2011
Corporate Report
Year Ended March 31, 2011
Profile
Five-Year Summary of Selected Financial Data
Years ended March 31, 2011, 2010, 2009, 2008 and 2007
Established in 1918, Kansai Paint Co., Ltd. has grown into Japan’s largest
paint manufacturer as well as one of the country’s most progressive
businesses. Today, the company enjoys a well-established position as one of
the world’s leading paint manufacturers.
The various products provided by the Kansai Paint and its Group
companies are highly valued around the world, by customers not only in
Japan, but in Europe, the United States, and Asian countries such as China,
and India, playing important roles in the protection and beautification of all
types of products and merchandise. Some of our paints and coatings even
instill the products they coat with special functionality. Our products are
receiving high praise and earning a reputation for exceptional reliability in a
wide range of fields. The fact that we hold a large share of the automotive
coating market and that our products are used by many automobile
manufacturers contributes to the good reputation we enjoy. We also
continue to put unwavering effort into products for all types of items
requiring painting or coating, including industrial products, residential
housing, office buildings, and steel structures such as ships, bridges and
plants.
Kansai Paint is much more than a paint manufacturer that simply sells its
products through its joint ventures and affiliated companies. Throughout
the world, Kansai Paint utilizes the achievements and knowledge earned
through research and development efforts, and transforms these into
technical services that the company is able to provide its customers together
with the company’s outstanding products and services.
Consolidated Basis
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2011
2009
2010
2008
2007
¥ 236,985
21,102
23,375
12,675
¥ 222,401
20,505
22,401
11,831
¥ 229,989
13,424
16,602
10,786
¥ 256,586
23,756
26,397
13,755
¥ 231,214
22,090
24,287
13,267
$ 2,850,090
253,782
281,118
152,435
At year-end:
Total assets
Owners’ equity
¥ 271,244
167,195
¥ 270,373
161,230
¥ 240,666
145,730
¥ 282,884
156,832
¥ 299,299
164,131
$ 3,262,105
2,010,764
¥ 47.73
¥ 44.56
¥ 40.61
¥ 51.53
¥ 48.98
$ 0.57
Per share amounts
(in yen and U.S. dollars):
Net income
For convenience only, U.S. dollar amounts in this report have been translated from Japanese yen at the rate of ¥83.15 to U.S.$1.00, the exchange rate at March 31, 2011.
Owners’ equity comprises total shareholders’ equity and total accumulated other comprehensive income.
Net income per share is computed based on the weighted average number of shares outstanding.
Net sales
Operating income
(Millions of yen)
Income before income taxes
(Millions of yen)
(Millions of yen)
26,397
256,586
250,000
Contents
Five-Year Summary of Selected Financial Data ............................................. 1
A Message from the President .................................................................... 2
Management Philosophy and Vision ........................................................... 4
Board of Directors ..................................................................................... 6
Business Review
ALESCO at a Glance .................................................................. 8
Business Overview by Segment ................................................. 10
Research and Development Operations .................................... 12
New Products .......................................................................... 14
Environmental Activities
Policies on Environmental Conservation ................................... 16
Environmental Management .................................................... 17
ALES ECO PLAN 2010 .............................................................. 18
ALES ECO PLAN 2012 Settlement ............................................. 20
Management of Chemical Substances ..................................... 21
Environmental Conservation Activities ...................................... 22
Development of Environmental Technologies and Products /
Green Procurement ............................................................... 24
2011
For the year:
Net sales
Operating income
Income before income taxes
Net income
231,214
229,989
236,985
222,401
25,000
23,756
25,000
22,090
24,287
22,401
20,505 21,102
200,000
20,000
150,000
15,000
100,000
10,000
10,000
50,000
5,000
5,000
23,375
20,000
16,602
2007
2008
2009
2010
2011
Net income
13,267
2007
2008
2009
2010
2011
Total assets
13,755
300,000
2011
270,373 271,244
164,131
240,666
161,230 167,195
156,832
145,730
150,000
10,000
2010
2009
200,000
282,884
250,000
10,786
2008
(Millions of yen)
299,299
12,675
11,831
12,000
2007
Owners’ equity
(Millions of yen)
(Millions of yen)
14,000
15,000
13,424
200,000
8,000
150,000
Social Activities
Treatment of Employees .......................................................... 26
Occupational Safety and Health ............................................... 28
Consumer Protection ............................................................... 29
Social Action Programs ............................................................ 30
Financial Section ...................................................................................... 32
Directory ................................................................................................. 55
100,000
6,000
100,000
4,000
50,000
50,000
2,000
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
2008
Kansai Paint Co., Ltd.
2009
2010
2011
Corporate Report 2011
1
A Message from the President
have increased, but in the latter half of the term the
price hike in raw materials combined with the
continuing strong value of the yen has impacted our
results, as has the Great East Japan Earthquake.
Despite these impacts, we were able to post gains in
both net sales and profit on a consolidated basis.
Outlook for the Fiscal Year Ending
March 2012
To all of our shareholders, here at Kansai Paint and
its Group companies, we take the concept of
“contributing to society by providing products and
services that satisfy our customers” as our fundamental business philosophy.
The coating business, the core business of the
Kansai Paint Group, is supported by our customers
in a wide range of fields, including various industrial
products centering on automobiles, buildings,
structures, ships and others. The very foundation of
the existence of the Kansai Paint Group is the
concept of continuously working to improve our
level of customer satisfaction, and through these
efforts, we are working to increase the value of our
stock, strengthen our operational foundations and
contribute widely to society.
Overview of the Fiscal Year Ended
March 2011
Detailed figures for the consolidated fiscal year
(fiscal year 2010 ended on March 31, 2011) are
included in the latter half of this corporate report.
To summarize, we achieved consolidated net sales
of ¥236,985 million (approx. US$2,850 million, a
year-over-year increase of approx. 6.6%), consoli-
2
Kansai Paint Co., Ltd.
Corporate Report 2011
dated operating income of ¥21,102 million (approx.
US$254 million, a year-over-year increase of approx.
2.9%), and consolidated net income of ¥12,675
million (approx. US$152 million, a year-over-year
increase of approx. 7.1%).
Furthermore, for the term under review, annual
dividends were ¥10 per share.
Looking at the global economy for the term in
review, a gradual recovery is continuing as the
economic-stimulus packages implemented by each
country reap results. In the Asian region, domestic
demand, particularly in India and China continues to
grow. In Europe and North America, there are high
levels of unemployment and unease about the
financial system, but a gradual recovery is also
taking hold in these regions. On the other hand,
political unrest in the Middle East and North Africa
has triggered a steep rise in the price of crude oil
and so inflation concerns have come to the fore.
The domestic Japanese economy continues its
gradual recovery following the results of a broad
range of government policies but at the end of the
term, the impact of the Great East Japan Earthquake
posed enormous challenges for economic activities.
Amidst these economic conditions, with regard
to the consolidated business results of the Kansai
Paint Group, sales in India and the Asian region
Looking to the future and an economic forecast,
growth in developing nations, especially those in
Asia, is expected to continue, but there are concerns
that issues such as the rising cost of raw materials
and exchange rate fluctuations, etc. may impact our
profitability. Moreover, the Great East Japan
Earthquake has delivered a huge impact on the
domestic and overseas economy over a considerable
area and we believe that the long-term, serious
effects of this disaster will be felt through difficult
economic times ahead.
Under these circumstances, we will develop our
business activities in line with the management
strategies of the Group as stated below, but for the
time being, our first priority is to contribute to the
recovery effort following the Great East Japan
Earthquake.
As for the outlook for this term (fiscal year
2011), we have set targets as follows: net sales of
¥270,000 million (approx. US$3,247 million),
operating income of ¥20,000 million (approx.
US$241 million) and a net income of ¥14,000
million (approx. US$168 million) on a consolidated
basis.
our management foundation to meet the needs
of globalization, we are planning to improve
management efficiency by increasing collaboration between our overseas and domestic
businesses.
2. Strengthen Profitability in Domestic Business
By acting based upon what the market is
indicating and developing products that offer a
high degree of added value, we are looking to
expand our market share. Through optimizing
our business organization we will become more
cost competitive and this in turn will lead to
stronger profit performance.
In Closing
Kansai Paint and its Group companies, working in
the spirit of “profit and fairness”, are entering a
new stage in global business activities.
To that end, we will build our global manufacturing
and sales system and develop our business to meet
the needs of customers in every region. By increasing the level of collaboration and working towards
improving our business performance, we will
continue on the road to company growth.
We sincerely hope this corporate report has
provided useful information pertaining to the
activities of Kansai Paint and its Group companies.
Management Strategies
Our current three-year mid-term business plan was
launched in fiscal year 2010 and the points below
indicate important policy areas as we continue to
develop our business activities.
1. Promotion of Globalization
Our overseas businesses continue to grow apace
and to take our business results to another level,
with special focus on Asia and developing
nations, where the prospects for growth are
most positive. As we plan to reinforce the way
our business is structured, we continue to
advance in developing businesses in new
territories and fields, areas that can make a
significant contribution to our business performance. Furthermore, as we strive to reinforce
Yuzo Kawamori
President, Representative Director
Kansai Paint Co., Ltd.
Corporate Report 2011
3
Management Philosophy and Vision
Corporate
Mission
(Established January 1967)
1. To further build company credibility with the public and to contribute to society by
providing products and services that achieve customer satisfaction.
The Kansai Paint concept of corporate social responsibility
2. To build on our knowledge and strive for technological innovations in order to improve
the company’s performance.
Building on a foundation of sustained growth
through sound business activities, we are working to realize
our corporate social responsibilities with a strong sense of
awareness of compliance and risk management, and
through product creation and activities that emphasize
environmental preservation.
3. To harness the collective efforts of all individuals in order to maximize company returns.
Management philosophy
Vision
Our corporate mission is to contribute to society by
providing eco-friendly and value-added coating materials
and services that satisfy our customers. To realize new
innovations in coating materials, we have defined our
philosophy so that our employees are eager to undertake
new challenges, and so that we can combine our wisdom
and knowledge to create future products. We aim to use our
products and services to make continuous contributions to
society.
Synchronizing business and environmental
conservation, the company promotes its worldwide activities
by developing high quality, high performance, and low-cost
coating products with new functionality, and aims to be the
leading, most trusted company in the world. Kansai Paint
Co., Ltd. and its Group companies have defined basic
activity guidelines based on our corporate mission.
4. We shall develop and provide products and services based
on the principle of “customer first”, with the goal of
satisfying our customers.
5. We shall respect each employee’s individuality and create
a workplace environment that nurtures the spirits of
challenge and teamwork.
2. We shall respect the cultures of each country and region,
observe local customs for better coexistence with such
societies, and will use our business operations to
contribute to the development of these societies.
6. We shall respond to the expectations of our customers,
employees, and shareholders by sustaining the
continuous growth of our global business operations.
3. We shall actively and voluntarily get involved in
environmental conservation while we manufacture and
provide eco-friendly products.
Corporate governance
organization (As of June 2011)
This internal control organization
assures healthy business
administration and audits.
Corporate Governance Organization
Contributions
to Society
Compliance
Kansai Paint
Group
Shareholders
and
Investors
Kansai Paint strives to comply with laws and
regulations, and to fulfill the company’s social
responsibilities. To that end, the company has set forth
guidelines by defining a Code of Ethics, a Code of Conduct,
and a Code of Behavior so that it can carry out appropriate
business operations based on the corporate spirit of “Profit
and Fairness”.
We have also installed a Corporate Governance
Committee, which is headed by the President of Kansai
Paint, in order to make all employees of Kansai Paint and our
Group companies fully aware of our ethical standards.
We offer a wide variety of compliance activities, including
educational training for all levels of employees, from new
hires through to company directors, installing hotlines, and
disseminating information through company bulletins.
In the event that an issue of non-compliance occurs, this
issue will immediately be brought to the attention of the
relevant departments through notification and discussion.
Accurate information shall be disclosed and corrective
measures applied.
Local
Societies
During fiscal 2010, one of our affiliated companies had a
compliance issue with regard to the labeling displayed on a
product and they responded by implementing rapid
corrective measures as well as conducting a review of their
internal corporate rules, in order to ensure that the issue
could not reoccur in perpetuity.
Compliance Promotion, Management Systems
Auditors
President
Corporate Governance
Committee
Compliance Promotion
Committee
Management
Headquarters
Risk Management
Investigation Committee
Legal
Department
Review Office
Board of
Directors
Coordination
Auditor
Financial Audits
Internal Control
Promotion Committee
Information Management
Committee
Risk management
Appointments/Audits
President
Management
Committee
Internal
Audits
Review
Office
Executive Officers
Company
Departments and
Affiliate Companies
Corporate
Governance
Committee*
* Corporate Governance Committee: The President serves as chairman, and the committee members are
directors from each company division. The committee oversees matters such as internal control functions,
compliance, risk management, and information management.
Corporate Report 2011
Environmental
Preservation
Disclosure
of
Information
Business
Connections
Appointments/Dismissals
Appointments/
Dismissals
Audits
Kansai Paint Co., Ltd.
Sound
Business
Activities
Customers
Industrial
Associations
General Shareholders’ Meeting
External
Auditor
Board of
Auditors
4
Risk
Management
Global
Environment
Employees
Compliance promotion
Basic activity guidelines (Established January 2001)
1. We shall conduct all phases of our business operations
while adhering to high ethical standards, will comply with
laws and social norms, and will engage in fair and
transparent business activities to win the trust of societies
throughout the world.
Internal
Controls
• Kansai Paint Stakeholders
The Corporate Governance Committee led by the President
was established with the purpose of proactively taking
measures against critical risks that may affect company
operations. Furthermore, the “Risk Management
Guidelines” and the “Risk Management Manual” were put
together in order to describe actions to be taken against
risks that could be foreseen. Additionally, the “Action
Manual” was prepared to counteract risks closely related to
our operations and regardless of whether said risk is located
in Japan or overseas, the company needs a system to
facilitate rapid access to information related to every type of
risk and to implement appropriate countermeasures based
on an accurate grasp of the situation. The company ensures
that the operations of the risk management organization are
well controlled and maintained.
In fiscal 2010, as with previous years, we have remained
aware of the effect of natural disasters such as earthquakes,
etc. both in Japan and overseas, as well as maintaining a
grasp of political unrest overseas, thanks to our internal
corporate communication network.
We will also consider the preparation of a business
continuity plan (BCP) in order to quickly respond to risks, so
that we can minimize the risks to our customers.
Kansai Paint Co., Ltd.
Corporate Report 2011
5
Board of Directors
Business Review
ew
w
President
Yuzo Kawamori
Executive Vice President
Koichi Imada
Directors
Mitsuhiro Fukuda
Hiroshi Ishino
Shigeru Nakamura
Masanobu Ota
Hiroshi Sakamoto
Koichi Imada
Yuzo Kawamori
Executive Vice President
President
08
ALESCO at a Glance
10
Business Overview by Segment
12
Research an
Corporate Auditors
Saburo Takizawa
Hiroshi Suwa
Mineo Imamura
Yoko Miyazaki
(as of June 30, 2011)
6
Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
7
Business Review
ALESCO at a Glance
Automotive Coatings
Industrial Coatings
29%
42%
Product Sales Ratio
8
Decorative Coatings
Marine and Protective Coatings
20%
9%
Product Sales Ratio
Product Sales Ratio
Main Products and Services
Main Products and Services
Main Products and Services
Main Products and Services
Automotive coatings are classified as coatings for
new cars used by automobile manufacturers and as
automotive refinish paints used in auto body shops.
Automotive coatings for new cars are paints
applied by automobile manufacturers and paints
applied at auto parts factories, using automatic
application lines with high temperature curable
paints. Automotive refinish paints are intended for
use in body shops for vehicles damaged in accidents,
etc.
Industrial coatings are used with a wide range of
industrial products, including construction vehicles,
industrial machines, agricultural equipment, home
electronics, beverage cans, pre-coated metals and
various types of building materials.
For this area, different types of coating
performance, coating methods and application
conditions are required for various types of industrial
products. In order to meet these needs, we are
providing an exceptionally wide and diverse range of
paints, coatings and services.
Decorative coatings include coatings to protect
structures such as residential houses and buildings
from deterioration and coatings used to enhance the
beauty of structures. These coatings are classified as
exterior coatings or interior coatings, depending on
where they are used, and are also classified
according to the type of application — coatings for
new structures and coatings for repairs.
These coatings are used in close proximity to the
human living environment, so recently there has
been a growing demand for eco-friendly products in
this area.
This area encompasses marine coatings used with
marine structures in order to provide long-term
protection from corrosion for steel structures and
protective coatings for structures on land. Marine
structures include ships, offshore structures and
marine containers, while structures on land include
bridges, tanks, and plants. Coatings are available for
new structures and for maintenance applications.
Kansai Paint Co., Ltd.
Corporate Report 2011
Product Sales Ratio
Kansai Paint Co., Ltd.
Corporate Report 2011
9
Business Review
Business Overview by Segment
Japan
In the area of automotive OEM coatings, we have been
putting our efforts into developing new technologies such as
the Waterborne 3-Wet Coating System, which gives a
high-quality external appearance and actively works to
reduce emissions of CO2, as well as our clear top coat with
improved scratch resistance. We are striving to open up new
markets through these new technologies. In the second half
of the term under review, the subsidy system for buyers who
purchase an eco car came to an end and this impacted the
number of vehicles being manufactured but despite this we
still managed to record an increase in sales.
In the auto refinishing paint field, we have bolstered our
range of environmentally friendly coatings as well as
reinforcing our color-matching online system and striving to
expand our sales and as a result we managed to increase our
sales for the term under review.
In the field of industrial coatings, as demand recovers
supported by strong exports for construction machinery, our
coatings for beverage cans were in demand due to the
intensely hot summer and as a result we recorded an
increase in sales.
In the area of decorative coatings, the slump in new
housing constructions and capital investment in the private
sector continues, so as a consequence we have been actively
developing orders centered on repainting and recoating
existing structures and as a result we were able to record an
increase in sales.
10 Kansai Paint Co., Ltd. Corporate Report 2011
In the area of marine and protective coatings, we have
striven to expand sales in ship repair, namely anti-fouling
paint for the vessel’s hull and functional coatings for repairs,
but due to the slump in the new ship construction market,
our sales for the term under review decreased.
