Asahi Diamond Industrial : Annual Securities Report_From April 1, 2021 to March 31, 2022 (The 103rd fiscal year)（1.2 MB）

Annual Securities Report

The 103rd From April 1, 2021

fiscal year

to March 31, 2022

Cover

Document submitted	Annual Securities Report (Yukashoken Hokokusho)
Clause of stipulation	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
Submitted to	Director-General, Kanto Local Finance Bureau
Filing date	June 27, 2022
Fiscal year	The 103rd fiscal year (April 1, 2021 through March 31, 2022)
Company name	Asahi Daiyamondo Kogyo Kabushiki Kaisha
Company name in English	Asahi Diamond Industrial Co., Ltd.
Title and name of representative	Kazuki Kataoka, President and Representative Director
Address of registered headquarters	4-1,Kioi-cho,Chiyoda-ku, Tokyo
Telephone number	[phone] (main)
Name of contact person	Masami Koura, Executive Officer and Administration Division Director
Nearest place of contact	4-1,Kioi-cho,Chiyoda-ku, Tokyo
Telephone number	[phone] (main)
Name of contact person	Masami Koura, Executive Officer and Administration Division Director
Place for public inspection	Tokyo Stock Exchange, Inc.
	(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
	Osaka Branch, Asahi Diamond Industrial Co., Ltd.
	(3-4-30, Miyahara, Yodogawa-ku,Osaka-shi, Osaka)
	Nagoya Branch, Asahi Diamond Industrial Co., Ltd.
	(1-16-34, Aoi, Higashi-ku,Nagoya-shi, Aichi)
	North Kanto Branch, Asahi Diamond Industrial Co., Ltd.
	(1-20-1, Azuma, Kitamoto-shi, Saitama)

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Section 1 Company Information

I. Overview of Company

1. Key Financial Data

1. Consolidated financial data

		Fiscal year		99th	100th	101st	102nd	103rd
		Year ended		March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022
Net sales			(million yen)	45,458	41,046	35,304	30,143	37,161
Ordinary profit (loss)	(million yen)	5,074	3,108	591	(337)	3,650
Profit (loss) attributable to	(million yen)	1,614	2,321	(340)	(331)	3,288
owners of parent
Comprehensive income	(million yen)	3,246	168	(1,497)	992	4,187
Net assets			(million yen)	59,708	59,028	56,833	57,297	60,869
Total assets		(million yen)	74,678	73,047	70,007	68,144	72,241
Net assets per share	(yen)	1,048.95	1,040.37	1,000.06	1,008.33	1,067.79
Earnings (loss) per share	(yen)	29.00	41.76	(6.13)	(5.97)	59.23
Diluted earnings per share	(yen)	-	-	-	-	-
Shareholders' equity ratio	(%)	78.2	79.0	79.3	82.1	82.1
Return on equity (ROE)	(%)	2.8	4.0	(0.6)	(0.6)	5.7
Price earnings ratio	(times)	38.6	18.3	(75.5)	(89.0)	10.0
Cash flows from	(million yen)	6,439	4,449	4,805	(90)	5,948
operating activities
Cash flows from	(million yen)	(2,393)	(5,144)	(4,990)	(4,289)	(356)
investing activities
Cash flows from	(million yen)	(939)	(914)	(732)	(604)	(1,077)
financing activities
Cash and cash equivalents at	(million yen)	18,468	16,548	15,685	10,649	15,548
end of period
Number of employees		2,157	2,208	2,139	2,050	2,057
[separately, average number of temporary	[346]	[333]	[331]	[301]	[393]
employees]
Notes:	1	The information related to diluted earnings per share is omitted because there are no residual shares.

1. The Company introduced a stock compensation plan in the 100th fiscal year. For calculating net assets per share, the Company includes its shares remaining in the stock compensation plan, which are recorded as treasury shares, into the treasury shares to be deducted in calculation of issued shares at end of period. For calculating basic earnings (loss) per share, the Company includes such shares into the treasury shares to be deducted in calculation of the average number of shares of common stock during the period.
2. Since the beginning of the 103rd fiscal year, the Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards. Key financial data for the 103rd fiscal year are figures after the application of such standards.

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(2) Financial data of the reporting company (Non-consolidated)

		Fiscal year		99th	100th	101st	102nd	103rd
		Year ended		March 31, 2018	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022
Net sales			(million yen)	36,400	31,964	27,740	24,549	29,186
Ordinary profit	(million yen)	3,876	2,059	596	76	2,103
Profit			(million yen)	995	1,684	332	201	1,899
Share capital		(million yen)	4,102	4,102	4,102	4,102	4,102
Total number of shares issued	55,700,000	55,700,000	55,700,000	55,700,000	55,700,000
Net assets			(million yen)	46,611	46,272	44,905	45,851	46,993
Total assets		(million yen)	58,594	57,446	55,336	54,636	56,027
Net assets per share	(yen)	836.91	833.71	808.97	826.04	846.30
Dividend per share		13.00	14.00	10.00	6.00	24.00
(of which, the amount of	(yen)
interim dividend paid	(8.00)	(6.00)	(4.00)	(3.00)	(8.00)
per share)
Basic earnings per share	(yen)	17.87	30.31	5.99	3.64	34.21
Diluted earnings per	(yen)	-	-	-	-	-
share
Shareholders' equity	(%)	79.5	80.5	81.1	83.9	83.9
ratio
Return on equity (ROE)	(%)	2.2	3.6	0.7	0.4	4.1
Price earnings ratio	(times)	62.7	25.2	77.3	146.0	17.3
Payout ratio		(%)	72.7	46.2	167.0	165.0	70.2
Number of employees		1,042	1,037	1,019	1,010	998
[separately, average number of	[300]	[302]	[318]	[286]	[378]
temporary employees]
Total shareholder return	(%)	113.9	80.0	51.1	58.5	80.6
[Benchmark: TOPIX
(%)	[132.9]	[126.2]	[114.2]	[162.3]	[144.3]
Total Return Index]
Highest share price	(yen)	1,420	1,147	823	584	743
Lowest share price	(yen)	777	537	403	413	498
Notes:	1	The information related	to diluted earnings	per share is omitted because there are no residual shares.

