provided by operating activities surged from ¥20,903 million to ¥22,256
million (US$184.6 million). In addition to net income, main sources of cash
included a ¥15,392 million (US$127.7 million) decrease in receivables, a ¥5,792
million (US$48.0 million) increase in other current assets, and a decrease ininventories of ¥5,839 million (US$48.4 million). Depreciation and amortisation

95
(%)

96

97

98

99

contributed ¥6,930 million (US$57.5 million) to the Company’s cash base. Thesesources were offset to some degree by a ¥10,595 million (US$87.9 million)

THK ANNUAL REPORT ’99

16decrease in payables and a ¥4,156 million (US$34.5 million) decrease in income
taxes payable.
Cash used for investing activities climbed to ¥10,371 million (US$86.0
BOOK VALUE PER SHARE

million), due mainly to a ¥10,565 million (US$87.6 million) increase in securities

674.36 676.98
595.48622.94 628.43

loan and ¥4,830 million (US$40.0 million) for acquisition of property, plant andequipment.
Cash used for financing activities rose to ¥16,768 million (US$139.1 million).
Although the Company raised ¥13,000 million (US$107.8 million) with proceedsfrom issue of bonds and notes, and ¥7,715 million (US$64.0 million) inborrowings of long-term debt, repayment of long-term debt required ¥30,312
million (US$251.4 million). In addition, ¥3,359 million (US$27.9 million) was

95

96

97

98

99

used for retirement of treasury stocks and ¥1,752 million (US$14.5 million) went
toward payment of cash dividends.

(Yen)

As a result, cash and cash equivalents at end of year totaled ¥39,665 million
RATIO OF OPERATING INCOME/NET SALES(US$329.0 million), an 11.0% decline from previous fiscal-year end.
Total current assets decreased 18.6% to ¥133,329 million (US$1,106.0

16.7

million). Primary factors in this decrease were a 35.6% reduction of accounts and17.5

notes receivable to ¥27,876 million (US$231.2 million), a 12.8% decrease in
12.0

inventories to ¥39,771 million (US$329.9 million) and a 44.1% decline in shortterm loans to ¥11,873 million (US$98.5 million).

9.1

Investments and other remained relatively unchanged at ¥16,271 million
4.9(US$135.0 million). Property, plant and equipment edged down slightly to¥38,397 million (US$318.5 million).

95

96

97

98

99

Total assets decreased 12.5% to ¥194,385 million (US$1,612.5 million).
Total current liabilities decreased 43.8% to ¥52,916 million (US$439.0(%)

million). Primary factors driving this decrease were an 81.7% decline in current
maturities of long-term debt to ¥5,419 million (US$45.0 million) and a 38.3%

RETURN ON EQUITY

reduction in accounts and notes payable to ¥16,987 million (US$140.9 million).
As a result of these reductions, working capital increased 15.4% to ¥80,413

6.9

million (US$667.1 million) and the current ratio improved from 1.74 to 2.52.
5.2

5.1
4.1

Long-term debt increased to ¥61,994 million (US$514.3 million), mainly due
to an issuance of bonds and notes worth ¥13,000 million (US$107.8 million).
Total shareholders’ equity decreased 1.4% to ¥78,242 million (US$649.0
million), primarily as a result of cash dividends paid and a retirement of treasury
stock.

-5.3
95
(%)

96

97

98

99

The Company’s equity ratio improved 4.5 percentage points to 40.3%. Returnon assets was 1.9% and return on equity totaled 5.1%.

THK ANNUAL REPORT ’99

17

THK CO., LTD. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
31st March, 1998 and 1999

$ (thousands)(Note 4)31st March,¥ (millions)
31st March,
1998

1999

1999

ASSETS
Current Assets:Cash¥ 18,175¥ 10,953

Time deposits

14,29723,943

198,615

Short-term investment securities

12,076

4,769

39,560—10,56587,64038,43527,061

224,479

Securities loaned$

90,858

Accounts and notes receivable:
Trade
Unconsolidated subsidiaries and affiliates

1,602

60

498

Other

3,231

755

6,263

43,26827,876231,240

(666)

(424)

(3,517)42,602

27,452

227,723

45,61039,771

329,913

Unconsolidated subsidiaries and affiliates

3,688

—

—

Other

Less: allowance for bad debts
Inventories
Short-term loans

17,53911,87398,491

Deferred tax assets

3,351

2,287

18,971Other current assets

6,444

1,716

14,235

163,782

133,329

1,106,006

Long-term investment securities

8,589

7,136

59,195Investments in and advances to unconsolidated subsidiaries and affiliates

5,319

4,039

33,505

Total current assets
Investments and Other:

Other investments

2,316

5,096

42,273

16,224

16,271

134,973

19,10519,998

165,890
540,406

Property, Plant and Equipment:
Buildings and structures
Machinery and equipment
Less: accumulated depreciation
Land
Construction in progress
Deferred Charges and Intangibles
Adjustments on Foreign Currency Statement Translation
The accompanying notes are an integral part of the statements.

THK ANNUAL REPORT ’99

18

63,886

65,14682,99185,144706,296(53,411)(56,624)(469,714)

29,58028,520236,582

9,448

9,534

79,088

635

343

2,845

39,66338,397

318,515

2,589

5,467

45,350

—

921

7,640

¥222,258¥194,385$1,612,484

$ (thousands)(Note 4)31st March,¥ (millions)
31st March,
1998

1999

1999

¥ 23,220¥ 21,160$ 175,529

29,583

5,419

44,952Trade20,614

14,313

118,731

Unconsolidated subsidiaries and affiliates

3,674

249

2,065

Other

3,256

2,425

20,116

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent Liabilities:
Short-term bank loans
Current maturities of long-term debt
Accounts and notes payable:

27,544

16,987140,912

Income taxes payable

5,364

1,208

10,021

Accrued expenses

4,068

1,311

10,875

Other current liabilities

4,303

6,831

56,666

94,082

52,916438,955

47,481

61,994514,260

893

1,092

9,058

Adjustment on Foreign Currency Statement Translation

364

—

—

Minority Interests

71

141

1,169

Total current liabilities

Long-Term Debt

Accrued Employees’ Retirement Benefits

Contingent Liabilities (Note 5)

Shareholders’ Equity:
Common stock, par value ¥50 per share:
Authorised: 467,981,000 shares and 467,642,100 shares at 31st March,
1998 and 1999
Issued: 117,676,843 shares and 115,573,543 shares at 31st March,
19,394

19,394

160,879

Additional paid-in capital

1998 and 1999, respectively

29,22826,306218,217

Legal reserve

1,330

—

—

Retained earnings

29,41532,542

269,946

79,367

78,242649,042¥222,258¥194,385$1,612,484

Total shareholders’ equity(Note) Balance of legal reserve was combined to retained earnings at 31st March, 1999.
The accompanying notes are an integral part of the statements.

