株式会社カーマ

Transcription

1 Kahma 22 Fact Book KAHMA CO., LTD.

2 PROFILE Since opening its first home center in 1973, Kahma has pursued a strategy of building up a network of stores covering the Chubu Region centered on Nagoya. Rather than spread itself thinly nationwide, Kahma became the leading home center operator throughout the Chubu Region. To our customers, "Kahma" inspires confidence and is intimately associated with convenience. These attributes are very much part of our corporate mission: "To make our customers happy." Our first priority is to ensure that our customers in the Chubu Region always have a Kahma store nearby-there are over 9 Kahma stores. And we use every new store opening as an opportunity to do an even better job of satisfying the needs and aspirations of our customers. Indeed, we were one of the very first companies to establish the home center format which has become so much a part of the suburban lifestyle. And we were quick to recognize and satisfy the rising demand for gardening goods, the desire for a greater choice of interior goods, and the growing market for the renovation and improvement of residential property. Nothing makes us happier than the opportunity to meet and please lots of customers by offering a vast selection of products. "Kahma" is a Sanskrit word that expresses the will to love and create. At Kahma we are in the business of making people happy and our name expresses what makes the shopping experience we offer so special. Through a superb selection of products, we provide our customers with a sense of abundance and happiness. Subsidiary Company OF KAHMA (As of March 22) Company name Location Capital(Millions of yen) Main business Ownership stake Affiliated company s are as follows;

3 MESSAGE FROM THE PRESIDENT President and Director Kenji Nagashima Based on a new corporate structure, Kahma is implementing a mid-term plan to lay the foundation for stable growth in the medium to long term and to strengthen the corporate fundamentals. The plan calls for an operating margin of 5% to be attained in three years. Accordingly, Kahma has embarked on a restructuring program to achieve a low-cost operating structure through improved systems and business processes. Based on the three principles of "Strong Management," "Fast Management," and "Open Management," we are concentrating management resources on the home center operation. To this end, we transferred two operations to other companies: the drugstore operation in November 21 and the automotive products specialty store operation (the Yellow Hat Division) in March 22. We have also withdrawn from the mail order business. In the Kahma home center operation, we always endeavor to put the customer first. To foster customer confidence and patronage, we have strengthened our product lines. With the aim of offering good products at attractive prices, we have been quick to introduce new items and topical products and have broadened the merchandise mix. At the same time, we reviewed our sales floors, striving to create a shopping environment that makes it easy for customers to shop and to enrich our offering of DIY and gardening products, the mainstays of home centers. Despite a lower spend per customer, sales at existing stores rose. As a result, net sales at directly operated stores amounted to 128,831 million (16.1% of the previous year's level). Thanks to an increase in gross profit in line with the sales increase and efforts to reduce selling, general and administrative expenses through a systems review, operating income rose to 3,119 million (282.% of the previous year's level) and ordinary income was 3,337 million (227.6%). However, an extraordinary loss of 1,238 million owing to losses on write-down of stocks in financial institutions and a loss from retirement of stores resulted in net income of 1,46 million. To build an even stronger Kahma, in May 22 we concluded a basic agreement concerning an operating alliance with Daiki Co., Ltd. In this way, we are laying the foundation for further growth through such means as joint development and joint procurement of products. We will appreciate the support of shareholders and investors in these endeavors. 1

4 OPERATING RESULTS AND FINANCIAL POSITION Years ended march Millions of yen Net sales 121, ,849 12, , ,32 127, ,789 Operating income 3,28 2,552 2,87 1,15 3,119 1,173 3,21 Ordinary income 3,414 2,84 2,326 1,466 3,337 1,521 3,423 Net income 1,675 1,162 1, , ,97 Net income per share (Yen) Total assets 7,49 74,35 77,825 79,65 77,955 8,81 79,187 Shareholders' equity 4,569 41,212 42,293 41,111 42,86 41,512 42,537 Shareholders' equityper Share of common stock (Yen) 1, , , , , , , sales/ Non-consolidated sales ratio (Times) Notes: The computation of net Income per share is based on the weighted average number of shares of common stock outstanding during each year. Notes: As the company prepared consolidated financial statements for the first time for the fiscal year ended March 31, 21, consolidated management indices for previous fiscal years are unavailable. 2

