The Worldfolio: Okabe

OKABE

about this company

Vision/Mission

"Contribution to society by providing safety and security"

Since our founding in 1917, as a manufacturer of construction and civil engineering products, Okabe has consistently and promptly delivered new functional custom-made products to meet on-site needs and demands.

For about 100 years, the Okabe brand has had the reputation in our industry as a producer of Safety and Relief products, and the Okabe brand has always meant High Quality.
Now, we are consolidating and centralizing our organization so that each division is coordinated by our core headquarters. We speed up decision-making by a more efficient and selective use of management resources. This shortens the lead-time because we have concentrated our efforts to be more efficient.
We are now well organized to respond to the next generation of products and services, but we will always live up to our tradition of Safety and Relief and High Quality.

You can always depend on the Okabe Spirit!

Background

Apr.1917 Mitsunosuke Okabe sets up a one-man company that manufactures and sells general construction hardware.

Oct. 1933 The Company is re-organized into Okabe Tekko & Company Ltd.

Feb. 1944 Okabe Tekko & Company Ltd. is re-organized into Okabe Tekko Co., Ltd. with a capital of 300 thousand Japanese yen.

Jun. 1956 The Company is authorized by the Minister of International Trade and Industry to use JIS mark for "Form Ties."

Apr. 1962 Tokyo Factory built in Koshigaya City starts operation.

Aug. 1963 The Company merges Okabe Shoji Co., Ltd. and is re-named Okabe Co., Ltd.

Jul. 1968 Kyoto Factory built in Kumiyama-cho, Kuse-gun, Kyoto Prefecture, starts operation.

Oct. 1969 The Company co-founds Sanyo Okabe Co., Ltd. in Hiroshima City with Sanyo Shizai Co., Ltd.

Jul. 1972 The Company lists its stocks in the Second Section of the Tokyo Stock Exchange.

Nov. 1975 Tokyo Factory is entirely relocated to Kukishobu Industrial Park, Kuki City, Saitama Prefecture. Kuki Factory starts operation.

Jun. 1977 Okabe Co., Inc. is established in Illinois, U.S.A.

Aug. 1982 The Company implements the primary spin-off plan and spins off the existing branches and offices as its wholly-owned subsidiaries.

Jul. 1983 Okabe Color Co., Ltd. is established as the Company's wholly owned subsidiary and starts the Mini Photo-lab Chain business.

Dec. 1985 The Company implements the secondary spin-off projects and spins off the Civil Engineering Division as Okabe Doboku Co., Ltd., and the Research & Development Division as Okabe Engineering Co., Ltd., the Company's wholly owned subsidiaries. (The liquidation of the company is completed on June, 2001)

Feb. 1986 The second spin-off project ends with the spin-off of the main product manufacturing division as Okabe Kiko Co., Ltd., the Company's wholly owned subsidiary.

May 1988 Okabe Lease Co., Ltd. is established as the Company's wholly owned subsidiary.

Jun. 1988 The Company co-founds Okako Shikoku Co., Ltd. with Kobayashi Metals Co., Ltd. and Sanko Co., Ltd. (45% of the stocks held by Okabe) to transfer the business of Okabe Shikoku Hanbai Co., Ltd.

Nov. 1988 The Company takes over Coast Hotels Group's holding company in Canada to embark on the hotel business. (All Shares of this company were sold in September 2016.)

May 1991 Okabe Seiko Co., Ltd., the Company's manufacturing subsidiary, is merged into Okabe Kiko Co., Ltd. and re-starts as Okabe Kiko Co., Ltd., Chiba Factory.

Jun. 1991 The Company lists its stock in the First Section of the Tokyo Stock Exchange.

Sep. 1991 Okabe Kaihatsu (Development) Co., Ltd. is established, independent of the real estate division of Okabe Co., Ltd.

Oct. 1993 Okabe Engineering Co., Ltd. opens "Structure Experiment Center " on the premises of Okabe Kiko Co., Ltd., Chiba Factory, Noda city, Chiba Prefecture.

Mar. 1998 "Distribution Center" is established in Tosu city, Saga Prefecture.

Apr. 1998 Okabe Kozo System Co., Ltd. is established to promote sales of Basepack column base method.

Oct. 2000 The Company takes over a Hong Kong company and re-names it Hong Kong Okabe Co., Ltd. in preparation for business in China. (All Shares of this company were sold in January 2010.)

Jan. 2001 Okabe Kenzai Co., Ltd., Okabe Struct Co., Ltd. and Okabe Doboku Co., Ltd. are established through the merger of existing 16 regional sales subsidiaries, four product subsidiaries, and one R & D subsidiary.

