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ANNUAL REPORT 2001
The Next Stage of Growth ANNUAL REPORT 2001 For the year ended March 31, 2001 PROFILE プロフィール Established in December 1927, Mandom Corp. has focused on hair care and cosmetic products since its inception. Our corporate name derives from two words—Human and Freedom, symbolizing our commitment to creativity in an environment that respects people and freedom. Indeed, we have adopted a management policy that positions our employees as our most precious resource and encourages them to be actively involved in our business. Nineteen-fifty eight heralded the start of Mandom’s drive to branch out overseas, particularly to Southeast Asia, with the start of commercial operations at a plant in Manila, the Philippines. This was the first overseas plant in the Japanese cosmetics industry. In 1969, operations started at PT MANDOM INDONESIA Tbk., which is the nucleus of Mandom’s overseas expansion drive today. Thereafter, we progressively made inroads into other Asian markets, and in November 1996 we established our second overseas production base in Zhongshan City, Guangdong Province, China, adding another element to our growing presence in Asia. On the product front, July 1978 marked the launch of Gatsby, our flagship brand. In the ensuing 23 years, this brand has become an established name in the industry, having won strong customer support. In 1999, Gatsby achieved a milestone, becoming the first men’s brand in the Japanese cosmetics industry to top ¥10 billion in PROFILE プロフィール sales. Several years later, in July 1984, we announced our arrival on the women’s cosmetics scene, as we sought to expand the scope of our business. Mandom is pursuing a unique Group strategy, whereby Group members focus on specific sales channels to tailor their efforts to the special needs of each product. Those channels include retailers, hair salons, esthetic salons and door-to-door sales. Overseas, Mandom is building a framework, comprised of Group companies operating in the Asian region, through which it can exert its collective strengths on those markets. 1927年12月の設立以来、当社は頭髪化粧品を中心とした事業を展開し、幾多の変遷を経て現在の株式会 「人間尊重と自由闊 社マンダムとなっています。社名のMANDOMは“ Human & Freedom”の合成語で、 達な風土の中で豊かな創造性が発揮される人間集団」を意味しています。マンダムは経営資源の中で人的 資源を最も重要なものとして位置付け「人を活かす」ことで全員参画による経営方針を貫いています。 当社は1958年、業界初の海外工場をフィリピンのマニラで稼働させ、早くから東南アジアを中心とした 国際化を進めてきました。1969年には、現在海外グループ会社の核となっているPT MANDOM INDO- NESIA Tbkが稼働。その後アジア各国への展開を順次進め、1996年11月には中国・広東省中山市に、第2 の海外生産拠点を設立するなどアジア全域にわたり、確固たる基盤を築いて今日に至っています。 また商品面については、1978年7月に「ギャツビー」を発売して以来、23年間生活者の支持を得るべく ブランド育成を図り、1999年には男性用ブランドとしては業界初の売上高100億円を突破するトップブラン ドになりました。1984年7月には女性化粧品市場にも参入し、業容の拡大を図っています。 グループ会社の展開については国内では商品特性に応じ店頭ルート、ヘアサロンルート、エステティック ルート、 ドアトゥドアルートといった流通チャネルを切り口に分社化をすすめ、海外ではアジア全域をグルー プ会社ネットワークでカバーし総合力を発揮する体制を構築しています。 CONTENTS FINANCIAL HIGHLIGHTS 財務ハイライト __________________________________________________________________ 1 マンダムの基本方針 __________________________________________________________ A MESSAGE TO OUR SHAREHOLDERS 株主の皆様へ ____________________________________________________ NEXT STAGE OF GROWTH 成長シナリオ _________________________________________________________________ 2 CORPORATE PHILOSOPHY 3 7 MARKETING STRATEGY 営業戦略 ________________________________________________________________________ 10 MATRIX STRATEGY マトリックス分析による経営戦略の実践 _________________________________________________ 11 基礎研究体制 ___________________________________________________________ 12 MANAGEMENT’S DISCUSSION & ANALYSIS 経営ならびに財務の分析 ______________________________________ 13 CORPORATE DATA コーポレートデータ ___________________________________________________________________ 29 RESEARCH AND DEVELOPMENT FINANCIAL HIGHLIGHTS 財務ハイライト 株式会社マンダム及び 連結子会社 3月31日に終了した1年間 Net sales 売上高 Operating income 営業利益 Net income 当期純利益 Total assets 2000 Millions of yen/ 百万円 1999 1998 1997 ¥40,057 ¥40,345 ¥35,552 ¥34,446 ¥32,904 5,079 5,068 4,461 4,279 3,574 2,025 2,105 1,583 1,166 1,890 総資産 39,976 42,668 41,598 44,342 38,972 Total shareholders’ equity 株主資本 32,134 33,008 26,642 27,211 26,514 Net income per share 一株当り当期純利益 81.58 89.00 69.15 48.79 79.89 Cash dividends per share 一株当り配当金 34.00 30.00 20.00 20.00 18.00 Net Sales Operating Income 売上高 営業利益 (Millions of yen/百万円) (Millions of yen/百万円) 40,345 40,057 34,446 32,904 5,068 5,079 35,552 4,461 4,279 3,574 97 98 99 00 01 97 98 99 00 1 FINANCIAL HIGHLIGHTS 2001 財務ハイライト MANDOM Corporation and Consolidated Subsidiaries Years ended March 31 01 2 Corporate Philosophy Mandom’s raison d’être is to enrich people’s lives through beauty and health. Guided by this polestar, we stress uniqueness in our drive to grow as an unassailable force in the hair care and cosmetics industry. True to the adage that tradition is built through a continuous cycle of self-improvement and reform, Mandom has undergone a number of name changes since its CORPORATE PHILOSOPHY マンダムの基本方針 inception. We started out as Kintsuru Perfume Corporation, then changed our name to Tancho Corporation and eventually adopted our present name. In our more than 70 years in business, 1982 marked our biggest turning point, as we confronted a management crisis, triggered by a failed sales strategy. However, we turned this crisis to our advantage. We reassessed our role in society and as a company, and as a result adopted the corporate philosophy that guides our efforts to this day. In all aspects of our business, from management through product development and sales, Mandom has established a corporate culture based on a fundamental philosophy of encouraging all employees to take an active role in our operations. In this way, we gain the optimum value from our human resources. マンダムの基本方針 マンダムは“美と健康を通じて快適でゆとりある生活にお役立ちする”の企業理念のもと、 常に独自性を追求しながら「オンリーワン」をめざし成長している会社です。 「 伝統は日々革新の連続 」という言葉が示すように創業 70余年の間に当社の 社名も “金鶴香水” “丹頂” “マンダム”へと変更し、常に自己革新を実践しつづけてきました。 創業以来、数々の変革を遂げてきた当社が直面した最大の転換期は流通政策のつまずき から経営危機に陥った1982年でありました。それを機に企業として社会と共生し、社会への 存在性を問いつづけた結果今日の企業理念が再構築されました。 これにより事業運営、商品開発、営業活動など、あらゆる場面で絶えず“オンリーワン”の 存在を確認キーワードに「全員参画の経営」を実践し人財を最大限に活かすという基本的理 念にもとづいた企業風土が確立されました。 A MESSAGE TO OUR SHAREHOLDERS 株主の皆様へ President and Representative Director Executive Vice President and Representative Director Motonobu Nishimura Hiroshi Kamei 代表取締役社長 代表取締役副社長 西村 元延 亀井 浩 Consolidated net sales in fiscal 2001, ended March 31, 2001 年 3 月期の業績概況 2001 年 3 月期の連結売上高は、主力ブランドである 2001, decreased 0.7% to ¥40,057 million, despite an in- 男性用化粧品「ギャツビー 」を中心に数量は増加し Fiscal 2001 in Review crease in sales volumes, particularly of our mainstay line of たもの の 、単価 の 下 落と女性 用化 粧品が伸び悩 ん Gatsby men’s cosmetic products. The decrease primarily だため前期比 0.7% 減の 400 億円となりました。