In the field of protective coatings, in order to receive
orders for bridge repairs we have worked on promoting our
high value-added products but both public and private
investment in these structures continues to fall, so as a
consequence we registered a decrease in sales for the term
under review.
As a result, our sales in Japan totaled ¥146,808 million,
an increase of 2.3% on the previous term.
Asia
Europe
In the automotive coatings field, rising demand from China
coupled with a large-scale increase in the number of
automobiles manufactured in Thailand and Indonesia, etc.
has led to a growth in sales.
In the industrial coatings field, we have been able to
increase sales, centered on construction machinery, in China
and Thailand.
As a result, our sales in Asia totaled ¥40,169 million, an
increase of 18.1% on the previous term.
Customer manufacturing in the area of industrial coatings
continues its steady progress and consequently our sales in
Turkey have shown some growth.
As a result, our sales in Europe totaled ¥9,100 million, an
increase of 6.2% on the previous term.
Other Business
Sales for other business totaled ¥496 million, a decrease of
10.8% from the previous term.
India
In the field of automotive coatings, new manufacturing
plants owned by domestic automakers as well as Japanese
manufacturers have moved into full production and due to
this expansion in production, our sales have risen
accordingly.
Furthermore, with the expansion of the Indian economy
centered on internal demand, we have been positive in
developing sales and consequently we have seen an increase
in our sales in the field of decorative coatings.
As a result, our sales in India totaled ¥40,409 million, an
increase of 12.8% on the previous term.
Kansai Paint Co., Ltd.
Corporate Report 2011
11
Business Review
Research and Development Operations
With 5 research institutes and 1 research center, the Kansai
Paint Group, through coordination with the technological
departments of the Group companies, is aiming for
effective, broad-based research activities that will enable the
Company to respond to what the market needs in a more
timely fashion. Through our focus on global development
and by strengthening coordination between all companies in
the Kansai Paint Group, we are also working to promote
technological development in order to meet the needs and
standards of countries around the world, as well as fostering
human resources capable of working on a global scale.
During the consolidated term under review, the total
R&D expenditure of the Kansai Paint Group amounted to
¥5,582 million, and a total of 561 people have been
involved in R&D activities in the Kansai Paint Group as a
whole.
The following is an overview of the company’s R&D
activities by business segment.
In our basic research, we strive to accumulate fundamental
technologies that are useful for coatings and the
development of new business potential. Our fundamental
technologies focus on polymer synthesis, new cross-linking
reactions, pigment dispersion, surface and interface control,
rheology control, and biotechnologies able to contribute to
the improvement of the environment, etc. Thus we are
aiming for the creation of a new foundation for coating
technology that can act as a springboard towards the next
stage of technology.
In the area of fundamental analysis and evaluation, we
are working to establish new analytical technologies to
contribute to the development of products based on more
precise technological foundations, regarding the phenomena
observed in the film formation stage and the performance of
films, an area where establishing evaluative technologies is
very difficult. Furthermore, through these technologies, our
shared plan for each of the companies in the Group is to
12 Kansai Paint Co., Ltd. Corporate Report 2011
place particular focus on our services such as analysis and
consulting related to quality, safety and the effect on
environment of our products for our customers both at
home and overseas, and we are promoting the
establishment of reliable, global operation systems.
In the area of color design, in the automotive coatings field,
we have developed and proposed advanced color groups for
Japanese automobile manufacturers through research and
analysis of the latest color trends. Looking overseas, we
undertook a survey of automotive color trends at motor
shows as well as researching automobile color trends in
Asian countries.
In regard to decorative and industrial coatings, we
undertook a survey and analysis of design style trends for
detached houses and this information was utilized to create
new color proposals for construction materials and design
proposals for building materials. In the field of color
application technology, we moved forward with our
technological development into the color formation and
color stability of water-based coatings. Moreover, in the field
of color science, we continued our research into the
feasibility of a custom color matching process for trucks
using a computer color matching system for metallic
coatings and we plan to improve the efficiency of our color
matching processes not only for exterior colors, but also for
components.
lifecycle of paint and coating products, from raw materials,
manufacturing of the coatings, application, drying and
disposal.
In the area of automotive coatings, in addition to
continuing our development of high value added coatings
that offer high quality, durable, scratch resistant finishes,
etc., we have also been working to expand and diversify the
use of our highly-evaluated Waterborne 3-Wet Coating
System, manufactured using eco-friendly technologies that
are both process- and energy-efficient.
In the area of industrial coatings, decorative coatings,
and protective coatings, we are promoting the conversion to
water-based coatings in these fields as well as striving to
research and develop an environmentally-appropriate
coating system that is capable of reducing the number of
coats required as well as replacing traditional soluble
coatings with advanced high solid coatings. On the other
hand, we are also working to research and commercialize
coating products with high functions, such as heat shielding,
anti-bacterial functions as well as multiple colors and
patterns. In addition, we are working to develop the
evaluation technologies and evaluation equipment required
for the development of these coatings, which will facilitate
efficient product development as well as increasing the
perfection rate for finished products.
We have been promoting the development of new
technologies and new products in the fields of electronics
and communications, the environment and biotechnology.
In the field of electronics and communications, we have
been working on the development of photo-resist materials
that will reduce the burden on the environment through
fewer processes and reduced waste, etc. and we plan to
expand the uses of our laser direct imaging photo-resist and
screen printing resist materials, etc. In the environmental
and biotechnological fields, we are also promoting the
development of a wastewater processing system for
waterborne coatings and the development and
improvement of supporting carriers for a more efficient
sewage processing system.
Furthermore, during the term under review, expenditure
on research and development by segment amounted to
¥5,181 million for Japan, ¥217 million for India and ¥183
million for Europe.
In regard to coatings and coating system development, we
are developing eco-friendly technologies in order to
contribute to a sustainable society on a global scale, with
particular effort being put into research and development to
create paints and coatings that are sensitive to the global
environment, specifically products that reduce the amount
of greenhouse gases and volatile organic compounds.
Moreover, we are working in the research and development
of eco-friendly technologies that encompass the entire
Kansai Paint Co., Ltd.
Corporate Report 2011
13
Business Review
New Products
Automotive Coatings: Promoting Environmental Sensitivity
-Measures to Reduce Volatile Organic Compounds (VOC) from Bumper Coatings
Composition and Current Status of Anti-VOC Coatings (Fig.1)
800
Estimated amount of VOC (g/L)
Our activities to reduce the amount of VOC and CO2 in the
automobile body, through our use of water-based coatings
as well as our developments with the waterborne 3-Wet
Coating System, are growing favorably (according to our
own business performance data). Furthermore, it is expected
to reduce the amount of VOC in bumpers, a large-sized
resin exterior component affixed to the automobile.
With regard to our current approach to reducing the
amount of VOC contained in the coating for automobile
bumpers (made from polypropylene material), we are
developing a high solidification approach to the process of
applying the primer, base and clear coats (by reducing the
amount of solvent contained in solvent-based coatings)
which gives superior workability as well as moving forward
with our water-based coatings which are advantageous with
regard to VOC, as shown on Fig. 1.
Fig. 2 illustrates film composition on resin materials and
the functions that are required of these films.
Looking ahead, in order to improve the fuel efficiency of
automobiles there is a need to reduce the weight of these
vehicles and it is thought that resin materials are a suitable
way to move forward with this. Also from the perspective of
reducing VOC, we believe it will become increasingly
important to develop water-based coatings for use with
resin materials.
Solvent-based
Solvent-based
Solvent-based
Formerly
Combination of
solvent-based
600
High-solid type
High-solid type
High-solid type
400
Under development
Combination of
water-based
Water-based
200
Water-based
Primer
Currently
Combination of
high-solid types
Base Coat
Clear Coat
Film composition on resin materials and their required functions (Fig.2)
Composition of Coating Film
Required Functions
• Weather resistance
• Physical properties
• External appearance
Clear Coat
• Design characteristics
• Physical properties
Base Coat
Primer
• Adhesiveness
• Concealment
Materials
• Lightweight
• Strength, etc.
16
ALES COOL: High-Performance Solar Radiation-Reflective Coating
Spectral Reflectivity Graph
(Measurements taken using Coffee Brown color paint)
Policies on Environmental Conservation
17
18
90
80
70
Environmental Management
Regular Roof Paint
100
Degree of Reflection (%)
We have recently developed ALES COOL, a highperformance solar radiation-reflective coating that can
reduce the heat energy that is generated on a sun-exposed
roof. ALES COOL forms a coating film that can efficiently
reflect sunbeams containing solar (infrared) rays.
In terms of its heat performance, ALES COOL benefits
from a raw material that is effective at reflecting infrared
rays which is contained in both the topcoat and the
undercoat and this creates a double-blocking effect that
delivers spectacular improvements in heat performance. By
applying a coating of ALES COOL on the roof, the rooftop
temperature during the hottest part of the summer can
results in temperatures cooler by some 10 to 20 degrees
centigrade. This can lead to reductions of up to 40% in
terms of the cost of electricity consumption in order to keep
indoor temperatures at a comfortable level, and energy
conservation simulations* have shown that this reduction in
electricity consumption also translates into a reduction of as
much as 40% in CO2 emissions.
Furthermore, ALES COOL has also been certified in the
Environmental Technology Verification project 2010 (ETV) as
a technical measure to counteract heat island phenomenon.
(Verification No. 051-1048~1053)
Environmental Activities
Visible
Rays
Infrared Range
20
60
50
ALES ECO PLAN 2010
ALES ECO PLAN 2012 Settlement
40
21
30
20
Management of Chemical Substances
10
0
300
500
700
900
1100
1300
1500
1700
1900
2100
22
2300 2500
Wavelength (nm)
Double-blocking effect of
two layers of coating
film on sunlight
(infrared rays)
Sunlight (infrared rays)
24
Environmental Conservation Activities
Development of Environmental Technologies
and Products / Green Procurement
Topcoat
Undercoat
Roof
*Simulation using ‘SMASH’ software developed by the Institute for Building Environment
and Energy Conservation
14 Kansai Paint Co., Ltd. Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
15
Environmental Activities
Policies on Environmental Conservation
Environmental Management
Corporate Policies on Environmental Conservation
Audit by Top Management, RC Committee
Environmental & Product Safety Committee
All committees report the status of their activities, and their
results once a year individually to top management including
the President in his capacity as the Chairman of the RC
Committee. These committees then ask senior management
for their confirmation of these reports and for instructions
regarding further activities to assure the efficiency and
effectiveness of overall operations throughout the company,
taking the production, technical and sales divisions as one
body.
During a top-level diagnosis of fiscal 2010, the RC
Committee, now chaired by President Kawamori, reported
on the activities of each committee in the first year of our
13th mid-term business plan as well as the current status of
our overseas quality assurance and chemical substance
control programs. Discussions were also held in regard to the
ALES ECO PLAN 2012, the next stage of our RC activity plan,
with the following points identified.
We have been able to achieve almost all of the goals set out
in the ALES ECO PLAN 2010. The goal of reducing the
amount of hazardous substances in our finished products
has been carried over to the ALES ECO PLAN 2012.
Moreover, we will contribute to the preservation of the
global environment through moving forward with
developing our products and technologies to reduce the
burden they place on the environment, which accurately
meet the needs of our customers, as well as conforming
with legal regulations both overseas and in Japan.
Basic Policies
Action Policies
1. To supply products after full consideration of
their potential impacts on people and the
environment.
3. To cooperate with internal and external
organizations to raise awareness concerning
the environment, safety, and health.
2. To undertake proactive countermeasures to
cope with the potential effects of products
on people and the environment.
4. To disclose and provide information related
to the environment, safety, and health.
1. To develop new technologies and products
with a focus on the maintenance and
promotion of environmental friendliness,
and the protection of natural resources.
6. To ensure a sound environment, safety and
health, and reduced solvent emissions in
our business operations.
7. To reduce waste and effluent, and promote
recycling and resource recovery.
2. To communicate fully with customers, and
promote the wider use of eco-friendly
products.
8. To reduce energy use and carbon dioxide
emissions.
3. To proactively prevent the occurrence of
environmental, safety, and health issues
related to customer use of our products.
9. To educate our employees and affiliated
companies regarding environmental, safety,
and health issues, as well as to promote
communication with our stakeholders.
4. To promote green procurement and the
purchase of green products.
10. To issue environmental and social reports.
5. To disclose environmental, safety, and health
information regarding our products.
Operational
Policy
In order to achieve our goals concerning the protection of the global environment, our company and
all of its employees cooperatively promote Responsible Care based on the Action Policies.
Responsible Care
It is recognized that regulations alone
can not completely ensure
eco-friendliness, human safety, and
health. In response to current
demands, the world’s chemical
industries have begun working on
self-imposed controls to protect the
environment, safety, and health at all
stages of chemical processing, from
development right through to
disposal. This activity is called
“Responsible Care (RC)”.
ALES ECO PLAN
RC Committee
2010 Instructions by Top Management
RC Top Management Review
Secretariat
President, Senior Managing Director in Charge, Auditor
QA & Environment Division
Environmental & Product
Safety Committee
Activities
Reduce toxic
substances in products
Development of
Eco-Products
User- and Customer-Related
Environmental Safety Committee
Environmental Safety &
Health Committee
Activities
Fulfillment of a system
for dealing with
environmental laws and
regulations
Dealing with PL
(Product Liability)
Activities
Reduce the burden on
the environment during
production operations
Securing of Safety
and Health
Environmental
conservation
RC Committee for Company-wide Promotion of Quality Control and Environmental Protection
Reflection in Company-wide
PDCA activities
The User- and Customer-Related Environmental Safety
Committee promotes companywide activities to formulate
and establish internal company systems and rules that will
allow us to respond appropriately to the enforcement and
revisions of various environment-related laws and
regulations in Japan and abroad so that we may properly
and accurately provide products to the market which meet
customer needs.
Environmental Safety & Health Committee
• Environmental Conservation (Responsible Care) Organization Chart
Committee Chairman:President
User- and Customer-Related Environmental
Safety Committee
1. With the diversification of the overseas market,
we need to create a more robust management
system to meet customer needs and deal with
compliance.
2. Work to improve product quality, the
environment, safety and hygiene at our overseas
business sites through closer coordination with
local companies.
3. Work towards achieving the goals as set out in
the ALES ECO PLAN 2012
Our aim as a coating manufacturer is to ‘Always have Safety
as our Utmost Priority’ and ‘Constantly Aim for Zero
Accidents in the Workplace’.
In concrete terms, this means our Committee activities
are divided amongst our five teams: 1. The Central
Environment, Safety, and Health Diagnosis Team; 2. The
Health and Sanitation Sub-Committee; 3. The
Company-Wide Safety & Environment Promotion Team; 4.
The Central Energy Conservation and Environmental
Measures Team; 5. The Safety & Environment Promotion
Teams for Overseas and Affiliated Companies.
These teams simultaneously conduct safety checks for all
group companies, and the Central Safety and Environment
Manager, the Central Hygiene Manager and specialized
team also carry out a central diagnosis on the environment,
safety, and hygiene. Efforts to ensure compliance with laws
and KYT activities (hazard prediction training), education and
training (through classes where participants experience
hazardous situations, etc.) are ongoing throughout the year.
In this way, we are proactively preventing workplace
accidents.
ISO14001 Activities
Site Environmental Policies
Objectives,
Targets, Plans
Management Review
16 Kansai Paint Co., Ltd. Corporate Report 2011
Implementation
and Operation
Internal Audits,
Monitoring,
Measurement, etc.
Kansai Paint Co., Ltd.
Corporate Report 2011
17
Environmental Activities
ALES ECO PLAN 2010
(Evaluation of FY2010 results and targets)
Activities
Reduction of
Environmental Hazardous Substances
& Product
in Products
Safety
Items Targeted
FY2010 Targets
1. Lead compounds in products sold
Reduce fiscal 2003 figures by 50%: 471 tons → 236 tons
193 tons/annual shipments
(59% reduction compared with fiscal 2003)
2. Hexavalent chrome compounds in
products sold
Reduce fiscal 2003 figures by 50%: 333 tons → 167 tons
138 tons/annual shipments
(59% reduction compared with fiscal 2003)
3. Volume of T, X, EB*1 in finished
products sold*2
Reduce fiscal 2003 figures by 15%: 37,200 tons
→ 31,620 tons
29,800 tons/annual shipments
(20% reduction compared with fiscal 2003)
4. VOC rate in coating products sold*3
Reduce fiscal 2003 figures by 10%
22.8%
(7% reduction compared with fiscal 2003)
Increase ratio of eco-products to at least 65%
Eco-product ratio: 63%
Promotion of Products with Reduced Environmental Burden
Reduction of
Environmental
Burden in Operations
Assurance of
Environmental Environmental
Safety during
Safety and
Transportation
Health
Securing Safety
and Health
Environmental
Conservation
Activities
Target value achieved
Target value not achieved
(Due to the effects of a sluggish market, it is proving
slow to switch to products that have a reduced
environmental impact)
Target value not achieved
(Due to a decrease in production volume, the unit production
volume target was not achieved but there was a decrease in
the overall amount of energy)
Reduce fiscal 2007 figures by 1.5%
17% increase compared with fiscal 2007
2. CO2 emissions (total)
Reduce amount for fiscal 1990 by 10%
11% decrease compared with results for fiscal 1990
Target value achieved
Target value not achieved
(Due to a decrease in production volume, the unit production
volume target was not achieved but there was a decrease in
the overall amount of waste and the zero emission target was
achieved)
3. Waste emissions (per unit of production)
Reduce fiscal 2007 figures by 3.0%
37% increase compared with fiscal 2007
4. Waste recycling ratio
Maintain a level of 99% or higher
Annual average: 99.5%
1. Total energy during shipping (basic unit)
Fiscal 2006: 9.27 L/t (converted to crude oil)
4.0% reduction from fiscal 2006 results
11% reduction compared with the results for FY2006
2. Assurance of transportation safety
Establishment of labor-saving operations
Labelling 100% maintained
1. Number of accidents (lost-work injuries)
0 cases
0 cases
Target value achieved
2. Organic solvent handling operations in
Class-II Class-III workplaces
0 cases
5 cases of Class II workplaces
1 case of a Class III workplace
Target value not achieved
(The local exhaust ventilation and air blowers, etc.
have undergone improvements)
1. ISO 14001 activities
Ongoing implementation
Ongoing implementation
2. Preparation for environmental accounting
Ongoing publication
Ongoing publication
3. Prevention of environmental pollution
0 cases
Within standard values: 0 cases
• Creation of and adherence to a system that strictly obeys
all rules and regulations related to the environment
• Revision of our label designs in order that they should be
appropriate in terms of legal regulations
• Response to and implementation of the revisions to the Chemical
Substances Management Promotion Law
• Response to and implementation of the revisions to the Law
Concerning the Examination and Regulation of Manufacture, etc.
of Chemical Substances
• Response to and implementation of the revisions to the administrative
code for poisonous and deleterious substances
• Accepted and applied corrective measures to the issues indicated
regarding non-compliant labeling of hazardous substances
2. Enhanced environment
management system
• Maintenance of a system to deal with MSDS and
PRTR issues
• Color label KK-VAN and revisions to the labor safety
law master
• Revision of the system for receiving and placing
orders for poisonous and deleterious substances
• Implementation of revisions to related systems with regard to
the revisions to the MSDS, etc. laws
• Response to and implementation of the revisions to the labor
safety law master
• Maintenance of the system to provide online security when
an order is received for products that contain poisonous and
deleterious substances
3. Prevention of product liability claims
Determine candidates for PL and achieve 0 claims
0 claims for Kansai Paint, Kansai Paint Sales,
NKM, Hapio
1. Publishing of environmental report
Ongoing publication
“Environment and Social Report 2010”
(Japanese) published in June
2. Publishing of annual report
Ongoing publication
Publication of the English edition of the
“Corporate Report 2010” (September)
User- and
Customer-Related
Environmental Safety
Activities
Disclosure of Environmental
Information
Evaluation
1. Energy consumption
(per unit of production)
1. Compliance with domestic and
overseas environmental laws
User- and
CustomerRelated
Environmental
Safety
FY2010 Achievements
Target value achieved
Target value achieved
Implementation of each item was continued
Information was released as planned
*1 “T, X, and EB” indicates “toluene, xylene, and ethylbenzene”
18 Kansai Paint Co., Ltd. Corporate Report 2011
*2 Finished products: including thinners sold
*3 Coating products excluding thinners sold
Kansai Paint Co., Ltd.
