2012
Corporate Report
Year Ended March 31, 2012
Five-Year Summary of Selected Financial Data
Profile
Years ended March 31, 2012, 2011, 2010, 2009 and 2008
Established in 1918, Kansai Paint Co., Ltd. has grown into Japan’s
most progressive manufacturer in various fields related to coatings.
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 Group are
highly valued and trusted in a broad variety of fields, due to the
important role our coatings play such as protection, beautification,
special functionality, and environmental sensitivity.
Moreover, with Kansai Paint’s proprietary research and
development capabilities at its core, the Company is providing its
clients around the world with unparalleled customer service by
expanding its manufacturing, distribution and sales activities
worldwide.
Consolidated Basis
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2012
2010
2011
2009
2008
2012
For the year:
Net sales
Operating income
Income before income taxes
Net income
¥ 256,591
19,315
25,636
13,996
¥ 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
$ 3,121,925
235,004
311,911
170,288
At year-end:
Total assets
Owners’ equity
¥ 319,410
171,261
¥ 271,244
167,195
¥ 270,373
161,230
¥ 240,666
145,730
¥ 282,884
156,832
$ 3,886,239
2,083,720
¥ 52.70
¥ 47.73
¥ 44.56
¥ 40.61
¥ 51.53
$ 0.64
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 ¥82.19 to U.S.$1.00, the exchange rate at March 31, 2012.
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)
256,591
256,586
250,000
Contents
Business Review
ALESCO at a Glance .................................................................. 8
Business Overview by Segment ................................................. 10
Research and Development Operations .................................... 12
New Products .......................................................................... 14
Social Activities
Treatment of Employees .......................................................... 26
Occupational Safety and Health ............................................... 28
Consumer Protection ............................................................... 29
Social Action Programs ............................................................ 30
Financial Section ...................................................................................... 31
Directory ................................................................................................. 55
25,000
222,401
(Millions of yen)
23,756
26,397
25,636
25,000
20,505 21,102 19,315
200,000
20,000
150,000
15,000
100,000
10,000
10,000
50,000
5,000
5,000
22,401
23,375
20,000
16,602
Five-Year Summary of Selected Financial Data ............................................. 1
A Message from the President .................................................................... 2
Management Philosophy and Vision ........................................................... 4
Board of Directors ..................................................................................... 6
Environmental Activities
Policies on Environmental Conservation ................................... 16
Environmental Management .................................................... 17
ALES ECO PLAN 2012 .............................................................. 18
Development of Environmental Technologies and Products ........ 20
Green Procurement and Supply Chain Management ................ 21
Management of Chemical Substances ...................................... 22
Environmental Conservation Activities ...................................... 23
229,989
236,985
Income before income taxes
(Millions of yen)
2008
Corporate Brand
Our “ALESCO” brand name is formed from the
Latin word “ALES”, meaning “wing” and
“ESCO”, which stands for “Excellent Specialty
Company”. In Latin, “alesco” itself
means to grow and mature. Therefore,
“ALESCO” expresses the concept of Kansai Paint
growing continuously and flying with its wings
spread toward the future as a leading specialty
company.
The “ALESCO” corporate brand expresses to
the world the image of the superb quality and
excellent value of Kansai Paint and its Group
companies.
2009
2010
2011
2012
Net income
2009
2010
2011
2012
10,786
11,831
12,675
300,000
2008
319,410
282,884
2012
(Millions of yen)
270,373 271,244
156,832
150,000
10,000
2011
200,000
240,666
250,000
2010
2009
Owners’ equity
(Millions of yen)
13,996
13,755
12,000
2008
Total assets
(Millions of yen)
14,000
15,000
13,424
161,230 167,195
171,261
145,730
200,000
8,000
150,000
100,000
6,000
100,000
4,000
50,000
50,000
2,000
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
2008
2009
Kansai Paint Co., Ltd.
2010
2011
2012
Corporate Report 2012
1
A Message from the President
African subsidiary, which was newly consolidated
during the fiscal term. However, earnings were
depressed due to the continuing hike in the price of
raw materials and the drastic reduction in automobile production in the first half of the term following
the earthquake and decreased sales due to the
impact of the Thai floods, etc.
In the overseas segment, business results were
greatly affected by foreign exchange rates due to
the strength of the yen. On the other hand, the
Kansai Paint Group recorded some special income
due to the sale of domestic land holdings, etc.
Outlook for the Fiscal Year Ending
March 2013
To all of our shareholders:
Here at Kansai Paint and its Group companies, our
fundamental business philosophy is to contribute to
society by providing products and services that
satisfy our customers.
The coating business, the core business of the
Kansai Paint Group, is supported by our customers
in a wide range of industries, including various
industrial products centering on automobiles,
buildings, structures, ships and others. The foundation of the Kansai Paint Group’s very existence 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 2012
Detailed figures for the consolidated fiscal year
(fiscal year 2011 ended on March 31, 2012) are
included in the latter half of this corporate report.
To summarize, we achieved consolidated net sales
of ¥256,591 million (approximately US$3,122
million, a year-on-year increase of approximately
2 Kansai Paint Co., Ltd. Corporate Report 2012
8.3%), consolidated operating income of ¥19,315
million (approximately US$235 million, a year-onyear decrease of approximately 8.5%), and consolidated net income of ¥13,996 million (approximately
US$170 million, a year-on-year increase of approximately 10.4%). For the term under review, annual
dividends were ¥10 per share.
In the global economy for the term under
review, there continued to be gradual growth, but
in the latter half, the European debt crisis surfaced.
Moreover, there was softer growth witnessed in the
emerging economies such as India and China.
However, towards the end of the term, there were
signs of a recovery in the U.S. economy as well as
indications that the worst of the European debt
crisis might be avoided.
The domestic Japanese economy continued at a
low level due to the ongoing impact of the Great
East Japan Earthquake, the historically strong yen
and the floods that affected Thailand. However,
toward the end of the term, there were signs that
things were turning favorable due to a recovery in
corporate manufacturing activities as well as efforts
to redress the strength of the yen.
With regard to the consolidated business results
of the Kansai Paint Group, annual turnover
increased due to the contribution of the South
In the economic forecast, growth in emerging
economies is expected to continue, though growth
rates will be hampered by the unpredictability of the
European debt crisis, as well as increases in crude oil
prices. Our business performance is expected to
recover from the impact of the Great East Japan
Earthquake and the Thai floods, etc. On the other
hand, there are concerns that steep increases in the
price of raw materials will depress earnings.
Under these circumstances, the Kansai Paint
Group will develop its business activities towards
further developing its business performance in line
with the management strategies stated below.
As for the outlook for this term (fiscal year
2012), we have set targets as follows: net sales of
¥290,000 million (approximately US$3,528 million),
operating income of ¥25,000 million (approximately
US$304 million) and a net income of ¥16,000
million (approximately US$195 million) on a
consolidated basis. Furthermore, for this term (fiscal
year 2012), we intend to set annual dividends to be
¥12 per share.
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.
As we strive to reinforce our management
foundations to meet the challenges 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 indicates
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. In that spirit, 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-wide 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, making this year the
last fiscal year of the plan. Though the economic
environment that surrounds the Kansai Paint Group
is undergoing sharp fluctuations, we will continue
to follow the important policies detailed below and
based on our mid-term business plan in order to
expand our business activities.
1. Promotion of Globalization
Our overseas businesses continue to grow apace,
and we continue to strive to take our business
Yuzo Kawamori
President, Representative Director
Kansai Paint Co., Ltd.
Corporate Report 2012
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.
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.
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.
Sound
Business
Activities
Environmental
Preservation
Global
Environment
Customers
Industrial
Associations
Disclosure
of
Information
Contributions
to Society
Compliance
Shareholders
and
Investors
Business
Connections
Kansai Paint
Group
Local
Societies
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.
With regard to the system of internal controls, system
activity is now focused on practical operations, and fiscal
2012 saw the merger of two bodies working under the
Corporate Governance Committee, the Internal Control
Promotion Committee and the Compliance Promotion
Committee.
Risk management
Corporate governance
organization
Corporate Governance Organization
(Established June 2012)
General Shareholders’ Meeting
Appointments/Dismissals
Appointments/
Dismissals
Board of
Directors
Appointments/Audits
Audits
External
Auditor
Board of
Auditors
Coordination
Auditor
Financial 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.
4 Kansai Paint Co., Ltd. Corporate Report 2012
Risk
Management
Employees
Compliance promotion
Basic activity guidelines (Established January 2001)
This internal control organization
assures healthy business
administration and audits.
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.
Immediately following the Great East Japan Earthquake of
March 2011, the President established a Crisis Management
Headquarters with himself as Director, with the purpose of
moving quickly to ascertain the safety of employees and
their families as well as the extent of the damage suffered by
our manufacturing facilities, etc. This office also maintained
close coordination with our raw materials manufacturers and
our other business partners, as the Company as a whole
worked to ensure that products and services were provided
to meet customer needs. The Kansai Paint Group is
fortunate that the Thai Floods did not directly affect us, but
despite that we are maintaining close contact with our local
affiliates as we work to ascertain the damage suffered by
our customers and the affect this will have on our business.
Our aim is to provide support so that normal production can
commence smoothly as soon as the situation returns to
normal.
Going forward, we are looking to reinforce our BCP
(Business Continuity Plan) System as we strive to contribute
to society through providing customers with products that
satisfy their needs.
Kansai Paint Co., Ltd.
Corporate Report 2012
5
Board of Directors
President
Yuzo Kawamori
08
10
12
14
ALESCO at a Glance
Business Overview by Segment
Research and Development Operations
New Products
Directors
Mitsuhiro Fukuda
Hiroshi Ishino
Shigeru Nakamura
Masanobu Ota
Hiroshi Sakamoto
Kunishi Mouri
Hiroshi Ishino
Mitsuhiro Fukuda
Representative Director
Representative Director
Yuzo Kawamori
President, Representative Director
Corporate Auditors
Hiroshi Suwa
Koji Maekawa
Mineo Imamura
Yoko Miyazaki
(as of June 30, 2012)
6 Kansai Paint Co., Ltd. Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
7
Business Review
ALESCO at a Glance
Automotive Coatings
Decorative Coatings
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.
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.
Product Sales Ratio
39%
Product Sales Ratio
25%
Industrial Coatings
Marine and Protective Coatings
Main Products and Services
Main Products and Services
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.
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.
Product Sales Ratio
8%
Product Sales Ratio
28%
8 Kansai Paint Co., Ltd. Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
9
Business Review
Business Overview by Segment
Japan
In the field of automotive OEM coatings, despite the fact
that the number of vehicles manufactured has shown some
improvement since the second quarter of the year, sales for
the term under review registered a slight decrease due to
reduced exports, etc. In the field of industrial coatings we
recorded a slight increase in sales thanks to increased
demand for coatings applied to construction machinery to
be used in reconstruction projects following the earthquake.
In the fields of auto refinishing, decorative and marine
and protective coatings, though we have striven to expand
our sales of new products as well as high value-added
products, our sales for the term under review decreased due
to the effect of the sluggish domestic economy. Under these
circumstances, we continue to make efforts to reduce costs
and secure profits. As a result, our sales in Japan totaled
¥145,223 million, a decrease of 1.1% from the previous
term, and our ordinary profit totaled ¥12,903 million, an
increase of 3.3% from the previous term.
India
In the field of automotive coatings, sales of automobiles
have slowed due to the tightening of the money market.
However, sales of coatings have grown due to increased
sales to local manufacturers.
We have seen a remarkable increase in our sales in the
field of decorative coatings as domestic demand has
expanded and soaring raw materials costs have been
transferred and are reflected in higher prices for products.
Soaring raw materials costs as well as the depreciation of the
rupee has had a significant impact on this segment. As a
result, our sales in India totaled ¥42,092 million, an increase
of 4.2% from the previous term, and our ordinary profit
totaled ¥4,889 million, a decrease of 1.0% from the
previous term.
Asia
In the field of automotive coatings, our sales were negatively
impacted in Asian countries and territories, including China
and Thailand, due to a dip in output from Japanese
automobile manufacturers caused by disruptions to the
supply chain following the Great East Japan Earthquake. In
the latter half of the term, our sales were also affected in
Thailand and Malaysia, etc. due to the Thai floods and the
subsequent drastic curtailments in production by our
industrial customers. In Indonesia, our business performance
improved as the local economy continued to grow.
In the field of industrial coatings, our business is basically
expanding in China. However, in the latter half of the term,
the tightening of the money market caused growth to slow,
and, in particular, the demand for construction machinery
dropped off. As a result, our sales in Asia totaled ¥36,624
million, a decrease of 8.8% from the previous term, and our
ordinary profit totaled ¥3,204 million, a decrease of 40.6%
from the previous term.
Other Regions
Despite a slow-down of economic growth in Turkey
accompanied by a worsening of the debt crisis in Europe,
our business continued steadily and sales expanded in both
the fields of automotive coatings and industrial coatings. As
a whole, our business has been affected by the soaring cost
of raw materials. As a result, our sales for Other Regions
totaled ¥10,933 million, an increase of 13.9% from the
previous term, and our ordinary profit totaled ¥436 million,
a decrease of 31.2% from the previous term.