THK ANNUAL REPORT ’99

19

THK CO., LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
For the years ended 31st March, 1997, 1998 and 1999

$ (thousands)(Note 4)
For the year
ended
31st March,¥ (millions)
For the years ended
31st March,
1997

1998

1999

1999

Net Sales¥108,007¥122,815¥95,006$788,105

Cost of Sales

73,584

81,20864,443

534,575

34,423

41,60730,563

253,530

16,156

18,711

19,178159,088

18,26722,896

11,38594,442Gross profit
Selling, General and Administrative Expenses
Operating income
Non-Operating Income (Losses):
Interest and dividend income

1,178

1,281

1,008

8,362

Interest expenses(4,033)(3,656)(2,756)(22,862)

Gain (loss) on sales of short-term investment securities(3,253)

466

(139)

(1,153)Gain (loss) on sales of long-term investment securities

919

(230)

(112)

(929)

Write-down of short-term investment securities(1,283)

(415)

(352)

(2,920)

Write-down of long-term investment securities(5,623)(3,661)(648)(5,375)

(879)

—

—

—

18

(1,261)(168)(1,394)—(1,098)——(1,093)

(769)

1,295

10,742

(9)

3

(71)

(589)

1,590

—

—

—

Loss on early redemption of bondGain (loss) on sales of property and equipment
Bad debts loss
Foreign exchange gain (loss)
Minority interest in income (loss) of consolidated subsidiaries
Settlement of litigation
Loss on liquidation of non-consolidated subsidiaries

—

—

(241)

(1,999)Retirement and severance payments to directors——(1,323)(10,975)

Other, net
Income before income taxes
Income Taxes, Net
Equity in Gain (Loss) of Unconsolidated Subsidiaries and Affiliates
Net income

(830)

(20)

(180)

(1,493)(13,289)(9,360)(3,687)(30,585)

4,969

13,536

7,698

63,857

2,068

8,296

3,376

28,005

2,901

5,240

4,322

35,852

123

48

(306)

(2,538)¥ 3,024¥ 5,288¥ 4,016$ 33,314
U.S. dollars(Note 4)Yen

Per Share Data:
Net income—basic¥25.70¥44.93¥34.51$0.286

Net income—diluted¥25.21¥43.06¥33.20$0.275

117,693

117,685

116,625

Weighted average number of shares of common stock (in thousands)
The accompanying notes are an integral part of the statements.

THK ANNUAL REPORT ’99

20

THK CO., LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the years ended 31st March, 1997, 1998 and 1999

¥ (millions)

Balance at 31st March, 1996

Number ofshares ofcommon stock

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings¥ 23,596

117,692,504¥ 19,390¥ 29,224¥ 990

Net income for the year ended 31st March, 1997

—

—

—

—

3,024

Cash dividends

—

—

—

—

(1,589)Transfer to legal reserve

—

—

—

163

(163)

Bonus of the Company officers and auditors

—

—

—

—

(50)

Decrease due to change in scope of consolidation

—

—

—

—

(623)

117,692,504

19,39029,224

1,153

24,195

Balance at 31st March, 1997
Net income for the year ended 31st March, 1998

—

—

—

—

5,288

Cash dividends

—

—

—

—

(1,765)

Transfer to legal reserve
Exercise of warrants
Retirement of shares of common stock

—

—

—

177

(177)

3,339

4

4

—

—

(19,000)

—

—

—

(27)

Increase due to change accounting policy(adoption of deferred tax method)
Balance at 31st March, 1998

—

—

—

—

1,901

117,676,843

19,39429,2281,330

29,415

Net income for the year ended 31st March, 1999

—

—

—

—

4,016

Cash dividends

—

—

—

—

(1,752)

Transfer from legal reserve

—

—

—

(1,330)1,330

Bonus of the Company officers and auditors

—

—

—

—

(30)

Retirement of shares of common stock
Balance at 31st March, 1999

(2,103,300)—(2,922)

115,573,543¥ 19,394¥ 26,306

Number ofshares ofcommon stock

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

117,676,843$160,879$242,455$11,033$244,006

¥

—

(437)

—

¥ 32,542$ (thousands) (Note 4)

Balance at 31st March, 1998
Net income for the year ended 31st March, 1999

—

—

—

—

33,314

Cash dividends

—

—

—

—

(14,533)

Transfer from legal reserve

—

—

—

(11,033)

11,033

Bonus of the Company officers and auditors

—

—

—

—

(249)

Retirement of shares of common stock
Balance at 31st March, 1999

(2,103,300)—(24,238)

115,573,543$160,879$218,217(Note) Balance of legal reserve was combined to retained earnings at 31st March, 1999.
The accompanying notes are an integral part of the statements.

THK ANNUAL REPORT ’99

21

$

—

(3,625)—$269,946

THK CO., LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFor the years ended 31st March, 1997, 1998 and 1999

$ (thousands)(Note 4)
For the year
ended
31st March,¥ (millions)
For the years ended
31st March,

Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortisation
Provision for reserve for retirement benefits(Gain)/loss on sale/disposal of property and equipment
Write-down of long-term investment securities
Equity in net (income)/loss of affiliates
Changes in assets and liabilities:(Increase)/decrease in receivables
Decrease in inventories
Increase in other current assets
Increase/(decrease) in payables
Increase/(decrease) in income taxes payable
Increase/(decrease) in accrued expenses and other
Other, net
Cash provided by operating activities
Cash Flows from Investing Activities:
Increase in securities loan
Acquisition of property, plant and equipment
Proceeds from sales of property and equipment
Increase in deferred charges and intangibles(Increase)/decrease in short-term loans(Increase)/decrease in investments in securities(Increase)/decrease in investments and advances to subsidiaries
and affiliates(Increase)/decrease in other investments
Cash provided by/(used for) investing activities
Cash Flows from Financing Activities:
Proceeds from issue of bonds and notes
Borrowings of long-term debt
Repayment of long-term debt
Increase/(decrease) in short-term borrowings
Retirement of treasury stocks
Cash dividends
Cash provided by/(used for) financing activities
Changes in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
The accompanying notes are an integral part of the statements.

