Stock Informations

Information on General Meeting of Shareholders

Stock-related information

  Listing market   On the 1st Section of the Tokyo Stock Exchange
  Date of listing   October 23, 2013
  Securities code   3176
  Fiscal year   October 1 to September 30
  Ordinary General Meeting of Shareholders   December
  Number of share trading unit   100 shares
  Shareholder register administrator   Tokyo Securities Transfer Agent Co., Ltd.
3-11 Kandanishikicho, Chiyoda-ku, Tokyo
  Place handling the purchase of fractional
shares less than the trading unit
  Head office, Tokyo Securities Transfer Agent Co., Ltd.
3-11 Kandanishikicho, Chiyoda-ku, Tokyo
  Purchasing commission   Free of charge
  Method of public notification   Public notices are made electronically on the Company’s website.
In the event that a notice cannot be posted electronically due to an accident or other unavoidable circumstances, notices will be published in the Nihon Keizai Shimbun newspaper.
  Contact information   0120-49-7009 (Business Center, Tokyo Securities Co., Ltd.)

State of shareholders

State of major shareholders

As of September 30, 2019

Name or Company Name Address Number of shares held
(1,000 shares)
Ratio of number of shares held to total number of shares outstanding (excluding treasury shares) (%)
Japan Trustee Services Bank, Ltd. (trust account) 1-8-11 Harumi, Chuo-ku, Tokyo 1,722 12.03
Toagosei Co., Ltd. 1-14-1 Nishi-Shimbashi, Minato-ku, Tokyo 748 5.23
Susumu Tamaki Suma-ku, Kobe-shi, Hyogo 575 4.02
MUFG Bank, Ltd. 2-7-1 Marunouchi, Chiyoda-ku, Tokyo 568 3.97
Sumitomo Mitsui Banking Corporation 1-1-2 Marunouchi, Chiyoda-ku, Tokyo 568 3.97
Sumitomo Mitsui Trust Bank, Limited 1-4-1 Marunouchi, Chiyoda-ku, Tokyo 568 3.97
BOT Lease Co., Ltd. 2-7-1 Nihonbashi, Chuo-ku, Tokyo 564 3.94
Mitsui Sumitomo Insurance Co., Ltd. 3-9 Kanda Surugadai, Chiyoda-ku, Tokyo 530 3.71
The Master Trust Bank of Japan, Ltd. (trust account) 2-11-3 Hamamatsucho, Minato-ku, Tokyo 457 3.20
Meiji Yasuda Life Insurance Company 2-1-1 Marunouchi, Chiyoda-ku, Tokyo 337 2.36
Total   6,642 46.39
  1. In addition to the above, the Company holds its treasury shares of 188,314.
  2. Although it is specified in the Large Shareholding Report dated April 22, 2019, available for public inspection, that Sumitomo Mitsui DS Asset Management Company, Limited holds the following shares as of April 15, 2019, we are unable to confirm the actual number of shares held as of September 30, 2019. Therefore, the company is not included in the aforementioned state of major shareholders.
Name or company name address Address Number of share certificates, etc. held (shares) Holding ratio of share certificates, etc. (%)
Sumitomo Mitsui DS Asset Management Company, Limited 28F Atago Green Hills MORI Tower
2-5-1 Atago, Minato-ku, Tokyo
454,500 3.13

Shareholder Information

As of September 30, 2019

Type Stock Information (The number of unit (tangen) shares is 100 shares) Shares less than one unit (shares)
National government and local governments Financial institutions Securities companies Other domestic entities Foreign entities Individuals, others Total
Other than individuals Individuals
Number of shareholders  24 27 35 72 1 3,053 3,212
Number of shares (trading units) held 57,377 1,673 22,974 7,073 10 55,846 144,953 8,554
Share ownership ratio (%) 39.58 1.15 15.85 4.88 0.01 38.53 100.00

(Note) 188,314 shares of treasury stock are included as 1,883 trading units in "Individuals, others"  and as 14 shares in "Shares less than one unit".

Stock Split History

The Company conducted a 2-for-1 stock split with January 31, 2020 (Friday) as the record date.

Credit Rating Information

The Company has not obtained any credit ratings.

Bond Information

The Company has not issued any bonds.

Shareholder Returns

【Dividend Policy】
The Company recognizes the return of profits to shareholders as one of management’s highest priorities. Our fundamental policy is to pay shareholders a stable dividend over the long term and we will work to achieve continuous enhancement of corporate value, aiming to increase dividend per share by further strengthening our management structure and thereby bolstering our ability to generate stable earnings. 
Meanwhile, we plan to use our internal reserves to make strategic investments in growth areas and expand our overseas business in the future. 
The Company plans to pay a year-end dividend for the fiscal year under review of 37 yen per share. 
Combined with the interim dividend of 37 yen per share already paid on June 11, 2019, this will bring the annual dividend to 74 yen per share. 
The Company’s Articles of Incorporation state that, unless otherwise provided for by laws and regulations, the Company may make distribution of surplus based on a resolution of the Board of Directors.
The Articles of Incorporation also state that the Company may, by resolution of the Board of Directors, pay interim dividends, the record date of which shall be March 31 each year.