Corporate Report 2011
19
Environmental Activities
ALES ECO PLAN 2012 Settlement
Items Targeted
Reduction of
Hazardous
Environmental Substances
in Products
& Product
Safety
Targets for Final Fiscal Year (FY2012)
70% reduction from fiscal
2003 results
63% reduction from fiscal
2003 results
2. The amount of hexavalent
chrome in products sold*2
65% reduction from fiscal
2003 results
60% reduction from fiscal
2003 results
3. The amount of T, X, EB*3 in
coating products sold*4 (T: Toluene,
X: Xylene, EB: Ethyl benzene)
27% reduction from fiscal
2003 results
23% reduction from fiscal
2003 results
4. VOC rate contained in coating
products sold*5
12% reduction from fiscal
2003 results
10% reduction from fiscal
2003 results
Ratio of environmentally friendly
coatings sold: 98% or higher
Ratio of environmentally friendly
coatings sold: 97% or higher
100%
100%
Management of REACH-regulated
as a restricted substance
Assurance of
Environmental
Safety during
Environmental Transportation
Safety and
Health
Securing
Safety
and Health
Environmental
Conservation
Activities
User- and
CustomerRelated
Environmental
Safety
User- and
CustomerRelated
Environmental
Safety
Activities
Disclosure of Environmental
Information
FY2011 Targets
1. The amount of lead
in products sold*1
Spread of environmentally friendly coatings
Reduction of
Environmental
Burden in
Operations
Management of Chemical Substances
SVHC*6
1. Energy consumption
(per unit of production)
2.0% reduction from fiscal
2010 results
1.0% reduction from fiscal
2010 results
2. CO2 emissions (total)
12% reduction from fiscal
1990 results
11% reduction from fiscal
1990 results
3. Waste generated unit
production volume
2.0% reduction from fiscal
2010 results
1.0% reduction from fiscal
2010 results
4. Waste recycling ratio
Maintenance of 99% or higher
Maintenance of 99% or higher
1. Total energy during shipping
(basic unit)
2.0% reduction from fiscal
2009 results
1.0% reduction from fiscal
2009 results
2. Assurance of transportation safety
Establishment of operation
Establishment of operation
1. Number of accidents
(Lost-work injuries)
0 cases
0 cases
2. Organic solvent and specially
controlled substance handling
operations in Class-II Class-III
workplaces
0 cases
0 cases
3. Safety assurance at affiliated
companies overseas
Implement a safety diagnosis
program at affiliated companies
overseas
Implement a safety diagnosis
program at affiliated companies
overseas
1. ISO 14001 activities
Ongoing implementation
Ongoing implementation
2. Preparation for environmental
accounting
Ongoing publication
Ongoing publication
3. Prevention of environmental
pollution
Within standard values
0 cases
Within standard values
0 cases
1. Compliance with domestic and
overseas environmental laws
• Adherence to a system to
comply with all Japanese
environmental regulations
• Consideration and construction
of a system to comply with the
environmental regulations in
each of our overseas locations
in accordance with market
developments
• Adherence to a system to
comply with all Japanese
environmental regulations
• Consideration and construction
of a system to comply with the
environmental regulations in
each of our overseas locations
in accordance with market
developments
2. Enhanced environment
management system
Construction of
the required system
Construction of
the required system
3. Prevention of product
liability claims
Determine candidates for
PL and achieve 0 claims
Determine candidates for
PL and achieve 0 claims
1. Publishing of environmental report
Ongoing publication
Ongoing publication
2. Publishing of Corporate Report
Ongoing publication
Ongoing publication
*1) Amount of lead (Pb): amount of elemental lead content
*2) Amount of hexavalent chromium (Cr VI): amount of elemental hexavalent chromium content
*3) “T, X, and EB” indicates “toluene, xylene, and ethylbenzene”
20 Kansai Paint Co., Ltd. Corporate Report 2011
*4) Finished product: including thinners sold
*5) Coating products excluding thinners sold
*6) SVHC: Substance of Very High Concern
Corporate Rules Regarding the Selection of
Raw Materials at the Product Design Stage
We have prepared a system to evaluate the chemical
substances contained in raw materials to be used
Hazardous Material Reduction Results
beforehand and as such pre-evaluations are carried out
voluntarily, we endeavor to secure the environment,
safety, and health for our business sites and neighboring
residents as well as for the use and final disposal of our
products.
Lead Compounds Contained per 100 Tons of Products Sold
1) Lead compounds contained in products sold
(t)
We are continuing our efforts to reduce the use of lead compounds
and compared with FY2003, the amount of lead compounds in
products sold was 41% (193 tons) in FY2010.
The percentage of lead compounds per 100 tons of coating
product showed a decrease compared with the previous fiscal year
due to our further transition from rustproof coatings containing lead
to rustproof coatings that are both chromium- and lead-free.
Looking forward, we are promoting the switch to rust-proof
coatings free of lead- and chromium-based agents.
0.25
2) Hexavalent chromium compounds contained in
products sold
We are continuing our efforts to reduce the use of hexavalent
chromium compounds, and compared with FY2003, the amount of
these compounds in products sold was 41% (138 tons) in FY2010.
The results for the percentage of hexavalent chromium
compounds per 100 tons of coating product was about the same as
the previous fiscal year.
Factors hampering the reduction of products including
hexavalent chromium compounds include the required verification
of long-term performance aspects, such as weather resistance and
durability, and the high cost of material substitution. However, we
are continuing with our efforts to develop and expand replacement
products, thereby reducing these compounds.
3) Toluene, xylene, and ethyl benzene contained in
products sold
We are continuing our efforts to reduce the use of toluene, xylene,
and ethyl benzene (hereafter, T, X, and EB). We have transitioned
from solvent-based coatings to water-based coatings and due to our
progress in developing a market for coatings that do not contain
PRTR substances, in FY2010 there was a decrease of 20% in the use
of these materials compared with the figure for FY2003,
representing a large reduction to 29,800 tons. Our target reduction
was 15% so we were able to attain our goal.
Unfortunately, due to a sluggish market, the amount of T, X and
EB per 100 tons of coating and thinner sold actually increased.
In the future, we will continue to develop products to replace
those containing T, X, and EB, and further promote the reduction in
the use of these substances.
4) VOC percentage contained in products sold
In FY2010, with regard to the percentage of VOC contained in
coating products sold, it became slow to switch to products with a
reduced environmental burden due to a sluggish market. Compared
with FY2003, the percentage of VOC contained in coating products
sold was reduced by 7% but we were not able to attain our stated
goal of a 10% reduction compared to the figures for FY2003.
Looking forward, we will continue to work towards expanding
the market for low-VOC products such as water-based and high
solid coating products.
0.20
0.19
0.15
0.13
0.13
0.14
0.10
0.10
0.08
0.05
2003
2005
2007
2008
2009
2010 (FY)
Hexavalent Chromium Compounds Contained
per 100 Tons of Products Sold
(t)
0.20
0.15
0.13
0.10
0.10
0.08
0.07
0.07
2008
2009
0.06
0.05
2003
2005
2007
2010 (FY)
Toluene, Xylene, and Ethyl benzene Contained
per 100 Tons of Products Sold
(t)
15
12.7
12.0
11.1
11.0
2007
2008
10.2
10.8
2009
2010 (FY)
22.6
22.5
22.8
2008
2009
2010 (FY)
10
5
2003
2005
VOC percentage Contained in Products Sold
(%)
30
24.4
23.7
23.5
2005
2007
20
10
2003
Kansai Paint Co., Ltd.
Corporate Report 2011
21
Environmental Activities
Environmental Conservation Activities
Water Conservation Efforts at Production Plants
Reduction of CO2 emissions
We understand that the reduction of energy consumption
and CO2 emissions in our production process is an important
part of our business activities, and thus we are promoting
the installation of energy-saving equipment when upgrades
are conducted.
The carbon dioxide emission volume for the production
division in FY2010 was 33,500 tons. The production volume
decreased by 2.8% compared with FY2009, and the basic
unit for CO2 emissions was 140kg-CO2/ton, about the same
as our performance for FY2009.
In FY2010, the amount of water used in the manufacturing
stage was about the same as FY2009. Kansai Paint shall
Amount of Water Used
Amount of Water Used per Production Unit
(L/kg)
(103m3)
CO2 Emissions in Production Plants Including incinerators*
CO2 Emissions in R&D Divisions
1,000
800
(t-CO2)
40,000
35,100
36,900
34,200
34,500
25,000
130
119
114
400
14,000
300
13,000
140
200
140
17,500
Total CO2 emissions
100
2006
2007
2008
600
33,500
32,500
CO2 emissions per
production unit
12,000
12,400
11,800
400
12,400
11,900
2007
2008
2009
676
700
600
2,290
2,560
2,400
677
2,750
2,800
1,000
2006
2007
2008
Total energy
consumption
NOx
15
10.4
9.3
10.3
9.5
10.2
5
0.7
0.1
2006
0.5
321
129
112
2008
92
2007
2009
87
2010 (FY)
Tap water
2
Groundwater
Industrial
water
1
2008
2009
2010 (FY)
1.23
1.26
1.24
1.26
2007
2008
2009
2010 (FY)
2006
2007
Transitions in COD Emissions
(t)
5
4
3
2
1.75
1
2006
Total energy
consumption
2007
2008
2009
2010 (FY)
Kansai Paint started a company-wide waste reduction
system in 1999 to promote the “3Rs” of industrial waste
required by a resource cycling society — A reduction in the
generation of industrial wastes (Reduce), recycling of waste
that is generated (Recycle), and the reutilization of materials
(Reuse). We have set our sights on the achievement of zero
emissions for industrial waste generated through our
manufacturing activities. As a result, we were able to achieve
zero emission by our production plants in fiscal 2005 and
have been able to maintain zero emissions since that time.
As for “Recycle” and “Reuse”, as shown in the graphs
below, our production plants achieved a very high standard
for the ratio of recycling, 99.5%, in fiscal 2010.
SOx (sulfur oxide)
SOx comprises sulfur dioxide and a small amount of
sulfur trioxide, and is discharged when fuels including
crude oil, heavy oil, and coal, as well as wastes
containing sulfur, are burned.
Amount of Industrial Waste Generated (Production Plants)
NOx (nitrogen oxide)
NOx, comprises nitrogen monoxide, nitrogen dioxide,
etc., and is contained in exhaust gases from thermal
power stations, boilers, incinerators, and trucks.
(t)
(t)
32,000
200
Recycling Ratios, and External Intermediate Treatment Amounts,
Including Final Landfill Amounts (Production Plants)
Dust
20
10
322
2.71
Waste Reduction
251
250
2006
SOx Emissions Quantities, NOx Emissions Quantities,
Dust Emissions Quantities
SOx
259
Energy consumption
per production unit
Air Pollution Controls (at Production Plants)
(t)
316
2.94
2.45
COD (Chemical Oxygen Demand)
COD is an index of water pollution resulting from organic matter, and expresses the
amount of oxygen consumed during the oxidation decomposition of the organic
matter.
269
268
2010 (FY)
2009
339
2.93
2.57
300
255
500
295
unit for energy consumption increased due to an increase in
the proportion of low-CO2 emission electricity used by the
production division. We are going to continue our
energy-saving activities in order to suppress the amount of
energy used.
3,000
2,000
307
(106MJ)
(kJ/kg)
4,000
670
3
287
Transitions in Amounts of Energy Used by
Technology and R&D Divisions
Transitions in Energy Consumption in Production Plants
743
2006
4
703
Water pollution prevention at production plants
The amount of COD discharge, an indicator of the emission
volume of water pollutants, has almost remained unchanged
since FY2007 when the water processing facilities at our
Nagoya plant were upgraded.
The amount of energy used by the production division in
FY2010 decreased by 1.5% compared with FY2009, but the
decrease in production volume meant that energy used per
basic unit increased by 1.4% compared with FY2009. The
basic unit for CO2 emissions stayed the same but the basic
704
292
721
715
2010 (FY)
Promotion of energy-saving activities
(106MJ)
800
282
213
Total CO2 emissions
2006
300
760
200
11,600
11,000
2010 (FY)
2009
5
Total 795
(t-CO2)
(kg-CO2/t)
continue to make effective use of cooling water and boiler
steam water.
0.1
2007
0.7
0.1
2008
22 Kansai Paint Co., Ltd. Corporate Report 2011
0.5
0.05
2009
0.4
0.07
2010 (FY)
Dust
Dusts are particulate matters comprising soot and
cinders, and are defined by the Air Pollution Control
Law as particles discharged when fuels and other
materials are burned or used as thermal sources.
30,770
30,850
99.7
99.6
99.6
102
99
99
99.5
30,000
28,000
100
27,070
Amount of
generated
industrial waste
26,000
Note
Data from the five production sites (including the
Technology Department) were totaled up.
(%)
100
99.7
24,370
2006
2007
2008
2009
110
113
24,460
2010 (FY)
Amount of
95 external intermediate
treatment including
final landfill
Recycling ratios
2006
2007
2008
2009
Kansai Paint Co., Ltd.
2010 (FY)
Corporate Report 2011
23
Environmental Activities
Development of Environmental Technologies
and Products/Green Procurement
Kansai Paint’s Basic Technologies Look to the
Future
Kansai Paint’s core technologies are represented by coating
material, coating processes and coloring technologies.
Furthermore, these technologies are supported by
fundamental technologies that include polymer synthesis,
molecular cross-linking, photochemistry and material
coloring. These core technologies are used in a wide range
of applications to improve surfacing results and increase
product value.
In order to assure the original mission of paint and
coating, the protection of a product, ensure a beautiful
appearance and reduce the burden on the environment
throughout the lifecycle of the product, we are
concentrating on research and development that will ensure
a low-environment burden, high performance and highly
functional products.
Technologies to modify surfaces and to
extremely increase the value of products
Polymer synthesis
Light energy
Application
Biotechnology
Coatings
Analysis
Rheological control
Coloring materials
Color and Design
Computer simulation
Engineering
Polymer cross-linking
Pursue the ultimate in
possibilities for
coating materials
Surface control
Develop new technologies and new fields
based on coating
technology
Develop environmentfriendly products
Life Cycle Assessment (LCA) Initiatives
The protection function of a coating for a material comes
into play when a coating film is formed, suppressing the
deterioration of the coated material, increasing its durability
and contributing to environmental conservation. The primary
burdens placed on the environment up to the time of the
formation of the coating film are generated from the raw
materials used in the coating and in the film formation
process of coating application, so Kansai Paint is designing
products with reduced environmental burden throughout
the lifecycle of the coating material and coating film. For
example, products with thinner coating film thicknesses,
increased coating film durability and simpler drying
processes. LCA is a useful tool for quantitatively ascertaining
the environmental burden of the product. Based on this LCA
method, we have studied evaluation methods that can be
suitably applied to coatings and these methods have served
useful in the evaluation of environmental burden at the time
of product design.
Kansai Paint Procurement Policies
Classifications of Materials Used
• Kansai Paint promises to conduct fair and impartial
business transactions following a “legal mindset”.
• Kansai Paint shall work to open doors widely for business
transactions, both in Japan and abroad.
• In the spirit of green procurement, Kansai Paint shall give
preference to business partners that have established
environmental management systems.
• Kansai Paint shall create a fair relationship of cooperation
within which the company is on equal footing with
business partners as we continue to work to enhance our
partnerships.
In regard to the materials used by Kansai Paint, we shall
clearly classify materials, make specific details available to
our business partners, etc., using such documents as the
Kansai Paint Environmental Management Substances List
and shall work to obtain materials that minimize the burden
on the environment.
24 Kansai Paint Co., Ltd. Corporate Report 2011
Social Activities
26
Treatment of Employees
28
Occupational Safety and Health
29
30
Consumer Protection
Social Action Programs
Kansai Paint Co., Ltd.
Corporate Report 2011
25
Social Activities
Treatment of Employees
Human Resource Development and Training
Equal Employment Opportunities
Health Care
Our human resource development plan has been designed
to motivate our employees, as we consider that motivation is
one of the most important factors in human development.
We respect the Equal Employment Opportunity Law for Men
and Women. We implement many measures to protect both
women’s rights and their persons. We provide equal pay and
benefits to both genders without discriminating against
female employees.