営 reflected falling unit sales prices and lackluster demand for 業利益につきましては、国内の減益を海外の増収効 women’s cosmetics. Operating profit, meanwhile, increased 果と収益構造の進展でカバーし、前期比 0.2% 増の 0.2% to ¥5,079 million. Lower earning in Japan were offset 50 億円となりました 。当期純利益は、法人税、住民 by higher overseas sales and efforts to improve our overall 税及び事 業税が 減少し、退 職 給付 会 計基 準変 更 時 profit structure. Net profit, however, decreased 3.8% to 差異処理により特別利益も発生したもの の前期比 ¥2,025 million, despite lower income taxes and an extraordi- ¥81.59. The dividend applicable to the fiscal year was ¥34 3.8% 減の 20 億円となりました。一株当り当期純利 益は 81.59 円となりました。利益配分につきまして は、中間期、期末とも 17 円とさせて頂き、通期では 前年比 4 円 増 の 34 円とさせて 頂きました 。当 社 の per share, comprising a ¥17 per share interim dividend and 利益配分に関する基本方針はキャッシュフローを基 nary gain resulting from the application of amended retirement benefit accounting standards. Net profit per share was ¥17 per share year-end dividend. In appropriating profits, 本としています。具体的には営業キャッシュフロー Mandom’s basic policy is to take due consideration of cash を株主配当、事業投資、内部留保へ の配分を基本と flows. Specifically, we allocate operating cash flows to divi- し、投資計画、フリーキャッシュフローを勘案して当 dends, business investment and to bolster our reserves for 期利益に対する配当性向の継続的な向上を目指し future business expansion. As such, we aim to continuously ています。 raise the dividend payout ratio, taking into consideration investment plans and free cash flows. 地域別業績につきましては、日本における売上高 は「 ギャツビー 」ブランドが二 桁 増収を 達 成し「 ル By region, sales in Japan decreased 2.8% to ¥33,271 シード」も堅調に推移しましたが、その他ブランドの million, even as the Gatsby brand posted double-digit 低迷が響いて前期比 2.8% 減の 332 億円となりまし A MESSAGE TO OUR SHAREHOLDERS 株主の皆様へ 3 The MANDOM Group (Consolidated Subsidiaries) 4 関係会社一覧（連結対象） MANDOM Corporation 株式会社マンダム A MESSAGE TO OUR SHAREHOLDERS 株主の皆様へ ASIA 海外 DOMESTIC 国内 MANDOM PHILIPPINES CORPORATION M-ZA Corp. 株式会社エムザ MANDOM CORPORATION (SINGAPORE) PTE LTD. MIC Corp. 株式会社ミック MANDOM TAIWAN CORPORATION PIACELABO Corp. 株式会社ピアセラボ MANDOM (MALAYSIA) SDN. BHD. BEAUCOS Corp. 株式会社ビューコス PT MANDOM INDONESIA TbK GUINOT JAPAN Corp. 株式会社ギノージャパン growth and the Lucido line turned in a strong performance. た。アジアの売上高は、インドネシアの 連結子会社 The decrease reflected less-than-stellar demand for the company’s other brands. In Asia, overseas Group mem- PT MANDOM INDONESIA Tbk が 4,655 億 4700 万ルピア（ 前期比 125.1% ）と過去最高 の 売 bers posted favorable results. Sales at PT MANDOM 上高を計上したほか、フィリピンでも飛躍的な増収 INDONESIA Tbk were a record, up 125.1% over the previ- 率を達成するなど、海外グル ープ各社が健闘し、為 ous year at 465,547 million RP, while sales in the Philippines also showed dramatic growth. During the year, the 替レ ート が 悪 化し て い る 中（ ル ピア / 円 前 期 比 △ 10.3% ）でも、円換算前期比 11.1% 増の 67 億円と RP slipped 10.3% against the yen. After conversion, over- なりました。 seas sales rose 11.1% year on year to ¥6,786 million. グループの総合力で成長を図る Drawing on the Group’s Collective Strengths for Growth マンダムグループは、親会社である株式会社マンダ The Mandom Group is comprised of the parent company, 6 ムと国内グループ会社 6 社（うち連結対象 5 社 ）、ア domestic companies (5 of which are consolidated subsidiar- ジア全 域にネットワークを 持 つ 海 外グル ープ会 社 ies) and 11 companies operating across Asia (5 of which are 11 社（うち連結対 象 5 社 ）で 構成され、グル ープの consolidated subsidiaries). We are promoting a growth strat- 総合力を駆使した成長戦略を展開しています。流通 egy that draws on the collective strengths of the Mandom チャネルに特化したマーケティング展開を実践する Group. Domestic Group companies execute focused mar- 国 内グル ープ会 社 は、親 会 社 で あるマンダムがカ keting strategies, handling products of a highly specialized バーしていない流通チャネルで専門性の高い商品 nature, in sales channels in which Mandom itself does not を取扱うとともに、各社の事業展開で得た情報・ノウ operate. The information and expertise garnered from their ハウを共有することにより相互の商品開発やマーケ respective activities is shared across the Group enabling ティング力 醸 成 へ のシナジー 効 果を 発 揮していま synergies to be captured in product development, and pro- す。海外グループ各社では、今後も高い成長が期待 viding for marketing improvements. Overseas Group mem- されるアジア全域をカバーし、更なる総合力を発揮 bers, for their part, operate across Asia, where high growth するために日本、インドネシア、中国を生産拠点とし is anticipated. To tap their collective strengths, Mandom is た 生産能力 の充実化およびコスト競争力に対応で crafting a framework centered on production bases in Ja- きる体制を築くと共に、アジア全域をカバーする販 pan, Indonesia and China to raise its production capacity 売 体 制 を 構 築し て い ます 。ま た 、PT MANDOM and enhance its cost competitiveness. At the same time, a INDONESIA Tbkでは中近東経由のビジネスも拡 sales structure is being put in place that covers the Asian 大させており、全世界に向けてのマーケティング活 region. At PT MANDOM INDONESIA Tbk, business is being 動を始めています。 expanded through the Middle East and a marketing drive has been launched that targets other parts of the world. As times change in Japan, so too do sales channels, where 日本におけるセルフ化粧品および日用品流通の成長 demand for cosmetics and daily necessities is growing. チャネルは時代とともに変遷しています。 General merchandise stores and convenience stores are 個 人 商 店 中 心 の 時 代から GMS 、CVS へ と 移り gradually replacing sole-proprietorships as the main sales 変 わり、現 在 で は チェー ンドラッグ が そ の 主 軸 と channel, with drug store chains playing the central role in the なって います 。今までもマンダムは 業 界に先 駆 け industry. Mandom was one of the first cosmetics manufac- CVSとの取り組みを行い、さらに近年のチェーンド turers in Japan to start working with convenience stores and ラッグの台頭にもいち早く対応し、企業対企業の取 was quick to also strike up business relationships with drug り組みを開 始するなど絶えず成 長チャネル へ の 変 store chains, which are the growing force in the industry. 化に対応し続けています。さらに、店頭販売だけで B2B is another industry-wide marketing shift that we aim to はなく、1999 年 1 月にはインターネットを活用した stay on top of. Our focus isn’t confined to offline stores. In 無店舗販売にも着手するなど、マンダムは絶えずお January 1999, we started sales over the Internet, extending 客様との最適な接点を追求し続ける企業姿勢を貫 our reach to customers. いています。 Gatsby Flagship Brand トップブランド「ギャツビー」 One of our founding precepts is to steadily nurture brands 当社はブランドを長期に渡り丁寧に育成することを offering customers real value over the long term. In this way, 旨としています。そのことにより、いつの時代の人々 we build brand identity with customers of all generations. にも絶えず新鮮なイメージと認知率の浸透を図って Gatsby, launched in 1978, is a prime example. It has under- います。1978 年に「 ギャツビー 」ブランドを発売し gone 6 makeovers in the ensuring 23 years. Each time, we て以来 23 年の間に6 回のリニューアルを実施しなが reconfigured the product mix and redesigned products to ら、絶えず時代のウォンツに応える商品構成・商品デ stay in sync with changing consumer demands. These efforts ザインを提供し、今日では日本の男性用化粧品とし have established Gatsby as the top brand in the men’s cos- てトップブランドの地位を確立しています。