Africa
The business results of Freeworld Coatings Ltd., a company
based in the Republic of South Africa that became a
consolidated subsidiary in April 2011, began to contribute to
our consolidated business results from the second quarter of
the year. On the other hand, in accordance with the
acquisition of shares in this subsidiary, amortization of
goodwill was also recognized from the second quarter of the
year. As a result, our sales in Africa totaled ¥21,719 million,
and our ordinary profit totaled ¥14 million.
Freeworld Coatings Ltd. (South Africa) became a
consolidated subsidiary in April 2011
Post-emergency drill review held at Kansai Nerolac Paints Ltd. (India)
An employee at our South African brush manufacturing plant
Hamilton Brush (Part of the Freeworld Coatings Ltd. Group)
CHINA COAT 2011 in Shanghai (23-25, Nov.)
Education regarding static electricity at Kansai Nerolac Paints Ltd. (India)
10 Kansai Paint Co., Ltd. Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
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
¥5,184 million, and a total of 569 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 are striving to accumulate
fundamental technologies that are useful for coatings and
the development of our peripheral business potential. Our
fundamental technologies focus on polymer synthesis, new
cross-linking reactions, pigment dispersion, surface control,
rheology control, and environmental improvement
technology. Our aim is to create new foundations and
modules for business that can be applied globally.
In the field 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 in areas where
establishing evaluative technologies is extremely difficult,
such as observing phenomena related to the film formation
stage as well as the performance and functions of films.
Furthermore, through these technologies, our shared plan
for each of the companies in the Group, both in Japan and
overseas, is to place particular focus on our services, such as
analysis and consulting related to quality, safety and the
effect on the environment of our products for our
customers. To this end we are also promoting the
establishment of reliable, global operation systems.
In the field of color design, with regard to automotive
coatings we have developed and proposed advanced color
groups for our customers through research and analysis of
the latest color trends as well as through investigating colors
used in motor shows held in Japan and overseas.
Furthermore, we undertook a survey of automotive color
trends in Asian countries.
In regard to the field of decorative and industrial
coatings, we undertook research of coatings for design as
well as development of software for overseas markets, in
addition to a survey of design style trends for detached
houses and this information was used to create design
proposals for building materials. In the field of color
application technology, we moved forward with the
technological development of our water-based coatings,
specifically their weather-proof performance and color
stability.
In the field of color optical science, we conducted
research on the application of a computer-based color
matching system, and we are moving forward with
improvements to the efficiency of our custom color
matching process.
In regard to the field of 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 development of
technologies to create paints and coatings that are sensitive
to the global environment. Our research and development
specifically focuses on reducing the amount of greenhouse
gases and volatile organic compounds.
In the field of automotive coatings, we continue to work
on expanding and diversifying the use of our highly
evaluated Waterborne 3-Wet Coating System, which is
manufactured using eco-friendly technologies that are both
process- and energy-efficient. Furthermore, in order to
achieve finer finishes, we are conducting fundamental
technological development in rheology control and pigment
dispersion, etc. We are also continuing to develop high
value-added coatings with high scratch-resistant finishes,
etc.
In the field of industrial coatings, we have developed a
non-chromium type primer for the pre-treatment processing
of steel plates and we are making plans as to how best to
apply this product. In the fields of decorative coatings and
protective coatings, we are promoting the conversion to
water-based coatings as well as putting our efforts into
researching and commercializing coating products with high
functionality, such as heat shielding and anti-bacterial
functions as well as multiple colors and patterns. We are
also working to develop evaluation technologies and
equipment as required to develop these coatings. The aim is
to facilitate efficient development of coatings as well as
increasing the perfection rate for products in development.
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 area of electronics and communications, we have
been working on the development of photo-resist materials
that require fewer processes and result in less waste, etc.
thus reducing the environmental burden. We are also
planning to position our screen-printing resist materials as
one of our main products and to expand their use
accordingly.
In the fields of the environment and biotechnology, we
are promoting improvements and developments to a
wastewater processing system for waterborne coatings as
well as supporting carriers for a highly efficient sewage
processing system.
During the term under review, expenditure on research and
development by segment amounted to ¥4,736 million for
Japan, ¥242 million for India, ¥33 million for Africa, and
¥173 million for Other Regions.
Developing decorative coatings
Color designers working on designs for outdoor decorative paints
Surface analysis using XPS
12 Kansai Paint Co., Ltd. Corporate Report 2012
Several rounds of trial and
error before launching a
product on the market
Kansai
Kansa
Kan
saii Paint
sa
P
Co., Ltd.
Corporate Report 2012
13
Business Review
New Products
Environmentally Responsive Automotive Coatings
With regard to the environmental responsiveness of our
coatings for auto bodies, starting with the use of
water-based coatings, etc. to reduce the amount of VOC, by
shortening the manufacturing processes and reducing the
number of coating facilities we are reducing our total energy
requirement and CO2 emissions. Water-based coatings
require pre-heating (hereinafter referred to as PH) to
evaporate off the water content, as well as strict
management of the humidity in the coating booth, which
means that this would lead to increases in energy
consumption.
The 3-Wet Coating System*1 can reduce the PH process
as well as the baking process, and so we have implemented
a 3 Wet/2 PH approach as our current mainstream process.
We are also making progress in our development of a 3
Wet/1 PH approach with the aim of making further
reductions in our energy usage. Kansai Paint is also moving
forward with designing coatings appropriate for these
approaches.
Environmentally Responsive Effect of our Coating Process
(Indices)
120
100
80
60
40
VOC
Energy
20
Solvent3C2B
Waterborne
BC
Waterborne
3-Wet (1PH)
Thin Film
*Standard Indices based on Solvent-3C2B
Waterborne
3-Wet (2PH)
Waterborne
3-Wet (1PH)
*1) 3-Wet Coating System
Our 3-Wet Coating System has the drying process between the final base coat, consisting
of a primary and secondary layer, and the clear coat, using the wet-on-wet or preheating
approach.
ALES COOL: A Roof Coating with High Rate of Solar Radiation Reflection
ALES COOL is a high-performance solar radiation-reflective
coating for roofs that has been developed and is now on
sale as a coating that can reduce the heat energy that
penetrates into a building from a sun-exposed roof during
hot summer days by forming a coating film that can
efficiently reflect sunbeams containing solar (infrared) rays.
The raw materials in ALES COOL efficiently reflect
infrared rays and this material is contained not only in the
topcoat but also in the lower layers — a “Double Blocking
Effect” that delivers the highest standard of heat shielding in
the industry. ALES COOL can reduce the rooftop
temperature during the hottest part of the summer by a
maximum of 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.
ALES COOL is one of the unique ways that a coating
manufacturer can contribute to the global environment.
ALES COOL has been certified by the Environmental
Technology Verification project (ETV) and we have great
expectations for the role that ALES COOL can play with
regard to environmental preservation going forward.
The Relationship Between a Coating Film’s Luminance and
Solar Reflectivity Rates
Reflectivity Rate (%)
100
80
16
17
18
20
Policies on Environmental Conservation
21
Green Procurement
and Supply Chain Management
22
23
Management of Chemical Substances
Environmental Management
ALES ECO PLAN 2012
Development of Environmental Technologies
and Products
60
40
20
Dark
Luminance
Bright
High-Performance Solar Radiation Reflective Coating
A Regular Roof Coating
Environmental Conservation Activities
Surface Temperature Reduction Effect of ALES COOL
(Thermographic Imaging)
ALES COOL
A Regular Roof Coating
60
℃
30
℃
14 Kansai Paint Co., Ltd. Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
15
Environmental Activities
Policies on Environmental Conservation
Environmental Management
Corporate Policies on Environmental Conservation (Established December 21, 1992)
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.
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 the top-level diagnosis of fiscal 2011, the RC
Committee reported and discussed the status of their
activities with regard to the ALES ECO PLAN 2012 that got
underway this fiscal year, the implementation of quality
assurance systems overseas as well as environmental
regulations and safety and hygiene compliance both at
home and overseas. The following instructions were issued
in order to make full use of our RC activities.
Marking the start of the new ALES ECO PLAN 2012, we
were able to attain all of our goals for the first year of the
plan (FY2011). Going forward, 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, as well as
reducing the amount of hazardous substances in our
finished products and working towards the dissemination of
environmentally sensitive coatings, whilst accurately meeting
the needs of our customers, in addition to conforming with
legal regulations both overseas and in Japan.
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
ALES ECO PLAN
RC Committee
Committee Chairman:President
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
ISO14001 Activities
Site Environmental Policies
Objectives,
Targets, Plans
®
16 Kansai Paint Co., Ltd. Corporate Report 2012
Management Review
Implementation
and Operation
Internal Audits,
Monitoring,
Measurement, etc.
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
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).
User- and Customer-Related Environmental
Safety Committee
2011 Instructions by Top Management
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. As well as promoting the ALES ECO PLAN 2012,
we need to consider the framework for our RC
activities across the entire Kansai Paint Group,
including our operations overseas.
3. Work to improve product quality, the
environment, safety and hygiene at our overseas
business sites through closer coordination with
local companies.
As part of our responsibility as a company that deals with
dangerous substances of an explosive or combustible nature,
as well as substances that can be hazardous to health, our
aim is to prevent any incident that may involve explosions,
fire, environmental pollution or that might be harmful to
peoples’ health. Our safety mottos are: “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 CompanyWide Safety & Environment Promotion Team; 4. The Central
Energy Conservation and Environmental Measures Team; 5.
The Safety & Environment Promotion Teams for Overseas
and Affiliated Companies.
The content of these activities includes an annual general
safety check across the Kansai Paint Group as a whole, with
the all the aforementioned specialist teams headed by the
Committee Chair conduct their diagnosis on centralized
environmental safety hygiene, KYT activities (hazard
prediction training), and other education and training
programs throughout the year. In this way, we are
proactively preventing workplace accidents. Moreover, over
half of our employees have attended courses at the hazard
experience class, which has been in operation since 2011.
During fiscal 2012 we will complete this training for all
employees and we are working to develop this horizontally
with all our affiliates.
Kansai Paint Co., Ltd.
Corporate Report 2012
17
Environmental Activities
ALES ECO PLAN 2012
(Evaluation of FY2011 results and targets)
Activities
Environmental
& Product Safety
FY2011 Targets
Evaluation
Targets for Final Fiscal Year (FY2012)
63% reduction from fiscal
2003 results: 513 tons → 192 tons
60% reduction from fiscal
2003 results: 64 tons → 26 tons
161 tons/annual shipments
(69% reduction compared with fiscal 2003)
23 tons/annual shipments
(64% reduction compared with fiscal 2003)
23% reduction from fiscal
2003 results: 37,200 tons → 28,800 tons
28,100 tons/annual shipments
(24% reduction compared with fiscal 2003)
4. VOC rate contained in coating
products sold*5
10% reduction from fiscal
2003 results: 24.4% → 22.0%
22.4%
(8.2% reduction compared with fiscal 2003)
Target value not achieved (the market slumped
due to the earthquake, etc. and as a result there
was a temporary decrease in the number of
low-VOC products shipped)
12% reduction from fiscal
2003 results
Spread of environmentally friendly coatings
Ratio of environmentally friendly
coatings sold: 97% or higher
Eco-product ratio: 97%
Target value achieved
Ratio of environmentally friendly
coatings sold: 98% or higher
Management of REACH-regulated SVHC*6
as a restricted substance
100%
100%
1. Energy consumption
(per unit of production)
1.0% reduction from fiscal
2010 results
2.5% increase compared with fiscal 2010
2. CO2 emissions
(total: Including incinerators)
11% reduction from fiscal
1990 results
14.9% decrease compared with results for fiscal 1990
3. Waste generated unit
production volume
1.0% reduction from fiscal
2010 results
6.0% increase compared with fiscal 2010
4. Waste recycling ratio
1. Total energy during shipping
(basic unit)
Fiscal 2009: 9.02L per ton (Crude Oil
Equivalent)
2. Assurance of transportation safety
1. Number of accidents
(Lost-work injuries)
Maintenance of 99% or higher
Annual average: 99.5%
1.0% reduction from fiscal
2009 results
17.8% reduction compared with the results for FY2009
Establishment of operation
Labelling 100% maintained
0 cases
0 cases
0 cases
Organic Solvent: Class II Workplaces – 12 cases; Class III
Workplaces – 1 case
Specialization Rule (formaldehyde): Class II Workplaces
Target value not achieved
– 9 cases
During the fiscal year, improvements completed by the
seals on the tanks and reinforcement of local ventilation
Reduction of
Hazardous
Substances
in Products
Assurance of
Environmental
Safety during
Transportation
Securing Safety
and Health
2. Organic solvent and specially
controlled substance handling
operations in Class-II Class-III
workplaces
Implement a safety diagnosis
program at affiliated companies
overseas
Ongoing implementation
Ongoing implementation
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
• Implementation of compliance policies with regard
to the revisions to the Poisonous and Deleterious
Substances Control Act
• Consideration and implementation of compliance
policies with regard to the revised chemical safety
labeling regulations in China.