THK ANNUAL REPORT ’99

22

1997

1998

1999

1999

¥ 3,024¥ 5,288¥ 4,016$ 33,314

6,236
138
(18)
5,623
(123)

6,682
138
1,261
3,661
(47)

6,930
152
168
648
306

57,487
1,261
1,394
5,375
2,538

(2,365)54(2,597)(2,300)(1,550)
142
(219)
6,045

(1,637)2,339(6,005)
2,217
4,108
(5)
2,903
20,903

15,392
5,839
5,792(10,595)(4,156)(2,757)521
22,256

127,681
48,43648,047(87,889)(34,475)(22,870)
4,322
184,621—(8,370)346(2,232)(994)
13,414—(5,700)17(177)(7,776)
3,522(10,565)(4,830)728(3,945)
9,354
693(87,640)(40,066)
6,039(32,725)
77,594
5,748

(10)
190
2,344

714
1,782
(7,618)974(2,780)(10,371)

8,080(23,061)(86,031)25,5032,131(8,358)(5,693)—(1,589)11,994—
3,630(17,951)
3,572—(1,765)(12,514)

13,000
7,715(30,312)(2,060)(3,359)(1,752)(16,768)

107,839
63,998(251,448)(17,088)(27,864)(14,533)(139,096)

20,383771(4,883)(40,506)

23,394

43,77744,548369,540¥ 43,777¥ 44,548¥ 39,665$ 329,034

THK CO., LTD. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS– 1 – BASIS OF PRESENTING THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements have been prepared from the accounts maintained by THK CO., LTD.
(the “Company”) and its consolidated subsidiaries in accordance with accounting principles and practices generally accepted in
respective countries, which are different in certain respects as to application and disclosure requirements of International AccountingStandards.
The accompanying consolidated financial statements of the Company and its subsidiaries are essentially the translation of thoseincluded in the Securities Annual Report filed with the Ministry of Finance and the Stock Exchanges as required by the provisions of
the Securities and Exchange Law and related regulations in Japan.
Accordingly, the information disclosed in the accompanying consolidated financial statements is derived from the original text
and the scope and nature of the information is limited to those disclosed therein. However, certain reclassification or summarisation of
accounts have been made to present the consolidated financial statements in a form which is more familiar to foreign readers.
The consolidated financial statements are not intended to present the consolidated financial position, results of operations andcash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.
– 2 – PRINCIPLES OF CONSOLIDATION(1) Scope of Consolidation

The Company had 19 subsidiaries (majority-owned companies) as at 31st March, 1999 (20 as at 31st March, 1998). The
consolidated financial statements include the accounts of the Company and its 12 (11 for 1998) subsidiaries. The 12 major subsidiaries
which have been consolidated with the Company are listed below (the Company and these consolidated subsidiaries are together,referred to as the “Companies”):
Percentage
owned bythe Company(directly or
indirectly)

Name of subsidiary

THK Holdings of America, L.L.C. (USA)THK America, Inc. (USA)THK Manufacturing of America, Inc. (USA)THK G.m.b.H. (Germany)
THK International Finance (Amsterdam) B.V. (Netherland)
THK Europe B.V. (Netherland)
PGM Ballscrews Ltd. (UK)PGM Ballscrews Ireland Ltd. (Ireland)
THK International Finance (UK) Ltd. (UK)THK TAIWAN Co., Ltd.
THK Yasuda Co., Ltd. (Japan)
Talk System Co., Ltd. (Japan)
Beldex Corporation (Japan)

100%
100
100
100
100
100
100
98.97
100
94.99
70
98.33
94.73

The accounts of the remaining 7 (9 for 1998) unconsolidated subsidiaries are insignificant, meaning that these accounts have notbeen consolidated with the Company since combined assets, net sales, net income and retained earnings of these companies, in theaggregate, are not significant in relation to those of the Company.
(2) Elimination and Combination

For the purposes of preparing the consolidated financial statements of the Companies, all significant inter-company transactions,account balances and unrealised profits among the Companies have been entirely eliminated.
In elimination, any difference between the cost of an investment in a subsidiary and the amount of underlying equity in net
assets of the subsidiary is treated as an asset or a liability, as the case may be, and amortised over a period of five years on a straight-line

THK ANNUAL REPORT ’99

23basis. However, those differences have been charged to income in their entirety in the year they arose because such differences weredeemed immaterial.
For the year ended 31st March 1998, legal reserve of consolidated subsidiaries provided subsequent to the acquisition of such
subsidiaries by the Company is included in retained earnings and is not shown separately in the consolidated financial statements. Dueto the regulation change, the entire legal reserve has been transferred to retained earnings for the year ended 31st March 1999.
(3) Accounting for Investments in Unconsolidated Subsidiaries and Affiliates

The Company had 5 (5 for 1998) affiliates (meaning companies which are approximately 20% to 50% owned) at 31st March,
1999. The equity method is applied only to the investments in Daito Seiki Co., Ltd., since the investments in the unconsolidated
subsidiaries and remaining affiliates would not have material effect on consolidated net income and retained earnings in the
consolidated financial statements, had they been accounted for by the equity method.
Thus the investments in the unconsolidated subsidiaries and affiliates are carried at cost or less.
(4) Translation of Foreign Currency Financial Statements (Accounts of Overseas Subsidiaries)

