Annual Report - · PDF file Total Assets (Millions of Yen) Operating Income (Millions of Yen)...

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  • A n n u a l R e p o r t 2002 Y e a r E n d e d M a r c h 3 1 , 2 0 0 2

  • 2

    Nichicon Corporation specializes in the development, manufacture, and marketing of capacitors, essential

    components for a broad range of electronics.

    Since 1950 when Nichicon commenced the manufacture of capacitors for power utilities in Kusatsu

    City, Shiga Prefecture, the company has been extending its business scope in line with the development

    of electronics. The company has grown into four business segments: Capacitors for Electronics,

    Circuit Products, Capacitors for Electric Apparatuses and Power Utilities, and Others, which include

    capacitor-related products.

    During the current term, Nichicon has been implementing organizational reform to establish a business

    structure for attaining improvements in our response to customer needs, while at the same time strengthening

    business footholds in overseas markets by establishing new companies in Europe and China.

    Nichicon is focusing its energies on product development to increase its share of other growing

    markets. For example, it strives to accumulate technologies for automobile markets, in which hybrid

    cars and other vehicles for the next generation are receiving attention. In addition, attention is being

    paid to the information and communications markets, which are seeing the remarkably active development

    of new models.

    Profile

    Nichicon’s R & D group, through the close

    collaboration of its related groups, Production

    and Sales strives for early commercialization

    of new technologies and reinforcement of the

    development system in order to meet customer

    demands for increased sophistication.

    As examples of achievements arising from

    such efforts, Nichicon has developed various products and technologies

    constituting firsts in Japan and the world. These include microminiature

    or ultrahigh reliability products, as well as environmental load

    reduction technology, which was put into commercial use.

    Nichicon hopes to contribute toward creating an affluent society

    while pursuing perfect customer satisfaction through taking full

    advantage of advanced core technologies.

    Profile

    Financial Highlights

    To Our Shareholders

    Focus on R & D

    Review of Operations

    Capacitors for Electronics

    Circuit Products

    Capacitors for Electric Apparatus and Power Utilities

    Others

    News & Topics

    Financial Section

    Financial Review

    Consolidated Balance Sheets

    Consolidated Statements of Income

    Consolidated Statements of Shareholders’ Equity

    Consolidated Statements of Cash Flows

    Notes to the Consolidated Financial Statements

    Report of Independent Certified Public Accountants

    Consolidated Subsidiaries

    Corporate Data

    Investor Information

    C o n t e n t s

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    8

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    14

    16

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    20

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    23

    33

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    Forward Looking Statements

    Projections of operating results and changes in the operating environment are based on information available to management at the time this report was prepared. As such, these projections entail risks and uncertainties. Readers should be aware that actual results and events may differ substantially from these projections.

    Cover :

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    ¥ 105,892 5,080 5,333 2,988

    16,046 14,619

    157,546 119,825

    ¥ 36.88 13.00

    1,483.04

    76.1% 2.5

    ¥ 121,201 10,280 11,898 6,703

    25,929 13,026

    174,901 119,603

    ¥ 80.06 13.00

    1,453.78

    68.4% 5.7

    ¥ 106,246 8,032 5,802 2,927

    20,919 10,092

    153,748 114,626

    ¥ 34.89 12.00

    1,367.48

    74.6% 2.6

    ¥ 103,123 11,544 12,390 5,377

    10,581 7,923

    142,582 111,056

    ¥ 63.92 12.00

    1,319.82

    77.9% 4.9

    ¥ 105,774 15,489 16,337 7,824 9,920 7,664

    143,608 106,861

    ¥ 93.01 14.00

    1,270.35

    74.4% 7.6

    $ 797,918 38,276 40,184 22,517

    120,910 110,157

    1,187,144 902,910

    $ 0.28 0.10

    11.18

    76.1% 5.7

    2002 2001 2000 1999 1998 2002

    Yen U.S. dollars

    For the year : Net sales Operating income Income before income taxes and minority interest Net income Capital expenditures Depreciation and amortization

    At year-end : Total assets Shareholders’ equity

    Per share of common stock : Net income (yen) Cash dividends (yen) Shareholders’ equity (yen)

    Shareholders’ equity ratio Ratio of net income to shareholders’ equity

    Notes: 1. Amounts less than 1 million yen have been rounded down. 2. The U.S.dollar amounts are provided solely for convenience at the rate of ¥132.71 to U.S. $1, the approximate exchange rate at March 31, 2002. 3. Certain reclassifications of previously reported amounts have been made to conform with current classifications.

    NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31

    Financial Highlights

    Net Sales (Millions of Yen)

    Net Income (Millions of Yen)

    Total Assets (Millions of Yen)

    Operating Income (Millions of Yen)

    Capital Expenditures (Millions of Yen)

    Total Shareholders’ Equity (Millions of Yen)

    Millions of Yen Thousands of U.S. dollars

    120,000

    100,000

    80,000

    60,000

    40,000

    20,000

    0 1998/3 1999/3 2000/3 2001/3 2002/3

    105,774 103,123 106,246

    121,201

    105,892

    8,000

    1998/3 1999/3 2000/3 2001/3 2002/3

    2,000

    6,000

    4,000

    7,824

    5,377

    2,927

    6,703

    2,988

    0

    180,000

    150,000

    120,000

    90,000

    60,000

    30,000

    0 1998/3 1999/3 2000/3 2001/3 2002/3

    143,608 142,582 153,748

    174,901

    157,546

    8,000

    16,000

    1998/3 1999/3 2000/3 2001/3 2002/3

    4,000

    12,000

    15,489

    11,544

    8,032

    10,280

    5,080

    0

    30,000

    25,000

    20,000

    15,000

    10,000

    5,000

    0 1998/3 1999/3 2000/3 2001/3 2002/3

    9,920 10,581

    20,919

    25,929

    16,046

    120,000

    100,000

    80,000

    60,000

    40,000

    20,000

    0 1998/3 1999/3 2000/3 2001/3 2002/3

    106,861 111,056

    114,626 119,603 119,825

  • 4

    To Our Shareholders

    NICHICON CORPORATION President & C.E.O.

    Ippei Takeda

    The uncertainty over the future of the economic climate in this country has been amplified over this term (the year ended March 31, 2002). Along with the decline in exports influenced by the concurrent slowdown of the global economy that was triggered by the deterioration of business in IT-related industries, we also have felt the impact of the September 11 terrorist attacks in the U.S. As a result, capital investment in the private sector decreased, the overall unemployment rate increased and individual consumption slumped. In such circumstances, the electronic and electrical industry has also been suffering from the slump in demand and the drop of sales prices at home and abroad. Against the backdrop of this challenging business environment, the entire Nichicon Group, with an eye towards becoming a global winner in the electronic component industry, took action. Efforts were concentrated on cost reduction by cutting fixed costs and improving productivity, reconstruction of the production and sales system both in Japan and overseas and expansion and enrichment of its product development system. This year, we took a great step forward toward effective management, strong competitiveness, and improvement in customer satisfaction through these strategies. However, we cannot deny that fiscal 2002 was a very harsh year in terms of business performance. Consolidated net sales came in at ¥105,892 million. This, a 12.6% decline from the previous term, is the result of a slump in demand that began in the latter part of Q2 and harsh competition at home and abroad. Although there were some positive factors, such as an improvement in productivity and depreciation of the yen in the latter half of the year, resulting profits were not great. The consolidated operating income and the consolidated net income decreased to ¥5,080 million (a decline of 50.6% from the previous term) and ¥2,988 million (a 55.4% decline from the previous term), respectively, owing to the decline in sales and drop of sale prices.

    Focusing on increasing management efficiency, competitiveness, and customer satisfaction in this severe business environment.

    Achievements of the Current Term

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    Fighting hard in adverse circumstances through organizational reinforcement and directing energies to several promising markets.

    Implementation of three business policies in order to be a winner under the current state of adverse circumstances and increase corporate value for our shareholders.

    The factories of many listed companies, especially ones in