3. Safety assurance at affiliated
companies overseas
Environmental
Conservation
Activities
User- and
Customer-Related
Environmental
Safety
FY2011 Achievements
1. The amount of lead
in products sold*1
2. The amount of hexavalent
chrome in products sold*2
3. The amount of T, X, EB*3 in
coating products sold*4 (T: Toluene,
X: Xylene, EB: Ethyl benzene)
Reduction of
Environmental
Burden in
Operations
Environmental
Safety and Health
Items Targeted
User- and
Customer-Related
Environmental
Safety Activities
Disclosure of Environmental
Information
1. ISO 14001 activities
2. Preparation for environmental
accounting
2. Enhanced environment
management system
Construction of
the required system
3. Prevention of product liability claims
Determine candidates for
PL and achieve 0 claims
1. Publishing of environmental report
Ongoing publication
2. Publishing of Corporate Report
*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”
18 Kansai Paint Co., Ltd. Corporate Report 2012
Ongoing publication
Implemented in India, ASEAN, China, Taiwan
Reinforced security when accepting and placing orders
for products containing poisonous and deleterious
substances
0 claims for Kansai Paint, Kansai Paint Sales, NKM,
Kanpe Hapio
“Environment and Social Report 2011”
(Japanese) published in June
Publication of the English edition of the
“Corporate Report 2011” (August)
Target value achieved
70% reduction from fiscal
2003 results
65% reduction from fiscal
2003 results
27% reduction from fiscal
2003 results
All of the publicly released SVHC have been
confirmed and all of the substances contained
are managed as restricted substances.
Target value not achieved (due to the reduction
in manufacturing, the target value was not
attained on a per-unit basis, but there was a
reduction in overall energy use)
Target value achieved
Target value not achieved (due to the reduction
in manufacturing, the target value was not
attained on a per-unit basis, but there was a
reduction in overall amount of waste generated
and we were able to maintain zero emissions)
Target value achieved
Target value achieved
100%
2.0% reduction from fiscal
2010 results
12% reduction from fiscal
1990 results
2.0% reduction from fiscal
2010 results
Maintenance of 99% or higher
2.0% reduction from fiscal
2009 results
Establishment of operation
Target value achieved
Target value achieved
Target value achieved
Implementation of each item was continued
0 cases
0 cases
Implement a safety diagnosis
program at affiliated companies
overseas
Ongoing implementation
Ongoing publication
Within standard values
0 cases
• 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
Construction of
the required system
Determine candidates for
PL and achieve 0 claims
Ongoing publication
Information was released as planned
Ongoing publication
*4) Finished product: including thinners sold
*5) Coating products excluding thinners sold
*6) SVHC: Substance of Very High Concern
Kansai Paint Co., Ltd.
Corporate Report 2012
19
Environmental Activities
Green Procurement and Supply Chain Management
Development of Environmental Technologies
and Products
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
Coloring materials
Based on the classifications of the Japan Paint
Manufacturers Association, coatings that are considerate to
humans and the environment are hereby defined as
environmentally considerate coatings, and starting with the
ALES ECO PLAN 2012 the proportion of coatings sold that
match this definition will be evaluated.
The proportion of our sales turnover for FY2011 that
was made up of environmentally considerate coatings
increased by 1 percentage point on the previous term to
97%. Going forward, we will continue to work towards
researching, designing and providing environmentally
sensitive products.
Coatings
Analysis
Rheological control
Color and Design
Computer simulation
Engineering
Polymer cross-linking
Surface control
Evaluation Items
Develop new technologies and new fields
based on coating
technology
Develop
environmentally
friendly products
Content
Reducing
Atmospheric
Pollution
• Products with low VOC content
(waterborne coatings, high solid coatings,
powder type coatings)
Reducing the
Burden on the
Environment
and Our
Health
• Coatings that contain reduced amounts of
toluene, xylene and ethyl benzene
• Coatings that contain reduced amounts of
formaldehyde
• Coating films that are difficult to soil, or
coatings that are self-cleaning
• Coatings that suppress the multiplication of
bacteria on the film surface
Conserving
Resources
• Coatings with excellent weather resistance
• Coatings that use natural, organic
compounds in their organic ingredients
Conserving
Energy
• Coatings with heat shielding properties
• Coatings that require less energy during the
drying and hardening processes
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
20 Kansai Paint Co., Ltd. Corporate Report 2012
• 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.
Classifications of Materials Used
Pursue the ultimate in
possibilities for
coating materials
Transition of the Proportion of
Environmentally Considerate Coatings Sold
Biotechnology
Kansai Paint Procurement Policies
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.
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.
Banned
Raw Materials
Banned raw materials (that contain banned
substances as defined by the Company
Regulations) in any amount that exceeds the
amount allowed by the regulations, may not be
used regardless of the reason.
Restricted
Raw Materials
Restricted raw materials (that contain restricted
substances as defined by the Company’s
Regulations) that exceed the amount allowed
by the regulations shall be reduced and their
use limited to specific purposes.
Dangerous and
Hazardous
Raw Materials
Dangerous and hazardous raw materials (that
contain dangerous and hazardous substances
as defined by the Company’s Regulations) that
exceed the amount allowed by the regulations
shall be subject to stricter administration than
regular raw materials.
Regular
Raw Materials
These are raw materials that can be
administered in a regular manner.
Supply Chain Management
We have asked our raw materials suppliers to be thorough in
the manner in which they manage their hazardous
substances, and we are working to meet customer needs on
this issue.
Green Survey of Our Business Partners
In order to check on the environmental policies implemented
at the companies from which we purchase our raw
materials, manufacturers from whom we purchased a
certain amount of material were checked for the status of
their ISO14001 accreditation, and we continue to monitor
the “greenness” of the companies that deliver these
materials to our businesses.
Environmental Preservation
Being involved in a business that can greatly affect the
environment, the transportation and waste processing
companies that we commission to carry out tasks on our
behalf can, in the event of an accident or a mistake in the
workplace, create a devastating impact on the natural
environment. As a result we ask all our business partners to
cooperate with us in working to preserve the environment
by observing work procedures and making sure that
requested items are conveyed clearly.
Management of Raw Materials
Our clients, such as companies that export automobiles
overseas and household appliance manufacturers and other
related manufacturers have been asked to comply with ELV
and RoHS regulations. We have been asked by our
customers and other manufacturers to provide them with
certification that states that the coatings used contain no
hazardous substances. With regard to materials for specific
uses, we requested that the raw material manufacturer
needs to implement a thorough substance management and
control program, and when necessary provide certification
and evidence, etc. proving that no substances requiring
environmental management were used.
Kansai Paint Co., Ltd.
Corporate Report 2012
21
Environmental Activities
Environmental Conservation Activities
Management of Chemical Substances
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
1) Amount of elemental lead contained in products sold
Up to now, we have publicly released information about the amount
of lead compounds contained in coating products sold, but due to
the increased attention towards “lead in paint” the consequent
impact of lead on the environment, from the ALES ECO PLAN 2012
we have introduced stricter indices for measuring the reduction in
lead compounds, namely the “Amount of Elemental Lead
Contained in Products Sold” and it is evaluated as such.
Compared with FY2003, the amount of lead compounds in
products sold was 31% (161 tons) in FY2011. We were able to
register a reduction on the previous term due to our further
transition from rustproof coatings containing lead to rustproof
coatings that are both chromium- and lead-free, as well as partly
2) Amount of elemental hexavalent chromium contained
in products sold
Our continuous efforts to reduce the amount of hexavalent
chromium have taken the same approach as that of lead, and we
have introduced stricter indices, namely the “Amount of Elemental
Hexavalent Chromium Contained in Products Sold” and it is
evaluated as such.
By partly promoting alternatives to color coatings that contain
lead or chromium, in FY2011 the amount of hexavalent chromium
in products sold was 36% (23 tons) compared with FY2003.
Reducing the amount of hexavalent chromium in our coatings
raises other issues, such as confirming the long-term functions of
the coating such as its weatherproof capabilities and durability, etc.
as well as alternatives that result in higher costs, however we are
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.
promoting alternatives to color coatings that contain lead or
chromium. Looking forward, we are making progress with reducing
the volume of lead used in coatings.
Transition of the Amount of Elemental Lead Contained
in Products Sold
(t)
600
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.
CO2 Emissions in Production Plants Including incinerators*
(t-CO2)
40,000
34,200
500
396
34,500
32,100
30,000
383
130
119
140
We are continuing our efforts to reduce the amount of toluene,
xylene, and ethyl benzene (hereafter, T, X, and EB) in our products.
We have transitioned from solvent-based coatings to water-based
coatings and due to our progress in finding alternatives low in
hazardous substances for coatings that contain T, X, and EB, as well
as our progress in developing a market for coatings that do not
contain PRTR substances, in FY2011 there was a decrease of 24% in
the use of these materials compared with the figure for FY2003,
representing a reduction to 28,100 tons.
In the future, we will continue to develop products to replace
248
200
201
140
14,000
300
13,000
200
12,000
Total CO2 emissions
100
161
2007
2008
2009
CO2 emissions per
production unit
12,400
11,900
12,300
11,600
Total CO2 emissions
11,000
2011 (FY)
2010
12,400
2007
2008
2009
2010
2011 (FY)
0
2003
2005
2007
2009
2010
2011 (FY)
moving forward with developing alternative products that will result
in further reductions.
Transition of the Amount of Elemental Hexavalent
Chromium Contained in Products Sold
(t)
70
64
60
54
50
Promotion of energy-saving activities
The amount of energy used by the production division in
FY2011 decreased by 4.5% compared with FY2010, but
energy used per basic unit increased by 2.5% compared
with FY2010. Due to the aftermath of the Great East Japan
Earthquake, there was a shortage of electrical power and
the entire company implemented a thorough
energy-conservation policy that resulted in a reduction in the
amount of energy consumed. However, the dip in
production was even greater and as a result, energy
consumed on a per unit basis actually increased.
Going forward, we are going to continue our
energy-saving activities.
42
40
30
30
27
23
(106MJ)
800
10
0
2003
2005
2007
2009
2010
2011 (FY)
those containing T, X, and EB, and further promote the reduction in
the use of these substances.
500
743
676
2,400
677
670
640
2,750
2,800
2,870
12.0
11.1
10
10.2
10.8
2,500
2,560
2,000
2007
2008
2009
300
259
Total energy
consumption
SOx Emissions Quantities, NOx Emissions Quantities,
Dust Emissions Quantities
2009
2010
2011 (FY)
VOC percentage Contained in Products Sold
10
23.7
22.5
22.5
SOx
(t)
NOx
22.8
2008
2009
2010
2011 (FY)
22.4
20
SOx (sulfur oxide)
SOx is released when fuels such as heavy oil or
kerosene, etc. are burned or when waste materials
that contain sulfur are burned. The symbol SOx refers
to sulfur dioxide and small amount of sulfur trioxide.
Dust
NOx (nitrogen oxide)
NOx, comprises nitrogen monoxide, nitrogen dioxide,
etc., and is contained in exhaust gases from boilers,
incinerators, and trucks.
20
15
(%)
30
24.4
Total energy
consumption
10.5
5
2007
250
2007
Air Pollution Controls (at Production Plants)
2005
266
251
Energy consumption
per production unit
2011 (FY)
2010
269
268
3,000
400
(%)
15
(106MJ)
(kJ/kg)
3,500
700
Transition of the ratio of T, X, and EB in our coating and
thinner products sold
12.7
Transitions in Amounts of Energy Used by
Technology and R&D Divisions
Transitions in Energy Consumption in Production Plants
20
2003
The proportion of VOC in the coating products sold during FY2011
was affected by the sluggish market, which meant that there was
no sales growth in products low in VOC such as waterborne
coatings, high solid coatings, etc. As a result the percentage of VOC
contained in coating products sold compared with FY2003
registered an 8% reduction, to 22.4%.
Looking forward, we will continue to work towards expanding
the market for low-VOC products.
(t-CO2)
400
100
0
4) VOC percentage contained in products sold
144
25,000
300
600
3) Toluene, xylene, and ethyl benzene contained in
products sold
33,500
The carbon dioxide emission volume for the production
division in FY2011 was 32,100 tons. Production volume
decreased by 6.7% compared with FY2010, and the basic
unit for CO2 emissions was 144kg-CO2/ton, an increase of
2.9% on FY2010.
CO2 Emissions in R&D Divisions
(kg-CO2/t)
36,900
35,000
513
400
Reduction of CO2 emissions
10.4
10.3
9.5
10.5
10.2
5
0.5
0.1
2007
0.7
0.06
2008
0.5
0.05
2009
0.4
0.07
2010
0.5
0.06
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.
2011 (FY)
10
0
2003
22 Kansai Paint Co., Ltd. Corporate Report 2012
2005
2007
2009
2010
2011 (FY)
Kansai Paint Co., Ltd.
Corporate Report 2012
23
Environmental Activities
Environmental Conservation Activities
Water Conservation Efforts at Production Plants
The amount of water used in FY2011 was about the same
as for FY2010. There was a reduction in the amount of
product manufactured, so in terms of a per-unit basis there
was a slight increase in the amount of water used compared
Amount of Water Used
Amount of Water Used per Production Unit
(L/kg)
(103m3)
1,000
800
600
with FY2010. Going forward, we will continue to make
effective use of cooling water and boiler steam water.