The translations of foreign currency financial statements of overseas subsidiaries into yen for consolidation purposes are made by
applying the current exchange rate method. Under this method, all assets, liabilities, revenues, costs and expenses are translated into
yen at the exchange rate prevailing at the end of each fiscal year, and that the common stock and additional paid-in capital accounts
are translated at the historical rates.
In this connection, certain adjusting accounts must be set up in the balance sheets, to enable balancing of debit and credit totals
as well as the reconciliation of the beginning balance with the ending balance of retained earnings. Such adjusting balances are shownas “Adjustments on Foreign Currency Statement Translation” in the appropriate parts of the accompanying consolidated financial
statements.
– 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Inventory Valuation

Inventories held by the Company, THK Yasuda Co., Ltd. and Talk System Co., Ltd. are valued by the annual average cost
method. Inventories held by THK America, Inc., PGM Ballscrews Ltd. and PGM Ballscrews Ireland Ltd. are valued at the lower ofcost or market, cost being determined by the first-in first-out method. Inventories held by THK Europe B.V., THK G.m.b.H. and
THK TAIWAN Co., Ltd. are valued at the lower of cost or market, cost being determined by the moving-average method.
Inventories held by Belbex Corporation are valued by identified cost method.
(2) Valuation of Securities

Short-term investment securities (current portfolio) and long-term investment securities (non-current portfolio) listed on stock
exchanges are valued at the lower of cost or market, cost being determined by the moving average method.
Until the year ended 31st March 1997, securities in current and non-current portfolio without market quotations on stock
exchanges had been valued at the moving average cost.
During the year ended 31st March 1998, the Company changed the basis of securities valuation for securities with market
quotations on over-the-counter market and for investment trust with standard price from a “moving average cost method” into an“at the lower of moving average cost or market value method”. The change was made to state the carrying value of securities withmarket quotation held by the Company on a more conservative basis reflecting the decline in market value of such securities fromtheir acquisition cost. As a result of the change, income before income taxes was decreased by ¥2,790 million as compared with theamount which would have been reported if the previous method had been applied consistently.
Appropriate write-downs are recorded for unlisted securities the value of which declined substantially and such impairments ofthe value are considered not to be temporary.
(3) Property, Plant and Equipment

Depreciation is computed by the declining-balance method at rates based on the estimated useful lives of assets which areprescribed by the Japanese income tax laws. The range of useful lives is principally from 3 to 50 years for buildings and structures andfrom 2 to 20 years for machinery and equipment. However, buildings acquired after 1st April 1998 are depreciated by straight-line
method, and the Company also changed the estimated useful lives of buildings (except for ancillary facilities) in compliance withcertain amendments to the Corporation Tax Law made in 1998.

THK ANNUAL REPORT ’99

24Normal repairs and maintenance, including minor renewals and improvements, are charged to income as incurred.
(4) Amortisation

Amortisation of intangible assets (included in “Deferred Charges and Intangibles” account), is computed on the straight-line
method, over 5 to 15 years.
Research and development costs and debt security issue expenses are charged to income as incurred. Unamortized premium on
debt securities is amortized over the period of bond outstanding.
(5) Foreign Currency Translation

Revenue and expense items arising from the Company’s transactions denominated in foreign currencies are translated into
Japanese yen at approximate exchange rates prevailing when such transactions occur.
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the current exchange rates
prevailing at the respective balance sheet dates. Resulting translation gains or losses are included in the determination of net income
for the year.
In connection with the bonds with warrants denominated in foreign currencies, the difference between the amount translated at
the forward exchange contract rate and the amount translated at the historical exchange rate has been deferred and amortized over theperiod from the date when the forward exchange contract was made to the settlement date. During the years ended 31st March 1998
and 1999, ¥164 million and ¥164 million ($1,360 thousand) were amortized and netted against “Interest expenses” of “NonOperating Income (Losses)” in the accompanying non-consolidated statements of income, and the unamortized balance of deferredgains of ¥371 million and ¥207 millions ($1,717 thousand) are presented as “Other current liabilities” or “Other non-current
liabilities” in the accompanying non-consolidated balance sheets at 31st March 1998 and 1999, respectively.
(6) Income Taxes

Until the year ended 31st March 1997, income taxes had been provided based on the amounts required by the tax returns forthe year and no tax effect had been recorded for temporary differences in the recognition of certain revenue and expenses between
tax and financial reporting except for these of a certain consolidated overseas subsidiaries.
With effect from the year ended 31st March 1998, the Company and its consolidated subsidiaries have employed theinterperiod income tax method to specific timing difference items which have arisen due to elimination of inter-company
transactions/account balances and unrealised inter-company profits.
The change was made in order to achieve the better matching of periodic cost against revenue, because that the materiality ofinter-company transactions has increased and has been expected to increase.
As a result of the change, net income for the year ended 31st March 1998 and retained earnings as at 31st March 1998 wereincreased by ¥1,025 million and ¥2,926 million, respectively, as compared with the previous method. Also, the effect of the change tothe segment information has been described in Note 6 of the Notes to the Consolidated Financial Statements.
Income taxes applicable to a certain consolidated overseas subsidiaries are accounted for by the interperiod income tax allocation
method which is a common practice in the respective countries.
(7) Recognition of Certain Accrued Expenses

In general, the Company follows the accrual basis of accounting for all income and expense items. However, the Japanese tax
laws provide for a limit deductible for tax purposes with respect to certain accrued expenses which are essentially an estimate ofamounts to be determined in future years. The accrued expenses of the Company to which such limits applied under the laws are:accrued employees’ retirement benefits, accrued employees’ bonuses and allowance for bad debts. The Company generally records
such accrued expenses on a basis of financial reporting which is different from the basis of the tax laws. Allowance for bad debts isprovided at the estimated amount of uncollectible receivables on an individual basis at the balance sheet date as well as the amountusing the statutory percentage of outstanding receivables on the Japanese corporation tax law. The Company provided for accrued
employees’ retirement benefits based on tax regulations. The balance of the liability at 31st March 1998 and 1999 was the amountwhich would be required to be paid if all employees voluntarily terminated their employment at these dates.
(8) Net Income per Share

Net income per share is based upon the weighted average number of shares of common stock outstanding during each year, andadjusted for dilution (assuming conversion of convertible notes of the Company outstanding with related reduction in interest
expenses).