The Health and Sanitation Sub-Committee has been installed
under the Environmental Safety & Health Committee, which
is dedicated to ensuring the good health of all employees in
Kansai Paint Group companies.
In FY2010, the committee continued to promote its
antismoking campaign while continuing its activities to
support people suffering from mental health issues and
lifestyle-related illnesses.
Human resource development system
Five themes have been defined for human resource
development training: a self-development program, a
long-term training plan, expansion of job capabilities, a
revolution in corporate culture and a training structure.
Systematically established training system
Our training system has been systemized as a matrix
corresponding to the various types of study objectives and
levels. Our goal is to enhance the specialized skills of each
employee and to foster the comprehensive abilities of our
professionals.
Hierarchical Study
In order to increase job performance with each year,
we conduct training for new employees as well as
core employee training, supervisor training,
administrator training, etc., as needed.
Training by Function
Specialized training particular to each area
(administration, sales, technologies, manufacturing)
is being conducted.
International Training
In order to expand our consciousness and capabilities
on an international scale, we are providing support
for foreign language studies, studies for dealing with
other cultures, studies for employees being stationed
overseas, etc.
Life Design Training
To help our employees enjoy long and healthy lives,
we provide time for implementing life plan seminars
organized by the employees themselves.
Common Training, Occupational Training
The Kansai Paint Training Center, a vocational
training center certified by the Ministry of Health,
Labor and Welfare, conducts common training for
safety, improvement activities, basic training, skill
improvement training, craftsman training related to
each type of coating, etc. We also promote
participation in outside seminars for each type of
occupation and hierarchical level.
26 Kansai Paint Co., Ltd. Corporate Report 2011
Prevention of Sexual Harassment
Our company rulebook specifically prohibits sexual
harassment and provides a system for all employees to
receive consultation by phone and e-mail.
Furthermore, this subject is included in the training
program and seminars for managers and new hires.
Employment of Disabled Persons
We make our workplace friendly to disabled personnel, and
offer job openings for disabled personnel throughout the
year as well as working to expand the employment
opportunities for disabled people.
In FY2010, our ratio of disabled personnel was 1.75%
and this is below our legal requirement to have 1.8% of our
workforce consist of disabled people. Given the current
difficult business environment, we will continue to work
hard in this regard.
Privacy Protection
A privacy protection administrator was assigned to each
division, and privacy protection guidelines set forth in order
to prevent private information from being leaked, and to
handle such information correctly in this IT era.
The auditing of compliance with such guidelines is
carried out by auditors who are appointed by the
Compliance Committee, thus ensuring the protection of
privacy in the organization.
We have endeavored to engage in enlightenment activities
such as the implementation of training seminars held in each
region as well as circulating health news, etc.
Mental health care support
During a training course for new employees, participants
were given instructions on general health management and
stress measures by our industrial physicians on the theme of
“Health Management for Adults,” as a part of the process
of transition from being a student to becoming a
full-fledged member of society.This increased awareness of
“health management for mind and body” concept as well as
raising self-awareness of the importance of self-care.
Aiming for the creation of a workplace that promotes
health and an easy-to-work-in environment, we provided
instructions on the basics of line care for newly appointed
administrators, based on the theme of “Mental Health in the
Workplace,” and we are also promoting safety-awareness
activities.
Moreover, we hold regular training seminars in each
region.
The same seminar (Tokyo Office)
Lifestyle illness prevention seminar
(Amagasaki Plant)
The same seminar (Kanuma Plant)
Antismoking campaign
Benefit Programs
We provide benefit programs based on the idea of
respecting individual lifestyles and individuality.
Our benefit programs include annual paid holidays,
special paid holidays, accumulated paid holidays used for
nursing care, volunteer work, and sick leave, refreshing
holidays, in addition to 28 half-day paid holidays (amounting
to 14 workdays) per year to encourage our employees to
utilize their paid holidays.
Recent additions to our benefit program support
child-rearing, one example being
an employee with a small child,
until said child starts their
elementary school education,
shall be permitted to work
shorter hours, etc. We aim to
support our employees at work
and with their families.
Lifestyle-related disease measures
As the next step in the separation of smoking areas that was
completed in FY2005, we have started an antismoking
campaign that helps smokers quit smoking, with the goal of
eliminating the risk factors of diseases and enhancing the
health of our employees.
For instance, we have introduced several how-to books,
and distributed nicotine gum to participants to help them
quit smoking.
At the new employee seminar, support for quitting
smoking is on hand in the form of industrial doctors, who
can connect with those looking to cut down on the amount
they smoke.
A Mental Health Workshop (at the Ono Office)
Transition in the ratio of smokers (Kansai Paint)
(%)
100
50
39.4
38.1
37.5
35.8
35.5
2006
2007
2008
2009
2010 (FY)
Kansai Paint Co., Ltd.
Corporate Report 2011
27
Social Activities
Occupational Safety and Health
Activities for Occupational Safety and Health
Kansai Paint conducts various activities each year with the
goal of realizing zero accidents and disasters. In July, all
employees across the whole Group are involved in a
comprehensive safety inspection. During September and
October, central environmental safety diagnoses by central
safety personnel were conducted at 17 worksites. Moreover,
safety diagnoses are also conducted at 44 CCs (color
centers) around the country every year and at our overseas
locations once every 2 to 3 years. In conjunction with the
implementation of risk prediction training, which includes
other non-regular types of work, seminars regarding zero
accidents in the workplace are used to disseminate
information horizontally and efforts are also being made to
thoroughly implement safe work. There were no cessations
of work caused by accidents during FY2010 so the
frequency of industrial accidents and severity rates for Kansai
Paint are currently at zero. We will continue to work towards
keeping these levels at zero.
Consumer Protection
color centers, stressing the status of promoting
countermeasures to prevent static electricity, the status of
controlling poisonous and deleterious substances as well as
specially controlled substances, the current progress and
situation of daily inspections and intensified measures, safety
measures for electrical equipment and machinery facilities
and 3A KYT practical training (actual place, actual goods,
actual conditions).
These diagnoses, led by the central safety and
environmental management officer, are being performed by
a ten-person team, including the central hygiene managers,
a general management team as well as a team of experts in
machinery and electricity. They found that there was an
overall improvement in safety awareness levels, and
evaluation points were raised compared to the previous year.
Especially, the safety awareness level of the technical division
and the affiliated company are improving as a result of our
continuous diagnoses every year.
Safety Diagnoses at Foreign Affiliated
Companies
Annual Changes in Accidents at Work
Number of industrial accidents
Minor injuries
Lost-work injuries
20
13
11
5
5
2
2000
9
8
10
2001
7
5
1
2002
1
0
4
2003
2004
2005
9
5
1
1
2006
2007
5
3
2
1
2008
2009
0
2010 (FY)
Annual Changes in Frequency Ratios for Accident
Frequency ratio for accidents = (Lost-work accidents
(number of victims)/ Total man-hours) × 1,000,000
Frequency ratio
2
1.20
1.01
1
0.44
2000
2001
0.24
0.25
2002
2003
0.30
0.28
0.56
0.29
0.00
2004
0.00
2005
2006
2007
2008
2009
Safety Measures of Overseas Affiliates
Severity =
(Lost-work days / Total
man-hours) × 1,000
2.29
0.17
0.1
0.01 0.00
2000
2001
2002
Safety diagnosis (TIANJIN WINFIELD KANSAI PAINT &
CHEMICALS CO., LTD.)
2010 (FY)
Change in Severity
Severity
0.2
With the goal of preventing accidents and disasters at
foreign affiliated companies, safety diagnoses are conducted
in each region every year, limiting the number of affiliates
subject to these diagnoses.
In November of fiscal 2010, China was subject to a safety
diagnosis, followed by India in December, with the focus on
safety work
practices, static
electricity counter
measures and the 5S
standards. We will
also continue to
conduct diagnoses in
the future.
0.01
0.00
2003
2004
0.03
2005
0.01 0.02
2006
2007
2008
0.01
0.00
2009
2010 (FY)
Currently, the number of plants run by overseas affiliates
stands at 38 and this increases each year. Kansai Paint
employees are stationed at our overseas production plants
and work in safety, production or quality management and
support.
Number of Overseas Safety Diagnosis Sites
Environmental Safety and Health Inspections by
Management
In fiscal 2010, the slogan “Let’s Find Hidden Dangers at the
Earliest Stage and Eliminate them to Create a Safe and
Secure Workplace!” was adopted for the central
environmental, safety and hygiene diagnoses.
Diagnoses were conducted in September and October at
7 operation plants, 1 center, 6 affiliated companies, and 3
28 Kansai Paint Co., Ltd. Corporate Report 2011
Fiscal Year
Number of Sites (Countries Visited)
2004
9 (ASEAN, India, China)
2005
8 (ASEAN, China, Taiwan)
2006
8 (ASEAN, China)
2007
Training seminars held in Japan, India
2008
9 (ASEAN, China, Taiwan)
2009
6 (Thailand, India)
2010
12 (China, India)
Principle of
Consumer
Protection
In order to ensure product safety for consumers when conducting market development for new
products and when using new materials, the Kansai Paint Group implements investigations based
on internal company standards related to safety verification, providing customers with safe
products. The provision of safer products is also linked to improvements in the working
environments of our coatings manufacturers.
Safety Information
Based on the idea that even a safe product could lead to an
accident if used incorrectly, we provide MSDSs (material
safety data sheets), product catalogs and technical
information. Also, usage precautions are described on our
product labels to ensure safe use by consumers.
Internal Chemical Substance
Management System
(Material MSDS, Documentation, etc.)
Material Selection
MSDS
In order to promote the safe and correct use of our coatings,
which are chemical products, as well as preventing
accidents, Kansai Paint issues MSDSs to provide detailed
product information. Placing emphasis on the importance of
compliance, Kansai Paint reviews the content of these
MSDSs and incorporates the latest legal information into the
documents.
Legal Information
(Enactment, Revision)
Automatic
Document
Creation
Product
MSDS
Product
Design
Branch Office,
Automatic Publication System
Sales Outlet,
etc.
Customers, Users, etc.
Labels and MSDS in Compliance with GHS
(Global Hazard Standard)
Exploding bomb
In preparation for the United Nations recommendations on
2008 goals, Japan has been implementing a partial
introduction of GHS in conjunction with the December 2006
revisions to the Industrial Safety and Health Laws. Kansai
Paint has achieved compliance with the revised Labor Safety
Law enacted December 2006 with product labels and an
MSDS publication system that are based on Japan Paint
Manufacturers Association guidelines.
In fiscal 2010, one part of the Poisonous Materials
Control Law was revised and some toxic substances were
added to those regulated under this law, and a revision to
the Industrial Health and Safety Law has added some items
to the number of substances that require labeling in the
public domain and as a company we will work to accurately
comply with these new regulations.
Moreover, with GHS implemented overseas, we plan to
coordinate with our overseas affiliates with regard to
compliance. Looking forward, with regard to revisions and
updates to laws both at home and overseas, etc, we plan to
perform regular reviews of our labeling and MSDS
compliance.
･ Explosive
･ Autoreactive substance
･ Organic peroxide
･ Flammable and
combustible
･ Autoreactive substance
･ Auto-ignition and
self-heating substances
Gas cylinder
Corrosion
･ High pressure gas
Exclamation mark
･ Acute toxic substance
(low toxicity)
･ Skin irritating substance
･ Eye irritating substance
･ Skin sensitizing substance
Flame over circle
Flame
･ Metal corrosive
substance
･ Skin corrosive
･ Serious damage to eyes
･ Oxidizer
･ Organic peroxide
Skull and crossbones
･ Acute toxicity
･ High toxic substance
Health hazard
･ Mutagen
･ Carcinogenic substance
･ Reprotoxic substance
･ Respiratory sensitizing
substance
･ Organ toxic substance
Environment
･ Aquatic ecotoxic
substance
Note) The titles of the pictograms are those defined by JISZ7251.
Kansai Paint Co., Ltd.
Corporate Report 2011
29
Social Activities
Social Action Programs
Status of Presentations at Product
Explanatory Meetings, Exhibits, etc.
Attending the 14th Asian Paint Industry
Council International Conference
To promote understanding by our customers of the efforts
Kansai Paint is making to create products that reduce
environmental burden, Kansai Paint holds explanatory
meetings as well as exhibiting at different types of events
about its eco-friendly products, with a focus on decorative
coatings, automotive re-finishing coatings and industrial
coatings.
In FY2010, Kansai Paint held a total of 283 product
explanatory meetings and exhibited products 69 times at
exhibitions.
On October 19 and 20, 2010 the Asian Paint Industry
Council (APIC) held an international conference in Suzhou,
China. A total of 8 countries and regions were represented
by the Paint Industry Council and the International Paint and
Printing Ink Council (IPPIC, USA) was also in attendance, and
the participants met to discuss topics such as the current
status and future compliance issues relating to chemical
substance management in Asia (GHS, lead, VOC). Our
Group of companies was well represented at the conference
(Kansai Paint representatives attending from India, Malaysia,
Singapore and Japan (as observers)).
Financial Section
32
Financial Review
34
Consolidated Balance Sheets
Interior Festival
36
The KANSAI PAINT SCHOLARSHIP program
for Foreign Students to Study in Japan
Kansai Paint grants scholarships to students from Asian
countries with the expectation that the students will focus
on their studies and make contributions to the development
of international societies after they return to their countries.
2010 is the 12th year of the KANSAI PAINT SCHOLARSHIP
program and since the program began we have granted
funds to 52 students in total.
It is our sincere hope that these scholarships and their
recipients, including scholarship alumni, will create cultural
bridges with other countries and promote international
exchange.
30 Kansai Paint Co., Ltd. Corporate Report 2011
36
Plaque of Excellence in Waste Reduction
Since fiscal 1999, Osaka City has awarded a plaque
proclaiming excellence in waste reduction to be displayed on
buildings where organizations have excelled in reducing the
amount of waste and kept a clean living environment.
Kansai Paint was inspected by the Osaka City Environmental
Business Center and as a result the company was awarded
the Osaka City Plaque of Excellence in Waste Reduction.
Consolidated Statement of Comprehensive Income
37
38
39
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
54
Independent Auditors‘ Report
KansaiPaint
PaintCo.,
Co.,Ltd.
Ltd. Corporate
Corporate Report
Report 2011
Kansai
31
Financial Review
Overview of the Fiscal Year
Ended March 2011
Looking at the global economy for the term in review, a
gradual recovery is continuing as the economic stimulus
packages implemented by each country reap results. In the
Asian region, domestic demand, particularly in India and
China, continues to grow. In Europe and North America,
there are high levels of unemployment and unease about the
financial system, but a gradual recovery is also taking hold in
these regions. On the other hand, political unrest in the
Middle East and North Africa has triggered a steep rise in the
price of crude oil and so inflation concerns have come to the
fore. The domestic Japanese economy continues its gradual
recovery following the results of a broad range of
government policies but at the end of the term, the impact
of the Great Eastern Japan Earthquake posed enormous
challenges for economic activity.
Amidst these economic conditions, with regard to the
consolidated business results of the Kansai Paint Group, sales
in India and the Asian region have increased, but the price
hike in raw materials combined with the continuing yen's
appreciation has negatively impacted our results, as has the
Great Eastern Japan Earthquake.
Overall, consolidated net sales increased by 6.6%,
consolidated operating income increased by 2.9% and
consolidated net income increased by 7.1% from the
previous term.
Status of Sales
Sales results by geographical segment.
● Japan
In the area of automotive OEM coatings, we focused on
developing new technologies and worked to expand markets
for our Waterborne 3-Wet Coating System, which provides
superior appearance combined with low CO2 emissions, as
well as for our clear coat with excellent scratch resistance. In
the second half of the term, the government subsidy
program for the purchase of eco-cars came to an end and
even though this reduced vehicle production numbers, we
still managed to increase sales in this area.
In the field of auto refinishing paint, we strove for further
expansion of sales by bolstering our range of
environmentally friendly coatings along with our upgraded
color-matching information distribution system. As a result,
sales in this field increased.
In the field of industrial coatings, sales increased as a
result of a recovery in demand, supported by firm exports of
construction machinery, and growth in production of coated
beverage cans due to the intensely hot summer.
In the area of decorative coatings, despite the stagnation
that remains in new housing constructions and capital
investment by corporations, sales increased as we more
actively concentrated on repainting projects.
In the area of marine coatings, we have put our effort
into expanding sales, in particular, sales of our highperformance touch-up paints and anti-fouling paints for ship
repair work. However, due to the slump in new shipbuilding,
sales in this area decreased.
In the field of heavy duty coatings, although we worked
on promoting our high value-added products aimed at the
32 Kansai Paint Co., Ltd.
Corporate Report 2011
bridge repair market, sales decreased due to lower
investment in both the public and private sector. Overall,
sales in this segment totaled ¥146,809 million, an increase
of 2.3% from the previous term.
● India
In the field of automotive OEM coatings, sales increased as
new assembly lines operated by both local and Japanese
automakers moved into full production. Furthermore, with
the expansion of the Indian economy centered on domestic
demand, we strove to develop the market for decorative
coatings and sales in this area increased. As a result, sales in
this segment totaled ¥40,410 million, an increase of 12.8%
from the previous term.
●
Asia
In the field of automotive OEM coatings, sales increased
supported by rising demand in China coupled with a
significant increase in auto production in Thailand and
Indonesia, etc. Sales for industrial coatings also increased,
mainly for construction machinery in China and Thailand. As
a result, sales in this segment totaled ¥40,169 million, an
increase of 18.1% from the previous term.
● Europe
Sales in Turkey increased as a consequence of the steady
progress of our customers‘ production activities. As a result,
sales in this segment totaled ¥9,100 million, an increase of
6.2% from the previous term.
● Other
Sales for this segment totaled ¥497 million, a decrease of
10.8% from the previous term.
Cost of Sales, SG&A, and Operating
Income
Cost of sales amounted to ¥167,777 million, an increase of
¥12,715 million (8.2%) from the previous term. The gross
profit margin for this term was 29.2%, down from 30.3%
for the previous term. Selling, general and administrative
expenses amounted to ¥48,106 million, an increase of
¥1,272 million (2.7%) from the previous term. As a result,
operating income rose to ¥21,102 million, an increase of
¥597 million (2.9%) and the ratio of operating income to
sales was 8.9%, down from 9.2% for the previous term.
