Financial Report 2018 Fiscal Year Ended March 31, 2018
Total Page：16
File Type：pdf, Size：1020Kb
Financial Report 2018 Fiscal year ended March 31, 2018 YAMADA DENKI CO., LTD. 1-1, Sakae-cho, Takasaki-shi, Gunma 370-0841 Japan TABLE OF CONTENTS OVERVIEW OF OPERATIONS .................................................................................................................................... 1 1. KEY INFORMATION ............................................................................................................................................ 1 2. MANAGEMENT POLICY, MANAGEMENT ENVIRONMENT, ISSUES TO BE ADDRESSED BY THE GROUP, ETC. ................................................................................................................. 2 3. RISK FACTORS ...................................................................................................................................................... 4 4. MANAGEMENT ANALYSIS OF FINANCIAL POSITION, RESULTS OF OPERATIONS AND CASH FLOWS .................................................................................................................... 9 5. IMPORTANT AGREEMENTS ............................................................................................................................ 14 6. RESEARCH AND DEVELOPMENT .................................................................................................................. 15 7. CORPORATE GOVERNANCE .......................................................................................................................... 16 CONSOLIDATED BALANCE SHEETS ..................................................................................................................... 25 CONSOLIDATED STATEMENTS OF INCOME ...................................................................................................... 27 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME .................................................................. 28 CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS ...................................................................... 29 CONSOLIDATED STATEMENTS OF CASH FLOWS ............................................................................................. 30 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS .................................................................................. 32 1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS ................................................. 32 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .......................................................................... 32 3. ACCOUNTING STANDARDS AND GUIDANCE ISSUED BUT NOT YET APPLIED ................................ 37 4. CHANGE IN PRESENTATION .......................................................................................................................... 37 5. CHANGE IN ACCOUNTING ESTIMATE ........................................................................................................ 38 6. BUSINESS COMBINATIONS ............................................................................................................................. 38 7. CASH AND CASH EQUIVALENTS ................................................................................................................... 42 8. SUPPLEMENTAL CASH FLOW INFORMATION .......................................................................................... 43 9. FINANCIAL INSTRUMENTS ............................................................................................................................. 44 10. SECURITIES INFORMATION ........................................................................................................................... 50 11. DERIVATIVE FINANCIAL INSTRUMENTS ................................................................................................... 52 12. ACCUMULATED DEPRECIATION ON PROPERTY AND EQUIPMENT .................................................. 53 13. IMPAIRMENT LOSS ........................................................................................................................................... 53 14. LEASE INFORMATION ...................................................................................................................................... 54 15. SHORT-TERM AND LONG-TERM DEBT ....................................................................................................... 55 16. CONVERTIBLE BOND-TYPE BONDS WITH SUBSCRIPTION RIGHTS TO SHARES ................................................................................................................................................................. 58 17. INCOME TAXES .................................................................................................................................................. 58 18. CONTINGENT LIABILITIES ............................................................................................................................ 60 19. RETIREMENT BENEFITS ................................................................................................................................. 60 20. ASSET RETIREMENT OBLIGATIONS ............................................................................................................ 64 21. NET ASSETS ......................................................................................................................................................... 65 22. STOCK OPTIONS ................................................................................................................................................ 66 23. COST OF SALES .................................................................................................................................................. 71 24. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........................................................................ 71 25. OTHER INCOME (EXPENSES) ......................................................................................................................... 71 26. OTHER COMPREHENSIVE INCOME............................................................................................................. 73 27. SEGMENT INFORMATION ............................................................................................................................... 73 28. RELATED PARTIES ............................................................................................................................................ 75 29. SUBSEQUENT EVENTS ..................................................................................................................................... 75 INDEPENDENT AUDITOR’S REPORT OVERVIEW OF OPERATIONS Yamada Denki Co., Ltd. and Consolidated Subsidiaries March 31, 2018 1. KEY INFORMATION Thousands of U.S. dollars, unless otherwise noted Millions of yen, unless otherwise noted (Note 3) As of and year ended March 31 2014 2015 2016 2017 2018 2018 Net sales (Note 1) ············ 1,893,972 1,664,371 1,612,736 1,563,056 1,573,873 14,810,135 Ordinary profit ·············· 50,187 35,538 62,734 66,040 47,336 445,431 Profit attributable to owners of parent ········ 18,667 9,341 30,396 34,528 29,780 280,229 Comprehensive income ···· 19,737 10,409 32,556 39,373 29,263 275,367 Net assets····················· 553,354 509,398 557,722 585,548 588,740 5,540,045 Total assets ··················· 1,196,288 1,122,408 1,146,723 1,159,457 1,175,568 11,062,090 Net assets per share 6.88 592.17 643.04 666.03 697.47 731.57 (yen) (Note 2) ············ (dollars) Basic earnings per share 0.35 20.22 11.74 38.22 43.00 36.78 (yen) (Note 2) ············ (dollars) Diluted earnings per share 0.34 20.21 11.72 38.16 42.89 36.66 (yen) (Note 2) ············ (dollars) Equity ratio (%) ············· 44.2 43.2 46.6 48.4 49.8 Return on equity (%) ······· 3.5 1.8 6.0 6.3 5.2 Price earnings ratio (times) ···················· 17.01 42.18 13.92 12.91 17.35 Cash flows from operating activities ······ 45,148 22,983 (23) 43,856 61,689 580,498 Cash flows from investing activities ······ (38,607) (20,233) (13,437) (15,279) (12,668) (119,208) Cash flows from financing activities ······ (7,646) (41,488) 4,733 (24,382) (32,920) (309,778) Cash and cash equivalents at end of year ············· 77,754 39,692 30,665 34,982 51,327 482,984 Employees (persons) ········ 21,138 20,405 19,183 19,238 19,752 [Average number of temporary employees not included in the above number (persons)] ·········· [11,384] [10,704] [10,219] [9,670] [9,577] Notes: 1. Net sales do not include consumption tax. 2. The Company conducted a 10-for-1 stock split on common stock, with an effective date of October 1, 2013. Net assets per share, basic earnings per share and diluted earnings per share have been calculated as if the stock split was conducted at the beginning of the fiscal year ended March 31, 2014. 3. For the convenience of readers outside Japan, U.S. dollar amounts have been converted from yen using the prevailing exchange rate at March 31, 2018, which was ¥106.27 to U.S. $1. 1 2. MANAGEMENT POLICY, MANAGEMENT ENVIRONMENT, ISSUES TO BE ADDRESSED BY THE GROUP, ETC. Items in the text below that concern the future were determined by Yamada Denki Group (the “Group”) as of the end of the fiscal year under review. (1) Basic Policy of Corporate Management With sustainable corporate growth as its basic policy, the Group believes in the basic principle of rapidly responding to increasingly sophisticated and diversified consumer needs, and it aims to increase corporate value through practicing its management philosophy of “Creation and Challenge” and “Appreciation