THK ANNUAL REPORT ’99

25

(9) Accounting for the Consumption Tax

Consumption tax is levied at the flat rate of 5% on all domestic consumption of goods and services (with certain exemptions).
The consumption tax withheld upon sale is not included in the amount of “net sales” in the accompanying non-consolidated
statements of income but is recorded as a liability. The consumption tax paid by the Company on the purchases of goods and services
is not included either in the amounts of costs or expenses in the non-consolidated statements of income, but is recorded as an asset
and the net balances of liability less asset is included in “other current liabilities” in the non-consolidated balance sheets.
(10) Accounting for Lease

Finance lease other than those which are deemed to transfer the ownership of the leased assets to lessees are accounted for by
the method similar to that applicable to ordinary operating leases.
(11) Reclassifications

Certain reclassifications have been made to previously reported 1997 and 1998 amounts to conform to the 1999 presentation.
These reclassifications had no effect on previously reported net income or total shareholders’ equity.
– 4 – UNITED STATES DOLLAR AMOUNTSThe Companies maintain their accounting records in yen. The dollar amounts included in the consolidated financial statements
and notes thereto represent the arithmetical results of translating yen to dollars on the basis of ¥120.55=U.S.$1, the rate of exchange
on 31st March, 1999. The inclusion of such dollar amounts is solely for convenience and is not intended to imply that yen amounts
have been or could be readily converted, realised or settled in dollars at ¥120.55=U.S.$1 or at any other rate.
– 5 – CONTINGENT LIABILITIESThe Companies were contingently liable for notes receivable discounted by banks in the ordinary course of business in an
aggregate amount of ¥6,380 million and ¥6,757 million ($56,051 thousand), outstanding as at 31st March, 1998 and 1999, respectively.
The Companies were also contingently liable for guarantees of loans and other debt made by its subsidiaries and affiliates at 31st
March, 1998 and 1999, as follows:$ (thousands)(Note 4)¥ (millions)
1998

1999

1999

Daito Seiki Co., Ltd.

¥—

¥ 990

$8,212

Nihon Slide Kogyo Co., Ltd.

—

158

1,311

Other

—

33

274

¥—

¥1,181$9,797

Debt of:– 6 – SEGMENT INFORMATION(1) Industry Segment Information

The sales, operating income and assets of the machinery parts segment are over 90% of total sales, total operating income andtotal assets of the Company and consolidated subsidiaries, industry segment information is not need to disclose. The Company andconsolidated subsidiaries operate in one industry segment, production and sales of linear motion systems.
(2) Geographical Segment Information

Net sales of the Companies for the years ended 31st March, 1997, 1998 and 1999, classified by geographic segments (inside andoutside Japan) are summarised as follows:

THK ANNUAL REPORT ’99

26

Year ended 31st March, 1997
¥ (millions)Eliminations andcorporate
assetsDomestic

Outside
Japan

Total

Consolidated

Customers¥ 85,697¥22,310¥108,007—¥108,007

Intersegment

11,922—

11,922(11,922)—

I. Net Sales and Operating Income (Loss)
Net Sales:
¥

Total

97,61922,310119,929(11,922)108,007

Operating Expenses

82,22819,323

101,551(11,811)89,740Operating Income¥ 15,391¥ 2,987¥ 18,378¥(111)¥ 18,267¥168,319¥21,136¥189,455¥ 32,026¥221,481

II. Assets
AssetsYear ended 31st March, 1998
¥ (millions)

Japan

America

EuropeAsia and
other

Total

Customers¥ 95,189¥15,811¥10,448¥1,367¥122,815Intersegment

16,9137

31—

Eliminations andcorporate
assetsConsolidated

I. Net Sales and Operating Income (Loss)
Net Sales:¥—¥122,815

16,951(16,951)—

Total

112,102

15,818

10,4791,367

139,766(16,951)

122,815

Operating Expenses

92,656

13,292

8,883

1,221

116,052(16,133)

99,919Operating Income¥ 19,446¥ 2,526¥ 1,596¥ 146¥ 23,714¥¥163,194¥11,897¥ 8,664¥1,226¥184,981¥ 37,277(818) ¥ 22,896

II. Assets
AssetsTHK ANNUAL REPORT ’99

27¥222,258

Year ended 31st March, 1999
¥ (millions)Eliminations andcorporate
assetsEuropeAsia and
other

Total

¥11,689¥11,415¥1,186¥ 95,006—¥ 95,006

2

88—

14,348(14,348)—

11,691

11,503

1,186

109,354(14,348)

95,006(13,539)

83,621Japan

America

Customers¥ 70,716Intersegment

14,258

Total

84,974

Consolidated

I. Net Sales and Operating Income (Loss)
Net Sales:

Operating Expenses
Operating Income¥

75,185

11,041

9,789

¥

¥

9,902

1,032

97,160650¥ 1,601¥ 154¥ 12,194 ¥¥12,059¥ 9,275¥1,078¥152,910(809) ¥ 11,385

II. Assets
Assets¥130,498¥ 41,475¥ 194,385

Eliminations andcorporate
assetsConsolidated

Year ended 31st March, 1999
$ (thousands) (Note 4)Japan

America

EuropeAsia and
other

Total

I. Net Sales and Operating Income (Loss)
Net Sales:
Customers$ 586,611 $ 96,964$94,691$9,839 $ 788,105 $— $ 788,105

Intersegment

118,275

17

730

—

119,022 (119,022)

—

Total

704,886

96,981

95,421

9,839

907,127 (119,022)

788,105

Operating Expenses

623,683

91,58982,1408,561

805,973 (112,310)

693,663

81,203 $5,392$13,281$1,278 $ 101,154 $$1,082,522 $100,033$76,939$8,942 $1,268,436 $ 344,048 $1,612,484

Operating Income$(6,712)$

94,442

II. Assets
Assets

Note (a) As described in Note 3. (6) of the Notes to the Consolidated Financial Statements, the Company and its consolidated
subsidiaries employed the interperiod income tax method to specific timing difference items which have arisen due toelimination of inter-company transactions/account balances and unrealised inter-company profits, during the year ended
31st March, 1998. As a result of the change, operating expenses in Japan for the year ended 31st March, 1998, was decreasedby ¥225 million and operating income in Japan was decreased by the same amount as compared with the amount which
would have reported it the previous method had been applied consistently.