Other Income and Expenses
Other income (net total profit offset by expenses) for the
term was ¥2,273 million compared with ¥1,896 million for
the previous term. This resulted from a significant increase in
equity in earnings of unconsolidated subsidiaries and
affiliates, despite an increase in foreign currency exchange
loss.
Net Income for the Term
Net income for the term amounted to ¥12,675 million, up
¥844 million (7.1%) from the previous term. Return on sales
(ROS) was 5.3%. There was also an increase in earnings per
share (EPS), rising to ¥47.73 from ¥44.56 for the previous
term.
Dividends
The Company’s basic policy is to share profits in proportion
to business results, striving to provide stable and regular
dividends to shareholders while enhancing the Company’s
profitability by forming a stronger corporate constitution.
With respect to internal reserves, we are effectively
utilizing these to invest in research and development and to
improve production and sales systems in Japan and abroad
in order to establish a stable, long-term business foundation
while working toward further growth.
The Company is maintaining its policy of paying
dividends biannually based on the record date at the end of
the second and the fourth quarters respectively. For the term
under review, annual dividends were ¥10 per share, the
same amount as the previous term.
Financial Position
Current assets increased to ¥140,749 million, up ¥735
million (0.5%) from the end of the previous term. This was
due primarily to increases in finished goods, raw materials
and supplies. Tangible fixed assets, intangible fixed assets,
investments and other assets amounted to ¥130,495 million,
an increase of ¥136 million (0.1%) from the end of the
previous term. The main factor for this rise was an increase
in investment securities.
Current liabilities amounted to ¥65,922 million, a
decrease of ¥4,513 million (6.4%) from the end of the
previous term. This decrease was attributable mainly to a fall
in notes and accounts payable and income tax payables.
Long-term liabilities amounted to ¥17,698 million, a
decrease of ¥1,204 million (6.4%) from the end of the
previous term, owing mainly to a decrease in deferred tax
liabilities in relation to the fall in the fair value of investment
securities.
Owners’ equity amounted to ¥167,195 million, an
increase of ¥5,965 million (3.7%) from the end of the
previous term. This increase was caused mainly by a ¥8,909
million increase in retained earnings. The shareholders’
equity ratio rose from 59.6% at the end of the previous term
to 61.6% at the end of the current term. The return on
equity (ROE) remained the same as the previous term at
7.7%, and the return on assets (ROA) increased from 4.6%
to 4.7%.
Cash Flow
(China) Investment Co., Ltd., to promote control and
governance of the group operations in China and the
effective utilization of management resources under its
prospective business strategy in the region.
• In the second quarter of the current term, for the purpose
of full entry into the African market, we purchased 27.6%
of the issued shares of a South African paint manufacturer,
Freeworld Coatings Ltd. (“Freeworld Coatings”), which
became an equity-method affiliate of the Company. In the
third quarter of the current term, we started acquisition
procedures to purchase all the remaining issued shares of
Freeworld Coatings.
• Upon obtaining approval under the Competition Act from
the authorities with regard to this acquisition procedure,
the Company now owns more than 90% of the shares in
Freeworld Coatings. Consequently, Freeworld Coatings
became the Company’s consolidated subsidiary in April
2011.
Outlook for the Fiscal Year
Ending March 2012
Although economic growth in developing nations, especially
those in Asia, is expected to continue, there are concerns
that the rising price of raw materials and exchange rate
fluctuations could exert pressure on corporate profit.
Moreover, the Great Eastern Japan Earthquake has had a
huge impact on the domestic and overseas economy over a
considerable area and we believe that the long-term effects
of this catastrophe will be felt through difficult economic
times ahead.
Under these circumstances, we will still continue to stress
the core policies of the Group, represented by the slogans
“further promotion of globalization” and “strengthen
profitability in domestic business”. For the time being,
however, our first priority is to contribute to the recovery
effort following the Great Eastern Japan Earthquake while
developing our business activities.
As for the outlook for this term (fiscal year 2011), we
estimate net sales of ¥270,000 million (an increase of 13.9%
from the current term), operating income of ¥20,000 million
(a decrease of 5.2% from the current term) and a net
income of ¥14,000 million (an increase of 10.5% from the
current term) on consolidated basis.
Net cash provided by operating activities was ¥18,252
million, and net cash used in investing activities was ¥14,246
million. Net cash used in financing activities was ¥4,741
million. As a result, cash and cash equivalents at the end of
the year stood at ¥39,738 million, a decrease of ¥810 million
(2.0%) from the end of the previous term.
Mid-Term Business Plan Progress
The Kansai Paint Group adopted the slogans “further
promotion of globalization” and “strengthen profitability in
domestic business” to represent the core policies of the
three-year mid-term plan that got underway in fiscal 2010.
In fiscal 2010, we implemented the following measures:
• In response to the sustained expansion of the paint
business in China, we have established Kansai Paint
Kansai Paint Co., Ltd.
Corporate Report 2011
33
Consolidated Balance Sheets
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
March 31, 2011 and 2010
Millions of yen
Assets
2011
Current assets:
Cash and cash equivalents (Notes 4 and 7) .........................................................
Receivables (Note 4):
Trade notes and accounts:
Unconsolidated subsidiaries and affiliates ...................................................
Other ..........................................................................................................
Loans (Note 4) ................................................................................................
Other ..............................................................................................................
Allowance for doubtful receivables ................................................................
Inventories (Note 7):
Finished goods ................................................................................................
Work-in-process .............................................................................................
Raw materials and supplies .............................................................................
Deferred income tax assets (Note 13) ................................................................
Other current assets (Note 4) .............................................................................
Total current assets ......................................................................................
Fixed assets:
Property, plant and equipment (Note 7):
Land ...................................................................................................................
Buildings, machinery and equipment ..................................................................
Construction in progress .....................................................................................
Accumulated depreciation .................................................................................
Investments and other assets:
Investments in and loans to unconsolidated subsidiaries and affiliates ...............
Investment securities (Notes 4, 5 and 7) ............................................................
Loans receivable (Note 4) ....................................................................................
Prepaid pension costs (Note 12) .........................................................................
Deferred income tax assets (Note 13) ................................................................
Other ..................................................................................................................
Allowance for doubtful receivables ....................................................................
Intangible assets .............................................................................................
Total fixed assets ..........................................................................................
Total assets ...........................................................................................................
See accompanying notes.
34 Kansai Paint Co., Ltd.
¥
39,738
Thousands of
U.S. dollars (Note 1)
2010
¥
40,548
2011
$
477,907
10,875
57,125
829
1,231
(1,624)
12,051
58,111
529
1,382
(1,072)
130,788
687,011
9,970
14,805
(19,531)
68,436
71,001
823,043
14,411
2,932
8,092
13,757
3,064
6,816
173,313
35,262
97,318
25,435
23,637
305,893
3,278
3,862
140,749
3,223
1,605
140,014
39,423
46,446
1,692,712
Thousands of
U.S. dollars (Note 1)
Millions of yen
Liabilities and Net Assets
Current liabilities:
Short-term borrowings (Notes 4 and 6) ..............................................................
Long-term debt due within one year (Notes 4 and 6) .........................................
Payables (Note 4):
Trade notes and accounts:
Unconsolidated subsidiaries and affiliates ...................................................
Other ..........................................................................................................
Other ..............................................................................................................
2011
¥
843
433
2010
¥
2011
1,321
590
$
10,138
5,208
1,162
46,473
3,400
1,251
48,791
3,703
13,975
558,905
40,890
51,035
53,745
613,770
Income and enterprise taxes payable ..................................................................
Accrued expenses ..............................................................................................
Deferred income tax liabilities (Note 13) ............................................................
Other current liabilities ......................................................................................
Total current liabilities ............................................................................
3,031
7,098
13
3,469
65,922
4,605
7,082
17
3,075
70,435
36,452
85,364
156
41,720
792,808
Long-term liabilities:
Long-term debt due after one year (Notes 4 and 6) ............................................
Employees’ severance and retirement benefits (Note 12) ....................................
Retirement benefits for directors and corporate auditors ..................................
Deferred income tax liabilities (Note 13) ............................................................
Other long-term liabilities ...................................................................................
Total long-term liabilities ........................................................................
Total liabilities ...................................................................................................
372
6,160
167
8,809
2,190
17,698
83,620
811
6,090
587
9,400
2,014
18,902
89,337
4,474
74,083
2,009
105,941
26,338
212,845
1,005,653
Contingent liabilities (Note 8)
16,890
168,964
2,197
17,008
168,985
508
203,127
2,032,038
26,422
188,051
(131,418)
186,501
(128,073)
2,261,587
(1,580,493)
56,633
58,428
21,875
44,816
12
2,658
870
1,301
(260)
71,272
2,590
130,495
¥ 271,244
16,786
48,158
9
2,537
900
1,601
(439)
69,552
2,379
130,359
¥ 270,373
681,094
263,079
538,978
144
31,966
10,463
15,647
(3,127)
857,150
31,149
1,569,393
$ 3,262,105
Net Assets (Note 10):
Shareholders’ equity:
Common stock:
Authorized — 793,496,000 shares in 2011 and 2010
Issued — 272,623,270 shares in 2011 and 2010 ...........................................
Capital surplus ....................................................................................................
Retained earnings ..............................................................................................
Treasury stock, at cost:
7,035,127 shares in 2011
7,110,603 shares in 2010 ...............................................................................
Total shareholders’ equity ......................................................................
25,659
27,154
116,914
25,659
27,154
108,005
308,587
326,567
1,406,061
(5,703)
164,024
(5,704)
155,114
(68,587)
1,972,628
Accumulated other comprehensive income
Net unrealized holding gains on securities ..........................................................
Deferred gain on derivatives under hedge accounting ........................................
Foreign currency translation adjustments ............................................................
Total accumulated other comprehensive income .................................
12,277
388
(9,494)
3,171
13,092
–
(6,976)
6,116
147,649
4,666
(114,179)
38,136
Minority interests .............................................................................................
Total net assets .....................................................................................................
20,429
187,624
19,806
181,036
245,688
2,256,452
Total liabilities and net assets ...........................................................................
¥ 271,244
¥ 270,373
$ 3,262,105
See accompanying notes.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
35
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2011 and 2010
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2011 and 2010
2011
Net sales ...............................................................................................................
Cost of sales .........................................................................................................
Selling, general and administrative expenses ..................................................
Operating income ..............................................................................................
¥ 236,985
167,777
48,106
21,102
Other income (expenses):
Interest and dividend income .................................................................................
Interest expense ......................................................................................................
Gain on sale of marketable and investment securities, net .....................................
Write-down of marketable and investment securities .............................................
Loss on disposal of inventories ................................................................................
Loss on sale or disposal of property, plant and equipment, net ..............................
Foreign currency exchange loss ...............................................................................
Equity in earnings of unconsolidated subsidiaries and affiliates ..............................
Other, net ...............................................................................................................
2010
Income before income taxes and minority interests .........................................
Income taxes (Note 13):
Current ...................................................................................................................
Deferred ..................................................................................................................
Shareholders’ equity
2011
¥ 222,401
155,062
46,834
20,505
1,198
(98)
139
(33)
(326)
(322)
(468)
1,480
703
2,273
23,375
Millions of yen
Thousands of
U.S. dollars (Note 1)
Millions of yen
$ 2,850,090
2,017,763
578,545
253,782
1,205
(106)
126
–
(343)
(178)
(45)
694
543
1,896
22,401
14,408
(1,179)
1,672
(397)
(3,921)
(3,873)
(5,628)
17,799
8,455
27,336
281,118
7,425
(71)
7,354
7,283
59
7,342
89,296
(854)
88,442
(3,346)
12,675
(3,228)
11,831
(40,241)
152,435
Common
stock
Capital
surplus
Balance at March 31, 2009 ......... ¥
Cash dividends paid —
¥9.00 per share .........................
Net income ....................................
Purchase of treasury stock .............
Disposal of treasury stock ..............
Net changes in items other than
shareholders’ equity ..................
25,659 ¥
Balance at March 31, 2010 ......... ¥
Cash dividends paid —
¥10.00 per share .......................
Net income ....................................
Purchase of treasury stock .............
Disposal of treasury stock ..............
Changes in scope of equity
method companies ....................
Changes in treasury stock due to
changes in interest in equity
method companies ....................
Net changes in items other than
shareholders’ equity ..................
25,659 ¥
Balance at March 31, 2011 ......... ¥
25,659 ¥
Retained
earnings
27,154 ¥
–
–
–
–
–
Valuation and translation adjustments
Total
shareholders’
equity
Treasury
stock
98,573 ¥
–
–
–
–
(2,398)
11,831
–
(1)
–
–
27,154 ¥ 108,005 ¥
Net
Deferred gain
(loss) on
unrealized
holding gains derivatives under
on securities hedge accounting
(5,671) ¥ 145,715 ¥
–
–
(36)
3
(2,398)
11,831
(36)
2
–
–
8,555 ¥
–
–
–
–
¥
–
–
–
–
4,537
(5,704) ¥ 155,114 ¥
–
Foreign
currency
translation
adjustments
–
(8,540) ¥
¥
Minority
interests
15 ¥
–
–
–
–
–
13,092 ¥
Total
valuation and
translation
adjustments
16,753 ¥ 162,483
–
–
–
–
1,564
6,101
(6,976) ¥
6,116 ¥
Total net
assets
–
–
–
–
(2,398)
11,831
(36)
2
3,053
9,154
19,806 ¥ 181,036
–
–
–
–
–
–
–
–
(2,664)
12,675
–
(0)
–
–
(33)
3
(2,664)
12,675
(33)
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,664)
12,675
(33)
3
–
–
(1,102)
–
(1,102)
–
–
–
–
–
(1,102)
–
–
–
31
31
–
–
–
–
–
31
–
–
–
–
(2,518)
(2,945)
623
(2,322)
(9,494) ¥
3,171 ¥
–
27,154 ¥ 116,914 ¥
(5,703) ¥ 164,024 ¥
(815)
388
12,277 ¥
388
¥
20,429 ¥ 187,624
Thousands of U.S. dollars (Note 1)
Minority interests in net income of consolidated subsidiaries ........................
Net income ...........................................................................................................
¥
¥
$
Net income per share ..........................................................................................
Cash dividends per share ....................................................................................
¥
¥
¥
¥
2010
44.56
10.00
$
$
2011
0.57
0.12
See accompanying notes.
Consolidated Statement of Comprehensive Income
Years ended March 31, 2011 and 2010
Thousands of
U.S. dollars (Note 1)
Millions of yen
2011
Income before minority interests .......................................................................
Other comprehensive income (Note 11):
Adjustments for unrealized losses on available-for-sale securities ...........................
Deffered gain on derivatives under hedge accounting ............................................
Foreign currency translation adjustments ................................................................
Share in other comprehensive income of asssociates applied for equity method ....
¥
Common
stock
U.S. dollars
(Note 1)
Yen
2011
47.73
10.00
Shareholders’ equity
2010
2011
16,021
–
(1,238)
388
(3,315)
115
(4,050)
143,968
117,017
26,951
Comprehensive income attributed to (Note 11): ..............................................
11,971
–
–
–
–
–
–
Owners of the parent ............................................................................................
Minority interests ...................................................................................................
9,730
2,241
–
–
$
Capital
surplus
Retained
earnings
Valuation and translation adjustments
Treasury
stock
Total
shareholders’
equity
Net
Deferred gain
unrealized
(loss) on
holding gains derivatives under
on securities hedge accounting
Balance at March 31, 2010 ......... $ 308,587 $ 326,567 $1,298,917 $ (68,599) $1,865,472 $ 157,450 $
Cash dividends paid —
¥10.00 per share .......................
–
–
(32,038)
–
(32,038)
–
Net income ....................................
–
–
152,435
–
152,435
–
Purchase of treasury stock .............
–
–
–
(397)
(397)
–
Disposal of treasury stock ..............
–
–
(0)
36
36
–
Changes in scope of equity
method companies ....................
–
–
(13,253)
–
(13,253)
–
Changes in treasury stock due to
changes in interest in equity
method companies ....................
–
–
–
373
373
–
Net changes in items other than
shareholders’ equity ..................
–
–
–
–
–
(9,801)
Balance at March 31, 2011 ......... $ 308,587 $ 326,567 $1,406,061 $ (68,587) $1,972,628 $ 147,649 $
–
Foreign
currency
translation
adjustments
Total
valuation and
translation
adjustments
$ (83,896) $
Minority
interests
Total net
assets
73,554 $ 238,196 $ 2,177,222
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(32,038)
152,435
(397)
36
–
–
–
–
(13,253)
–
–
–
–
373
4,666
(30,283)
(35,418)
7,492
(27,926)
4,666
$(114,179) $
38,136 $ 245,688 $ 2,256,452
See accompanying notes.
192,676
(14,889)
4,666
(39,868)
1,383
(48,708)
See accompanying notes.
36 Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
37
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2011 and 2010
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S. dollars (Note 1)
Millions of yen
2011
Cash flows from operating activities:
Income before income taxes and minority interests ...............................................
Depreciation and amortization ................................................................................
Amortization of goodwill ........................................................................................
Decrease in provision for severance and retirement benefits ..................................
Increase in allowance for doubtful receivables ........................................................
Interest and dividend income .................................................................................
Interest expense ......................................................................................................
Equity in earnings of unconsolidated subsidiaries and affiliates ..............................
Write-down of marketable and investment securities .............................................
Loss on sale or disposal of property, plant and equipment ......................................
(Increase) decrease in trade receivables ...................................................................
Increase in inventories .............................................................................................
Increase (decrease) in trade payables ......................................................................
Other ......................................................................................................................
¥
23,375
6,977
68
(21)
415
(1,198)
98
(1,480)
33
322
1,643
(2,518)
(2,182)
342
2010
¥
22,401
7,053
42
(516)
274
(1,205)
106
(694)
–
240
(7,880)
(3,447)
3,374
2,394
2011
$
281,118
83,909
818
(253)
4,991
(14,408)
1,179
(17,799)
397
3,873
19,760
(30,283)
(26,242)
4,113
Interest and dividends received ...............................................................................
Interest paid ...........................................................................................................
Income taxes paid ...................................................................................................
Net cash provided by operating activities ................................................................
25,874
1,415
(99)
(8,938)
18,252
22,142
1,364
(106)
(3,817)
19,583
311,173
17,017
(1,191)
(107,492)
219,507
Cash flows from investing activities:
Purchase of marketable securities ...........................................................................