5 OPERATING RESULTS 15, Net sales and operating income to net sales Millions of yen,%/ , Selling, general and administrative expenses Millions of yen/ 4, Ordinary income and ordinary income to net sales Millions of yen,%/ 4 2,1 Net income and net income to net sales Millions of yen,%/ Cash dividends per share and payout ratio Yen,%/ 5 12, , 3, , , , 2, , , 1, ,.7 7, '98 '99 ' '1 '2 Net sales Operating income to net sales '1 '2. '98 '99 ' '1 '2 '1 '2 '98 '99 ' '1 '2 '1 '2 Ordinary income Ordinary income to net sales -1,4-1.4 '98 '99 ' '1 '2 '1 '2 Net income Net income to net sales '98 '99 ' '1 '2 Cash dividends per share Payout ratio Operating income Fiscal year Net sales to net sales Fiscal year Selling, general and administrative expenses Ordinary income Fiscal year Ordinary income to net sales Net income Fiscal year Net income to net sales Cash dividends Fiscal year per share Payout ratio , , , , , , , , , , , , , , , , , , , , , ,466 3, , , ,97.82 Notes: As the Company prepared consolidated financial statements for the first time for the fiscal year ended March 31, 21, consolidated management indices for previous fiscal years are unavailable. 3

6 OPERATING RESULTS 1, Procurement of merchandise Millions of yen/ 15, Sales of merchandise Millions of yen/ Sales of home center business by type of merchandise 1, Merchandise supplied to franchisees and number of outlets of franchisees Millions of yen/ 1,5 Number of employees and net sales peremployees Millions of yen/ 8, 12, 8, 1,2 6, 9, 6, 9 4, 6, 4, 6 2, 3, 2, 3 '98 '99 ' '1 '2 '1 '2 Home center business Other business '98 '99 ' '1 '2 '1 '2 Home center business Other business DIY goods Fiscalyear 22 ( consolidated ) Household goods Sport and leisure goods '98 '99 ' '1 '2 '1 '2 Merchandise supplied to franchisees '98 '99 ' '1 '2 '1 '2 Number of employees Net sales per employee Other Home center Fiscal year business Other business Home center Fiscal year business Other business DIY Household Sport and Fiscal year goods goods leisure goods Other Merchandise supplied Number of outlets Fiscal year to franchisees of franchisees Number of Net sales per Fiscal year employees employee ,124 4, ,296 5, , , ,41 3, ,585 5, , , ,68 3, ,66 4, , , ,78 2, ,436 3, , , ,937 1, ,831 2, , , ,912 5,219 95,59 2, ,987 5,87 129,48 4, , , , , * Other business comprises drugstore operations and car accessory store operations. * Other business comprises drugstore operations and car accessory store operations. 4

7 OPERATING RESULTS 7,5 Capital expenditures Millions of yen/ 3, Depreciation and amortization Millions of yen/ 5, Shareholders' equity and equity ratio Millions of yen,%/ 75 8 Return on equity ( ) 5 Debt-to-equity ratio ( ) 6, 2,4 4, ,5 1,8 3, , 1,2 2, ,5 6 1, 15 1 '98 '99 ' '1 '2 '1 '2 '98 '99 ' '1 '2 '1 '2 '98 '99 ' '1 '2 '1 Shareholders' equity Equity ratio '2-2 '98 '99 ' '1 '2 '1 '2 '98 '99 ' '1 '2 '1 '2 Fiscal year Capital expenditures Fiscal year Depreciation and amortization Shareholders' Fiscal year equity Equity ratio Fiscal year Return on equity Fiscal year Debt-to-equity ratio , , , , , , , , , , , , , , , ,644 2, , ,

8 BALANCE SHEETS Non-consolidated balance sheets (over five years) As of March 31 Fiscal year Assets 21 Millions of yen Current assets Cash and deposits 5,68 3,835 3,311 2,84 7,271 3,642 7,918 Accounts receivable 1,127 1,197 1,186 1,562 1,617 Notes and accounts receivable, trade 1,847 1,95 Marketable securities 1,255 6,579 5,614 3,321 1,16 3,357 1,16 Merchandise 14,657 14,623 14,88 17,321 15,87 Inventories 17,639 16,193 Prepaid expenses Short-term loans receivable Deferred tax assets Other current assets ,143 1,141 Allowance for doubtful accounts Total current assets 23,561 27,464 26,443 27,182 27,488 28,363 28,733 Fixed assets Tangible fixed assets 32,32 32,33 35,815 37,571 35,517 37,626 35,567 Buildings 14,24 14,273 14,346 16,189 14,743 Structures 2,764 2,816 2,884 3,23 2,827 Buildings and structures 19,423 17,599 Land 13,638 13,68 15,736 16,151 16,186 16,162 16,197 Construction in progress , Other tangible fixed assets 874 1,17 1,419 1,51 1,157 1,516 1,169 Intangible fixed assets 2,38 2,161 2,467 2,61 2,672 2,63 2,674 Investments and other assets 12,129 12,35 13,97 12,25 12,276 12,216 12,21 Total fixed assets 46,488 46,841 51,381 52,423 5,466 52,447 5,453 Total assets 7,49 74,35 77,825 79,65 77,955 8,81 79,187 Notes: As the Company prepared consolidated financial statements for the first time for the fiscal year ended March 31, 21, consolidated management indices for previous fiscal years are unavailable. 6