THK ANNUAL REPORT ’99

28

Note (b) As described in Note 3. (2) of the Notes to the Consolidated Financial Statements, the Company, during the year ended
31st March, 1998, changed the basis of securities valuation for securities with market value quotations on over-the-countermarket and for investment trust with standard prices from a “moving average cost method” into an “at the lower of moving
average cost or market value method”.
(3) Export Sales and Sales by Overseas Subsidiaries

Overseas sales of the Companies (referring to the amounts of exports made by Company plus the sales by overseas consolidated
subsidiaries) for the three years ended 31st March, 1999 are summarised as follows:¥ (millions)
1997

Overseas sales¥ 27,839

Consolidated net sales¥108,007

Overseas sales as a percentage of consolidated net sales

25.8%¥ (millions)
1998

Overseas sales

America

EuropeAsia and
other

Total

¥15,890¥10,831¥6,024¥ 32,745

Consolidated net sales¥122,815

Overseas sales as a percentage of consolidated net sales

12.9%

8.8%

4.9%

26.6%

¥ (millions)/$ (thousands) (Note 4)
1999

America

EuropeAsia and
other

Total

¥12,480¥11,719¥4,141¥28,340($103,525)($97,213)($34,351)($235,089)

Overseas sales
Consolidated net sales¥95,006($788,105)

Overseas sales as a percentage of consolidated net sales

13.1%

THK ANNUAL REPORT ’99

29

12.3%

4.3%

29.8%

– 7 – UNAUDITED RELATED PARTY INFORMATION

Material transactions of the Company with its related companies and individuals, excluding transactions with consolidated
subsidiaries which are eliminated in the consolidated financial statements and other than those disclosed elsewhere in these financial
statements, for the years ended 31st March, 1997, 1998 and 1999 were as follows:
As at 31st March, 1999

Name ofPaid-inPrincipal¥ (millions)/$ (thousands) (Note 4)
Equityownership
percentage
by therelated company

capitalbusiness

Company

Dailian
THKCo., Ltd.

RMB125
million

Manufactureand sales ofball screws

72.85%

Japan Sky
Robot
Co., Ltd.

¥181
million

Manufactureand sales of
Sky Robots

68.41%

Description of
the Company’s

Volume of transactions made in
the year ended 31st March,transactions

1997

1998

1999

Sales of¥1,055industrial parts¥ 108¥ 63 Accounts($ 523) receivable

¥ 28

¥ 23
($ 191)

Purchase ofball screws¥¥ 154 Accounts($1,277) payable

¥ 24

¥ 14
($ 116)

Advancepayment¥ 24¥ 14($ 116)¥200($1,659)

¥

—

1998

Resulting account balances
at 31st March,
Account

1999

48

Long-term
loan

¥

—

¥ 100

¥ 100 Long-term($ 830) loan

¥100

Interest
received

¥

—

¥

¥
($

7 Accrued58) revenue¥ —Sales ofmachineryandequipment

¥

—

¥

—

¥
($

1
8)

Sales ofindustrial
parts

¥

22

¥

17

¥
($

9 Accounts75) receivable

Guarantee
of loans

¥

13

¥

8

¥

—

Purchaseof patent

¥

—

¥

—

¥ 33
($ 274)

THK ANNUAL REPORT ’99

30

—

¥
($

¥

8

7
51)

¥ —

As at 31st March, 1999

Name ofPaid-inPrincipal¥ (millions)/$ (thousands) (Note 4)
Equityownership
percentage
by therelated company

capitalbusiness

Company

Daito
Seiki
Co., Ltd.

¥4,255
million

Manufactureand sales ofindustrial
machines

38.75%

THK¥100
Mechanic million
ResearchCo., Ltd.

THK¥10Insurance million
ServiceCo., Ltd.

Manufactureand sales ofindustrial
robotsInsurance
Agent

50.00%

20.00%

Description of
the Company’s

Volume of transactions made in
the year ended 31st March,transactions

Resulting account balances
at 31st March,

1997

1998

1998

1999

¥2,946¥2,759¥2,114 Accounts($17,536) and notes
receivable

¥779

¥471
($3,907)

Manufacturing ¥3,119of theCompany’s
product¥4,457¥2,585 Accounts($21,443) and notes
payable¥861¥227($1,883)

Sales ofmachineryandequipment¥¥

13 Accounts
108) receivable—other¥ 9¥ —Purchase ofmachineryandequipment¥1,889¥1,990¥3,428 Accounts ¥2,013 ¥1,506($28,436) payable($12,493)—otherGuarantee
of loans

¥

—

¥ 700

¥ 990
($ 7,466)

Sales ofindustrial
parts

¥

—

¥

Sales ofindustrial
parts

78

1999

5

¥
($

—

¥
($

Manufacturing ¥of theCompany’s
products—¥—

Purchase ofmachineryandequipment

¥

—

¥

—

Loans offund¥Interest
received¥

Guarantee
of loans¥

Loans of
fund

¥

—

¥

¥

—

¥

¥

¥

7
51)

—

¥

50 Short-term ¥ 188¥ 238415) loan($ 1,974)

¥

8
66)

¥

21
174)

($
—

¥

—
($

—

¥

—
($

THK ANNUAL REPORT ’99

31—

58 Accounts ¥ 103¥ 103481) and notes($ 854)
receivable¥ 338 Accounts ¥ 101¥ 55($ 2,804) and notes($ 456)payable($—Account¥4,300 Short-term ¥3,500¥4,300($35,670) loans($35,670)—¥ 60($ 498)

As at 31st March, 1999

¥ (millions)/$ (thousands) (Note 4)

Name ofRelationship with

Equityownership
percentage
by theindividual

the Company

Companytransactions

1997

1998

7.65%

Short-term
loan

¥—

¥—

Interest
received¥ 1¥29

Sales ofaffiliates
securities

¥—

¥12

Transfer of¥—trust certificate¥—¥3,000($24,886)

Purchase ofpatent¥ 2¥3,809($31,597)

Akihiro
The President ofTeramachi the Company

HiroshiSenior Advisor
Teramachi

6.40%

Description of
the Company’s

Volume of transactions made in
the year ended 31st March,
1999

¥

—

¥

7
58)

¥

—

($

¥—

THK ANNUAL REPORT ’99

32

Resulting account balances
at 31st March,
Account

1998

1999

Short-termloan to theCompany
officers¥800¥—

As at 31st March, 1999

Name ofPaid-inother related party

capitalTG
GeneralServiceCo., Ltd.