Proceeds from sale of marketable securities ............................................................
Purchase of property, plant and equipment ............................................................
Proceeds from sale of property, plant and equipment .............................................
Purchase of intangible assets .................................................................................
Purchase of investment securities ............................................................................
Proceeds from sale of investment securities ............................................................
Loans receivable advanced ......................................................................................
Collection on loans receivable .................................................................................
Other ......................................................................................................................
Net cash used in investing activities ........................................................................
(31,891)
31,891
(5,647)
124
(515)
(30,889)
24,516
(1,036)
683
(1,482)
(14,246)
(51,449)
51,449
(5,038)
114
(470)
(10,781)
8,691
(1,378)
1,136
52
(7,674)
(383,536)
383,536
(67,914)
1,491
(6,194)
(371,485)
294,841
(12,459)
8,214
(17,823)
(171,329)
1,997
(2,417)
–
(595)
(32)
2
(2,664)
(1,182)
150
2,028
(1,326)
200
(664)
(36)
2
(2,398)
(1,026)
–
24,017
(29,068)
–
(7,156)
(385)
24
(32,038)
(14,215)
1,804
(4,741)
(3,220)
(57,017)
(344)
(1,079)
40,548
372
9,061
31,422
(4,138)
(12,977)
487,649
Cash flows from financing activities:
Proceeds from short-term debt ...............................................................................
Payment of short-term debt ....................................................................................
Proceeds from long-term debt ................................................................................
Payment of long-term debt .....................................................................................
Purchase of treasury stock ......................................................................................
Proceeds from sale of treasury stock .......................................................................
Cash dividends paid ................................................................................................
Cash dividends paid to minority shareholders .........................................................
Other ......................................................................................................................
Net cash used in financing activities ........................................................................
Effect of exchange rate changes on cash and cash equivalents .....................
Increase (decrease) in cash and cash equivalents ..............................................
Cash and cash equivalents at beginning of year ..............................................
Increase in cash and cash equivalents due to changes
in scope of consolidation ...............................................................................
Increase in cash and cash equivalents due to merger ......................................
Cash and cash equivalents at end of year .........................................................
See accompanying notes.
38 Kansai Paint Co., Ltd.
Corporate Report 2011
–
65
269
–
¥
39,738
¥
40,548
3,235
–
$
477,907
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of
Kansai Paint Co., Ltd. (the “Company”) and its consolidated
subsidiaries (together the “Companies”) have been prepared
in accordance with the provisions set forth in the Financial
Instruments and Exchange Law and their related accounting
regulations and in conformity with accounting principles
generally accepted in Japan (“Japanese GAAP”), which are
different in certain respects as to application and disclosure
requirements from International Financial Reporting
Standards.
The accompanying consolidated financial statements have
been restructured and translated into English, with some
expanded descriptions, from the consolidated financial
statements of the Company prepared in accordance with
Japanese GAAP and filed with the appropriate Local Finance
Bureau of the Ministry of Finance as required by the
Financial Instruments and Exchange Law. Certain
supplementary information included in the statutory
Japanese language consolidated financial statements, but
not required for fair presentation, is not presented in the
accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of
readers outside Japan, using the prevailing exchange rate at
March 31, 2011, which was ¥83.15 to U.S. $1.00. The
translations should not be construed as representations that
the Japanese yen amounts have been, could have been or
could in the future be converted into U.S. dollars at this or
any other rate of exchange.
2. Summary of Significant Accounting Policies
Principles of consolidation
The consolidated financial statements in the fiscal year ended
March 31, 2011 include the accounts of the Company and
its 37 (36 in March, 2010) significant subsidiaries.
Intercompany transactions and accounts have been
eliminated.
Investment in 17 unconsolidated subsidiaries and 25
affiliates in the fiscal year ended March 31, 2011 (17 and 29,
respectively, in March, 2010) are stated at cost, adjusted for
equity in undistributed earnings and losses since acquisition.
The accounts of 20 consolidated subsidiaries in the fiscal
year ended March 31, 2011 (17 in March, 2010) are included
on the basis of their respective fiscal years, one of which
ends on February 28 and the others on December 31. These
subsidiaries do not prepare for consolidation purposes
statements for the period which corresponds with the fiscal
year of the Company, which ends March 31. For these
consolidated subsidiaries, when there are significant
transactions between their respective fiscal year ends and
that of the Company, necessary adjustments are made to
reflect the transactions in the consolidated financial
statements.
In the elimination of investments in subsidiaries, the
assets and liabilities of the subsidiaries, including the portion
attributable to minority shareholders, are evaluated using the
fair value at the time the Company acquired control of the
respective subsidiaries. The difference between the cost of an
investment in a subsidiary and the equity in the fair value of
net assets at the date of acquisition is amortized over five
years in principle.
Unification of accounting policies applied to
foreign subsidiaries for the consolidated financial
statements
On May 17, 2006, Accounting Standards Board of Japan
(“ASBJ”) issued ASBJ Practical Issues Task Force (PITF) No.18,
“Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for the Consolidated Financial
Statements.” PITF No.18 prescribes that the accounting
policies and procedures applied to a parent company and its
subsidiaries for similar transactions and events under similar
circumstances should in principle be unified for the
presentation of the consolidated financial statements.
Moreover, if the financial statements of foreign subsidiaries
are prepared in accordance with IFRS or U.S. GAAP, they
may tentatively be used for the consolidation process.
However, if the specific six items are material to the group's
consolidated financial statements, then they should be
adjusted for in the consolidation process.
The Company applied this accounting standard from the
year ended March 31, 2009, the effect of which has been
insignificant.
Cash and cash equivalents
In preparing the consolidated statements, cash on hand, readily
available deposits and short-term highly liquid investments with
maturities not exceeding three months at the time of purchase
are considered to be cash and cash equivalents.
Allowance for doubtful receivables
The allowance for doubtful receivables is determined by
adding the estimated uncollectible amounts of individual
receivables to an amount calculated using a rate based on
past experience.
Securities
The Companies do not hold trading securities. Held-tomaturity debt securities are stated at amortized cost. Equity
securities issued by subsidiaries and affiliated companies
which are not consolidated or accounted for using the
equity method are stated at moving average cost. Availablefor-sale securities with available quoted market price are
stated at quoted market price. Unrealized gains and losses
on these securities are reported, net of applicable income
taxes, as a separate component of accumulated other
comprehensive income. Realized gains and losses on the
sale of such securities are computed using moving average
cost. Securities with no available quoted market price are
stated mainly at moving average cost.
If quoted market price of equity securities issued by
unconsolidated subsidiaries or affiliated companies not on
the equity method or quoted market price of available-forsale securities declines significantly, the securities are stated
at quoted market price, and the difference between quoted
market price and the carrying amount is recognized as loss
in the period of the decline. If quoted market price of equity
securities issued by unconsolidated subsidiaries or affiliated
companies not on the equity method is not readily available,
Kansai Paint Co., Ltd.
Corporate Report 2011
39
the securities are written down to net asset value with a
corresponding charge in the consolidated statements of
income in the event the net asset value declines significantly.
In these cases, quoted market price or the net asset value
will be the carrying amount of the securities at the
beginning of the next year.
Inventories
Inventories held for the purpose of ordinary sale are stated
principally at the lower of moving average cost or net
realized value.
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost.
Depreciation is computed primarily using the declining
balance method for the Company and the domestic
consolidated subsidiaries and the straight-line method for
overseas consolidated subsidiaries. For the Company and
the domestic consolidated subsidiaries, buildings acquired
after March 31, 1998 are depreciated using the straight-line
method. Depreciation of fixed assets whose acquisition costs
are between ¥100 thousand and ¥200 thousand is provided
using the straight-line method over three years.
Software costs
Internal use software, recorded in intangible assets, is
amortized using the straight-line method over the estimated
useful life of five years.
Research and development expenses
Research and development expenses are charged to income
as incurred. Research and development expenses for the years
ended March 31, 2011 and 2010 were ¥5,583 million ($67,144
thousand) and ¥5,516 million, respectively.
basic salary at the time of retirement or termination and
certain other factors. Liabilities and expenses for
severance and retirement benefits are actuarially
calculated using certain assumptions.
The Company and some of the consolidated
subsidiaries provide for employees' severance and
retirement benefits based on the estimated amounts of
projected benefit obligation and the fair value of plan
assets. Actuarial gains and losses and prior service costs
are recognized in expenses using the straight-line
method mainly over 13 years, which is within the
average of the estimated remaining service years of the
employees.
(2) Retirement benefits for directors and corporate auditors
Retirement benefits for directors and corporate auditors
of the certain domestic consolidated subsidiaries are
provided on the accrual basis in accordance with the
companies' established rules.
(Accounting change)
Effective from the fiscal year ended March 31, 2010, the
Company and the domestic consolidated subsidiaries have
adopted the “Partial Amendments to Accounting Standard
for Retirement Benefits (Part 3)” (ASBJ Statement No.19,
issued on July 31, 2008). The new accounting standard
requires domestic companies to use the rate of return on
long-term government or gilt-edged bonds as of the end of
the fiscal year for calculating the projected benefit
obligation of a defined benefit plan. Previously, domestic
companies were allowed to use a discount rate determined
by taking into consideration fluctuations in the yield of longterm government or gilt-edged bonds over a certain period.
This change had no material impact on the consolidated
financial statements for the year ended March 31, 2010.
Income taxes
Income taxes comprise corporation tax, prefectural and
municipal inhabitants taxes and enterprise tax. Enterprise
tax is deductible from taxable income when paid.
The asset and liability approach is used to recognize
deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax
purposes.
Finance leases
Finance leases which do not transfer ownership of the lease
assets are capitalized and depreciated by the straight-line
method over the term of the lease with the assumption of
no residual value.
Retirement benefits
(1) Employees’ severance and retirement benefits
The Company and some of the consolidated subsidiaries
have defined benefit plans, corporate pension funds and
lump-sum payment plans. Several of the other domestic
consolidated subsidiaries have defined benefit plans in
the form of lump-sum payment plans. Most of the
overseas consolidated subsidiaries have various types of
pension benefit plans, mainly defined contribution plans
and defined benefit plans. The amount of the retirement
benefit is, in general, based on the length of service,
40 Kansai Paint Co., Ltd.
Corporate Report 2011
(Additional information)
To provide for retirement benefits for directors and
corporate auditors, the Company had set aside the
allowance for the retirement benefits in compliance with the
companies’ established rules. However, based on the
resolution of the annual shareholders’ meeting, the
Company decided to eliminate the system of retirement
benefits for directors and corporate auditors, but to pay
retirement benefits for the existing directors and corporate
auditors until the annual shareholders’ meeting on June 29,
2010. The unpaid amount for the consolidated fiscal year is
disclosed in “Other long-term liabilities.”
Derivatives
The Companies state derivative financial instruments at fair
value and recognize any change in the fair value as gain or
loss, unless the derivative financial instruments are used for
hedging purposes.
contracts are used as hedges and meet certain hedging
criteria, the foreign currency receivables or payables are
translated at the contracted rate.
(2) Hedging instruments and hedged items
Hedging instruments - Forward foreign exchange
contracts
Hedged items - Receivables and payables denominated
in foreign currencies and forecasted transactions
denominated in foreign currencies.
(3) Hedge policy
The Company utilizes derivative financial instruments to
hedge the risks of exchange rate fluctuation associated
with the Company’s operations.
(4) Assessment method for hedge effectiveness
Hedge effectiveness is not assessed for forward
exchange contracts as the substantial terms and
conditions of the hedging instruments and hedged items
are the same and they are considered highly interrelated.
Development Cost” (ASBJ Statement No. 23, issued on
December 26, 2008), the revised “Accounting Standard for
Business Divestitures” (ASBJ Statement No. 7, issued on
December 26, 2008), the revised “Accounting Standard for
Equity Method of Accounting for Investments” (ASBJ
Statement No. 16, issued on December 26, 2008), and the
revised “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business
Divestitures” (ASBJ Statement No. 10, issued on December
26, 2008).
Presentation of Comprehensive Income
Effective for the fiscal year ended March 31, 2011, the
Companies have applied the “Accounting Standard for
Presentation of Comprehensive Income” (ASBJ Statement
No. 25, issued on June 30, 2010). However, the amount of
accumulated other comprehensive income and total
accumulated other comprehensive income for the previous
fiscal year respectively represented the amount of valuation
and translation adjustments and total valuation and
translation adjustments.
(5) Transaction risk management structure
The finance department of the Company administers the
hedge transactions based on the Company's rules and
with the approval of the management.
Net income and cash dividends per share
The computation of net income per share is based on the
weighted average number of shares outstanding during the
period. Diluted net income per share of common stock for
the years ended March 31, 2011 and 2010 is not shown
since there were no outstanding convertible bonds or other
common stock equivalents.
Cash dividends per share presented in the accompanying
consolidated statements of income are dividends applicable
to the respective years, including dividends to be paid after
the end of the year.
Changes in accounting principles, procedures and
presentation methods for the year ended March
31, 2011
Application of accounting standard for asset
retirement obligations
Effective for the fiscal year ended March 31, 2011, the
Companies have applied the “Accounting Standard for
Asset Retirement Obligations” (ASBJ Statement No.18,
issued on March 31, 2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations”
(ASBJ Guidance No. 21, issued on March 31, 2008). The
change had no material impact on the consolidated financial
statements.
Significant hedge accounting methods
Application of accounting standard for Business
Combinations
(1) Hedge accounting method
If derivative financial instruments are used as hedges and
meet certain hedging criteria, the Companies defer
recognition of gain or loss resulting from changes in the
fair value of a derivative financial instrument until the
related loss or gain on the hedged item is recognized.
However in cases where forward foreign exchange
Effective for the fiscal year ended March 31, 2011, the
Companies have applied the “Accounting Standard for
Business Combinations” (ASBJ Statement No. 21, issued on
December 26, 2008), the “Accounting Standard for
Consolidated Financial Statements” (ASBJ Statement No.
22, issued on December 26, 2008), the “Partial
Amendments to Accounting Standard for Research and
Kansai Paint Co., Ltd.
Corporate Report 2011
41
3. Finance Leases
2. Fair values of financial instruments
Book values of the financial instruments included in the consolidated balance sheets and their fair values at March 31, 2011 and
2010 were as follows (Financial instruments for which the fair values were extremely difficult to determine were not included.):
Finance lease transactions that commenced on and before March 31, 2008 and which did not transfer ownership are
accounted for in the same manner as operating leases.
Non-capitalized finance leases at March 31, 2010 were as follows:
2011
Millions of yen
2010
Original lease obligations (including finance charges) .........................................
Payments remaining:
Payments due within one year ........................................................................
Payments due after one year ..........................................................................
Machinery, equipment
and vehicles
Tools and fixtures
Total
¥
517
¥
452
¥
969
¥
64
51
115
¥
68
26
94
¥
132
77
209
¥
¥
¥
Lease payments under non-capitalized finance leases for the years ended March 31, 2010 were ¥241 million.
Non-capitalized finance leases at March 31, 2011 were not noted here due to their insignificance.
4. Financial Instruments
Effective from the fiscal year ended March 31, 2010, the Company adopted the revised Accounting Standard, “Accounting
Standard for Financial Instruments” (ASBJ Statement No. 10, revised on March 10, 2008) and the “Guidance on Disclosures
about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, revised on March 10, 2008).
(1) Cash and deposits .....................................................................................
(2) Trade receivables - notes and accounts ......................................................
(3) Investment securities
Subsidiaries and affiliates ..........................................................................
Other securities .........................................................................................
(4) Trade payables - notes and accounts .........................................................
(5) Derivative transactions ...............................................................................
1. Status of financial instruments
(1) Policies on financial instruments
The Companies procure funds necessary for capital investment and raise short-term working capital mainly through bank loans.
The Companies manage temporary surplus funds through financial assets that have a high level of safety. The Companies utilize
derivative financial instruments to hedge foreign currency exchange rate fluctuation risk and do not enter into derivative
transactions for trading or speculative purposes.
(2) Details of financial instruments and associated risks
Trade notes and accounts receivable are exposed to customer credit risk. In addition, receivables denominated in foreign currencies
in the overseas operations are exposed to the risk of exchange rate fluctuations. Investment securities are primarily the stocks of
business partners and customers and are exposed to market price fluctuation risk.
Most trade notes and accounts payable are due for payment within one year. Those denominated in foreign currencies are
exposed to the risk of exchange rate fluctuations.
The Companies use forward exchange contracts to hedge the risk of exchange rate fluctuations associated with receivables,
payables and forecasted transactions denominated in foreign currencies.
(3) Risk management framework for financial instruments
1) Credit risk management (counterparty risk)
The Company has established internal rules and procedures for receivables under which the Business Planning & Administration
Division and Finance and Accounting Department are primarily responsible for monitoring counterparty status. The
departments manage amounts and settlement dates by counterparties and work to quickly identify and mitigate payment risk
that may result from situations such as the deterioration of the financial condition of counterparties. Consolidated subsidiaries
of the Company are subject to the same risk management rules. In using derivative transactions, the Company mitigates
counterparty risk by conducting transactions with financial institutions with high credit ratings.
2) Market risk management (risk of exchange rate and interest rate fluctuations)
For some receivables and payables denominated in foreign currencies, the Companies use forward foreign exchange contracts
to hedge the risk of exchange rate fluctuations on a monthly and a currency-by-currency basis.
For investment securities, the Companies periodically examine fair values and the financial condition of the issuing entities.
In addition, the Companies regularly revise the portfolio based on the relationships with the issuing entities.
For derivative transactions, the Finance & Accounting Department handles the transactions after receiving approval from
those with final approval authority in accordance with the Company's internal rules. Administrative reports on the results are
periodically provided to the Management Committee, etc.
3) Management of liquidity risk associated with capital procurement (payment default risk)
In the Companies, the Financial & Accounting Department manages liquidity risk by creating and updating a capital deployment
plan based on reports from each division and maintaining adequate liquidity.
Fair value
Difference
¥
¥
¥
41,491
68,000
7,929
43,841
47,635
660
2010
(1) Cash and deposits .....................................................................................
(2) Trade receivables - notes and accounts ......................................................
(3) Investment securities ................................................................................
(4) Trade payables - notes and accounts .........................................................