前年実績 metics field in Japan today. Sales last year underscore the で は PT MANDOM INDONESIA Tbk で 1 億 significance of Gatsby as a key brand in the Mandom Group 3000 万個、日本では4700万個、合計 1 億7700 万個 portfolio. A total of 177 million units were manufactured, 130 が生産され、アジアを中心とした国々で愛用されて million units at PT MANDOM INDONESIA Tbk and 47 million おりマンダムグループの中核をなすブランドになっ units in Japan. The Gatsby brand will continue to evolve with ています。 「ギャツビー 」ブランドは時代とともに進 the times. Recently, a dramatic change has been witnessed 化します。近年、日本の 10 代から20代の男性の化粧 Mandom is catering to the needs of the modern man with a wide assortment of products from mainstay hair care lines to face care items, deodorants and fragrances. 頭髪を中心に、フェイスケア、デオドラント、ライトフレグランスなど様々 な商品でヤング男性のウォンツに応えています。 5 株主の皆様へ 販売チャネルの変化に対応し続けるマンダム A MESSAGE TO OUR SHAREHOLDERS A Continuous Response to Changes in Sales Channels 株主の皆様へ 6 in the attitude of males in their teens and 20s toward greater に対する意識は大きく変わってきており、当社はこう acceptance of cosmetics. Mandom intends to pinpoint pre- した生活者のウォンツを的確にとらえ、ヘアカラーを cisely what these consumers require and broaden its lineup 含む頭髪を軸として、フェイスケア、デオドラント、ラ accordingly, particularly in core hair care products, including イトフレグランス等、商品アイテムを充実させつづけ hairdyes. Face care, deodorants and fragrance lines are also 生活者に支持されるスーパーブランドの地位を確立 targeted for expansion. In this way, we will grow Gatsby into しています。 a mega brand, strongly supported by consumers. 環境と品質を重視した経営 A MESSAGE TO OUR SHAREHOLDERS Environmental and Quality Management 当社はエアゾー ル商品 の脱フロン化を業界に先駆 Mandom has led the industry in eliminating fluorocarbons けて実施し、1989 年 3 月に財団法人日本環境協会よ from products packaged in aerosol cans. In March 1989, り20 商品がエコマーク第一号の認定を受けました。 Mandom received approval to label 20 of its products with また、2000 年 11 月には、国内 の福崎工場と物流セ the 1st eco marks from the Japan Environment Association. ンターで環境マネジメントシステムの国際規格であ In November 2000, our Fukusaki Plant and Logistics Center る ISO14001を認証取得しました。さらに、塩ビ製 in Japan obtained ISO 14001 certification, an international 品の容器撤廃を推し進め、2000 年 12 月に塩ビ全廃 standard for environmental management systems (EMS). 宣言をしています。当社では早くから詰め替え用化 Moreover, we have pushed ahead with an initiative to elimi- 粧品の販売に着手し、その容器には「紙パック」を採 nate packaging containing polyvinyl chloride (PVC). In De- 用するなど資源の再利用ができるように配慮してい cember 2000, we were able to announce that our packing is ま す 。当 社 で は 3R 設 計（ Reduce, completely PVC free. Mandom was also an early champion of refillable cosmetics containers. What’s more, the packag- Reuse, Recycle ）に 加 え 、3E（ Ecology, Economy, Effect ）の考えをもとに開発した商品を「環境配慮 ing for these products is made from paper, facilitating re- 商品 」として販売するなど、環境問題に取り組んで source recycling. Mandom’s products are designed with the います。 3Rs in mind: reduce, reuse and recycle. They also take due また、品質保証の面では、1998 年に国内で業界初 consideration of the 3Es: ecology, economy and effect. の本社 - 研究所 - 工場 - 物流センターでの一貫した品 That’s why we market the products we develop as being in 質保証の国際規格、ISO9001を認証取得しました。 step with ethical environmental principles. 当社はグループの総合力を結集することで、他社 Product quality is another Mandom trademark. We were にない独自性を打ち出してさらなる成長を図ってま first in Japan’s cosmetics industry to gain ISO 9001 inter- いります。今後とも皆様のご理解とご支援を賜りま national certification for product quality assurance that en- すよう心からお願い申し上げます。 compasses our head office, research laboratories, plants and logistics center. By mustering our collective strengths, I am convinced that we can build on our uniqueness and drive growth. Your support will underpin our efforts. President and Representative Director 代表取締役社長 Executive Vice President and Representative Director 代表取締役副社長 Motonobu Nishimura 西村 元延 Hiroshi Kamei 亀井 浩 NEXT STAGE OF GROWTH 成長シナリオ At Mandom, each division is managed in accordance マンダムでは全社の年間方針に基づき各部門におい with the company’s annual policy. In addition, units have て運営がなされるだけでなく、関連部門が有機的に結 been formed that organically integrate auxiliary depart- 合し“ユニット”を形成しています。これによりユニット ments into each division. Units are thus managed on an 単位の管理運営が一方でなされ年間方針実現に向け individual basis toward achievement of the company’s た効率的な事業推進を実現させています。当社成長 annual goals. This unit-based management framework 要因の一つにこのユニットによるマネジメントが機能 has underpinned our growth. しています。 Unit ユニット名 Auxiliary Depts. 関連部門 R&D Product Development Div., Central Research Laboratories, Quality & Environment Management Div., Customer Relations Div. 研究・開発 商品開発部、中央研究所、品質・環境マネジメント室、 お客さま相談室 Manufacturing & Logistics Purchasing Div., Manufacturing Div., Production Engineering Div., Logistics Center 生産・物流 購買部、生産部、生産技術室、物流センター Marketing Sales Promotion Div., Marketing Information Div., Sales Planning Div., Chain Store Sales Div., Nationwide Sales Offices, E/O Skin-Treatment Direct Marketing Div. 宣伝販促部、マーケティング情報企画部、 営業企画部、チェーンストア営業部、全国営業所、E/Oスキンサイエンス事業部 マーケティング Resource Management リソース管理 Financial Management Div., Human Resources Div., Secretarial Office, General Administration Div., Information Systems Div., PR & Investors Relations Div., Legal Affairs Div. 財務管理部、人事部、役員秘書室、総務部、 情報システム室、広報IR室、法務室 Group Businesses International Operations Div., Management Planning Div. グループ事業 国際事業部、経営企画室 Domestic Strategy 国内戦略 Broadening the “Gatsby” Lineup—Promoting Hair Dyes ギャツビーブランドのカテゴリー拡充 The Japanese cosmetics market is said to be in a mature ―― ヘアカラー剤の積極展開 ―― state. One product category, however, is expanding and 成熟市場と言われている日本の化粧品市場の中で、市 growing strongly: hair dyes. In recent years, hair coloring 場規模が大きく且つ成長している唯一のカテゴリーが has been in vogue among Japanese males. However, 染毛剤です。近年、国内では男性の間でもヘアカラー bleaches and dyes made especially for men were not avail- 剤が流行していますが、 男性専用のブリーチ&カラー剤 able. In March 2001, Mandom changed the face of the hair こ は発売されていませんでした。当社は2001年3月、 dye market with the full-scale launch of a line of Gatsby の成長カテゴリーである染毛剤市場に、男性化粧品の March 2001 heralded Mandom’s full-scale entry into the men’s hair dye market in Japan with a line of Gatsby brand products. 2001 年 3 月、“ギャツビー”ブランドで男性カラーリング市場へ本格参入 7 成長シナリオ 独自のユニット経営 NEXT STAGE OF GROWTH Independent Unit Management NEXT STAGE OF GROWTH 成長シナリオ 8 hair dyes for this growing market. Taking advantage of our 「ギャツビー」ブランドで本格的に参入いたしました。 strong Gatsby brand equity, the lineup has won quick ac- 「ギャツビー」の強いブランド力に支えられ、市場にス ceptance from consumers, with sales rising steadily. We ムーズかつスピーディに認知され、 順調に売上を伸ばし intend to build on this success, adding new categories of ています。 「ギャツビー」ブランドに今までなかったカテ products and advancing into new business domains. ゴリーを充実させ、 新しい領域の拡大を図っています。 Strengthening the Role of Each Group Member in its 国内グループ各社の位置付け Respective Field 親会社であるマンダムがカバーしていない流通チャネ Five Mandom subsidiaries are developing distinctive busi- ルは、子会社を通じて特徴のある事業展開を行なって nesses in sales channels not covered by the parent 商品開発について います。