¥10
millionSamickIndustrialCo., Ltd.

W9,800
million¥ (millions)/$ (thousands) (Note 4)

Principal

Equityownership
percentage
by thebusiness

Company

Research and 15.00%
developmentof industrial
machineryandequipment

Manufactureand salesof baring

17.97%

Description of
the Company’stransactions

Volume of transactions made in
the year ended 31st March,
1997

1998

Resulting account balances
at 31st March,

1999

Account

1998

1999

Manufacturingof theCompany’s
products

¥—

¥ 177

¥ 164 Accounts ¥($ 1,360) payable

3

¥
($

3
25)

Purchase oflabor uniform

¥—

¥

¥
($

54 Accrued ¥448) expenses

—

¥
($

3
25)

Purchase ofmachineryand equipment

¥—

¥ 300

¥ 827 Accounts ¥($ 6,860) and notes
payable—¥ 612($ 5,077)

Loans ofsecurities

¥—

¥

—

¥10,959 Securities ¥5,615 ¥10,565($90,908) loaned($87,640)

Loans of
fund

¥—

¥

—

¥ 6,095 Short($50,560) term
loan

¥3,340¥—Longterm
loan

¥ 103

¥

—

2

¥
($

0
0)

81

Interest
received

¥—

¥

91

Furnishing theCompany’s
assets pledged
as collateral¥—¥2,600¥ 3,000($24,886)

Sales ofmachinery andequipment

¥—

¥

—

¥ 698 Accounts ¥($ 5,790) receivable

37

¥
($

23
191)

Manufacturingof theCompany’s
products

¥—

¥

—

¥
($

10 Accounts ¥83) payable

6

¥

—

Loans of fund

¥—

¥

—

¥ 1,000 Long($ 8,295) term
loan

¥

—

¥ 1,000($ 8,295)Interest
received

¥—

¥

—

¥
($

44 Accounts ¥365) receivable—other

—

¥
($

¥
($

42 Accounts ¥348) receivable—other

7
58)

The terms and conditions applicable to the above mentioned transactions have been determined on the basis of arm’s length andby reference to normal market price levels.

THK ANNUAL REPORT ’99

33

REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON THE CONSOLIDATED FINANCIAL STATEMENTS

To: The Board of Directors of
THK CO., LTD.
We have audited the accompanying consolidated balance sheets of THK CO., LTD. (the “Company”) and its
consolidated subsidiaries as at 31st March, 1998 and 1999, and the related consolidated statements of income
and shareholders’ equity, and cash flows for each of the three years in the period ended 31st March, 1999, allexpressed in Japanese yen. These consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these consolidated financial statements based on
our audits.
We conducted our audits in accordance with the auditing standards, procedures and practices generally
accepted and applied in Japan. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
As described in Note 3. (2) of the Notes to the Consolidated Financial Statements, the Company, during theyear ended 31st March, 1998, changed the basis of securities valuation for securities having market quotations
on over-the-counter market and for investment trust having standard prices from a “moving average cost
method” into an “at the lower of moving average cost or market value method”. The change was made tostate the carrying value of securities having market quotations held by the Company on a more conservativebasis reflecting the decline in market value of such securities with their acquisition cost. Accordingly, we
concur with the change as appropriate. As a result of the change, income before income taxes for the year
ended 31st March, 1998 was decreased by ¥2,790 million as compared with the amount which would havebeen reported if the previous method had been applied consistently. Also, the effect of the change to thesegment information has been described in Note 5 of the Notes to the Consolidated Financial Statements.
As described in Note 3. (6) of the Notes to the Consolidated Financial Statements, the Company and its
consolidated subsidiaries, during the year ended 31st March, 1998, employed the interperiod income tax
method to specific timing difference items which have arisen due to elimination of inter-company
transactions/accounts balances and unrealised inter-company profits. The change was made in order toachieve the better matching of periodic cost against revenue, because that the materiality of inter-company
transactions has increased and has been expected to increase. Accordingly, we concur with the change asappropriate. As a result of the change, income before income taxes and net income for the year ended 31st
March, 1998 were increased by ¥225 million and ¥1,025 million, respectively, and retained earnings as at 31st
March, 1998 was increased by ¥2,926 million as compared with the amount which would have been reported
if the previous method had been applied consistently. Also, the effect of the change to the segment
information has been described in Note 5 of the Notes to the Consolidated Financial Statements.
In our opinion, except for the preceding paragraphs, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of THK CO., LTD. and its
consolidated subsidiaries as at 31st March, 1998 and 1999, and the consolidated results of their operations andtheir cash flows for each of the three years in the period ended 31st March, 1999, in conformity withaccounting principles and practices generally accepted in Japan (see Note 1) applied on a consistent basis.
The amount expressed in U.S. dollars, provided solely for the convenience of the readers, have beentranslated on the basis set forth in Note 4 to the accompanying consolidated financial statements.
Chuo Audit Corporation
26th June, 1999
Tokyo, Japan

THK ANNUAL REPORT ’99

34

NETWORK(As of March 31, 1999)

OVERSEAS
海外

Company
会社名（1999 年 3 月 31 日現在）

Capital (Local Currencyin Thousands)

Employees

資本金（千現地通貨） 従業員人数

THK Holdings of America, L.L.C.

US$30,000—

THK America, Inc.

US$20,100

198

Operations
事業内容

Holding company for THK Group marketing and manufacturing companies
in America
米国販社ならびに製造会社の持ち株会社

Import and sale of LM systems in North America
北米向け LM システム輸入販売

THK Manufacturing of America, Inc.

US$8,000

44

Manufacture of LM systems

THK Brasil Ltda.

R$293

7

Import and sale of LM systems in the Brazilian market

THK Europe B.V.

f.84,080

54

THK G.m.b.H.