(5) Derivative transactions ...............................................................................
(1) Cash and deposits .....................................................................................
(2) Trade receivables - notes and accounts ......................................................
(3) Investment securities
Subsidiaries and affiliates ..........................................................................
Other securities .........................................................................................
(4) Trade payables - notes and accounts .........................................................
(5) Derivative transactions ...............................................................................
Millions of yen
Book value
41,491
68,000
7,878
43,841
47,635
660
–
–
(51)
–
–
–
Millions of yen
Book value
Fair value
Difference
¥
41,184
70,162
47,415
50,042
(19)
¥
¥
2011
Thousands of U.S. dollars (Note 1)
41,184
70,162
47,415
50,042
(19)
–
–
–
–
–
Book value
Fair value
Difference
$ 498,990
817,799
$ 498,990
817,799
$
95,358
527,252
572,880
7,937
94,744
527,252
572,880
7,937
–
–
(614)
–
–
–
Derivative assets and liabilities were on net basis
Fair value measurement of financial instruments
(1) Cash and deposits
Book value approximates the fair value due to the short maturity.
(2) Trade receivables - notes and accounts
Book value approximates the fair value due to the short maturity.
(3) Investment securities
The fair values of equity securities are determined by the quoted market price. The fair values of debt securities are determined by
the quoted market price or the price provided by financial institutions.
(4) Trade payables - notes and accounts
Book value approximates the fair value due to the short maturity.
(5) Derivative transactions
The fair values of derivative transactions are determined at the quoted price obtained from the relevant financial institutions.
(4) Supplementary explanations about matters concerning fair value of financial instruments
Fair values of financial instruments are based on their market prices and, in cases where market prices are not available,
reasonably calculated prices. Such prices are calculated using certain assumptions and may differ if the assumptions change.
42 Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
43
Book values of financial instruments for which the fair values were extremely difficult to measure
Classification
Thousands of
U.S. dollars (Note 1)
Millions of yen
2011
Non-listed equity securities .....................................................................................
Non-listed investment securities of unconsolidated subsidiaries and affiliates ........
¥
2010
974
7,327
¥
2011
743
8,096
$
11,714
88,118
The redemption schedule for money claims subsequent to the consolidated balance sheet date
Millions of yen
Millions of yen
Thousands of U.S. dollars (Note 1)
2011
2010
2011
Cash and
deposits
Within 1 year ..............................
From 1 year to 5 years ................
From 5 years to 10 years .............
Over 10 years ..............................
¥
41,491
–
–
–
Receivables -trade
notes and accounts
¥
68,000
–
–
–
Cash and
deposits
¥
41,184
–
–
–
Receivables -trade
notes and accounts
¥
70,162
–
–
–
Cash and
deposits
$
(2) Information on securities of the Companies at March 31, 2010:
(a) The following table summarizes acquisition costs, book values and fair values of available-for-sale securities with available
fair values as of March 31, 2010.
498,990
–
–
–
Receivables -trade
notes and accounts
$
817,799
–
–
–
Securities with book values exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
Acquisition cost
(1) Information on securities of the Companies at March 31, 2011:
(a) The following table summarizes acquisition costs, book values and fair values of available-for-sale securities with available
fair values as of March 31, 2011.
Securities with book values exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
Total ................................................................................................................
Securities with book values not exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
Total ................................................................................................................
Securities with book values exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
Total ................................................................................................................
Securities with book values not exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
Total ................................................................................................................
Acquisition cost
¥
¥
11,555
6,172
17,727
14,105
6,506
¥
35,978
6,603
¥
21,873
97
Total ................................................................................................................
¥
20,611
¥
42,581
¥
21,970
Securities with book values not exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
¥
4,073
1,913
¥
2,923
1,911
¥
(1,150)
(2)
Total ................................................................................................................
¥
5,986
¥
4,834
¥
(1,152)
(b) The following table summarizes book values of available-for-sale securities with no available fair values as of March 31, 2010.
¥
31,560
6,303
37,863
Millions of yen
Thousands of
U.S. dollars
(Note 1)
¥
$
743
7,986
(c) Total sales of available-for-sale securities in the year ended March 31, 2010 amounted to ¥60,140 million, and the related
gains and losses amounted to ¥126 million and ¥1 million respectively.
6. Short-Term Borrowings and Long-Term Debt
Millions of yen
Book value
¥
Difference
¥
Non-listed equity securities .......................................................................................................
5. Securities
Millions of yen
Book value
Difference
¥
¥
20,005
131
20,136
Short-term borrowings consisted principally of bank loans with interest rates ranging from 0.13% to 4.23% at March 31, 2011
and from 0.19% to 13.00% at March 31, 2010.
Long-term debt at March 31, 2011 and 2010 consisted of the following:
Thousands of
U.S. dollars (Note 1)
Millions of yen
¥
6,512
851
¥
5,127
851
¥
(1,385)
–
¥
7,363
¥
5,978
¥
(1,385)
Thousands of U.S. dollars (Note 1)
Acquisition cost
Book value
Difference
2011
Loans from banks and insurance companies at 1.200% - 1.800% in 2011
( at 1.219% - 3.630% in 2010) maturing serially through 2016 .......................
Less amounts due within one year ...........................................................................
¥
¥
805
433
372
2010
¥
¥
2011
1,401
590
811
$
$
9,681
5,207
4,474
$ 138,966
74,227
$ 213,193
$ 379,555
75,803
$ 455,358
$ 240,589
1,576
$ 242,165
$
78,316
10,235
$
61,660
10,235
88,551
$
71,895
2012 .................................................................................................................................................. ¥
2013 ..................................................................................................................................................
2014 ..................................................................................................................................................
2015 ..................................................................................................................................................
2016 and thereafter ..........................................................................................................................
433
245
117
10
–
$
$
$ (16,656)
–
$ (16,656)
5,207
2,947
1,407
120
–
(b) The following table summarizes book values of available-for-sale securities with no available fair values as of March 31, 2011.
¥
805
$
9,681
Non-listed equity securities .......................................................................................................
Millions of yen
Thousands of
U.S. dollars
(Note 1)
¥
$
974
The aggregate annual maturities of long-term debt were as follows:
Years ending March 31
Millions of yen
Thousands of
U.S. dollars (Note 1)
11,714
(c) Total sales of available-for-sale securities in the year ended March 31, 2011 amounted to ¥55,722 million ($670,138
thousand), and the related gains and losses amounted to ¥73 million ($878 thousand) and ¥38 million ($457 thousand)
respectively.
44 Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
45
7. Pledged Assets
9. Derivative Transactions
The carrying amounts of assets pledged as collateral for certain trade notes and accounts payable, short-term borrowings of ¥90 million
($1,082 thousand), long-term debt due within one year of ¥433 million ($5,207 thousand), long-term debt due after one year of ¥372
million ($4,474 thousand), other current liabilities of ¥78 million ($938 thousand), other long-term liabilities of ¥75 million ($902
thousand) of long-term liabilities at March 31, 2011 were as follows:
1. Derivative transactions to which the Companies didn’t apply hedge accounting as of March 31, 2011 and 2010 were as
follows:
Millions of yen
2011
20
2,668
9
2,697
Cash and cash equivalents ..................................................................................................................... ¥
Property, plant and equipment ...............................................................................................................
Investment securities ..............................................................................................................................
¥
Thousands of
U.S. dollars
(Note 1)
2011
241
32,086
108
$ 32,435
$
The carrying amounts of assets pledged as collateral for certain trade notes and accounts payable, short-term borrowings of ¥564
million ($6,062 thousand), long-term debt due within one year of ¥539 million ($5,793 thousand), long-term debt due after one year
of ¥811 million ($8,717 thousand), other current liabilities of ¥89 million ($957 thousand), other long-term liabilities of ¥151 million
($1,623 thousand) of long-term liabilities at March 31, 2010 were as follows:
Millions of yen
2010
Cash and cash equivalents .............................................................................................................................................
Inventories .....................................................................................................................................................................
Property, plant and equipment .......................................................................................................................................
Investment securities ......................................................................................................................................................
¥
¥
20
1,260
2,784
9
4,073
Millions of yen
2011
Contract
amount
Foreign currency forward contracts
Buy
U.S. dollar ........................................
Japanese yen ...................................
Sell
U.S. dollar ........................................
¥
¥
215
697
150
1,062
Fair value
Unrealized
gain (loss)
¥
¥
¥
(2)
14
(0)
12
¥
Thousands of U.S. dollars (Note 1)
Contract
Unrealized
Fair value
amount
gain (loss)
(2)
14
$ 2,586
8,382
(0)
12
1,804
$ 12,772
$
$
Foreign currency forward contracts
Buy
U.S. dollar ........................................
Japanese yen ...................................
Sell
U.S. dollar ........................................
¥
¥
2010
–
–
–
¥
¥
117
3
120
(0)
144
Unrealized
gain (loss)
¥
¥
¥
19
814
84
917
¥
(0)
(18)
(1)
(19)
¥
(0)
(18)
(1)
(19)
2. Derivative transactions to which the Companies applied hedge accounting as of March 31, 2011.
Contract
amount
Classification
2011
$
Fair value
¥
8. Contingent Liabilities
As endorser of notes endorsed ................................................................................................................
As guarantor of indebtedness of unconsolidated subsidiaries and affiliates .............................................
(0)
144
(24)
168
Contract
amount
Thousands of U.S.
dollars (Note 1)
Millions of yen
Millions of yen
$
Millions of yen
2010
2011
Information on contingent liabilities of the Companies at March 31, 2011 and 2010 was as follows:
(24)
168
Deferral hedge
accounting
Forecasted
transactions
denominated in
foreign currencies
Foreign currency forward
contracts
Buy
South African Rand
¥
9,000
Fair value
¥
647
Contract
amount
$ 108,238
Fair value
$
7,781
There were no applicable items for derivative transactions to which the Companies applied hedge accounting as of March 31, 2010.
10. Net Assets
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock.
However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price
of the new shares as additional paid-in capital, which is included in capital surplus.
Under the Japanese Corporate Law, in cases in which a dividend distribution of surplus is made, the smaller of an amount
equal to 10% of the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in capital and
legal earnings reserve must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included
in retained earnings in the accompanying consolidated balance sheets.
Legal earnings reserve and additional paid-in capital may be used to eliminate or reduce a deficit by a resolution of the
shareholders’ meeting. All additional paid-in capital and all legal earnings reserve may be transferred to other capital surplus
and retained earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the unconsolidated financial
statements of the Company in accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 29, 2011, the shareholders approved cash dividends of ¥5.0 ($0.06) per
share amounting to ¥1,332 million ($16,019 thousand). This appropriation has not been accounted in the consolidated
financial statements at March 31, 2011. Such appropriations are recognized in the period in which they are approved by the
shareholders.
46 Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
47
11. Consolidated Statements of Conprehensive Income
13. Deferred Income Taxes
1. Comprehensive income for the year ended March 31, 2010
Comprehensive income attributed to :
Millions of yen
Owners of the parent ............................................................................................................................. ¥
Minority interests ...................................................................................................................................
¥
Thousands of
U.S. dollars
(Note 1)
17,932
3,978
21,910
$ 215,659
47,841
$ 263,500
Millions of yen
Thousands of
U.S. dollars
(Note 1)
2. Other comprehensive income for the year ended March 31, 2010
Adjustments for unrealized gains (losses) on available-for-sale securities ............................................... ¥
Foreign currency translation adjustments ...............................................................................................
Shares in other comprehensive income of equity method affiliates ........................................................
¥
4,355
2,150
347
6,852
$
$
52,375
25,857
4,173
82,405
The following table summarizes the significant differences between the statutory tax rate and the Companies' effective income
tax rate for financial statement purposes for the years ended March 31, 2011 and 2010.
2011
40.0%
0.4
(0.6)
3.9
(2.5)
0.8
(4.5)
(6.0)
31.5%
Statutory tax rate ..............................................................................................................................
Nondeductible expenses ...................................................................................................................
Nontaxable dividend income .............................................................................................................
Elimination of dividends from subsidiaries ........................................................................................
Equity in earnings of affiliates ...........................................................................................................
Undistributed foreign earnings .........................................................................................................
Difference in statutory tax rates of foreign subsidiaries ....................................................................
Deductible taxes and other ...............................................................................................................
Effective tax rate ...............................................................................................................................
Significant components of the Companies' deferred tax assets and liabilities as of March 31, 2011 and 2010 were as follows:
The liability for severance and retirement benefits included in the liability section of the consolidated balance sheets as of March
31, 2011 and 2010 consisted of the following:
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2011
Projected benefit obligation ................................................................................
Unrecognized prior service costs .........................................................................
Unrecognized actuarial differences .....................................................................
Prepaid pension costs .........................................................................................
Less fair value of pension assets ..........................................................................
Liability for severance and retirement benefits ................................................
¥
44,661
1,146
(10,203)
2,658
(32,102)
¥
6,160
2010
¥
¥
45,653
1,448
(11,040)
2,537
(32,508)
6,090
2011
$ 537,114
13,782
(122,706)
31,966
(386,073)
$ 74,083
The expenses for severance and retirement benefits included in the consolidated statements of income for the years ended
March 31, 2011 and 2010 comprised the following:
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2011
Service costs .......................................................................................................
Interest cost on projected benefit obligation .......................................................
Expected return on plan assets ...........................................................................
Amortization of prior service costs ......................................................................
Amortization of actuarial differences ..................................................................
Severance and retirement benefit expenses ....................................................
¥
¥
1,457
811
(765)
(293)
1,735
2,945
2010
¥
¥
1,490
822
(649)
(300)
1,970
3,333
2011
$
$
17,523
9,753
(9,200)
(3,524)
20,866
35,418
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2011
12. Employees’ Severance and Retirement Benefits
2010
40.0%
0.4
(1.0)
3.0
(1.3)
1.7
(4.9)
(5.1)
32.8%
Deferred tax assets:
Valuation loss on inventories ..........................................................................
Elimination of unrealized profit on inventories ................................................
Excess allowance for doubtful receivables .......................................................
Excess accrued expenses .................................................................................
Accrued enterprise tax ....................................................................................
Excess bonuses accrued ..................................................................................
Retirement benefits ........................................................................................
Other ..............................................................................................................
Subtotal ..............................................................................................................
Valuation allowance ........................................................................................
Total deferred tax assets ......................................................................................
Deferred tax liabilities:
Adjustments to allowance for doubtful accounts in the consolidation
resulting from elimination of receivables and payables ...............................
Deferred gain on derivatives under hedge accounting ....................................
Adjustments to fixed assets based on corporate tax laws ...............................
Net unrealized holding gains on securities ......................................................
Tax effect of foreign subsidiaries' and affiliates' undistributed earnings ..........
Total deferred tax liabilities .................................................................................
Net deferred tax liabilities ...................................................................................
¥
¥
136
650
520
208
230
1,302
1,986
1,503
6,535
(337)
6,198
13
259
1,150
7,492
1,958
10,872
(4,674)
2010
¥
¥
2011
128
530
306
239
316
1,287
2,230
1,159
6,195
(243)
5,952
16
–
1,186
8,278
1,766
11,246
(5,294)
$
1,636
7,817
6,254
2,502
2,766
15,658
23,885
18,075
78,593
(4,053)
74,540
156
3,115
13,830
90,102
23,548
130,751
$ (56,211)
The discount rate and the rate of expected return on plan assets used by the Companies were mainly 1.8% and 2.5%, respectively, for
the year ended March 31, 2011 and 1.8% and 2.5%, respectively, for the year ended March 31, 2010.
The estimated amount of all retirement benefits to be paid at future retirement dates is allocated equally to each service year using
the estimated total number of service years.
Prior service costs and actuarial gains and losses were recognized in expenses using the straight-line method over mainly 13 years,
which is within the average of the estimated remaining service years of the employees, commencing with the current and the
following period, respectively.
48 Kansai Paint Co., Ltd.
Corporate Report 2011
Kansai Paint Co., Ltd.
Corporate Report 2011
49
Millions of yen
14. Segment Information
(1) General information about reporting segments
The business segments reported by the Company are the business units for which the Company is able to obtain separate
financial information in order for the Board of Directors to conduct periodic monitoring to determine the distribution of
business resources and evaluate business results.
The Company is primarily engaged in the manufacture and sale of paints and coatings in Japanese domestic market.
Locally incorporated overseas subsidiaries and affiliates are engaged in their own oversea markets. Locally incorporated
subsidiaries and affiliates are independent business units that develop their own business activities and establish their own
comprehensive strategies in each region.
Effective for the fiscal year ended March 31, 2011, the Company has applied the “Revised Accounting Standard for
Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, issued on March 27, 2009)
and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, issued on March 21, 2008). In accordance with new accounting standard in the fiscal year ended March
31, 2011, the Company modified the classification of reporting segments which consisted of geographic segments and
independently implemented both the functions of manufacturing and sale activities. Reporting segments have been
reclassified into five segments (Japan, India, Asia, Europe and other), which were previously composed of four geographic
segments (Japan, Asia, America and Europe). India was previously included in Asia. America, which was previously an
independent segment, has been included in other. The segment information for the year ended March 31, 2010, has been
reclassified to conform to the presentation based on the current segmentation.
(2) Basis of measurement about sales, profit and loss, assets and other items by reporting segment
The accounting methods applied to reporting segments are the same as those that provided the basis for “Summary of
Significant Accounting Policies.” Intersegment transactions and transfers are based on prevailing markets prices.
Millions of yen
Reporting Segment
Japan
Net sales
Sales to customers .................................
Intersegment sales and transfers ...........
Total sales ..............................................
Segment income ....................................
Segment assets ......................................
Other items
Depreciation and amortization ..............
Amortization of goodwill .......................
Amortization of negative goodwill ........
Interest income ......................................
Interest expense .....................................
Equity in earnings (losses) of
unconsolidated subsidiaries
and affiliates ...................................
Investments in unconsolidated
subsidiaries and affiliates ................
Increase in tangible fixed assets and
intangible fixed assets ....................