5社の概要は以下の通りで、 company. Excluding imported items, all product develop- は輸入品を除いて全てマンダムが行なっています。 ment is carried out by Mandom. ■ フレグランスを中心に選別流通で提供しています。 Selective distribution of well-known overseas brands of makeup, fragrances and other cosmetic products. ■ 材およびそれらの技術を美容サロンに提供しています。 Hair care items, skincare products, esthetic products ■ ア商品をエステサロンに提供しています。 Provides esthetic and homecare products from ■ を通じてフェイス トゥ フェイスで提供しています。 Door-to-door sales of European cosmetics, through the MIC nationwide network. Engaged in production and importation of products ミック ヨーロッパのコスメティックを全国のミックオフィス • MIC Corp. • BEAUCOS Corp. ギノージャパン フランス「ギノー社」のサロン向けエステ&ホームケ • GUINOT JAPAN Corp. France’s Guinot Company to esthetic salons in Japan. ピアセラボ プロユースのヘアケア商材、 スキンケア商材、 エステ商 • PIACELABO Corp. and related technologies for beauty salon professionals. エムザ 高感度な海外ブランドをメイクアップ化粧品および • M-ZA Corp. ■ ビューコス グループ会社が取り扱う商品の生産・輸入業務を一 括して手掛けています。 handled by Group companies. 海外戦略 Overseas Strategy 「ギャツビー」をアジアのトップブランドに Mandom Group companies, particularly Indonesia-based 当社はインドネシアの PT MANDOM INDONESIA Tbkを中核に、シンガポール、マレーシア、フィリピン、 PT MANDOM INDONESIA Tbk, have had a long associa- 台湾をはじめとするアジアに早くからグループ会社を tion with Asia, including Singapore, Malaysia, the 展開してきました。近年、アジアは人口および人口増 Philippines and Taiwan. The size and growth rate of Asia’s 加率において極めて高いマーケットポテンシャルを population suggest that it is an area with enormous poten- 持っていることから、世界で最も注目されているエリ tial. Mandom is channeling resources into the Asian region, アの一つです。当社ではこのアジアに経営資源を集中 while putting in place a framework to take maximum ad- させながら、 グループの総合力を最大限に発揮できる vantage of the collective strengths of the Mandom Group. 体制を構築していきます。 Growing Gatsby Into Asia’s Top Brand Our aim is to grow Gatsby into Asia’s top brand in its 「ギャツビー」ブランドをアジア全域におけるトップ market category. Our first step is to target the hair color ブランドとして育成するため、まずヘアカラーを重点 market as we seek to nurture Gatsby into an international カテゴリーに設定し、地域にこだわることなくアジア全 brand sold throughout Asia. 域で販売する国際商品に育成する計画です。 Three Production Bases in Asia アジアにおける生産 3 拠点体制 Mandom’s activities are underpinned by three production 日本、 インドネシア、中国を生産拠点としてグローバル bases; in Japan, Indonesia and China. These bases な原材料の調達を行い、商品別に最適生産体制を構 source raw materials and production is carried out by 築し、生産能力の充実化を図るとともに品質、 コスト競 product type to make optimum use of capacity. We in- 争力を確保していきます。 9 tend to ramp up our production capacity and at the same time secure quality and cost competitiveness. Sales channel Company name 流通形態 社名 Sales channel 流通チャネル Mass distribution MANDOM Corp. マス流通 マンダム Selective distribution M-ZA Corp. セレクティブ流通 エムザ PIACELABO Corp. ピアセラボ Esthetic salon GUINOT JAPAN Corp. エステサロン流通 ギノージャパン Door-to-door MIC Corp. Offices フェイス トゥ フェイス流通 ミック オフィス BEAUCOS Corp. KONAN SERVICE Corp. 公南サービス 保険・ビルメンテナンス Beauty salon ヘアサロン ビューコス Insurance and building maintenance 販売店 代理店 美容サロン流通 輸入・仕上生産・販売 NEXT STAGE OF GROWTH Retailer Agency Beauty salons Import, purchasing, production and sales 成長シナリオ Domestic Group Companies 国内グループ会社 Esthetic salon Consumer エステサロン 生活者 Group Company グループ会社 Group Company etc. グループ会社他 Overseas Group Companies 海外グループ会社 Company name 社名 Location MANDOM KOREA CORPORATION Seoul, Republic of Korea 韓国（ソウル） MANDOM TAIWAN CORPORATION Taipei, Taiwan 台湾（台北） SUNWA MARKETING CO., LTD. Hong Kong, China 中国（香港） ZHONGSHAN CITY RIDA FINE CHEMICAL CO., LTD. Zhongshan, China MANDOM PHILIPPINES CORPORATION Manila, Philippines フィリピン（マニラ） MANDOM CORPORATION (THAILAND) LTD. Bangkok, Thailand タイ（バンコク） MANDOM (MALAYSIA) SDN. BHD. Kuala Lumpur, Malaysia マレーシア（クアラルンプール） MANDOM CORP. (SINGAPORE) PTE LTD. Singapore シンガポール（シンガポール） PT MANDOM INDONESIA Tbk Jakarta, Indonesia インドネシア（ジャカルタ） 所在地 Seoul ソウル Osaka 大阪 Taipei 台北 Hong Kong 香港 Zhongshan 中山市 Manila マニラ Bangkok バンコク Kuala Lumpur クアラルンプール Singapore シンガポール Jakarta ジャカルタ 中国（中山市） REVIEW OF OPERATIONS 業務レビュー MARKETING STRATEGY 営業戦略 10 Database marketing is the defining feature of our sales activities. Data is 当社営業活動の特徴はデータベースマーケティングの実践にあ quickly obtained and processed from various sources, including POS ります。 data from purchases by customers at retailers, and sales data sent from 当社から代理店に出荷されたデータはもとより、代理店から agents to retailers. Analysis of data enables us to grasp market condi- 販売 店 へ の 販 売データや 販売 店でお客さまが購入した POS tions by product and identify product trends by region, location and データなど多岐に渡る情報を有効に活用しています。これらの business model. This information is used as the basis for formulating データを随時収集・分析することにより商品別の市場状況や地 sales strategy and is also fed back into sales activities. 域別・立地別・業態別の商品動向の把握を可能にし、営業戦略や 営業活動に反映しています。 さらに当社は早くから主要組織小売業の POSデータの重要 comprehensive planogram proposals that subsequently help raise store 性に着目し、店頭情報を分析することにより店頭の生産性向上 productivity. のための総合的な棚割提案を実現しています。 Using a massively parallel processing computer, we centralize the man- Mandom proposes best-fit planograms based on analyses of store data. agement of reams of data, which are quickly analyzed and feedback into 販売店のデータを分析して、最適な棚割を提案しています。 MARKETING STRATEGY 営業戦略 From early on, Mandom has placed importance on POS data of main retail chains. Based on analysis of store data, we can develop our activities. 超並列コンピュータを活用して、さまざまなデータを集中管理しています。 これにより、わずかな時間で情報の分析・検証をすることが可能です。 MATRIX STRATEGY マトリックス分析による経営戦略の実践 In drafting business strategy, we do not just focus on responding to 事業戦略の構築に際しては各国が個別に対応するだけでなく each country on an individual basis. We also consider the strategy for ①カテゴリー戦略②ブランド戦略③販売エリア戦略④生産戦略 each category, brand, sales area and production, taking a holistic ap- 等の統合化を図り、全体最適の視点からマトリックスによる総合 proach to strategy formulation. 的な展開を図っています。 方針 Key brand Gatsby 最重点ブランド ギャツビー Key category Hair color 最重点カテゴリー ヘアカラー Regional strategy Pursue a strategy that divides the business areas of Group companies into 5 blocks. グループ会社展開地域を5ブロックに分類し戦略を構築 MATRIX STRATEGY 地域戦略 マトリックス戦略による経営の実践 Present Policy 11 PT MANDOM INDONESIA Tbk PT マンダム インドネシア MANDOM Head Offices ZHONGSHAN CITY RIDA FINE CHEMICAL CO., LTD. (China) マンダム本社ビル 中山市麗達精細化工有限公司（中国） RESEARCH AND DEVELOPMENT 基礎研究体制 RESEARCH AND DEVELOPMENT 基礎研究体制 12 Diversification of consumer wants. Shorter product lifecycles. Seamless 国内の化粧品市場は、生活者ウォンツの多様化、製品ライフサイ markets due to the deregulation that is accompanying revisions to the クル の 短縮化、薬事法施行規則 の改正に伴う規制緩和による ministerial ordinance of the Medicines Act. These are just some of the ボーダレス化など目まぐるしく変化しています。