(Note) Distributions of surplus, the record date of which belongs to the fiscal year under review are as follows: 

Date of resolution  Total amount of dividends (thousands of yen) Dividend per share (yen)
Resolution of meeting of Board of Directors held on May 13, 2019 529,679 37.00
Resolution of meeting of Board of Directors held on November 6, 2019 529,679 37.00

Changes In Dividends Per Share

  2017 2018 2019 2020

2Q

14 15 18.5 18.5

Year-end

15.5 17 18.5 19(Planned)

1 to 2 share split was implemented with January 31, 2020 as the record date.

Shareholder Benefits

The Company does not provide shareholder benefits.

Articles of Incorporation

Stock Price Chart

Business Risks

The risks which could affect the Group’s business performance and financial standing are as follows.
Please note, however, this information does not necessarily cover all the risks concerning the Company’s business.
The forward-looking statements in the document are based on the judgment of the Group as of the end of the consolidated fiscal year under review.

(i) Impact of economic trends in major market
The Group sells products to a wide range of industrial sectors. However, sales to the automotive, consumer appliance and information equipment-related sectors account for a particularly high percentage of total sales.  Accordingly, deterioration of the market conditions in these sectors could affect the Group’s business performance and financial standing.  

(ii) Impact of fluctuation in product prices
The purchase prices of certain products handled by the Group fluctuate considerably depending on the supply-demand balance and the Group endeavors to set selling prices accordingly and to maintain reasonable inventory levels. However, if the Group is unable to sufficiently pass on the increased costs or is forced to write down inventories, the Group’s business performance and financial standing may be affected. 

(iii) Risk of competition
The Group handles a wide range of products and competes with many different corporations in Japan and overseas. In the event of a change in the strategy of these competitors or market entry by an emerging market firm or other low-cost competitor, the Group may not be able to maintain its competitive edge and this may affect the Group’s business performance and financial standing. 

(iv)  Risks related to suppliers
The Group purchases products from many suppliers both in Japan and overseas and endeavors to maintain and build good relationships with its suppliers to ensure a stable supply of products. However, any loss or curtailment of trading rights due to a change in the situation of such suppliers, such as business restructuring, deterioration in business performance, or agency policy revisions, could affect the Group’s business performance and financial standing. 

(v) Impact of investments associated with the development of new business
The Group actively focuses on M&A and other activities for the development of new businesses.  When making investment decisions, the Group strives to mitigate risks by carrying out financial and legal due diligence to fully assess and evaluate the target company or business. However, if the investee company or business declines in value, the Group may have to recognize a goodwill impairment loss, which may affect the Group’s business performance and financial standing.

(vi) Risks associated with overseas business expansion
The Group conducts a wide range of activities overseas, engaging in many import and export transactions and establishing business bases in the United States and Asia, and it intends to increase its focus on overseas business expansion in the future.  However, in the event of the materialization of country risk, for example, unexpected deterioration in the political or economic situation in any of the countries or regions in which the Group operates, this could hinder the continuation of transactions or implementation of the Group’s planned business activities and this could affect the Group’s business performance and financial standing.

(vii) Risks related to management of receivables
Trade receivables account for a high percentage of the Group’s total assets, accounting for 40.0% (17,479 million yen) as of the end of the consolidated fiscal year under review.  To manage receivables, the Group sets credit limits for individual suppliers based on their business results and financial position and constantly monitors their credit standing in an attempt to minimize uncollectible accounts. To prepare for unforeseen circumstances, the Group also records an allowance for doubtful accounts based on historical experience and the estimated collectability of individual accounts. However, if actual uncollectible accounts receivable exceed the allowance, this could affect the Group’s business performance and financial standing. 

(viii) Impact of foreign exchange rate fluctuations 
As a trading company, the Group is actively involved in import and export transactions, mainly in Europe, the United States and Asia.  The Group makes use of hedging instruments such as forward exchange contracts to manage the risk of transactions denominated in foreign currencies. However, in price negotiations with suppliers, the impact of foreign exchange rate fluctuation is unavoidable and any dramatic fluctuation in foreign exchange rates could affect the Group’s business performance and financial standing.  Additionally, the financial statements of overseas consolidated subsidiaries are denominated in the relevant local currency and, depending on the rate used to convert the local currency into yen, the Group’s net assets may decrease through foreign currency translation adjustments.

(ix) Impact of stock market  fluctuations 
The Group holds the stock of financial institutions and suppliers in a bid to build close business relationships. Many of these stocks are stocks with a fair market value being traded on the open market and, these stockholdings could affect the Group’s business performance and financial standing depending on fluctuations in their price in the future. 

(x) Impact of natural disasters
The Group takes steps to prepare for natural disasters such as earthquakes, typhoons and floods, including developing Business Continuity Plans (BCPs) and introducing safety confirmation systems as part of such plans.  However, it is difficult to avoid damage entirely and suppliers and customers could also be affected by natural disasters.   Such a situation could hinder activities at the the Group’s business bases and could affect the Group’s business performance and financial standing. 

(xi) Risks related to compliance
The Group conducts business activities both in Japan and various foreign countries and is subject to a wide range of relevant legislation. To comply with such legislation, the Company has established a Compliance Committee and is seeking to strengthen its compliance framework. However, even by taking such steps, the Group cannot completely eliminate all risks related to compliance in its business activities. Any major change in the relevant legislation or the adoption of an unexpected interpretation of such legislation could affect the Group’s business performance and financial standing.  

Electronic Public Notice

There are currently no matters requiring electronic public notice.