50 Kansai Paint Co., Ltd.
India
Asia
¥ 146,809 ¥ 40,410
13,092
12
159,901
40,422
12,494
4,936
182,760
27,948
4,681
71
30
47
41
¥
¥ 40,169
240
40,409
5,390
50,275
919
58
–
36
16
15
757
6,390
–
6,901
Corporate Report 2011
2,368
¥
1,212
44
65
88
28
539
2,125 ¥
Europe
¥
1,392
¥
Other *1
Total
9,100
26
9,126
418
5,679
¥ 236,488
13,370
249,858
23,238
266,662
165
–
10
15
18
6,977
173
105
186
103
¥
Total
497
–
497
296
8,774
¥ 236,985
13,370
250,355
23,534
275,436
0
–
–
1
–
6,977
173
105
187
103
Adjustment
*2
¥
Consolidated
financial
statements*3
– ¥ 236,985
(13,370)
–
(13,370)
236,985
0
23,534
(4,192)
271,244
–
–
–
(7)
(5)
6,977
173
105
180
98
(86)
1,225
255
1,480
–
1,480
9
13,300
8,343
21,643
–
21,643
393
¥
6,278
¥
0
¥
6,278
2010
Japan
Net sales
Sales to customers .................................
Intersegment sales and transfers ...........
Total sales ..............................................
Segment income ....................................
Segment assets ......................................
Other items
Depreciation and amortization ..............
Amortization of goodwill .......................
Amortization of negative goodwill ........
Interest income ......................................
Interest expense .....................................
Equity in earnings (losses) of
unconsolidated subsidiaries
and affiliates ...................................
Investments in unconsolidated
subsidiaries and affiliates ................
Increase in tangible fixed assets and
intangible fixed assets ....................
India
¥
–
¥
6,278
Asia
¥ 143,446 ¥ 35,821
12,093
13
155,539
35,834
12,041
4,965
190,424
27,131
¥
¥ 34,008
314
34,322
4,878
49,066
Europe
¥
Other *1
Total
8,569
32
8,601
660
6,361
¥ 221,844
12,452
234,296
22,544
272,982
¥
Total
557
–
557
59
752
¥ 222,401
12,452
234,853
22,603
273,734
Adjustment
*2
¥
Consolidated
financial
statements*3
– ¥ 222,401
(12,452)
–
(12,452)
222,401
(0)
22,603
(3,361)
270,373
4,727
67
70
92
40
925
58
0
58
25
1,207
61
65
68
10
194
–
10
41
31
7,053
186
145
259
106
0
–
–
4
–
7,053
186
145
263
106
–
–
–
–
–
7,053
186
145
263
106
444
19
315
(95)
683
11
694
–
694
7,193
134
8,725
10
16,062
260
16,322
–
16,322
2,993 ¥
1,612
¥
455
¥
115
¥
5,175
¥
–
¥
5,175
¥
–
¥
5,175
Thousands of U.S. dollars (Note 1)
Reporting Segment
2011
Japan
(3) Information about sales, profit and loss, assets and other material items
Segment information as of and for the fiscal years ended March 31, 2011 and 2010 was as follows:
2011
Reporting Segment
Net sales
Sales to customers .................................
Intersegment sales and transfers ...........
Total sales ..............................................
Segment income ....................................
Segment assets ......................................
Other items
Depreciation and amortization ..............
Amortization of goodwill .......................
Amortization of negative goodwill ........
Interest income ......................................
Interest expense .....................................
Equity in earnings (losses) of
unconsolidated subsidiaries
and affiliates ...................................
Investments in unconsolidated
subsidiaries and affiliates ................
Increase in tangible fixed assets and
intangible fixed assets ....................
India
Asia
$ 1,765,592 $ 485,989
157,451
144
1,923,043
486,133
150,258
59,363
2,197,956
336,115
$
Europe
Total
$ 483,091
2,886
485,977
64,823
604,630
$ 109,441
313
109,754
5,027
68,298
$2,844,113
160,794
3,004,907
279,471
3,206,999
Other *1
$
Total
5,977
–
5,977
3,560
105,521
$ 2,850,090
160,794
3,010,884
283,031
3,312,520
Adjustment
*2
$
Consolidated
financial
statements*3
– $2,850,090
(160,794)
–
(160,794) 2,850,090
0
283,031
(50,415) 3,262,105
56,296
854
361
565
493
11,052
698
–
433
192
14,576
529
782
1,058
337
1,985
–
120
181
217
83,909
2,081
1,263
2,237
1,239
0
–
–
12
–
83,909
2,081
1,263
2,249
1,239
–
–
–
(84)
(60)
83,909
2,081
1,263
2,165
1,179
6,482
180
9,104
(1,034)
14,732
3,067
17,799
–
17,799
76,849
–
82,995
108
159,952
100,337
260,289
–
260,289
25,556 $
28,479
$
16,741
$
4,726
$
75,502
$
0
$
75,502
$
–
$
75,502
Notes:
*1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S. and South Africa, etc.
*2 Adjustments for segment income and segment assets represents the elimination of intersegment transactions.
*3 The segment income was based on operating income coupled with interest and dividend income, equity in earnings of unconsolidated subsidiaries and
affiliates, interest expense, loss on disposal of inventories and foreign currency exchange profit or loss.
*4 Reporting segments other than Japan and India include the following countries:
Asia : Thailand, China and Malaysia, etc.
Europe : Turkey and United Kingdom, etc.
Kansai Paint Co., Ltd.
Corporate Report 2011
51
(Related Information)
1. Product and services
16. Subsequent Events
2011
Automotive
Millions of yen .....................
Thousands of U.S. dollars ....
Sales to customers
Industrial
¥
93,990
$ 1,130,367
Marine and
protective
Decorative
64,517
775,911
46,026
553,530
Other
19,274
231,798
Changes in subsidiaries (company acquisition)
Total
13,178
158,484
¥
236,985
$ 2,850,090
2. Geographical segments
2011
Japan
Millions of yen .....................
Thousands of U.S. dollars ....
Millions of yen .....................
Thousands of U.S. dollars ....
(1) Total sales
(2) Tangible
fixed assets
India
¥
136,028
$ 1,635,935
¥
39,349
$
473,229
Asia
40,413
486,025
6,723
80,854
Europe
47,601
572,471
7,721
92,856
Other
9,839
118,328
2,839
34,143
Total
3,104
37,331
0
0
¥
236,985
$ 2,850,090
¥
56,632
$
681,082
3. Major customers
No information is disclosed as there were no customers accounting for 10% or more of the Company’s total net sales.
Less on impairment of fixed assets
There were no applicable related items for the fiscal year ended March 31, 2011.
Amortization and unamortized balance of goodwill
Reporting Segment
2011
Balance at the end
of the period
Japan
Millions of yen .....
Thousands of
U.S. dollars ...
India
Asia
Europe
Other
Total
Total
Adjustment
Consolidated
financial
statements
¥
64
141
34
–
¥
239
–
¥
239
–
¥
239
$
769
1,696
409
–
$
2,874
–
$
2,874
–
$
2,874
Unamortized balance of negative goodwill attributed to business combinations prior to April 1, 2010
Reporting Segment
2011
Balance at the end
of the period
Japan
Millions of yen .....
Thousands of
U.S. dollars ...
India
Asia
Europe
Other
Total
Total
Adjustment
Consolidated
financial
statements
¥
71
–
2
14
¥
87
–
¥
87
–
¥
87
$
854
–
24
168
$
1,046
–
$
1,046
–
$
1,046
Negative goodwill in other income
The amortization of negative goodwill in the amount of ¥205 million ($2,465 thousand) was presented in other income for
the Japan segment for the fiscal year ended March 31, 2011 as a result of the acquisition of additional stocks of a
subsidiary.
Based on the resolution of Board of Directors on December 10, 2010, the Company decided to make a takeover bid to acquire
additional shares of Freeworld Coatings Limited (“Freeworld Coatings”), which had been previously accounted for by equity
method. After the closing of the takeover bid, Freeworld Coatings became a consolidated subsidiary of the Company effective
April 26, 2011.
(1) Purpose of acquisition
1) Freeworld Coatings is a leading paint company in the African region that has a strong portfolio of brands especially for
decorative coatings. The Company recognizes Freeworld Coatings as the foundation for developing its business strategy in
Saharan Africa and southward.
2) Following this acquisition, Freeworld Coatings will significantly benefit from being part of the Kansai Paint Group in terms
of capital and personnel resources, technology and advanced products such as environmentally friendly products that are
made available to Freeworld Coatings, thereby supporting its further growth and enhancing its competitiveness.
3) The synergistic effect of the Company and Freeworld Coatings enables both companies to outline long term strategies for
growth, improve shareholder return and create job opportunities. Together with the respect for the broad-based black
economic empowerment (“BBBEE”), the Company is certain that the effect will contribute to the local community and
society.
(2) Profile of the subsidiary
1) Name: Freeworld Coatings Limited
2) Location: Johannesburg, Republic of South Africa
3) Name and title of Representative: Chairman Robert Michael Godsell, CEO Andre Jacobus Lamprecht
4) Line of business: Manufacturing and sales of paints, coatings and paint related products.
5) Consolidated operational results and consolidated financial status (year ended September 30, 2010):
Consolidated Sales –
ZAR 2,765 million
Consolidated Total Assets – ZAR 4,595 million
Consolidated Net Assets –
ZAR 3,005 million
6) Total number of share issued: 203,871,939 shares
7) Stock listing: Johannesburg Stock Exchange
(3) Purchase period: December 15, 2010 to February 18, 2011 (South African time)
(4) Purchase price: ZAR 12 per share
(5) Number of shares acquired, acquisition cost and percentage of voting rights after acquisition:
1) Number of shares acquired: 127,928,057 shares
2) Acquisition cost: ZAR 1,535 million
3) Percentage of voting rights after acquisition: 90.3%
(6) Sources of acquisition fund: Cash reserves
15. Related Party Transactions
Sales to unconsolidated subsidiaries and affiliates for the years ended March 31, 2011 and 2010 were as follows:
Thousands of
U.S. dollars
(Note 1)
Millions of yen
Sales to unconsolidated subsidiaries and affiliates ..............................................
¥
2011
14,055
¥
2010
14,599
2011
$ 169,032
Receivables from unconsolidated subsidiaries and affiliates as of March 31, 2011 and 2010 were as follows:
Thousands of
U.S. dollars
(Note 1)
Millions of yen
Receivables from unconsolidated subsidiaries and affiliates ................................
52 Kansai Paint Co., Ltd.
Corporate Report 2011
¥
2011
5,448
¥
2010
6,553
$
2011
65,520
Kansai Paint Co., Ltd.
Corporate Report 2011
53
Directory
HEAD OFFICE
6-14, Imabashi 2-chome, Chuo-ku Osaka
541-8523, Japan
Tel: 81-6-6203-5531 / Fax: 81-6-6203-5018
TOKYO OFFICE
24-15, Higashi-Ohi 5-chome, Shinagawa-ku
Tokyo 140-8520, Japan
Tel: 81-3-3472-3131 / Fax: 81-3-3458-0525
R&D CENTER
17-1, Higashi-Yawata 4-chome,
Hiratsuka-shi, Kanagawa 254-8562, Japan
Tel: 81-463-23-2100 / Fax: 81-463-24-0637
KANSAI PAINT (AMERICA), INC.
5455 Corporate Drive, Suite 205
Troy, MI 48098, U.S.A.
Tel: 1-248-952-0533 / Fax: 1-248-952-0538
CHONGQING KANSAI PAINT CO., LTD.
9 Danlong Road, Nanping, Nan‘an District,
Chongqing, 400060, China
Tel: 86-23-6283-4824 / Fax: 86-23-6283-7094
KANSAI PAINT PHILIPPINES, INC.
C2-9, Carmelray Industrial Park(CIP) II, Brgy.
Punta, Calamba City, Laguna 4027, Philippines
Tel: 63-2-584-4512 / Fax: 63-2-584-4512
PPG KANSAI AUTOMOTIVE FINISHES
U.S., LLC
Troy-Automotive Technical Center, 5875 New
King Court
Troy, MI 48098, U.S.A.
Tel: 1-248-641-2010 / Fax: 1-248-641-2266
KANSAI PAINT (SHENYANG) CO., LTD.
No.18, Shenxi Four East Road,
Economic & Technology Development Zone,
110143, Shenyang, China
Tel: 86-24-2532-6390 / Fax: 86-24-2532-6395
THAI KANSAI PAINT CO., LTD.
180 Moo 3 Taparuk Road, Amphur Muang
Samutprakarn 10270, Thailand
Tel: 66-2-753-2377 / Fax: 66-2-753-2774
Overseas
KANSAI PAINT EUROPE LTD.
20th Floor, Wembley Point, 1 Harrow Road
Wembley, Middlesex HA9 6DE, UK
Tel: 44-20-8900-5933 / Fax: 44-20-8900-5966
PPG KANSAI AUTOMOTIVE FINISHES
UK, LLP
4th Floor, Trigate 210-222 Hagley Road West
Birmingham, B68 ONP, UK
Tel: 44-12-1423-7300 / Fax: 44-12-1434-5346
KANSAI ALTAN BOYA SANAYI
VE TICARET A.S
Ankara Asfalti 25, km 35177 Kemalpasa IZMIR, Turkey
Tel: 90-232-877-0071 / Fax: 90-232-877-0070
KDK AUTOMOTIVE COATINGS CO., LTD.
679-12 Naegi-ri, Poseung-eup,
Pyeongtaek-si, 451 821, South Korea
Tel: 82-31-684-6186 / Fax: 82-31-684-6190
KANSAI PAINT H. K. LTD.
Suite 1018, 10th Floor, Ocean Centre
Harbour City, No.5 Canton Road, Kowloon
Hong Kong
Tel: 852-2891-1280 / Fax: 852-2891-0890
COSCO KANSAI PAINT & CHEMICALS
(SHANGHAI) CO., LTD.
No.5589-5689 Hutai Road
Shanghai 201907, China
Tel: 86-21-5602-5077 / Fax: 86-21-5602-0852
COSCO KANSAI PAINT & CHEMICALS
(TIANJIN) CO., LTD.
42, 5th Avenue, TEDA
Tianjin, 300457, China
Tel: 86-22-2529-2009 / Fax: 86-22-2532-0902
COSCO KANSAI PAINT & CHEMICALS
(ZHUHAI) CO., LTD.
Zhuhai Gaolan Port Economic Zone Fine
Chemical Area, Zhuhai City, 519050, China
Tel: 86-756-3986270 / Fax: 86-756-3986276
54 Kansai Paint Co., Ltd.
Corporate Report 2011
TIANJIN WINFIELD KANSAI PAINT &
CHEMICALS CO., LTD.
No.95 Taihua Road, TEDA, Tianjin, 300457
China
Tel: 86-22-6623-0159 / Fax: 86-22-6623-0152
KANSAI RESIN (THAILAND) CO., LTD.
34 Moo 4, Eastern Seaboard Industrial Estate
(Rayong), Yudhasart Road, Tumbol
Pluakdaeng, Amphur Pluakdaeng, Rayong
21140, Thailand
Tel: 66-3-895-4750 / Fax: 66-3-895-4751
HUNAN XIANGJIANG KANSAI PAINT CO.,
LTD.
#16, Lixiang Road (W), Changsha Economy &
Technology, Hunan 410100, China
Tel: 86-731-8403-7050 / Fax: 86-731-8487-8159
SIME KANSAI PAINTS SDN. BHD.
2, Solok Waja, 2 Kawasan Perindustrian
Bukit Raja 41710 Klang, Selangor D.E.
Malaysia
Tel: 60-3-3348-7805 / Fax: 60-3-3348-7806
GUANGZHOU KANSAI PAINT CO., LTD.
26 Huangge East 2nd Road, Huangge
Nansha, Guangzhou, Guangdong, China
Tel: 86-20-3468-4900 / Fax: 86-20-3468-4930
KANSAI COATINGS MALAYSIA SDN. BHD.
4, Solok Waja, 2 Kawasan Perindustrian Bukit
Raja, P.O. Box 159, 41710 Klang, Selangor
D.E., Malaysia
Tel: 60-3-3341-5333 / Fax: 60-3-3342-7223
SUZHOU KANSAI PAINT CO., LTD.
No.12 Fengxia-lu, Lujia Town, Kunshan City,
Jiangsu Province, 215331 China
Tel: 86-512-5756-3372 / Fax: 86-512-5756-3374
CHONGQING ALESCO KANSAI PAINT CO.,
LTD.
801, Building 4, Long Hu MOCO, No.166,
Xinnan, Yubei, Chongqing, 401147, China
Tel : 86-23-8678-9456 / Fax : 86-23-8684-5046
KANSAI PAINT (CHINA) INVESTMENT CO.,
LTD.
Room 1506, Grand Ocean Tower, No.1200,
Pudong Avenue, Shanghai, 200135, China
Tel : 86-21-5093-9636 / Fax : 86-21-5093-9616
TAIWAN KANSAI PAINT CO., LTD.
No.6, Yungkong 2nd Road, Yung-an
Industrial District, Yung-an Hsiang Kaohsiung
Hsien, Taiwan R.O.C.
Tel: 886-7-622-3171 / Fax: 886-7-623-0155
P.T. KANSAI PAINT INDONESIA
Kawasan Industri MM 2100 Blok DD-7 & DD-6,
Desa Danau Indah, Cikarang Barat, Bekasi
17520, Indonesia
Tel: 62-21-8998-2370 / Fax: 62-21-8998-2369
KANSAI NEROLAC PAINTS LTD.
Ganpatrao Kadam Marg, Lower Parel
Mumbai 400013, India
Tel: 91-22-2493-4001 / Fax: 91-22-2493-6296
KANSAI PAINT MIDDLE EAST FZCO
Emaar Business Park, Building 1, Sheikh Zayed
Road, P.O. Box 262460, Dubai, U.A.E.
Tel: 971-4-368-9963 / Fax: 971-4-368-9962
FREEWORLD COATINGS LIMITED
Balvenie, Kildrummy Office Park Umhlanga
Avenue, Paulshof, Gauteng, South Africa
Tel: +27-11-549-8000 / Fax: +27-11-234-3236
KANSAI PAINT (SINGAPORE) PTE. LTD.
57 Penjuru Road, Jurong
Singapore 609141, Singapore
Tel: 65-6261-8621 / Fax: 65-6265-0301
Kansai Paint Co., Ltd.
Corporate Report 2011
55
6-14, Imabashi 2-chome, Chuo-ku,
Osaka 541-8523, Japan
Tel: 81-6-6203-5531
Fax: 81-6-6203-5018
http://www.kansai.co.jp
Printed on recycled paper
Printed in Japan