Disclosure Policy

This section is an explanatory section in order to assist the viewers of this home page to fully comprehend our disclosure policies.

1. Disclosure Standards

Our disclosure is made in accordance with the Timely Disclosure Regulations (the “Regulations”) enacted by the Tokyo Stock Exchange (“TSE”) and Article 27-36 of Financial Instruments and Exchange Act(the “Fair Disclosure Rules)”.
It is also our policy to disclose, as much positively and fairly as possible, information that does not fall under the Regulations, on this home page, if we judge them as useful for investment decision.

2. Information Disclosure Method

Disclosure of information falling under the Regulations is publicized through the Timely Information Disclosure System (TDnet) offered by the TSE after prior explanation to the TSE in accordance with the Regulations. We post each piece of information publicized on TDnet and announce it to the media through “Kabuto Club”, which is located in TSE.

3. Post Information on This Homepage

We post the information on our homepage promptly after it is publicized on TDnet. It is also our policy to disclose, as much promptly and fairly as possible, information that does not fall under the Regulations.

4. Silence Period

To prevent any information affecting the stock price from being divulged during the preparation period of the data for the announcement of the accounts, we fix four weeks “silence period” prior to the announcement of the accounts. During this period, we refrain from making comments on the accounts or responding to related questions. If it becomes likely that the results will substantially vary from the previously released projection, however, we will disclose information.

5. Others

When using this web site for information on the Company, please read carefully not only this disclosure policy, but also the Disclaimer

Disclaimer

This web site and any information posted on it are not intended as investment recommendations. Please do the final decision of investment on your own judge and responsibility.

Company makes no warranty on the incorrect information on this site, although we pay careful attention to it. Users, who access third-party web sites linked from this site, do so solely at their own discretion and responsibility. Company does not make any warranty on the damage or trouble caused by down loading data from this site.

Information on this web site contains forward-looking statements such as forecasts for financial achievement and etc. All forward-looking statements may contain potential risks and uncertainties and the result will be possibly different from those forward-looking statements.

Company may make corrections, and/or changes in contents of this site or stop posting without notice at any time.。

IR Calendar

Business and Other Risks

Among the matters concerning the situation of the business described in the financial statements and situation of accounting, the matters with the possibility to cause the important effect for the investor’s judgment are as follows.

(1) Risks Related to Dependence on Specific Business Partners

To improve the efficiency of its sales activities, the Advanex Group has undertaken a policy to raise its sales weighting to strategic customers. As a result, the earnings of major customers, their outsourcing strategies, and other factors beyond the Advanex Group’s control could have a negative impact on the Group’s earnings and financial condition.

(2) Risks Related to International Activities and Overseas Expansion

The Advanex Group holds production and sales activity in the United States, Europe, and Asia. Unanticipated　changes in law or restriction, terrorism, battle action, or occurrence of epidemic in those countries might cause adverse effect to our group achievement and financial position.

(3) Risks Related to Fluctuation in Foreign Exchange Rates

In line with the Advanex Group’s international activities and overseas expansion, the Group is exposed to the following currency risks, and a substantial fluctuation in foreign exchange rates could have a negative impact on the Group’s earnings and financial condition.

1. Increase and decrease in local currency conversion for net sales and purchase at foreign currency in exporting and importing.
2. Loss and gain of credit and debt at foreign currency under the market value.
3. Increase and decrease of yen currency conversion amount of foreign currency at consolidated financial statements.

(4) Risk of Natural Disasters

The main production site of the Advanex Group is Kashiwazaki Prefecture, Shimotsuke City in Tochigi Prefecture in Japan. There is a possibility that the production capacity of precision spring and precision assembly parts of our group decreases remarkably and the distribution may cause a delay when large-scale disasters occur in these regions.

(5) Risks Related to Fluctuations in Raw Material Prices

There is a possibility of leading to an increase in the cost of manufacturing of the Advanex Group and the deterioration of the profit, if it is difficult to reflect material cost increase to the sales price under the environment of fierce price competition with the competitors when the price of metal and plastic material such as stainless and copper is increased by the increase of demand for a resource such as iron and oil or political change of those producing countries.

(6) Risks Related to Post-Employment Benefit Obligations

Advanex moved to defined contribution pension system from approved retirement annuity system as of November 1, 2011. Post-employment benefit obligations for employees and provisions for post-employment benefit obligations are calculated based on basic rates and prerequisite condition in actuarial calculations, which include discount rates and the expected return on pension assets. These calculations also reflect past performance in the management of pension assets. Deterioration in discount rates or performance in pension assets management could have a negative impact on the Group’s earnings and financial condition.

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Asset Performance

*1 Shareholder’s equity = Net asset – Warrants – Minority interest
*2 Equity ratio = Shareholder’s equity / Total Assets
*3 D/E ratio = Interest-bearing Debt / Shareholder’s equity
*4 ROE = Net Income / Shareholder’s equity
*5 ROA = Net Income / Total Assets