Jul. 2001 Okabe Kenzai Co., Ltd. merges Okabe Kiko Co., Ltd. ?Structural Materials related division of Okabe Kiko Co., Ltd. is shifted to Okabe Struct Co., Ltd. ?Civil Engineering related division of Okabe Kiko Co., Ltd. is shifted to Okabe Doboku Co., Ltd. ?Okabe Co, Ltd. becomes a holding company.

Sep. 2001 Kansai Okabe Co, Ltd. is established by combining Keizi and Hyogo Branches of Okabe Kenzai Co., Ltd., and Construction materials and Civil engineering Department of Kobayashi Metals Ltd.

May 2002 OCM, Inc. is established to sell construction materials in the U.S.A.

Jan. 2003 Okabe Doboku Co., Ltd. merges Okabe Techno System Co., Ltd.

Feb. 2003 O.T.C.M. Co., Ltd. is established to sell construction materials in Taiwan. (The liquidation of the company is completed on December, 2007)

Jan. 2005 The company merges Okabe Kenzai Co., Ltd., Okabe Struct Co., Ltd. and Okabe Doboku Co., Ltd.

Apr. 2005 In order to expand the automobile related business, Okabe Holding USA, Inc., our wholly owned subsidiary, is established, and it acquires all the shares of Water Gremlin Company which business is manufacturing and marketing battery terminals for automobiles.

Jan. 2006 Higashi Oka Manufacturing Co., Ltd. mergers existing 7 regional manufacturing subsidiaries of the Company and changes its business name into OMM Co., Ltd.

Mar. 2006 Okabe Manpower Co., Ltd. is established. (The liquidation of the company is completed on July, 2010)

Jan. 2007 The Company merges Kansai Okabe Co., Ltd. and re-names it Kansai Sales Branch.

Apr. 2007 The Company splits off the Civil Engineering Division and establishes Okabe Engineering Co., Ltd. (a consolidated subsidiary) as a separate company.

Sep. 2007 Via Okabe Holding USA, Inc. (a consolidated subsidiary) the Company acquires all shares in Aquila Piombo S.r.l. a company which manufactures and sells automobile battery terminals in Italy, (now Water Gremlin Aquila Company S.p.A., a consolidated subsidiary)

Dec. 2008 The Company dissolves Okako Shikoku Co., Ltd. and establishes Shikoku Sales Branch to start doing business in Shikoku area.

Mar. 2009 The Company dissolves Sanyo Okabe Co., Ltd. and establishes Chushikoku Sales Branch to start doing business in Chugoku area.

Jan. 2011 The Company merges Okabe Lease Co., Ltd. and re-organizes it as Construction Materials and Lease Group, Sales Division.

Jun. 2012 In order to further expand the automobile related business, Changxing Water Gremlin Non-Ferrous Co. (a consolidated subsidiary) is established in China.

Jul. 2012 Okabe Industry Co., Ltd. (Non-consolidated subsidiary) is established so as to take over business involving manufacturing and marketing for the products of inserts and spacers.

Aug. 2012 The Company signs a comprehensive business alliance agreement with TATSUMI Corporation.

Apr. 2013 The Company merges Okabe Civil Engineering Co., Ltd. and re-organizes it as Civil Engineering Department.

Jan. 2016 Ibaraki Factory built in Shimotsuma City starts operation.

Apr. 2017 The Company celebrates its centenary.

Products/Services

Important but Invisible

Our products are playing important roles behind the scenes, such as underground, inside concrete and in supporting roof beams.
We believe that providing the high-performance and reliable products will protect human lives and livelihoods in the event of disasters and accidents.
As the needs for safety and security grow, Okabe will continue to develop the high-value products to contribute to society.

A) Temporary Construction
B) Concrete Formwork
C) Rebar Work
D) Civil Engineering

More info at: https://www.okabe.co.jp/english/products/pdf/okabe_product_catalog_en.pdf