基礎研究活動 factors reshaping the domestic cosmetics market at a dizzying speed. の現状課題は、こうした市場に対してタイムリーに商品化する Delivering products under these conditions requires tightly focused and ために短期間に効率的かつ精度の高い研究活動を行うことで highly precise basic research, carried out in an efficient and timely manner. す。これに対応するため、当社の研究所が主軸となり外部研究 Our laboratories are at the center of our drive to stay in step with markets 機関とのネットワーク構築を図り、それらの相乗効果による研 and even create new markets. We are also building a network linking us 究開 発体 制 の 強化を 行ない 当期 の新 製品 開発 能力 の 向 上を with external research institutions, thereby strengthening our research and 図っていきます。 development through synergy. The ultimate result is an enhanced ability to ① 基幹カテゴリーである頭髪分野、カラー剤分野への技術の重 develop new products. (1) Focus on technologies for core categories: hair care and hair dyes We are focusing on development of new materials, such as hair set- 点化 新規素材（セット性樹脂等）や剤型の技術開発に注力すると ともに、男性用カラー剤の開発を行っています。 ② 環境負荷低減への技術取り組み強化 ting resins, and new ways of using products. At the same time, we are 当社は環境へ の負荷低減を目的とした処方開発を進める一 developing new hair dyes for men. 方、問題となっている内分泌撹乱物質（環境ホルモン）の排 (2) Technologies to reduce environmental impact R&D also aims to reduce the environmental impact of our products and business activities. Key research themes are: eliminating endo- 除、防腐剤フリーの技術開発にも注力しています。 ③「老化」をキーワードとした研究活動の推進 シーズ探索・応用研究活動においては「 老化 」をキーワード crine disruptors (environmental hormones) and developing preser- とする研究開発活動を行っています。高齢化社会の到来と vative-free technologies. ともに市場の拡大が予測される「育毛」 「抗しわ」 「美白」市 (3) Promoting research activities focused on aging In our investigations into emerging needs and in applied research, aging 場をターゲットに国内外の企業をはじめ大学等の公的研究 機関の協力も得てそのシーズ探索と応用研究を継続的に行 is a key theme. With the advent of a ‘graying’ society, we are targeting い「 老化 」に関する市場に対応した 製品 の 技術開発を目指 the development of products for this emerging market. Our ongoing しています。 research, conducted in collaboration with Japanese and overseas universities and other public research institutions, targets hair growth, anti-wrinkling, skin protection and other potential growth markets. Mandom’s Central Research Laboratories are building a network with outside research institutions to facilitate the efficient and timely commercialization of products. 中央研究所では、効率的かつタイムリーに商品 化をすすめるため、外部研究機関とのネット ワーク構築を図り研究開発体制の強化を図って います。 The Next Stage of Growth ANNUAL REPORT 2001 For the year ended March 31, 2001 MANAGEMENT’S DISCUSSION & ANALYSIS 経営ならびに財務の分析 売上高 国内 アジア 2000 40,057 33,271 6,786 40,345 34,236 6,109 35,552 31,017 4,535 17,233 5,079 2,025 1,525 39,976 32,134 81.58 34.00 17,429 5,068 2,105 1,501 42,668 33,008 89.00 30.00 15,945 4,461 1,583 1,387 41,598 26,642 69.15 20.00 1997 1996 34,446 30,597 3,849 32,904 – – 32,714 – – 15,606 4,279 1,166 1,318 44,342 27,211 48.79 20.00 15,032 3,574 1,890 1,513 38,972 26,514 79.89 18.00 14,206 4,280 1,744 1,221 39,046 23,991 82.78 18.00 販売費及び一般管理費 営業利益 当期純利益 研究開発費 総資産 株主資本 一株当り当期利益 一株当り配当金 SEGMENT INFORMATION セグメントの概要 The operations of Mandom Corporation (the “Company”) and its sub- 株式会社マンダムと子会社の事業区分方法は販売市場等を考 sidiaries (the “Companies”) are split between two markets: Japan and 慮して日本、アジアの 2 区分となっています。日本においては親 the rest of Asia. The Company and five domestic Group subsidiaries— 会社である株式会社マンダムと国内グループ会社の株式会社 PIACELABO Corp., MIC Corp., M-ZA Corp., GUINOT JAPAN Corp. and ピアセラボ、株式会社ミック、株式会社エムザ、株式会社ギノー BEAUCOS Corp.—operate in the Japanese market. Mandom focuses ジャパン 、株 式 会 社ビューコ ス の 5 社 で 構 成 さ れ て い ます 。 essentially on men’s cosmetics, while Group companies concentrate マンダムは男性用化粧品を中心に、またグループ会社は女性用 on women’s cosmetics. 化粧品を中心とした事業活動を展開しており、海外については、 Overseas, Mandom has established manufacturing and sales sub- インドネシアと中国に製造・販売会社、韓国、台湾、中国（香港）、 sidiaries in Indonesia and China, and international sales subsidiaries in フィリピン、タイ、マレーシア、シンガポー ルに海外販売会社を South Korea, Taiwan, Hong Kong, the Philippines, Thailand, Malaysia 設置しています。業績の数値には当社と国内外 の連結対象子 and Singapore. The consolidated financial statements reflect the finan- 会社 10 社が含まれています。また、持分法適用関連会社はあ cial results of the Company and a total of 10 domestic and overseas りません。 consolidated subsidiaries. Mandom has no affiliates accounted for by the equity method. 営業環境 当期の日本経済は、緩やかな改善の兆候が見られたもの の個 OPERATING ENVIRONMENT 人 消費は低 調に推 移しました 。化 粧品 市 場は、個 人 消 費 の 回 The Japanese economy in the fiscal year ended March 31, 2001 wit- 復が期待できない 状況下で、価格競争がさらに熾烈化する厳 nessed a continuation of lackluster personal consumption, although there しい市場環境となりました。アジア経済は回復基調を維持して were signs of a faint recovery. The domestic cosmetics market was いましたが、米国経済の 減速や 円安 の影響から不透明感が高 characterized by heated price competition against the backdrop of flag- まりました。 ging personal consumption. In Asia, outside Japan, the underlying tone was one of stability, although the slowing U.S. economy and a weakening yen cloaked its future with growing uncertainty. 13 経営ならびに財務の分析 Net Sales Domestic Asia Selling, General and Administrative Expenses Operating Income Net Income Research and Development Total Assets Total Shareholders’ Equity Net Income Per Share Cash Dividends Per Share Millions of yen/ 百万円 1999 1998 2001 MANAGEMENT’S DISCUSSION & ANALYSIS Years ended March 31 MANAGEMENT’S DISCUSSION & ANALYSIS 経営ならびに財務の分析 14 OPERATING RESULTS 業績の概況 Consolidated net sales in the year ended March 31, 2001 decreased 当 連 結 会 計 年 度 の 連 結 売 上 高 は 、前 期 比 0.7 ％ 減 の 400 億 0.7% to ¥40,057 million. Sales in Japan declined 2.8% amid generally 5,700万円と微減収となりました。国内では個人消費の低迷と lackluster personal consumption and falling prices. The decrease pri- 物価下落が続くなか、主力ブランドの「ギャツビー 」を中心とし marily reflected lower prices for the Companies’ products and sluggish て数量増は達成したものの単価下落と女性用化粧品の伸び悩 demand for women’s cosmetics, which outweighed higher volumes, みから2.8 ％の減収となりました。一方、海外では東南アジア各 particularly of mainstay Gatsby line products. Overseas sales, spurred 社が積極的な販売促進活動を展開した結果、経済回復と相俟っ by aggressive promotional activities by Southeast Asian subsidiaries, て在外子会社 5 社中 4 社が現地通貨建てで増収を達成し、前期 rose 11.1% year on year. Of particular note was that four out of the 比 11.1％の増収となりました。 Company’s five overseas subsidiaries posted higher sales due to these efforts as well as recovery in their markets. 営業利益は、前期比 0.2 ％ 増 の 50 億 7,900 万 円となりまし た。これは親会社を含めた国内事業では、減収による粗利益の Operating income increased 0.2% to ¥5,079 million thanks mainly to a 減額を経費節減で補いきれず 2.7 ％の減益を余儀なくされまし 13.8% rise in earnings overseas as sales rose and measures were taken たが、海外では増収効果と収益構造改革の着実な進展で前期比 to improve profit structures. The strong overseas performance offset a 13.8％の増益を達成したことによるものです。