DM 200122

LM システムの製造
ブラジル市場向け LM システム輸入販売

Import of LM systems, distribution center and holding company for THKGroup European marketing companies
欧州販社向け LM システム輸入、物流センターおよび持ち株会社

Import and sale of LM systems for the German and U.K. markets
ドイツ・英国市場向け LM システム輸入販売

PGM Ballscrews Ltd.

£5,233

97

PGM Ballscrews Ireland Ltd.

IR£975

24

Manufacture of precision ball screws for Europe and the United States
欧米向け精密ボールねじ製造

Manufacture of rolled ball screws for Europe and the United States
欧米向け転造ボールねじ製造

THK International Finance (U.K.) Ltd.

£1,500—Finance subsidiary

THK Taiwan Co., Ltd.

NT$40,000

17

Import and sale of LM systems for the Taiwanese market

THK L.M.S. International Co., Ltd.

US$10,500—

金融子会社
台湾市場向け LM システム輸入販売

Holding company for THK Group Chinese subsidiary
中国子会社持ち株会社

Dalian THK Co. Ltd.

Y 124,564

92

Manufacture of precision ball screws

HK$2,000

3

Import and sale of LM systems for Hong Kong and Chinese markets

W 9,800,000295

大連 THK 瓦軸工業有限公司

Shouzan Co., Ltd.

精密ボールねじ製造
香港・中国向け LM システム輸入販売

Samick Industrial Co., Ltd.
三益工業（株）

Charoen Sakata (Thailand) Co., Ltd.

Import and sale of LM systems for the Korean market
韓国市場向け LM システム輸入販売

Bt 309,100

731

Semiconductor board mounting
半導体基板実装(As of March 31, 1999)

DOMESTIC
国内

Company
会社名

Beldex Corporation（1999 年 3 月 31 日現在）

Capital (Millions of Yen)

Employees

Operations

資本金（百万円）

従業員数

事業内容

195

59

100

108

（株）ベルデックス

THK Yasuda Co., Ltd.

三次元測定器製造・ガラス切断機販売

THK 安田（株）

S-Factory Co., Ltd.

30

3

80

34

50

—

480

128

Bearings, electric conductive devices, and other computer-aided design(CAD); also computer-aided manufacturing (CAM) and Internet provider

100

17

Manufacture and sale of square robots

30

6

ベアリング・伝導機・その他 CAD・CAM インターネットプロバイダー（株）THK メカニック技術研究所

THK Chubu Sales Co., Ltd.

スクエアロボット製造販売

ティエチケー中部販売（株）

Daito Seiki Co., Ltd

LM systems purchasing and sales
LM システム仕入販売

4,255

289

10

2

大東製機（株）

THK Insurance Service Co., Ltd.

Research and development of manufacturing and processing technologies fora variety of bearings used in linear motion and related components
各種直線運動用軸受およびその部品の製造・加工技術の研究・開発

トークシステム（株）

THK Mechanic Research Co., Ltd.

Consumer-use furniture, copy machines and slide rails for drawers in office equipment
民生用家具、コピー機、事務機引出用スライドレール（株）THK 技術研究所

Talk System Corporation

Sale of socks and related items
靴下およびそれに関連する商品の販売

日本スライド工業（株）

THK Laboratory Co., Ltd.

Manufacturing of splines for THKTHK 向けスプライン製造

エス・ファクトリー（株）

Nihon Slide Kogyo Co., Ltd.

Manufacturing of three-dimensional measurement instruments, sales of glasscutting machines

Manufacture of sock-knitting and production machinery; purchase and saleof LM systems
靴下編み機・産業機械製造・LM システム仕入販売

THK 保険サービス

Non-life insurance agency operations and life-insurance search operations
損害保険の代理業務および生命保険の募集に関する業務

THK ANNUAL REPORT ’99

35

C O R P O R AT E D ATA

THK CO., LTD.
Head Office
本社3-11-6 Nishi-Gotanda, Shinagawa-ku, Tokyo 141-8503,
Japan〒 141-8503 東京都品川区西五反田 3-11-6

Tel.: 03-5434-0300
April 1971

Established設立

1971 年４月

Number of Employees
従業員数

2,751

2,751 名Common Stock:
Authorized
467,642,100
会社が発行する株式の総数

Issued115,573,543

発行済株式数

115,573,543 株

Number of Shareholders
株主数467,642,100 株

27,694

27,694 名

Transfer Agent:
The Mitsubishi Trust & Banking Co., Ltd.
名義書換代理人:
三菱信託銀行株式会社

Equity Securities Registration:
Japan Securities Dealers Association
登録証券業協会:
日本証券業協会(As of March 31, 1999)（1999 年 3 月 31 日現在）

THK ANNUAL REPORT ’99

36

THK-C1+2+3+4 00.9.20 3:56 PM ページ 4

BOARD OF DIRECTORS

From left: Yoshimi Sato, Managing Director;
Akihiro Teramachi, President and CEO;Mikio Hayashi, Senior Managing Director;
Katsuhito Imai, Managing Director
左から 常務取締役 佐藤吉見
代表取締役社長 寺町彰博
専務取締役 林美喜夫
常務取締役 今井勝人

PRESIDENT AND CEO

SENIOR MANAGING DIRECTORMANAGING DIRECTORMANAGING DIRECTOR

代表取締役社長

専務取締役

常務取締役

常務取締役

Akihiro Teramachi

Mikio Hayashi

Katsuhito Imai

Yoshimi Sato

寺町彰博

林美喜夫

今井勝人

佐藤吉見

DIRECTORS
取締役

Shigeharu Mabuchi

Takeki Shirai

Mikio Matsui

Masamichi Ishii

Naohiro Yamashita

馬淵茂治

白井武樹

松井幹夫

石井正道

山下尚宏

Katsuyoshi Muto

Toshio Tonegawa

Toshihiro Teramachi

Hiroshi Funahashi

Shigeru Wako

武藤勝良

利根川敏夫

寺町俊博

舟橋浩

若生茂

S TA N D I N G A U D I T O R S
常勤監査役

Akira Sugi

Yoshito Nagafuchi

杉彰

永淵義人

AUDITORS
監査役

Kihachiro Yucho

Syoji Namiki

遊長喜八郎

並木章二

(As of March 31, 1999)（1999年3月31日現在）

THK ANNUAL REPORT ’99

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ANNUAL REPORT 1999
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