9 BALANCE SHEETS As of March 31 Millions of yen Fiscal year Liabilities 21 Current liabilities Accounts payable 8,713 12,429 12,699 14,18 13,577 Notes and accounts payable, trade 14,496 14,44 Short-term borrowings 8,7 8,55 9, 9,4 6,4 9,349 6,4 Current portion of long-term borrowings 4,45 1,24 1,6 4,134 3,94 4,274 3,166 Accrued expenses 1,618 1,635 1,639 1, Other current liabilities 1,587 1,895 2,222 1,415 4,254 3,26 5,7 Total current liabilities 25,69 25,749 27,161 3,578 28,7 31,145 28,618 Fixed liabilities Long-term borrowings 3,2 5,93 6,53 5,196 4,732 5,356 4,84 Reserve for employees retirement allowances Reserve for directors retirement allowances Other fixed liabilities ,29 1,77 1,63 1,77 1,63 Total fixed liabilities 4,41 7,343 8,369 7,915 7,86 8,152 8,31 Total liabilities 29,479 33,92 35,531 38,494 35,868 39,298 36,649 Shareholders equity Capital stock 6,1 6,1 6,1 6,1 6,1 6,1 6,1 Additional paid-in capital 6,331 6,331 6,331 6,331 6,331 6,331 6,331 Legal reserve Other retained earnings 27,739 28,33 29,358 28,125 28,915 Retained earnings 29,179 3,27 Other investment securities revaluation reserve Treasury stock Total shareholders equity 4,569 41,212 42,293 41,111 42,86 41,512 42,537 Total liabilities and shareholders equity 7,49 74,35 77,825 79,65 77,955 8,81 79,187 7

10 STATEMENT OF INCOME Non-consolidated statements of income (over five years) Years ended March 31 Millions of yen Fiscal year Net sales 121, ,849 12, , ,32 127, ,789 Cost of sales 92,293 94,422 9,26 94,136 98,879 95,154 99,745 Gross profit 29,644 3,426 3,232 31,198 32,441 32,64 34,43 Operating revenues Selling, general and administrative expenses 26,676 28,139 28,433 3,681 29,988 31,466 3,832 Operating income 3,28 2,552 2,87 1,15 3,119 1,173 3,21 Non-operating income Interest income Other Non-operating expenses Interest expenses Other Ordinary income 3,414 2,84 2,326 1,466 3,337 1,521 3,423 Special profits Special losses ,414 1,238 2,367 1,24 Net income before income taxes 2,86 2,597 2, , ,245 Income taxes 1,185 Corporate, local income and enterprise taxes 1,435 1, , ,627 Deferred income taxes Minority interest in income (loss) of consolidated subsidiaries 14 Net income (loss) 1,675 1,162 1, , ,97 Notes: As the Company prepared consolidated financial statements for the first time for the fiscal year ended March 31, 21, consolidated management indices for previous fiscal years are unavailable. 8 Net income before income taxes and other item

11 CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended March 31 Millions of yen Fiscal year Cash flows from operating activities Net income (loss) before adjustments of income taxes 845 2,245 Depreciation and amortization 2,644 2,45 Allowances 526 1,261 Interest income and dividend received Interest expenses Loss in sale of tangible fixed assets 2 41 Non-cash portion of other income and expenses 1, Increase (decrease) in assets and liabilities 1,47 1,82 Subtotal 2,79 8,26 Income and dividend received Dividend paid Income taxes paid Net cash provided by operating activities 1,871 7,558 Cash flows from investing activities Acquisition of tangible fixed assets 5,2 1,1 Proceeds from sale of tangible fixed assets Purchase of investments Other Net cash used in investing activities 5, Cash flows from financing activities Proceeds from long-term debt 3, 2,63 Repayment of long-term debt 1,6 4,19 Dividends paid Other 363 3,49 Net cash provided by financing activities 1,265 4,858 Effect of exchange rate changes on cash and cash equivalents 35 Net (decrease) increase in cash and cash equivalents 2,269 1,945 Cash and cash equivalents at end of year 9,219 6,95 Cash and cash equivalents at end of year 6,95 8,895 9

12 Kahma KAHMA CO., LTD ,Hidaka-cho,Kariya,Aichi , Japan Phone: Printed in Japan