営業外損益では 2.7% decline in profits in Japan, where a decrease in gross profit result- 為替差損の発生と不良資産の処理を進めたほか、退職給付会計 ing from a top-line decline outweighed lower expenses. In other ex- 基準変更時差異処理額を特別利益に計上した結果、当期純利益 penses, Mandom recorded a foreign exchange loss and charges for は前期比 3.8 ％減の 20億 2,500 万円となりました。 disposing of unprofitable assets. It also booked a transitional gain on its 所在地別セグメントの業績を示すと、次の通りです。 pension obligation resulting from the application of new retirement ben- 日本においては、当社は「ギャツビー」ブランドで二桁増収を efit accounting standards in the fiscal year under review. As a result of 達成したものの、その他のブランドの低迷が響き減収となりまし the foregoing factors, net income came in at ¥2,025 million, down 3.8% た。また国内連結子会社においても「クレージュ」ブランドを除 over the previous fiscal year. き、女性用ブランドが伸び悩み傾向となり全体として減収を余儀 By geographical segment, sales in Japan decreased 2.8% to ¥33,271 なくされました。以上の結果、売上高は前期比 2.8％減の 332 億 million, even as the Gatsby brand posted double-digit growth. The de- 7,100 万円となりました。利益面では粗利益の減少を販売費及 crease reflected less-than-stellar demand for the company’s other brands. び一般管理費の削減で埋めきれず、営業利益は前期比 2.7 ％減 The top-line was also hurt by sluggish sales of women’s brands, except の 40億円となりました。 Courrèges, at domestic consolidated subsidiaries. On the profit front, op- 一 方 、ア ジア に お い て はインド ネシ ア の 連 結 子 会 社（ PT erating income decreased 2.7% to ¥4,000 million due to lower gross profit, MANDOM INDONESIA Tbk ）が、市場シェア拡大を優先した which outweighed lower selling, general and administrative expenses. 価格戦略により過去最高売上高を前期に引き続き更新し、また In Asia, consolidated Indonesian subsidiary PT MANDOM INDONESIA フィリピンにおいても飛躍的な増収率を達成、台湾の伸び悩み Tbk recorded record-high sales for the second year running due to a を吸収した結果、売上高は前期比 11.1％増の 67 億 8,600 万円 pricing strategy targeted at grabbing a higher market share. Sales in the となりました。また、増収効果と販売費及び一般管理費の予算 Philippines also showed dramatic growth. These performances countered 統制により営業利益は前期比 13.8％増の 10億 7,500万円とな depressed sales in Taiwan, resulting in an 11.1% year-on-year increase in りました。 overseas sales to ¥6,786 million. Overseas operating income climbed 13.8% to ¥1,075 million due to the higher sales and measures to hold selling, general and administrative expenses within budget. Fundamentally, capital expenditures are for facilities to produce 当社グループ（当社及び連結子会社）では、 「競争力優位を維持 products that maintain the Companies’ competitive edge. Capital する製品」の生産設備投資を基本としています。当連結会計年 expenditures for the year ended March 31, 2001 amounted to 度は化粧品製造設備（機械および装置）およびグループ全体の ¥2,474 million. 事業効率化に向けた不動産の購入を含め全体で 24億 7,400万 The main components of capital expenditures were ¥695 million for 円の設備投資を実施しました。 the acquisition of land for an office building in Tokyo to raise the effi- その 主な投資内容は、当社及び国内グル ープ会社の営業活 ciency of sales activities of the parent company and domestic Group 動効率化に向けた東京都内の事業所用地の取得に6億 9,500万 companies, and ¥614 million for buildings and cosmetic production fa- 円、当社福崎工場における生産力増強・環境対策として建物・化 cilities to ramp up production at the Fukuzaki Plant and improve envi- 粧品製造設備に6 億 1,400万円の投資を行っております。また、 ronmental management. In addition, ¥507 million was invested in インドネシアの在外子会社 PT MANDOM INDONESIA Tbk buildings and production facilities at a new plant owned by overseas においては、業容拡大にともなう新工場の建物・化粧品製造設 subsidiary PT MANDOM INDONESIA Tbk in Indonesia. 備に5億 700 万円の投資を行いました。 CASH FLOWS キャッシュ・フロー Net cash provided by operating activities was ¥3,659 million, lower than 営業活動によるキャッシュ・フローは、税金等調整前当期純利益 the previous fiscal year due to increases in receivables and income taxes- は増加しましたが、売上債権及び法人税等支払額の増加、非資 paid and a decrease in non-cash provisions. These outweighed an in- 金取引である引当金の減少により前期に比較して減少し 36 億 crease in income before income taxes and minority interests. 5,900万円となりました。 Investing activities used net cash of ¥2,642 million, principally for the 投資活動によるキャッシュ・フローは、有形固定資産取得に24 acquisition of ¥2,474 million in property and equipment and for addi- 億 7,400 万円、連結子会社株式の追加取得に 4 億円使用しまし tional investments of ¥400 million in an associated company. These たが、一部運用 資金 の回 収で補った結 果、26 億 4,200 万円 の outflows offset cash provided by proceeds from some investments. The キャッシュ・アウトとなりました。有形固定資産取得の主なもの main components of property and equipment acquisitions were pur- は、東京事務所用地の取得及び、インドネシアにおける新工場建 chase of land for a Tokyo office, investments in new plant construction 設・化粧品製造設備並びに日本における化粧品製造設備・環境 and cosmetics production facilities in Indonesia, and acquisition of cos- 施設の取得です。 metic production facilities and environmental facilities in Japan. 財務活動によるキャッシュ・フローは、 インドネシアにおいて株 Financial activities used net cash of ¥456 million The Company pro- 主割当増資を行なったことによる少数株主からの払込金が 4 億 cured ¥463 million in funds from minority shareholders through a private 6,300万円ありましたが、少数株主への配当金の支払額を含め placement in Indonesia. Cash of ¥959 million, however, was used for 株主配当金に9 億 5,900 万円使用したことにより4億 5,600 万円 the payment of dividends, including dividends to minority shareholders. のキャッシュ・アウトとなりました。以上の結果、現金及び現金同 Cash and cash equivalents at the end of the year were ¥5,816 million, 等物は4億 7,900 万円増加して、58億 1,600万円となりました。 up ¥479 million from a year ago. 15 経営ならびに財務の分析 設備投資等の概要 MANAGEMENT’S DISCUSSION & ANALYSIS Capital Expenditures CONSOLIDATED BALANCE SHEETS MANDOM Corporation and Consolidated Subsidiaries March 31, 2001 and 2000 Millions of Yen CONSOLIDATED BALANCE SHEETS 16 ASSETS CURRENT ASSETS: Cash and cash equivalents .......................................................................................................... Short-term investments (Notes 2.e and 3) .................................................................................... Receivables: Trade notes and accounts ........................................................................................................ Unconsolidated subsidiaries and associated companies .......................................................... Other ....................................................................................................................................... Allowance for doubtful accounts .............................................................................................. Inventories (Note 4) ...................................................................................................................... Deferred tax assets (Note 8) ........................................................................................................ Prepaid expenses and other current assets ................................................................................. 2001 2000 ¥ 5,816 909 ¥ 5,337 2,958 5,868 91 184 (44) 5,286 281 535 5,179 131 195 (50) 5,947 213 717 Total current assets .............................................................................................................. 