1. The highest and lowest share prices are quoted prices on the First Section of the Tokyo Stock Exchange.
2. The Company introduced a stock compensation plan in the 100th fiscal year. For calculating net assets per share, the Company includes its shares remaining in the stock compensation plan, which are recorded as treasury shares, into the treasury shares to be deducted in calculation of issued shares at end of period. For calculating basic earnings per share, the Company includes such shares into the treasury shares to be deducted in calculation of the average number of shares of common stock during the period.
3. Since the beginning of the 103rd fiscal year, the Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards. Key financial data for the 103rd fiscal year are figures after the application of such standards.

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2. History

October 1937	Asahi Diamond Industrial Co., Ltd. established in Ota-ku, Tokyo for manufacturing and marketing diamond
	tools.
January 1944	Ueno Factory (formerly Mie Factory) completed in Ueno-shi (currently Iga-shi), Mie.
December 1945	Corporate name changed to Asahi Kogei Co., Ltd. Production of Shippo (cloisonne enamel) crafts started.
May 1950	Head office moved to Chuo-ku, Tokyo.
May 1952	Corporate name changed to Asahi Diamond Industrial Co., Ltd. Full-scale production of diamond tools started.
July 1959	Asahi Electric Wire Co., Ltd. merged by absorption.
March 1963	Asahi Diamond Trading Co., Ltd. merged by absorption.
September 1965	Tamagawa Factory completed in Takatsu-ku,Kawasaki-shi.
April 1966	Asahi Trading Co., Ltd. merged by absorption.

September 1972 Participation in the management of Sun Diamond Kogyo Co., Ltd. (currently Yamanashi Asahi Diamond

	Industrial Co., Ltd., a consolidated subsidiary).
October 1972	Listed on the 2nd Section of the Tokyo Stock Exchange.
May 1978	Shinhan Diamond Industrial Co., Ltd., a joint venture (currently an equity-method affiliate), established in
	South Korea.
September 1978	Listed on the 1st Section of the Tokyo Stock Exchange.
August 1984	Mie No.2 Factory completed in Ueno-shi (currently Iga-shi), Mie.
March 1989	Chiba Tsurumai Factory and Research and Development Center completed in Ichihara-shi, Chiba. (Shut down
	in February 2021.)
July 1991	Head office moved to the current location.
December 1993	Acquired all shares of Triefus France (currently Asahi Diamond Industrial Europe SAS, a consolidated
	subsidiary), and Triefus Australia (currently Asahi Diamond Industrial Australia Pty., Ltd., a consolidated
	subsidiary).
November 1995	Acquired additional shares of Taiwan Asahi Diamond Industrial Co., Ltd. (Established as a joint venture in
	May 1968.)
March 1999	Chiba No.2 Factory completed in Chonan-machi,Chosei-gun, Chiba.
July 2002	Acquired all shares of P.T. Asahi Diamond Industrial Indonesia (currently a consolidated subsidiary).
July 2002	Asahi Diamond America, Inc. established in the United States (currently a consolidated subsidiary).
July 2002	Shanghai Xu Hui Diamond Industrial Co., Ltd. established in China (currently a consolidated subsidiary).
June 2006	Mie and Mie No. 2 Factories integrated to launch the current Mie Factory in Iga-shi, Mie.
December 2011	Acquired additional shares of Asahi Diamond (Thailand) Co., Ltd. (currently a consolidated subsidiary).
July 2013	Acquired all shares of Koremura Co., Ltd., a company manufacturing and selling whetstones (currently
	Koremura Asahi Diamond Industrial Co., Ltd., a consolidated subsidiary).

January 2015	Asahi Diamond Industrial Germany GmbH established in Germany (currently a consolidated subsidiary).
July 2015	Asahi Diamond Industrial Scandinavia AB established in Sweden (currently a consolidated subsidiary).
July 2015	Asahi Diamond Industrial Malaysia Sdn. Bhd. established in Malaysia (currently a consolidated subsidiary).
August 2015	Asahi Diamond de Mexico, S.A. de C.V. established in Mexico (currently a consolidated subsidiary).
July 2020	Chiba Factory completed in Sodegaura-shi, Chiba.
February 2021	Research & Development Center established in Takatsu-ku,Kawasaki-shi.
August 2021	North Kanto Branch opened in Kitamoto-shi, Saitama.

Note: Due to the restructuring of the market segments of the Tokyo Stock Exchange, the Company moved from the 1st Section to the Prime Market in April 2022.

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