Stock Informations

Number of stocks issued

As of September 30,2020

The Total Number of Shares issuable: 40,000,000
Issued Number of Shares: 29,007,708
Number of Shareholders: 4,474
Stock Listings: First Section of the Tokyo Stock Exchange

State of shareholders

State of major shareholders

As of September 30, 2020

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) (%)
Custody Bank of Japan, Ltd. (trust account) 1-8-11 Harumi, Chuo-ku, Tokyo 3,004 10.49
Toagosei Co., Ltd. 1-14-1 Nishi-Shimbashi, Minato-ku, Tokyo 1,497 5.23
The Master Trust Bank of Japan, Ltd. (trust account) 2-11-3 Hamamatsucho, Minato-ku, Tokyo 1,409 4.92
Susumu Tamaki Suma-ku, Kobe-shi, Hyogo 1,150 4.02
MUFG Bank, Ltd. 2-7-1 Marunouchi, Chiyoda-ku, Tokyo 1,137 3.97
Sumitomo Mitsui Banking Corporation 1-1-2 Marunouchi, Chiyoda-ku, Tokyo 1,137 3.97
Sumitomo Mitsui Trust Bank, Limited 1-4-1 Marunouchi, Chiyoda-ku, Tokyo 1,136 3.97
BOT Lease Co., Ltd. 2-7-1 Nihonbashi, Chuo-ku, Tokyo 1,128 3.94
Mitsui Sumitomo Insurance Co., Ltd. 3-9 Kanda Surugadai, Chiyoda-ku, Tokyo 849 2.97
Meiji Yasuda Life Insurance Company 2-1-1 Marunouchi, Chiyoda-ku, Tokyo 675 2.36
Total 13,126 45.25
  1. In addition to the above, the Company holds its treasury shares of 366,320.

Shareholder Information

As of September 30, 2020

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 23 45 69 3 4,310 4,474
Number of shares (trading units) held 115,135 2,670 45,949 14,004 7 112,208 289,973 10,408
Share ownership ratio (%) 39.71 0.92 15.85 4.83 0.01 38.70 100.00

(Note) 366,320 shares of treasury stock are included as 3,663 trading units in “Individuals, others”  and as 20 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.

Total shareholder return/Share price high/Share price low

16/09 17/09 18/09 19/09 20/09
Total shareholder return(%)

(Comparison index: TOPIX including dividends)(%)

84.6
(95.8)
177.9
(123.9)
150.2
(137.3)
155.1
(123.1)
150.8
(129.1)
Share price high/(yen) 1,641 2,736 3,010 2,492 1,375
※(2,893)
Share price low(yen) 1,041 1,195 1,920 1,650 699
※(2,057)

※The highest stock price and the lowest stock price after the stock split are presented. The highest stock price and the lowest stock price before the stock split are indicated in the parentheses.

Records of capital

Change in the total number of issued shares Balance of the total number of issued shares Change in share capital (thousand yen) Balance of share capital (thousand yen) Change in legal capital surplus (thousand yen) Balance of legal capital surplus (thousand yen)
16/09 14,503,854 1,006,587 367,844
17/09 14,503,854 1,006,587 367,844
18/09 14,503,854 1,006,587 367,844
19/09 14,503,854 1,006,587 367,844
20/09(※) 14,503,854 29,007,708 1,006,587 367,844

※Result of the stock split (1 to 2).

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.  

Credit Rating Information

The Company has not obtained any credit ratings.

Bond Information

The Company has not issued any bonds.