5
Total
760
292
721
715
703
287
307
295
298
339
316
322
321
318
129
112
2008
92
87
400
200
2007
2009
4
707
2010
91
2011 (FY)
3
Tap water
2
Groundwater
Industrial
water
1
2.45
2007
Water pollution prevention at production plants
The amount of COD discharge, an indicator of the emission
volume of water pollutants, registered an increase this term
due to the decommissioning and phasing out of the waste
fluid incinerator at the Amagasaki Plant, which meant that
the high concentration waste fluids that had up to now
been incinerated are now subjected to activated sludge
treatment.
2.71
2008
2.93
2.94
2009
2010
3.17
2011 (FY)
Transitions in COD Emissions
(t)
5
4
3
1.86
2
1.23
1.26
1.24
1.26
1
2007
2008
2009
2010
2011 (FY)
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.
26
28
29
30
Treatment of Employees
Occupational Safety and Health
Consumer Protection
Social Action Programs
Waste Reduction
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 FY2005 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 FY2011.
Recycling Ratios, and External Intermediate Treatment Amounts,
Including Final Landfill Amounts (Production Plants)
Amount of Industrial Waste Generated (Production Plants)
(t)
(t)
32,000
200
30,850
(%)
100
99.7
99.6
99.6
102
99
99
2007
2008
2009
99.5
99.5
30,000
28,000
100
27,070
Amount of
generated
industrial waste
26,000
24,370 24,460
2007
2008
2009
2010
24 Kansai Paint Co., Ltd. Corporate Report 2012
113
124
24,200
2011 (FY)
Amount of
95 external intermediate
treatment including
final landfill
Recycling ratios
2010
2011 (FY)
Kansai Paint Co., Ltd.
Corporate Report 2012
25
Social Activities
Treatment of Employees
Human Resource Development and Training
Prevention of Sexual Harassment
Addressing Human Rights Issues
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.
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.
The Kansai Paint Group’s fundamental stance as a
corporation is to contribute to happier people and society,
and the Company strives to maintain a wholesome
workplace environment by eliminating harassment and
discrimination for non-work issues related to race,
nationality, age, gender, religious beliefs, lineage, or physical
handicap, etc. To this end, we are implementing training
programs and seminars dedicated to increasing employee
awareness about human rights. Each year in December, to
mark Human Rights Week, we solicit suggestions for a
“Human Rights Slogan” and last year we received 565
suggestions from across the entire Kansai Paint Group.
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.
Training for Top Management
Training for Middle Management
Training for Supervisors
Training for Mid-Career
Employees
Training for New Employees
(Practice Teaching)
OJT
(educational
fundamentals)
Outside Seminars
Occupational Training
Common Training (QC Safety, etc.)
Selective Training
Overseas Business Orientation Training
Training by Function
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 FY2011, our ratio of disabled personnel was 1.76%
and this is below our legal requirement to have 1.8% of our
workforce consist of disabled people. We will continue to
work hard to make improvements.
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.
We are making progress with our efforts to support our
employees at work and with
their families, for example with
regard to child rearing, whereby
an employee with a small child,
until said child starts their
elementary school education,
shall be permitted to work
shorter hours, etc.
Privacy Protection
Equal Employment Opportunities
Kansai Paint complies with the ideology of the Equal
Employment Opportunity Law for Men and Women. We
implement many measures to ensure the rights of our
female employees and the health of the mother are
protected, etc. and we acknowledge the broad nature of the
rights of the female employee.
We fundamentally do not discriminate between male
and female employees in terms of equal pay and benefits,
nor would we treat an employee differently due to the fact
that she was female. We are actively appointing female
employees to managerial roles, and the same can be said for
the position of line manager.
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.
Lifestyle-related disease measures
We are actively working to enlighten our workforce about
lifestyle-related diseases, through running seminars in each
region as well as circulating news of section meetings about
health and hygiene, etc. Moreover, from this fiscal year we
have started a system to follow up on the regular annual
health check and to make sure that any findings that are
discovered during the check are properly pursued. By
increasing awareness about lifestyle-related diseases and the
improvements each employee can make, we are promoting
and maintaining employee health.
Antismoking campaign
Health Care
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 FY2011, the committee continued to promote its
antismoking campaign while continuing its activities to
support people suffering from mental health issues and
lifestyle-related illnesses.
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.
In order to deepen employees’ understanding of mental
health issues, we hold regular training seminars in each
region.
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.
When new employees join the company, our industrial
physicians run seminars on how to prevent picking up habits
that lead to lifestyle diseases. Moreover, in FY2012 our
health insurance association is lending its support by actively
engaging with those trying to quit smoking by viewing the
process as part of the therapeutic management of a disease.
Transition in the ratio of smokers (Kansai Paint)
(%)
100
50
37.1
36.9
35.8
35.5
33.0
2007
2008
2009
2010
2011 (FY)
A mental health seminar (left: Head Office; right: Tokyo Office)
26 Kansai Paint Co., Ltd. Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
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 participate in a
comprehensive safety inspection. During September and
October, central environmental safety diagnoses by senior
management were conducted at 17 worksites. Moreover,
safety diagnoses are also conducted at our 42 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, etc. and efforts are also being
made to thoroughly implement safe work.
As was the case in FY2010, there were no cessations of
work caused by accidents during FY2011 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.
Annual Changes in Accidents at Work
Number of industrial accidents
Minor injuries
20
Lost-work injuries
13
9
8
10
5
2
2001
7
5
1
2002
1
0
4
2003
2004
2005
9
5
1
1
2006
2007
5
5
3
2
1
0
2008
2009
2010
0
2011 (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
0.44
2001
0.24
0.25
2002
2003
0.30
0.28
2006
2007
0.00
2004
2005
0.56
2008
2009
0.00
0.00
2010
2011 (FY)
0.1
0.01 0.00
2001
2002
0.01
0.00
2003
2004
0.03
2005
0.01 0.02
2006
2007
2008
0.01
0.00
0.00
2009
2010
2011 (FY)
Environmental Safety and Health Inspections by
Management
In fiscal 2011, the slogan “Let’s Remove Small Dangers at
the Earliest Stage – the Way to Safety!” was adopted for the
diagnoses that were conducted in September and October
at 7 operation plants, 1 center, 6 affiliated companies, and 3
color centers, stressing the status of safety and disaster
planning and training, 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
28 Kansai Paint Co., Ltd. Corporate Report 2012
Safety Diagnoses at Foreign Affiliated
Companies
With the goal of preventing accidents and disasters at
foreign affiliated companies, safety diagnoses are planned
and conducted in each region every year, limiting the
number of affiliates subject to these diagnoses. During fiscal
2011, India was subject to a safety diagnosis in December,
followed by the ASEAN region in January, and then Taiwan
and China in February, with the focus on safety work
practices, static
electricity
countermeasures
and the 5S
standards. We will
also continue to
conduct diagnoses in
the future.
Chongqing Kansai, China
Severity =
(Lost-work days / Total
man-hours) × 1,000
2.29
0.2
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, we have incorporated safety management
training activities at our business locations based on the
Great East Japan Earthquake, such as tsunami evacuation
procedure training at our locations near rivers or the sea.
0.29
Change in Severity
Severity
Consumer Protection
Safety Measures of Overseas Affiliates
Currently, the number of plants run by overseas affiliates in
China, Taiwan, ASEAN, India, Pakistan and Turkey stands at
38 and this increases each year. Going forward, we will
promote the growth of our global business. 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
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)
2011
8 (ASEAN, India, China, Taiwan)
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 SDSs* (safety data
sheets), product catalogs, technical information and
container labeling that detail the usage precautions for the
product in question to ensure safe use by consumers.
Internal Chemical Substance
Management System
(Material SDS, Documentation, etc.)
*Hitherto known as an MSDS (material safety data sheet), this document provides details
as to the dangerous and hazardous nature of the material in question. The MSDS
document items and content were prepared in accordance with the standards as defined
in Japan Industrial Standard JIS Z7250, however on March 25, 2012 this was revised to JIS
Z7253 and the document name changed to SDS (safety data sheet).
SDS
In order to promote the safe and correct use of our coatings,
which are chemical products, as well as preventing
accidents, Kansai Paint issues SDSs to provide detailed
product information. Placing emphasis on the importance of
compliance, Kansai Paint reviews the content of these SDSs
and incorporates the latest legal information into the
documents.
Legal Information
(Enactment, Revision)
Material Selection
Automatic
Document
Creation
Product
SDS
Product
Design
Branch Office,
Automatic Publication System
Sales Outlet,
etc.
Customers, Users, etc.
Exploding bomb
Flame over circle
Flame
Labels and SDS in Compliance with GHS
(Global Hazard Standard)
Prior to the UN recommendations and goals in 2008, there
had been partial introduction of GHS in Japan, in
conjunction with the December 2006 revisions to the
Industrial Safety and Health Law. Kansai Paint has achieved
compliance with the revised Labor Safety and Health Law as
enacted in December 2006, based on guidelines set by the
Japan Paint Manufacturers Association. Moreover, with GHS
implemented overseas, we plan to coordinate with our
overseas affiliates with regard to compliance.
Moreover, in fiscal 2011, based on the revisions to the
Act on the Evaluation of Chemical Substances and
Regulation of Their Manufacture, etc. that came into effect
in April, these evaluations have actually been carried out on
the production and import volume notifications from the
previous term.
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 SDS 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
･ 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 2012
29
Social Activities
Social Action Programs
Foundation Course in Coatings and Paintings
A foundation course in coatings and paintings is offered for
interior coordinators. In fiscal 2011, the course was held in
15 locations across Japan and participants had a chance to
experience applying the paints themselves. We intend to
continue offering this course in the future.
Responding to the Great East Japan
Earthquake
Kansai Paint has made a donation to the Central Community
Chest of Japan for restoration and recovery effort in the
regions that were affected by the Great East Japan Earthquake. Moreover, we are striving to maintain a steady supply
of paints and coatings to the affected areas. Furthermore,
Kansai Paint has been supporting charity events involving
students in the Kansai region, as well as other activities to
support the children in the affected areas. On the Kansai
Paint homepage, there is a section titled “Recovery Action –
Support Through Paint!” focusing on different ways to join
in and help with the recovery effort.
Financial Section
Visit of Students from a Professional Painter
Training School
On May 8, 2011, students aiming to become paint
technicians and currently studying at the Tokyo Metropolitan
Vocational High School for Paint Technicians paid a visit as
part of their schooling to our R&D Center. The students were
passionate about learning how they could contribute to the
environment through coatings and paintings.
30 Kansai Paint Co., Ltd. Corporate Report 2012
Hiratsuka o Migaku-Kai
(The Hiratsuka Clean-Up Circle)
The Hiratsuka o Migaku-Kai (The Hiratsuka Clean-Up Circle)
was established in March 2002 with the aim of creating a
beautiful city, and through the creation of beautiful painted
artwork in town, as well as removing graffiti and fly-posters
that were spoiling the city’s environment. In 2011 the
Association celebrated its 10-year anniversary and Kansai
Paint was happy to extend its fullest support to the initiative
through supplying paints and technical guidance through
our Hiratsuka Branch Office.
32
34
34
35
36
37
54
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditors‘ Report
Kansai Paint Co., Ltd.
Corporate Report 2012
31
Consolidated Balance Sheets
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
March 31, 2012 and 2011
Millions of yen
Assets
2012
Current assets:
Cash and deposits (Notes 2, 3, 6 and 11) ...........................................................
Receivables (Notes 3 and 15):
Trade notes and accounts:
Unconsolidated subsidiaries and affiliates ...................................................
Other ..........................................................................................................
Loans (Note 3) ................................................................................................
Other ..............................................................................................................
Allowance for doubtful receivables. ................................................................
Total ...........................................................................................................
Inventories:
Finished goods ................................................................................................
Work-in-process .............................................................................................
Raw materials and supplies .............................................................................
Total ...........................................................................................................
¥
44,437
12,660
68,512
681
4,220
(1,606)
84,467
19,284
3,369
11,519
34,172
Thousands of
U.S. dollars (Note 1)
2011
¥
41,491
10,875
57,125
829
1,231
(1,624)
68,436
14,411
2,932
8,092
25,435
2012
$
540,662
154,033
833,581
8,286
51,344
(19,540)
1,027,704
234,627
40,990
140,151
415,768
Deferred income tax assets (Note 13) . ................................................................
Other current assets (Note 3) .............................................................................
Total current assets .........................................................................................
2,988
2,065
168,129
3,278
2,109
140,749
36,355
25,125
2,045,614
Property, plant and equipment (Note 6):
Land ...................................................................................................................
Buildings, machinery and equipment ..................................................................
Construction in progress .....................................................................................
Total ...............................................................................................................
Accumulated depreciation .................................................................................
Net property, plant and equipment ................................................................