Location

Head Office

2-8-2, Oshiage, Sumida-ku, Tokyo, Japan
Telephone No. + 81-3-3624-5111

Financial Projection

Overview of Operating Results

In the fiscal year under review (the period from January 1, 2016 to December 31, 2016), the Japanese economy showed a trend towards a gradual recovery with improvement in the employment situation and signs of a pickup in consumer spending. However, certain areas lagged somewhat, including corporate earnings, where gains were slow, and capital expenditure, which remained at a standstill.
Construction companies in Japan, which are the main customers for the Company and its consolidated subsidiaries (the “Okabe Group”), faced difficult conditions with the volume of construction work failing to grow due to causes such as delayed progress in construction starts on a year-round basis, in spite of the gradual start of construction work related to the 2020 Tokyo Olympic and Paralympic Games and infrastructure-related work in the fourth quarter.
In this environment, the Okabe Group sought to expand its market share for major products. To achieve this goal, the Group bolstered its ability to develop construction-related products, which represent its main business, through the collaboration of its divisions in charge of development, production and sales. The Group also worked to improve manufacturing and logistics functions with Ibaraki Factory, which became fully operational this fiscal year, at the center of this effort.
As a result of the factors and initiatives stated above, consolidated net sales for the fiscal year under review decreased 8.4% year on year, to 63,190 million yen. Consolidated operating income declined 12.6% year on year, to 5,527 million yen, and consolidated ordinary income dropped 11.6% year on year, to 5,780 million yen. However, profit attributable to owners of parent rose 85.7% year on year, to 7,861 million yen, mainly due to extraordinary income posted as result of the transfer of the hotel business.

Outlook for the Future

Looking to the future, conditions are likely to remain sluggish over the medium and long terms in the Japanese construction market, where many of the Okabe Group’s customers operate. However, firm demand is anticipated in the Tokyo metropolitan area, where various major projects are planned.

Based on the medium- and long-term business conditions anticipated, the Okabe Group developed a new three-year medium-term management plan called “NEXT100 – Exciting Future.” The plan starts from fiscal 2017, its centennial.
Under NEXT100 – Exciting Future, the Okabe Group will establish its vision for the future, pursuing three key policies and strengthening its business base for achieving the vision in an attempt to build foundations that will lead to dramatic progress in the next 100 years (NEXT100).

Dividends

The basic stance on dividends taken by the Okabe Group is to maintain stable dividends for improving the return of profits to shareholders. The Group has also adopted a policy of determining dividends taking into consideration factors such as consolidated business results and the need to increase internal reserves to strengthen its financial conditions and preparing for business expansion in the future.
Under this basic policy, the Company plans to pay year-end dividends of 12 yen per share for the fiscal year under review. Annual dividends for the fiscal year under review will come to 24 yen per share because the Company has already paid 12 yen per share as interim dividends for the fiscal year.
In the next fiscal year, the Company plans to add dividends commemorating the 100th anniversary of its establishment of 6 yen per share to ordinary dividends of 24 yen per share and pay annual dividends of 30 yen per share, including interim dividends of 15 yen per share and year-end dividends of 15 yen per share.
I ask all shareholders for greater guidance and encouragement in the period ahead.

Company Goals & Objectives

Okabe Formulates a Three-Year Medium-Term Management Plan, NEXT100 – Exciting Future

The Okabe Group is pleased to announce that it has developed a three-year medium-term management plan, NEXT100, as it marks the 100th anniversary of its founding in 2017.

Summary of medium-term strategic plan NEXT100 – Exciting Future

The Group will define its vision, and to achieve the vision, it will pursue three key policies and work to strengthen its business base.

1. Vision of the Group

a. The Group aims to become a global manufacturer that will achieve globally its goal of contributing to society by providing safety and security.
b. Harnessing its technological capability, the Group will focus on temporary building and formwork products, building structural materials, and civil engineering products, particularly building structural materials related to earthquake proofing, vibration control, and seismic isolation in the field of construction materials. It will also expand production particularly of battery terminals as well as bolts and nuts in the field of automobile parts.
c. The Group aims to become a corporate group that possesses an exciting organizational culture.

2. Three key policies
a. Concentrating management resources in the core businesses The Group will concentrate its management resources on its core businesses (construction-related products business and automotive products business). The Group will conduct M&A in its core businesses.
b. Developing new products The Group will work to develop products in growth fields in the construction materials business, auto parts business (battery terminals etc.), and marine business. Over the next three years, the Group will bring to the market products that will generate sales of 5.0 billion yen.
c. Promoting global operations The Group will further promote overseas operations in the construction materials business, auto parts business, and marine business. The Group will increase ordinary income from overseas operations to 40% of overall ordinary income.

3. Strengthening business base
a. The Group will strengthen its business base by pursuing the vision, reconfirming the values of the creed on which the three key policies are based, recruiting and cultivating diverse human resources, strengthening governance, and improving working conditions.

4. Performance goals for 2019
a. The Group aims for net sales of 72 billion yen and ordinary income of 7.0 billion yen in 2019

More info at: https://www.okabe.co.jp/english/ir/images/mid-term_2017.pdf