18,926 20,627 PROPERTY AND EQUIPMENT: Land ............................................................................................................................................ Buildings and structures .............................................................................................................. Machinery and equipment ........................................................................................................... Construction in progress .............................................................................................................. 1,791 13,613 7,476 918 1,126 13,526 7,431 31 Total ..................................................................................................................................... Accumulated depreciation ........................................................................................................... 23,798 (11,593) 22,114 (10,914) 12,205 11,200 4,845 848 1,215 16 1,921 1,936 950 1,237 4,102 436 2,180 Total investments and other assets ....................................................................................... 8,845 10,841 TOTAL ............................................................................................................................................ ¥39,976 ¥42,668 Net property and equipment ................................................................................................. INVESTMENTS AND OTHER ASSETS: Investment securities (Notes 2.e and 3) ....................................................................................... Investments in and advances to unconsolidated subsidiaries and associated companies (Note 5) ..... Long-term loans .......................................................................................................................... Foreign currency translation adjustments (Note 2.c) ..................................................................... Deferred tax assets (Note 8) ........................................................................................................ Other assets ................................................................................................................................ See notes to consolidated financial statements. Millions of Yen CURRENT LIABILITIES: Short-term bank loans (Note 6) .................................................................................................... Payables: Trade notes and accounts ........................................................................................................ Associated companies ............................................................................................................. Other ....................................................................................................................................... Accrued income taxes (Note 8) .................................................................................................... Accrued expenses ....................................................................................................................... Other current liabilities ................................................................................................................. 2001 ¥ 446 2000 ¥ 17 482 2,777 6 9 881 681 457 2,402 11 6 1,182 692 349 Total current liabilities ............................................................................................................ 5,257 5,124 LONG-TERM LIABILITIES: Liability for retirement benefits (Note 7) ........................................................................................ Deferred tax liabilities (Note 8) ...................................................................................................... Other long-term liabilities ............................................................................................................. 953 365 140 1,789 29 43 Total long-term liabilities ........................................................................................................ 1,458 1,861 MINORITY INTERESTS ................................................................................................................ 1,127 2,675 SHAREHOLDERS’ EQUITY (Notes 10 and 13): Common stock, ¥ 50 par value-authorized, 84,300,000 shares; issued and outstanding, 24,814,906 shares at March 31, 2001 and 24,814,906 shares at March 31, 2000 .................... Additional paid-in capital .............................................................................................................. Retained earnings ........................................................................................................................ Unrealized gain on available-for-sale securities ............................................................................. Foreign currency translation adjustments (Note 2.c) ..................................................................... 9,753 9,595 14,837 768 (2,819) 9,753 9,595 13,665 Total ..................................................................................................................................... Cost of treasury stock- 168 shares at March 31, 2001 and 2,994 shares at March 31, 2000 ....... 32,134 (0) 33,013 (5) Total shareholders’ equity ..................................................................................................... 32,134 33,008 TOTAL ............................................................................................................................................ ¥39,976 ¥42,668 CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS’ EQUITY CONSOLIDATED STATEMENTS OF INCOME MANDOM Corporation and Consolidated Subsidiaries Years ended March 31, 2001 and 2000 Millions of Yen CONSOLIDATED STATEMENTS OF INCOME 18 2001 2000 NET SALES (Note 12) .................................................................................................................... ¥40,057 ¥40,345 COST OF SALES (Note 12) ........................................................................................................... 17,745 17,848 Gross profit .......................................................................................................................... 22,312 22,497 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........................................................ 