17,543
175,858
5,383
198,784
(134,100)
64,684
16,890
168,964
2,197
188,051
(131,418)
56,633
213,444
2,139,652
65,495
2,418,591
(1,631,585)
787,006
Investments and other assets:
Investments in and loans to unconsolidated subsidiaries and affiliates ...............
Investment securities (Notes 3, 4 and 6) ............................................................
Loans receivable (Note 3) ....................................................................................
Prepaid pension costs (Note 12) .........................................................................
Deferred income tax assets (Note 13) ................................................................
Other ..................................................................................................................
Allowance for doubtful receivables ....................................................................
Total investments and other assets ................................................................
16,791
40,686
65
3,145
2,015
2,858
(1,043)
64,517
21,875
44,816
12
2,658
870
1,301
(260)
71,272
204,295
495,024
791
38,265
24,516
34,773
(12,690)
784,974
Thousands of
U.S. dollars (Note 1)
Millions of yen
Liabilities and Net Assets
Current liabilities:
Short-term borrowings (Notes 3 and 5) ..............................................................
Long-term debt due within one year (Notes 3 and 5) .........................................
Payables (Notes 3 and 15):
Trade notes and accounts:
Unconsolidated subsidiaries and affiliates ...................................................
Other ..........................................................................................................
Other ..............................................................................................................
Total ...........................................................................................................
2012
¥
7,657
1,135
2011
¥
2012
843
433
$
93,162
13,809
1,326
54,741
5,031
61,098
1,162
46,473
3,400
51,035
16,133
666,030
61,212
743,375
Income and enterprise taxes payable ..................................................................
Accrued expenses ..............................................................................................
Deferred income tax liabilities (Note 13) ............................................................
Other current liabilities (Note 15) ........................................................................
Total current liabilities .................................................................................
3,322
8,021
18
3,884
85,135
3,031
7,098
13
3,469
65,922
40,419
97,591
219
47,257
1,035,832
Long-term liabilities:
Long-term debt due after one year (Notes 3 and 5) ............................................
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 ......................................................................................................
20,126
6,109
168
13,136
1,948
41,487
126,622
372
6,160
167
8,809
2,190
17,698
83,620
244,872
74,328
2,044
159,825
23,700
504,769
1,540,601
25,659
27,154
128,100
25,659
27,154
116,914
312,191
330,381
1,558,584
Contingent liabilities
Net Assets (Note 9):
Shareholders’ equity:
Common stock:
Authorized — 793,496,000 shares in 2012 and 2011
Issued — 272,623,270 shares in 2012 and 2011 ...........................................
Capital surplus ....................................................................................................
Retained earnings ..............................................................................................
Treasury stock, at cost:
7,044,196 shares in 2012
7,035,127 shares in 2011 ...............................................................................
Total shareholders’ equity ...........................................................................
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 ........................................
(5,712)
175,201
(5,703)
164,024
(69,498)
2,131,658
13,621
–
(17,561)
12,277
388
(9,494)
165,726
–
(213,664)
(3,940)
3,171
(47,938)
Intangible assets:
Goodwill .............................................................................................................
Other intangible assets ......................................................................................
Total intangible assets .....................................................................................
12,103
9,977
22,080
152
2,438
2,590
147,256
121,389
268,645
Minority interests ................................................................................................
21,527
20,429
261,918
Total net assets ...................................................................................................
192,788
187,624
2,345,638
Total assets ...........................................................................................................
¥ 319,410
¥ 271,244
$ 3,886,239
Total liabilities and net assets .............................................................................
¥ 319,410
¥ 271,244
$ 3,886,239
See accompanying notes.
See accompanying notes.
32 Kansai Paint Co., Ltd.
Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
33
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012 and 2011
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012 and 2011
Millions of yen
2012
Net sales ...............................................................................................................
Cost of sales .........................................................................................................
Selling, general and administrative expenses ..................................................
Operating income ..............................................................................................
¥ 256,591
181,116
56,160
19,315
2011
¥ 236,985
167,777
48,106
21,102
$ 3,121,925
2,203,626
683,295
235,004
1,293
(743)
167
–
(243)
5,266
(56)
964
(327)
6,321
25,636
1,198
(98)
139
(33)
(326)
(322)
(468)
1,480
703
2,273
23,375
15,732
(9,040)
2,032
–
(2,957)
64,071
(681)
11,729
(3,979)
76,907
311,911
Income taxes (Note 13):
Current ...............................................................................................................
Deferred .............................................................................................................
Total income taxes ..........................................................................................
6,768
2,294
9,062
7,425
(71)
7,354
82,346
27,911
110,257
Minority interests in net income of consolidated subsidiaries ........................
Net income ...........................................................................................................
(2,578)
13,996
(3,346)
12,675
(31,366)
170,288
¥
$
Net income per share ..........................................................................................
Cash dividends per share ....................................................................................
¥
¥
¥
¥
2011
47.73
10.00
$
$
Consolidated Statements of Comprehensive Income
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012 and 2011
Millions of yen
2012
Other comprehensive income (Note 10):
Net unrealized holding gains (losses) on securities ..............................................
Deferred gain (loss) on derivatives under hedge accounting ..............................
Foreign currency translation adjustments ............................................................
Shares in other comprehensive income of equity method affiliates ....................
Total other comprehensive income ................................................................
Comprehensive income ......................................................................................
Comprehensive income attributed to:
Owners of the parent .........................................................................................
Minority interests ................................................................................................
¥
16,574
Thousands of
U.S. dollars (Note 1)
2011
¥
797
(388)
(9,869)
444
(9,016)
Capital
surplus
Balance at April 1, 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 April 1, 2011 ............. ¥
Cash dividends paid —
¥10.00 per share .......................
Net income ....................................
Purchase of treasury stock .............
Disposal of treasury stock ..............
Changes in treasury stock due to
changes in interest in equity
method companies ....................
Other .............................................
Net changes in items other than
shareholders’ equity ..................
25,659 ¥
Balance at March 31, 2012 ......... ¥
25,659 ¥
16,021
2012
$
(1,238)
388
(3,315)
115
(4,050)
Retained
earnings
Accumulated other comprehensive income
Total
shareholders’
equity
Treasury
stock
27,154 ¥ 108,005 ¥
Net
Deferred gain
(loss) on
unrealized
holding gains derivatives under
on securities hedge accounting
(5,704) ¥ 155,114 ¥
13,092 ¥
–
Foreign
currency
translation
adjustments
¥
Total
accumulated other
comprehensive
income
(6,976) ¥
6,116 ¥
Minority
interests
Total net
assets
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
–
–
–
–
–
(815)
388
(2,518)
(2,945)
623
(2,322)
12,277 ¥
388
(9,494) ¥
3,171 ¥
27,154 ¥ 116,914 ¥
(5,703) ¥ 164,024 ¥
¥
20,429 ¥ 187,624
–
–
–
–
–
–
–
–
(2,664)
13,996
–
(0)
–
–
(13)
1
(2,664)
13,996
(13)
1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,664)
13,996
(13)
1
–
–
–
–
–
(146)
3
–
3
(146)
–
–
–
–
–
–
–
–
–
–
3
(146)
–
–
–
–
1,344
(388)
1,098
(6,013)
–
27,154 ¥ 128,100 ¥
(5,712) ¥ 175,201 ¥
13,621 ¥
–
(8,067)
(7,111)
¥ (17,561) ¥
(3,940) ¥
21,527 ¥ 192,788
Thousands of U.S. dollars (Note 1)
Shareholders’ equity
2012
0.64
0.12
See accompanying notes.
Income before minority interests .......................................................................
Common
stock
U.S. dollars
(Note 1)
Yen
2012
52.70
10.00
Shareholders’ equity
2012
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 ............................................................................
Gain (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 ...........................................................................................................
Other income (expenses), net .........................................................................
Income before income taxes and minority interests .........................................
¥
Millions of yen
Thousands of
U.S. dollars (Note 1)
Common
stock
Capital
surplus
Retained
earnings
Accumulated other comprehensive income
Treasury
stock
Total
shareholders’
equity
Net
Deferred gain
unrealized
(loss) on
holding gains derivatives under
on securities hedge accounting
Balance at April 1, 2011 ............. $ 312,191 $ 330,381 $1,422,485 $ (69,388) $1,995,669 $ 149,373 $
Cash dividends paid —
¥10.00 per share .......................
–
–
(32,413)
–
(32,413)
–
Net income ....................................
–
–
170,288
–
170,288
–
Purchase of treasury stock .............
–
–
–
(158)
(158)
–
Disposal of treasury stock ..............
–
–
(0)
12
12
–
Changes in treasury stock due to
changes in interest in equity
method companies ....................
–
–
–
36
36
–
Other .............................................
–
–
(1,776)
–
(1,776)
–
Net changes in items other than
shareholders’ equity ..................
–
–
–
–
–
16,353
4,721
(4,721)
Balance at March 31, 2012 ......... $ 312,191 $ 330,381 $1,558,584 $ (69,498) $2,131,658 $ 165,726 $
–
Foreign
currency
translation
adjustments
Total
accumulated other
comprehensive
income
$(115,513) $
Minority
interests
Total net
assets
38,581 $ 248,558 $ 2,282,808
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(32,413)
170,288
(158)
12
–
–
–
–
–
–
–
–
36
(1,776)
(98,151)
(86,519)
13,360
(73,159)
$(213,664) $ (47,938) $ 261,918 $ 2,345,638
See accompanying notes.
201,655
9,697
(4,721)
(120,075)
5,402
(109,697)
¥
7,558
¥
11,971
$
91,958
¥
6,885
673
¥
9,730
2,241
$
83,769
8,189
See accompanying notes.
34 Kansai Paint Co., Ltd.
Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
35
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012 and 2011
Kansai Paint Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S. dollars (Note 1)
Millions of yen
2012
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 (gain) on sale or disposal of property, plant and equipment ...................
Decrease (increase) in trade receivables ..........................................................
Increase in inventories ....................................................................................
Increase (decrease) in trade payables ..............................................................
Other ..............................................................................................................
Subtotal .....................................................................................................
Interest and dividends received .......................................................................
Interest paid ...................................................................................................
Income taxes paid ..........................................................................................
Net cash provided by operating activities ...................................................
¥
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 ............................................................................
Purchases of investments in subsidiaries resulting in change
in scope of consolidation (Note 11) ................................................................
Other ..................................................................................................................
Net cash used in investing activities ................................................................
Cash flows from financing activities:
Proceeds from short-term debt ...........................................................................
Payment of short-term debt ................................................................................
Payment of long-term debt .................................................................................
Proceeds from issuance of bonds ........................................................................
Purchase of treasury stock .................................................................................
Proceeds from sale of treasury stock ...................................................................
Cash dividends paid ............................................................................................
Cash dividends paid to minority shareholders .....................................................
Other ..................................................................................................................
Net cash provided by (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 ...............................................................................
Cash and cash equivalents at end of year (Note 11) .........................................
See accompanying notes.
36 Kansai Paint Co., Ltd.
Corporate Report 2012
2011
25,636
7,168
1,065
(702)
721
(1,293)
743
(964)
–
(5,266)
(10,993)
(5,729)
6,931
(1,111)
16,206
1,359
(729)
(6,477)
10,359
¥
$
311,911
87,213
12,958
(8,541)
8,772
(15,732)
9,040
(11,729)
–
(64,071)
(133,751)
(69,704)
84,329
(13,518)
197,177
16,535
(8,870)
(78,805)
126,037
(27,189)
27,189
(11,916)
7,507
(429)
(7,366)
10,855
(400)
173
(31,891)
31,891
(5,647)
124
(515)
(30,889)
24,516
(1,036)
683
(330,807)
330,807
(144,981)
91,337
(5,220)
(89,622)
132,072
(4,867)
2,105
(19,603)
(770)
(21,949)
–
(1,482)
(14,246)
(238,508)
(9,368)
(267,052)
5,943
(1,376)
(1,200)
15,000
(13)
1
(2,664)
(1,007)
–
1,997
(2,417)
(595)
–
(32)
2
(2,664)
(1,182)
150
72,308
(16,742)
(14,600)
182,504
(158)
12
(32,413)
(12,252)
–
14,684
(4,741)
178,659
92
3,186
39,738
(344)
(1,079)
40,548
1,120
38,764
483,489
–
¥
23,375
6,977
68
(21)
415
(1,198)
98
(1,480)
33
322
1,643
(2,518)
(2,182)
342
25,874
1,415
(99)
(8,938)
18,252
2012
42,924
269
¥
39,738
–
$
522,253
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 30, 2012, which was ¥82.19 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, 2012 include the accounts of the Company and
its 81 (37 in March 2011) significant subsidiaries.
Intercompany transactions and accounts have been
eliminated.
Investment in 16 unconsolidated subsidiaries and 29
affiliates in the fiscal year ended March 31, 2012 (17 and 25,
respectively, in March 2011) are stated at cost, adjusted for
equity in undistributed earnings and losses since acquisition.
The accounts of 22 consolidated subsidiaries in the fiscal
year ended March 31, 2012 (20 in March 2011) are included
on the basis of their respective fiscal years, one of which
ends on February 29 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.
The fiscal year end of Freeworld Coatings Limited and 42
consolidated subsidiaries, which are new consolidated
subsidiaries in this fiscal year, is September 30. These
subsidiaries are consolidated by using their financial
statements as of December 31, 2011 which are prepared
solely for consolidation purposes. 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 subsidiary.
Unification of accounting policies applied to
foreign subsidiaries for the consolidated financial
statements
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 five specified items are material to the
group's consolidated financial statements, then they should
be adjusted for in the consolidation process.
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 prices are
stated at the quoted market prices. 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
prices are stated mainly at moving average cost.
If the quoted market prices of equity securities issued by
unconsolidated subsidiaries or affiliated companies not on
the equity method or the quoted market prices of availablefor-sale securities declines significantly, the securities are
stated at the quoted market prices, and the difference
between the quoted market prices and the carrying amount
is recognized as loss in the period of the decline. If the
quoted market prices of equity securities issued by
unconsolidated subsidiaries or affiliated companies not on
the equity method is not readily available, 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, the quoted market prices or the net asset value will
be the carrying amount of the securities at the beginning of
the next year.
Kansai Paint Co., Ltd.
Corporate Report 2012
37
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
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.
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 of which acquisition
costs are between ¥100 thousand and ¥200 thousand is
provided using the straight-line method over three years.
(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.
Software costs
Cash and cash equivalents
Internal use software, recorded in intangible assets, is
amortized using the straight-line method over the estimated
useful life of five years.
Amortization of goodwill
In preparing the consolidated statement of cash flows, 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.
Goodwill is amortized in equal amounts over an appropriate
period not to exceed 20 years.
Derivatives
Research and development expenses
Research and development expenses are charged to income
as incurred. Research and development expenses for the years
ended March 31, 2012 and 2011 were ¥5,184 million ($63,073
thousand) and ¥5,583 million, respectively.
Income taxes
Income taxes comprise corporation tax, prefectural and
municipal inhabitants taxes and enterprise tax. Enterprise
tax is deducted 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,
basic salary at the time of retirement or termination and
certain other factors. Liabilities and expenses for
severance and retirement benefits are actuarially
38 Kansai Paint Co., Ltd.
Corporate Report 2012
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.
Significant hedge accounting methods
(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
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 consists of forward foreign
exchange contracts and currency option contracts.
Hedged items comprise receivables and payables
denominated in foreign currencies and forecasted
transactions denominated in foreign currencies.
(3) Hedging policy
The Companies utilize forward exchange contracts and
currency option contracts to reduce the risk of exchange
rate fluctuations associated with receivables, payables
and forecasted transactions denominated in foreign
currencies within the actual demand.
(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
counterbalanced.
(5) Transaction risk management structure
The finance department of the Company administers the
hedging transactions based on the Company’s rules and
with the approval of 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, 2012 and 2011 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.
Changes in accounting principles, procedures and
presentation methods for the year ended March
31, 2012
Re-classification
Time deposits with maturities exceeding three months had
been classified in other current assets as of March 31, 2011.
In fiscal year ended March 31, 2012, classification “Cash
and cash equivalents” has been changed to “Cash and
deposits” and includes time deposits.
Intangible assets are reclassified as goodwill and other
intangible assets with a determination of quantitative
materiality.
Prior year amounts have been reclassified to conform to the
current year presentation.
Accounting Standard for Accounting Changes
and Error Corrections
The Company and its consolidated domestic subsidiaries
adopted “Accounting Standard for Accounting Changes
and Error Corrections” (Accounting Standards Board of
Japan (“ASBJ”) Statement No. 24, issued on December 4,
2009) and “Guidance on Accounting Standard for
Accounting Changes and Error Corrections” (ASBJ Guidance
No. 24, issued on December 4, 2009) for accounting
changes and corrections of prior period errors made from
the fiscal year beginning on April 1, 2011.
Application of accounting standard for Business
Combinations
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
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.
Kansai Paint Co., Ltd.
Corporate Report 2012
39
3. Financial Instruments
2012
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 or
issuance of bonds. 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
from 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 utilize forward exchange contracts and currency option contracts to reduce the risk of exchange rate
fluctuations associated with receivables, payables and forecasted transactions denominated in foreign currencies within the actual
demand. Please refer to “Significant hedge accounting methods” in Note 2, “Summary of Significant Accounting Policies,” for a
description of the Company’s accounting policy related to hedging activities.
(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, etc.)
For some receivables and payables denominated in foreign currencies, the Companies use forward foreign exchange contracts
and currency option 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.
(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.
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, 2012 and
2011 were as follows (Financial instruments for which the fair values were extremely difficult to determine were not included.):
2012
(1) Cash and deposits .....................................................................................
(2) Trade receivables - notes and accounts ......................................................
(3) Investment securities
Other 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 ...............................................................................
40 Kansai Paint Co., Ltd.
Corporate Report 2012
Fair value
Difference
¥
¥
¥
39,721
56,067
31
44,437
81,172
39,721
56,067
31
$ 540,662
987,614
$ 540,662
987,614
$
483,283
682,163
377
483,283
682,163
377
–
–
–
–
–
Derivative assets and liabilities were on a 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 prices. The fair values of debt securities are determined by
the quoted market prices or the prices 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 by the quoted prices obtained from the relevant financial institutions.
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
2012
Non-listed equity securities .....................................................................................
Non-listed investment securities of unconsolidated subsidiaries and affiliates ........
¥
2011
965
11,004
¥
2012
974
7,327
$
11,741
133,885
The redemption schedule for money claims subsequent to the consolidated balance sheet date
Millions of yen
2012
Cash and
deposits
Within 1 year ..............................
From 1 year to 5 years ................
From 5 years to 10 years .............
Over 10 years ..............................
¥
44,437
–
–
–
Receivables -trade
notes and accounts
¥
Thousands of U.S. dollars (Note 1)
2011
80,689
483
–
–
Cash and
deposits
¥
41,491
–
–
–
2012
Receivables -trade
notes and accounts
¥
68,000
–
–
–
Cash and
deposits
$
Receivables -trade
notes and accounts
540,662
–
–
–
$
981,737
5,877
–
–
–
–
–
Millions of yen
Fair value
Difference
¥
¥
¥
7,929
43,841
47,635
660
Difference
–
–
2011
Book value
41,491
68,000
Fair value
Millions of yen
Book value
44,437
81,172
(1) Cash and deposits .....................................................................................
(2) Trade receivables - notes and accounts ......................................................
(3) Investment securities
Other securities .........................................................................................
(4) Trade payables - notes and accounts .........................................................
(5) Derivative transactions ...............................................................................
Thousands of U.S. dollars (Note 1)
Book value
41,491
68,000
7,878
43,841
47,635
660
–
–
(51)
–
–
–
Kansai Paint Co., Ltd.
Corporate Report 2012
41
4. Securities
5. Short-Term Borrowings and Long-Term Debt
(1) Information on securities of the Companies at March 31, 2012
(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, 2012.
The annual interest rates applicable to the short-term borrowings ranged from 0.13% to 9.76% at March 31, 2012 and from
0.13% to 4.23% at March 31, 2011.
Short-term borrowings as of March 31, 2012 and 2011 consisted of the following:
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
¥
¥
12,313
2,969
15,282
Millions of yen
Book value
¥
¥
32,841
3,074
35,915
¥
¥
20,528
105
20,633
2012
Bank loans ...............................................................................................................
Loans from unconsolidated subsidiaries and affiliates ..............................................
5,754
–
¥
3,806
–
¥
(1,948)
–
¥
5,754
¥
3,806
¥
(1,948)
$ 149,811
36,124
$ 185,935
$ 399,574
37,401
$ 436,975
$ 249,763
1,277
$ 251,040
$
70,009
–
$
46,307
–
$ (23,702)
–
$
70,009
$
46,307
$ (23,702)
Non-listed equity securities ................................................................................................................
Thousands of
U.S. dollars
(Note 1)
¥
$
965
11,741
(c) Total sales of available-for-sale securities in the year ended March 31, 2012 amounted to ¥37,717 million ($458,900
thousand), and the related gains and losses amounted to ¥174 million ($2,117 thousand) and ¥2 million ($24 thousand)
respectively.
(2) 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.
Acquisition cost
¥
Millions of yen
Book value
11,555
6,172
¥
Difference
31,560
6,303
¥
20,005
131
Total ................................................................................................................
¥
17,727
¥
37,863
¥
20,136
Securities with book values not exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
¥
6,512
851
¥
5,127
851
¥
(1,385)
–
Total ................................................................................................................
¥
7,363
¥
5,978
¥
(1,385)
(b) The following table summarizes book values of available-for-sale securities with no available fair values as of March 31,
2011.
¥
2012
733
110
843
¥
$
$
2012
Loans from banks and insurance companies at 1.200% - 10.000% in 2012
( at 1.200% - 1.800% in 2011) maturing serially through 2016 .......................
0.564% unsecured bonds, due January 2017 ..........................................................
¥
Less amounts due within one year ...........................................................................
¥
6,261
15,000
21,261
1,135
20,126
2011
¥
¥
2012
805
–
805
433
372
$
76,177
182,504
258,681
13,809
$ 244,872
The aggregate annual maturities of long-term debt were as follows:
Millions of yen
Thousands of
U.S. dollars (Note 1)
2013 .................................................................................................................................................. ¥
2014 ..................................................................................................................................................
2015 ..................................................................................................................................................
2016 ..................................................................................................................................................
2017 and thereafter ..........................................................................................................................
1,118
3,872
136
–
15,000
$
¥
20,126
$ 244,872
¥
At March 31, 2012, the carrying amounts of assets pledged as collateral for certain trade notes and accounts payable, short-term
borrowings of ¥150 million ($1,825 thousand), long-term debt due within one year of ¥245 million ($2,981 thousand), long-term
debt due after one year of ¥127 million ($1,545 thousand) and other long-term liabilities of ¥64 million ($779 thousand) were as
follows:
Millions of yen
Cash and deposits .................................................................................................................................. ¥
Property, plant and equipment ...............................................................................................................
Investment securities ..............................................................................................................................
¥
Thousands of
U.S. dollars (Note 1)
2012
20
2,472
9
2,501
2012
243
$
30,077
109
$ 30,429
At March 31, 2011, the carrying amounts of assets pledged as collateral for certain trade notes and accounts payable, short-term
borrowings of ¥90 million, long-term debt due within one year of ¥433 million, long-term debt due after one year of ¥372 million,
other current liabilities of ¥78 million and other long-term liabilities of ¥75 million were as follows:
Millions of yen
2011
974
(c) Total sales of available-for-sale securities in the year ended March 31, 2011 amounted to ¥55,722 million, and the related
gains and losses amounted to ¥73 million and ¥38 million respectively.
Cash and deposits ..........................................................................................................................................................
Property, plant and equipment .......................................................................................................................................
Investment securities ......................................................................................................................................................
¥
¥
42 Kansai Paint Co., Ltd.
Corporate Report 2012
13,603
47,110
1,655
–
182,504
6. Pledged Assets
Millions of yen
Non-listed equity securities .............................................................................................................................................
61,771
31,391
93,162
Thousands of
U.S. dollars (Note 1)
Millions of yen
Years ending March 31
Millions of yen
5,077
2,580
7,657
2011
Long-term debt at March 31, 2012 and 2011 consisted of the following:
Thousands of U.S. dollars (Note 1)
Acquisition cost
Book value
Difference
(b) The following table summarizes book values of available-for-sale securities with no available fair values as of March 31,
2012.
Securities with book values exceeding acquisition costs:
Equity securities ..............................................................................................
Investment trust funds ....................................................................................
¥
¥
¥
Thousands of
U.S. dollars (Note 1)
Millions of yen
Difference
Kansai Paint Co., Ltd.
20
2,668
9
2,697
Corporate Report 2012
43
7. Derivative Transactions
8. Related Party Transactions
(1) Derivative transactions to which the Companies didn’t apply hedge accounting as of March 31, 2012 and 2011 were as
follows:
Transactions between the Company and its principal related parties for the years ended March 31, 2012 and 2011 were as
follows:
Millions of yen
2012
Contract
amount
Foreign currency forward contracts
Buy
U.S. dollar ........................................
Euro .................................................
British pound ...................................
Japanese yen ...................................
Sell
U.S. dollar ........................................
Australian dollar ..............................
Fair value*1
Unrealized
gain (loss)
Thousands of U.S. dollars (Note 1)
Contract
Unrealized
Fair value*1
amount
gain (loss)
2012
OHGI SHOKAI CO., LTD. :
Sales ..................................................................................................................
¥
4
47
22
554
¥
(0)
(2)
(0)
10
¥
(0)
(2)
(0)
10
$
49
572
268
6,740
$
(0)
(24)
(0)
122
$
(0)
(24)
(0)
122
¥
11,680
2011
¥
Currency option contracts *2
Buy
U.S. dollar ........................................
Euro .................................................
Sell
U.S. dollar ........................................
Euro .................................................
7
0
7
0
3,504
474
85
0
85
0
153
204
3
1
3
1
1,861
2,482
36
12
36
12
303
399
2,013
3
9
31
3
9
31
3,687
4,855
$ 24,492
36
110
377
36
110
377
2012
14,055
$ 142,110
The balances due from and to its principal related parties as of March 31, 2012 and 2011 were as follows:
Thousands of
U.S. dollars (Note 1)
Millions of yen
2012
288
39
Thousands of
U.S. dollars (Note 1)
Millions of yen
OHGI SHOKAI CO., LTD. :
Trade notes and accounts receivable ..................................................................
¥
6,350
2011
¥
2012
5,448
$
77,260
9. Net Assets
¥
¥
¥
$
$
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
Unrealized
gain (loss)
Fair value*1
¥
¥
(2)
14
¥
(0)
12
¥
(2)
14
(0)
12
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 28, 2012, the shareholders approved cash dividends of ¥5.0 ($0.06) per
share amounting to ¥1,332 million ($16,206 thousand). This appropriation has not been accounted in the consolidated
financial statements at March 31, 2012. Such appropriations are recognized in the period in which they are approved by the
shareholders.
*1 The fair values of derivative transactions are determined at the quoted prices obtained from the relevant financial
institutions.
*2 The currency option contracts are zero-cost options and no premium is received or paid.
(2) Derivative transactions to which the Companies applied hedge accounting as of March 31, 2011.
Millions of yen
2011
Classification
Deferral hedge
accounting
Contract
amount
Forecasted
transactions
denominated in
foreign currencies
Foreign currency forward
contracts
Buy
South African Rand .............................................................
¥
9,000
Fair value*
¥
647
* The fair values of derivative transactions are determined at the quoted prices obtained from the relevant financial institutions.
There were no applicable items for derivative transactions to which the Companies applied hedge accounting as of March 31, 2012.
44 Kansai Paint Co., Ltd.
Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
45
10. Comprehensive Income
(2) Details of assets and liabilities when Freeworld Coatings Limited was newly consolidated, acquisition costs of shares and
related payments for the acquisition for the year ended March 31, 2012 were as follows:
Reclassification adjustments and tax effects for each component of other comprehensive income for the year ended
March 31, 2012 were as follows:
Millions of yen
Millions of yen
Thousands of
U.S. dollars
(Note 1)
2012
2012
Net unrealized holding gains (losses) on securities:
Gains (losses) arising during the year ................................................................................................. ¥
Reclassification adjustments ..............................................................................................................
Amount before income tax effect ......................................................................................................
Income tax effect ...............................................................................................................................
Net unrealized holding gains (losses) on securities .............................................................................
106
(170)
(64)
861
797
$
1,289
(2,068)
(779)
10,476
9,697
Deferred gain (loss) on derivatives under hedge accounting:
Gain (loss) arising during the year ......................................................................................................
Reclassification adjustments ..............................................................................................................
Adjustments on acquisition cost of assets ..........................................................................................
Amount before income tax effect ......................................................................................................
Income tax effect ...............................................................................................................................
Deferred gain (loss) on derivatives under hedge accounting ..............................................................
155
–
(802)
(647)
259
(388)
1,886
–
(9,758)
(7,872)
3,151
(4,721)
(9,212)
(657)
(9,869)
–
(9,869)
(112,082)
(7,993)
(120,075)
–
(120,075)
Current assets ........................................................................................................................................ ¥ 12,046
Fixed assets ............................................................................................................................................
22,816
Goodwill ................................................................................................................................................
16,480
Current liabilities ....................................................................................................................................
(9,525)
Long-term liabilities ...............................................................................................................................
(12,530)
Minority interests ...................................................................................................................................
(1,196)
Other .....................................................................................................................................................
(730)
Subtotal .................................................................................................................................................
27,361
Carrying value under equity method before obtaining control ...............................................................
(7,645)
Gain on step acquisitions .......................................................................................................................
(338)
Other .....................................................................................................................................................
7
Cash and cash equivalents of newly consolidated subsidiary .................................................................
(197)
Net payments for acquisition of newly consolidated subsidiary
resulting in change in scope of consolidation .................................................................................... ¥ 19,188
Thousands of
U.S. dollars (Note 1)
$ 146,563
277,601
200,511
(115,890)
(152,452)
(14,552)
(8,882)
332,899
(93,016)
(4,112)
85
(2,397)
$ 233,459
12. Employees’ Severance and Retirement Benefits
Foreign currency translation adjustments:
Gains (losses) arising during the year .................................................................................................
Reclassification adjustments ..............................................................................................................
Amount before income tax effect ......................................................................................................
Income tax effect ...............................................................................................................................
Foreign currency translation adjustments ...........................................................................................
The liability for severance and retirement benefits included in the liability section of the consolidated balance sheets as of March
31, 2012 and 2011 consisted of the following:
2012
Shares in other comprehensive income of equity method affiliates:
Gains (losses) arising during the year .................................................................................................
Reclassification adjustments ..............................................................................................................
Shares in other comprehensive income of equity method affiliates ...................................................
387
57
444
Total other comprehensive income ......................................................................................................... ¥
(9,016)
4,709
693
5,402
$ (109,697)
Thousands of
U.S. dollars
(Note 1)
Millions of yen
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 ................................................
¥
41,956
2,230
(8,178)
3,145
(33,044)
¥
6,109
2011
¥
¥
2012
44,661
1,146
(10,203)
2,658
(32,102)
6,160
$ 510,476
27,132
(99,501)
38,265
(402,044)
$ 74,328
The expenses for severance and retirement benefits included in the consolidated statements of income for the years ended
March 31, 2012 and 2011 comprised the following:
11. Supplementary Cash Flow Information
Thousands of
U.S. dollars (Note 1)
Millions of yen
2012
Cash and deposits ....................................................................................................
Time deposits with original maturity of more than three months ............................
Cash and cash equivalents .......................................................................................
¥
¥
44,437
(1,513)
42,924
2011
¥
¥
41,491
(1,753)
39,738
2012
$ 540,662
(18,409)
$ 522,253
Thousands of
U.S. dollars
(Note 1)
Millions of yen
(1) Reconciliation of cash and cash equivalents in the consolidated statements of cash flows and cash and deposits in the
consolidated balance sheets as of March 31, 2012 and 2011 were as follows:
2012
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 ....................................................
¥
¥
1,734
749
(765)
(415)
1,813
3,116
2011
¥
¥
2012
1,457
811
(765)
(293)
1,735
2,945
$
$
21,097
9,113
(9,308)
(5,049)
22,059
37,912
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, 2012 and 1.8% and 2.5%, respectively, for the year ended March 31, 2011.
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.
46 Kansai Paint Co., Ltd.
Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
47
13. Deferred Income Taxes
14. Segment Information
(1) 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, 2012 and 2011.
1. Segment information
(1) General information for reportable segments
The reportable segments of the Kansai Paint Group are defined as components of the Group, for which separate financial
information is available, that is reviewed regularly by Board of Directors in determining how to allocate management
resources and to evaluate operating performance.
The Company and its consolidated subsidiaries and affiliates are primarily engaged in the manufacture and sale of
paints and coatings. The Company is mainly in charge of business activities in Japan while locally incorporated overseas
subsidiaries are in charge in each region. Locally incorporated overseas subsidiaries are independent business units that
develop their own business activities and establish their own comprehensive strategies in each region.
Accordingly, the Kansai Paint Group is composed of regional segments based on manufacturing and selling systems.
From this fiscal year, due to variations in quantitative importance, Africa, which was previously included in Other, has
become an independent segment. Also, Europe, which was previously an independent segment, has been included in
Other. In accordance with this change, the segment information for the previous fiscal year has been reclassified and
presented to conform to the current year segment information.
(2) Basis of measurement for sales, profit and loss, assets and other items by reportable segment
The accounting methods applied to reportable 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.
(3) Information about sales, profit and loss, assets and other material items by reportable segment
Segment information for the fiscal years ended March 31, 2012 and 2011 was as follows:
2012
40.0%
0.3
(0.6)
1.6
4.4
(1.5)
0.3
(3.9)
(0.5)
(4.8)
35.3%
Statutory tax rate ..............................................................................................................................
Nondeductible expenses ...................................................................................................................
Nontaxable dividend income .............................................................................................................
Amortization of goodwill ..................................................................................................................
Elimination of dividends from subsidiaries ........................................................................................
Equity in earnings of affiliates ...........................................................................................................
Undistributed foreign earnings .........................................................................................................
Difference in statutory tax rates of foreign subsidiaries ....................................................................
Reduction of the amount of deferred tax liabilities resulting from changes in tax rates ....................
Deductible taxes and other ...............................................................................................................
Effective tax rate ...............................................................................................................................
2011
40.0%
0.4
(0.6)
0.1
3.9
(2.5)
0.8
(4.5)
–
(6.1)
31.5%
Note: Certain prior year amounts have been reclassified to conform to the current year presentation.
(2) Significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2012 and 2011 were as follows:
Thousands of
U.S. dollars
(Note 1)
Millions of yen
2012
Deferred tax assets:
Valuation loss on inventories ..........................................................................
Elimination of unrealized gain on inventories .................................................
Excess allowance for doubtful receivables .......................................................
Excess accrued expenses .................................................................................
Excess bonuses accrued ..................................................................................
Retirement benefits ........................................................................................
Other ..............................................................................................................
Subtotal ..............................................................................................................
Valuation allowance ........................................................................................
Total deferred tax assets ......................................................................................
Deferred tax liabilities:
Adjustments of allowance for doubtful accounts ............................................
Deferred gain on derivatives under hedge accounting ....................................
Adjustments to fixed assets based on corporate tax laws ...............................
Net unrealized holding gains on securities ......................................................
Revaluation of assets of subsidiaries on consolidation ....................................
Tax effect of foreign subsidiaries' and affiliates' undistributed earnings ..........
Total deferred tax liabilities .................................................................................
Net deferred tax liabilities ...................................................................................
¥
¥
160
562
869
218
1,183
1,579
2,893
7,464
(227)
7,237
18
–
2,891
6,631
3,962
1,886
15,388
(8,151)
2011
¥
¥
136
650
520
208
1,302
1,986
2,362
7,164
(337)
6,827
13
259
1,150
7,492
629
1,958
11,501
(4,674)
2012
$
1,947
6,838
10,573
2,652
14,393
19,212
35,199
90,814
(2,762)
88,052
219
–
35,175
80,679
48,205
22,947
187,225
$ (99,173)
Note: Certain prior year amounts have been reclassified to conform to the current year presentation.
(3) Adjustment of the amounts of deferred tax assets and liabilities resulting from changes in income tax rates
Following the promulgation on December 2, 2011 of the “Act for Partial Revision of the Income Tax Act, etc. for the Purpose of
Creating Taxation System Responding to Changes in Economic and Social Structures” (Act No.114 of 2011) and the “Act on Special
Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction Following the Great East Japan
Earthquake” (Act No.117 of 2011), the income tax rate will be reduced and the special reconstruction income tax will be imposed
from the fiscal years beginning on or after April 1, 2012. In line with these changes, the effective statutory tax rate used to measure
deferred tax assets and liabilities will be changed from 40.0% to 38.0% for temporary differences expected to be resolved from the
fiscal year beginning on April 1, 2012 to the fiscal year beginning on April 1, 2014, and to 35.5% for temporary differences
expected to be resolved from the fiscal years beginning on or after April 1, 2015. As a result of this change in tax rate, deferred tax
liabilities (the amount deducted deferred tax assets) decreased by ¥954 million ($11,607 thousand), income taxes-deferred
decreased by ¥119 million ($1,448 thousand) and net unrealized holdings gains on securities increased by ¥836 million ($10,172
thousand).
48 Kansai Paint Co., Ltd.
Corporate Report 2012
Millions of yen
Reportable segments
2012
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
Asia
¥ 145,223 ¥ 42,092
12,427
17
157,650
42,109
12,903
4,889
205,410
27,579
¥
¥ 36,624
265
36,889
3,204
42,965
Africa
¥
Other *1
Total
21,719
36
21,755
14
40,387
¥ 245,658
12,745
258,403
21,010
316,341
¥ 10,933
–
10,933
436
6,460
¥ 256,591
12,745
269,336
21,446
322,801
7,168
1,104
39
326
729
4,113
62
27
32
21
911
47
–
40
1
1,074
20
2
139
40
925
975
–
113
608
7,023
1,104
29
324
670
145
–
10
2
59
757
–
249
143
1,149
(185)
7,661
–
5,484
2,515
15,660
411
663
¥ 12,874
4,949 ¥
4,059
¥
3,203
¥
Total
¥
685
¥
Adjustment
*2
¥
Consolidated
financial
statements*3
– ¥ 256,591
(12,745)
–
(12,745)
256,591
1
21,447
(3,391)
319,410
–
–
–
(7)
–
7,168
1,104
39
319
729
964
–
964
16,071
–
16,071
–
¥ 13,559
13,559
¥
Total
Adjustment
*2
Millions of yen
Reportable segments
2011
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
Asia
¥ 146,809 ¥ 40,410
13,092
12
159,901
40,422
12,494
4,936
182,760
27,948
¥
¥ 40,169
240
40,409
5,390
50,275
Africa
¥
Other *1
Total
–
–
–
81
7,929
¥ 227,388
13,344
240,732
22,901
268,912
¥
9,597
26
9,623
633
6,524
¥ 236,985
13,370
250,355
23,534
275,436
¥
Consolidated
financial
statements*3
– ¥ 236,985
(13,370)
–
(13,370)
236,985
0
23,534
(4,192)
271,244
4,681
71
30
47
41
919
58
–
36
16
1,212
44
65
88
28
–
–
–
–
–
6,812
173
95
171
85
165
–
10
16
18
6,977
173
105
187
103
–
–
–
(7)
(5)
6,977
173
105
180
98
539
15
757
81
1,392
88
1,480
–
1,480
6,390
–
6,901
7,929
21,220
423
21,643
–
21,643
2,125 ¥
2,368
¥
1,392
¥
–
¥
5,885
¥
393
¥
6,278
Kansai Paint Co., Ltd.
¥
–
¥
6,278
Corporate Report 2012
49
Thousands of U.S. dollars (Note 1)
Reportable segments
2012
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
Asia
$ 1,766,918 $ 512,130
151,199
207
1,918,117
512,337
156,990
59,484
2,499,209
335,552
Other *1
Adjustment
*2
Total
Africa
Total
$ 445,602
3,224
448,826
38,983
522,752
$ 264,254
438
264,692
170
491,386
$2,988,904
155,068
3,143,972
255,627
3,848,899
$ 133,021
–
133,021
5,305
78,598
$ 3,121,925
155,068
3,276,993
260,932
3,927,497
13,067
243
24
1,691
487
11,254
11,863
–
1,375
7,397
85,448
13,432
353
3,942
8,152
1,765
–
122
24
718
87,213
13,432
475
3,966
8,870
$
Consolidated
financial
statements*3
– $3,121,925
(155,068)
–
(155,068) 3,121,925
12
260,944
(41,258) 3,886,239
3. Impairment loss on fixed assets by reportable segment
There were no applicable related items for the fiscal years ended March 31, 2012 and 2011.
4. Unamortized balance of goodwill by reportable segment
(1) Unamortized balance of goodwill by reportable segment for the fiscal years ended March 31, 2012 and 2011 was as
follows:
Millions of yen
2012
Japan
Unamortized balance of goodwill ..........
50,043
754
329
389
256
11,084
572
–
487
12
–
–
–
(85)
–
87,213
13,432
475
3,881
8,870
Reportable segments
¥
India
2
Asia
94
Africa
24
Other
Total
12,025
¥ 12,145
Total
–
¥
12,145
Adjustment
Consolidated
financial
statements
–
¥ 12,145
Adjustment
Consolidated
financial
statements
Millions of yen
Reportable segments
2011
Japan
Unamortized balance of goodwill ..........
¥
India
64
Asia
141
Africa
34
Other
Total
–
¥
239
Total
–
¥
239
–
¥
239
Thousands of U.S. dollars (Note 1)
9,210
–
3,030
1,740
13,980
(2,251)
11,729
–
11,729
Reportable segments
2012
Japan
93,211
–
66,723
30,600
190,534
8,067
$ 156,637
5,001
195,535
8,334
$ 164,971
–
195,535
–
$ 164,971
Unamortized balance of goodwill ..........
$
60,214 $
49,385
$
38,971
$
$
$
Notes:
*1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S. and Europe, 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 Reportable segments other than Japan and India include the following countries:
Asia : Thailand, China and Malaysia, etc.
Africa : South Africa, Namibia and Botswana, etc.
2. Related information
(1) Information by products and services
2012
Automotive
¥
2011
95,844
Automotive
¥
93,990
Automotive
Industrial
67,138
Decorative
Marine and
protective
61,151
18,801
Other
$ 1,166,127
13,657
¥
256,591
Japan
Industrial
64,517
Decorative
Marine and
protective
46,026
19,274
Other
13,178
Total
¥
¥
¥
2011
135,418
37,412
Japan
¥
¥
136,028
39,349
Industrial
816,863
Decorative
Marine and
protective
744,020
228,751
Other
166,164
Total
$ 3,121,925
India
42,094
8,930
Asia
Africa
43,308
10,043
Other
22,233
6,004
13,538
2,295
Total
¥
¥
256,591
64,684
India
40,413
6,723
Asia
Africa
47,602
7,721
Other
611
–
12,331
2,839
Total
¥
¥
236,985
56,632
Thousands of U.S. dollars (Note 1)
Japan
Total sales .............................................................
Tangible fixed assets .............................................
$ 147,767
–
$ 147,767
Adjustment
Consolidated
financial
statements
–
$ 147,767
Millions of yen
Reportable segments
2012
Japan
Unamortized balance of
negative goodwill .............................
¥
India
37
Asia
–
Africa
–
Other
Total
–
¥
37
Total
5
¥
Adjustment
42
–
$ 1,647,621
$
455,189
India
512,155
108,651
Asia
526,926
122,193
Reportable segments
Unamortized balance of
negative goodwill .............................
¥
India
71
Asia
–
Africa
Other
Total
Total
Adjustment
2
–
¥
73
14
¥
87
–
Africa
270,507
73,050
Other
164,716
27,923
Reportable segments
2012
Japan
236,985
Millions of yen
2012
146,307
Total
Consolidated
financial
statements
¥
42
Consolidated
financial
statements
¥
87
Thousands of U.S. dollars (Note 1)
Millions of yen
2012
Total sales .............................................................
Tangible fixed assets .............................................
292
Other
Total
Total
(2) Information by geographical segment
Total sales .............................................................
Tangible fixed assets .............................................
Africa
(2) Unamortized balance of negative goodwill attributed to business combinations prior to April 1, 2010 for the fiscal years
ended March 31, 2012 and 2011 were as follows:
Japan
Thousands of U.S. dollars (Note 1)
2012
Sales to customers ................................................
1,144
2011
Millions of yen
Sales to customers ................................................
24
$
Asia
Millions of yen
Millions of yen
Sales to customers ................................................
India
Unamortized balance of
negative goodwill .............................
$
India
450
Asia
–
Africa
–
Total
–
$
450
Other
61
Total
$
511
Adjustment
–
Consolidated
financial
statements
$
511
5. Gain on negative goodwill by reportable segment
Gain on negative goodwill as a result of the acquisitions of additional stocks of subsidiaries was recognized for the Japan
segment in the amount of ¥11 million ($134 thousand) and ¥205 million for the fiscal years ended March 31, 2012 and 2011,
respectively.
15. Effect of Bank Holiday on March 31, 2012
As financial institutions in Japan were closed on March 31, 2012, amounts that would normally be settled on March 31, 2012
were collected or paid on the following business day, April 2, 2012. As a result, notes and accounts receivable increased by
approximately ¥4,461 million ($54,277 thousand), notes and accounts payable increased by approximately ¥4,919 million
($59,849 thousand) and other current liabilities increased by approximately ¥7 million ($85 thousand).
Total
$ 3,121,925
$
787,006
(3) Information by major customers
No information is disclosed as there were no customers accounting for 10% or more of the Company’s total net sales for the
fiscal years ended March 31, 2012 and 2011.
50 Kansai Paint Co., Ltd.
Corporate Report 2012
Kansai Paint Co., Ltd.
Corporate Report 2012
51
16. Business Combinations
Business combination through acquisition
(1) Outline of the business combination
1) Name of the acquired company and line of business
Name: Freeworld Coatings Limited
Line of business: Manufacturing and sales of paints, coatings and paint related products
2) Main reasons for the business combination
For the purpose of developing markets mainly in the field of decorative coatings through full-scale entry into the African
market (Saharan Africa and southward.)
3) Date of the business combination
April 26, 2011
4) Legal form of the business combination
Share acquisition through payment in cash
5) Name of combined entity after the business combination
Freeworld Coatings Limited
6) Percentage of voting rights acquired
Percentage of voting rights held before the business combination:
27.56%
Percentage of voting rights additionally acquired at the date of business combination:
64.85%
Percentage of voting rights held after the business combination:
92.41%
7) Primary reasons for deciding on the acquiring company
The Company was decided on as the acquiring company because it proposed to buy the shares in exchange for cash.
(2) Period of the acquired company’s financial results included in the consolidated financial statements of the Company
Since the acquired company was regarded as being acquired on April 1, 2011, the business results of the acquired
company for the period from April 1, 2011 to December 31, 2011 is included in the consolidated financial statements of
the Company.
Prior to March 31, 2011, the business results as an equity-method affiliate is included.
(3) Acquisition cost and details
Fair value of shares of Freeworld Coatings Limited
owned directly prior to business combination .....................
Fair value of shares of Freeworld Coatings Limited
additionally acquired at the date of business combination ..
Costs incurred directly in the acquisition: Advisory fees, etc. ...............................................................
Millions of yen
Thousands of
U.S. dollars
(Note 1)
8,220
$ 100,012
18,611
530
226,439
6,448
¥ 27,361
$ 332,899
(7) Estimated amounts that would affect the consolidated statements of income for the year ended March 31, 2012, assuming
that the business combination was completed on the first day of that year
The business combination does not affect the consolidated statements of income for the year ended March 31, 2012,
because the acquired company was already consolidated at the beginning of that year.
17. Subsequent Events
The Company acquired shares in PT. Kansai Prakarsa Coatings (“KPC”) in the Republic of Indonesia effective April 27, 2012 and
KPC accordingly became a consolidated subsidiary of the Company.
(1) Purpose of acquisition
The Company adopted the slogan “further promotion of globalization” to represent the core policies of the mid-term
business plan, and the Indonesian market is thought to be a region that is expected to experience significant growth. In
Indonesia, the Company has already developed business in the field of automotive coatings, and additionally, this acquisition
was to enable it to enter into the market for decorative coatings. Therefore, the Company acquired 90% of shares in KPC,
which has a business base and market shares in that field. KPC is expected to contribute to the expansion of the Company’s
business performance in the mid-to long-term, as well as to enhance the corporate value from the perspective of the
shareholders.
(2) Profile of the acquired company
1) Name: PT. Kansai Prakarsa Coatings
2) Line of business: Manufacturing and sales of paints, coatings and paint related products
3) Capital: US$ 30,000 thousand
4) Total number of shares issued: 30,000 shares
(3) Outline of the shares acquired
1) Date of share acquisition: April 27, 2012
2) The number of shares acquired: 27,000 shares
3) Acquisition cost: US$ 121,725 thousand
4) Ownership ratio after acquisition: 90.00%
5) Sources of acquisition fund: Cash reserves
Acquisition price:
Total acquisition cost:
¥
(4) Difference between the acquisition cost and the accumulated acquisition cost paid for each transaction
Gain on step acquisitions: ¥338 million ($4,112 thousand)
(5) Amount of goodwill, reason for recognizing goodwill, amortization method and period
1) Amount of goodwill
ZAR1,352 million (¥16,480 million) ($200,511 thousand)
2) Reason for recognizing goodwill
As the acquisition cost exceeded the net amount allocated to acquired assets and assumed liabilities, the difference has
been recognized as goodwill.
3) Amortization method and period
Straight-line method over 10 years
(6) Amount of assets and liabilities acquired on the day of the business combination
Millions of yen
Current assets ....................................................
Fixed assets ........................................................
Thousands of
U.S. dollars
(Note 1)
12,046
22,816
$ 146,563
277,601
Total assets .........................................................
34,862
424,164
Current liabilities ................................................
Long-term liabilities ...........................................
9,525
12,530
115,890
152,452
22,055
$ 268,342
Total liabilities ....................................................
52 Kansai Paint Co., Ltd.
Corporate Report 2012
¥
¥
Kansai Paint Co., Ltd.
Corporate Report 2012
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
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
Overseas
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-ALPHANAM PAINT CO.,LTD.
(Hanoi office)
33 Ba Trieu, Hoan Kiem, Ha Noi, Vietnam
Tel: 84-4-3939-7979 / Fax: 84-4-3939-3676
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 Thaeparak Rd., Thaeparak, Amphur
Muang Samutprakarn 10270, Thailand
Tel: 66-2-753-2377 / Fax: 66-2-753-2774
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: 86-756-3986273 / Fax: 86-756-3986276
54 Kansai Paint Co., Ltd.
Corporate Report 2012
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), Yuddhasart Road, Tambol
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, 511455 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 1208, 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
KANSAI PAINT (SINGAPORE) PTE. LTD.
2 Tanjong Penjuru, 609017, Singapore
Tel: 65-6261-8621 / Fax: 65-6265-0301
P.T. KANSAI PAINT INDONESIA
Blok DD-7 & DD-6, Kawasan Industri MM2100,
Cikarang Barat, Bekasi, Jawa Barat 17520,
Indonesia
Tel: 62-21-8998-2370 / Fax: 62-21-8998-2369
PT. KANSAI PRAKARSA COATINGS
JI. Hayam Wuruk 28 Lt. 4, Jakarta 10120,
Indonesia
Tel: 62-21-385-4121 / Fax: 62-21-385-4119
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
Office No.1506, 15th Floor, Jafza View 18, Jabel
Ali, Dubai, UAE
Tel: 971-4-885-7344 / Fax: 971-4-885-7480
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 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
Kansai Paint Co., Ltd.
Corporate Report 2012
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