17,233 17,429 Operating income ................................................................................................................. 5,079 5,068 OTHER INCOME (EXPENSES): Interest and dividend income (Note 12) ........................................................................................ Interest expense .......................................................................................................................... Purchase discounts ..................................................................................................................... Sales discounts ........................................................................................................................... Loss on disposal of property and equipment ............................................................................... Loss on disposal of inventories .................................................................................................... Loss on devaluation of securities ................................................................................................. Charge for full amount of transitional benefit for retirement benefit (Note 2.i) ................................ Other-net ..................................................................................................................................... 139 (53) 171 (782) (24) (247) (213) 374 (114) 402 (92) 237 (882) (33) (310) (18) Other expenses-net .............................................................................................................. (749) (878) INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS ............................................. 4,330 4,190 INCOME TAXES (Note 8) Current ........................................................................................................................................ Deferred ...................................................................................................................................... 1,866 138 1,904 (125) Total income taxes ................................................................................................................ MINORITY INTERESTS IN NET INCOME OF SUBSIDIARIES .................................................... 2,004 301 1,779 306 NET INCOME ................................................................................................................................ ¥ 2,025 ¥ 2,105 (182) Yen PER SHARE OF COMMON STOCK (Note 2.n): Net income: Assuming no dilution ................................................................................................................ Assuming full dilution ............................................................................................................... Cash dividends applicable to the year .......................................................................................... Diluted net income per share is not presented for 2001 because there are no dilutive securities outstanding during the year. See notes to consolidated financial statements. ¥81.58 34.00 ¥89.00 84.72 30.00 CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY MANDOM Corporation and Consolidated Subsidiaries Years ended March 31, 2001 and 2000 Millions of Yen 22,203 Common Stock Additional Paid-in Capital Retained Earnings ¥7,549 ¥7,392 ¥11,705 Adjustment of retained earnings for the adoption of deferred tax accounting method (Notes 2.l and 8) ...... Net income ............................................... Cash dividends, ¥25 per share ................. Bonuses to directors ................................ Conversion of convertible bonds ............... 2,612 2,204 2,203 BALANCE, MARCH 31, 2000 .................... 24,815 9,753 9,595 See notes to consolidated financial statements. Foreign Currency Translation Adjustments 485 2,105 (588) (42) Net income ............................................... Cash dividends, ¥32 per share ................. Bonuses to directors ................................ Net unrealized gain on available-for-sale securities ................................................ Foreign currency translation adjustments ..... BALANCE, MARCH 31, 2001 .................... Unrealized Gain on Available-for-sale Securities 13,665 2,025 (794) (59) ¥768 ¥(2,819) 24,815 ¥9,753 ¥9,595 ¥14,837 ¥768 ¥(2,819) 19 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY BALANCE, APRIL 1, 1999 ......................... Outstanding Number of Shares of Common Stock (thousands) CONSOLIDATED STATEMENTS OF CASH FLOWS MANDOM Corporation and Consolidated Subsidiaries Years ended March 31, 2001 and 2000 Millions of Yen CONSOLIDATED STATEMENTS OF CASH FLOWS 20 2001 OPERATING ACTIVITIES: Income before income taxes and minority interests ...................................................................... Adjustments for: Income taxes–paid ................................................................................................................... Depreciation and amortization .................................................................................................. Provision for retirement benefits ............................................................................................... Loss on disposal of property and equipment ............................................................................ Loss on devaluation of securities .............................................................................................. Loss on sales of marketable securities ..................................................................................... Gain on sales of marketable securities ..................................................................................... Changes in assets and liabilities: Increase in receivables .......................................................................................................... (Increase) decrease in inventories ......................................................................................... (Increase) decrease in prepaid expenses and other assets ................................................... (Increase) decrease in interest and dividend receivable ......................................................... Increase (decrease) in payables ............................................................................................ Increase in interest payable .................................................................................................. Increase (decrease) in accrued expenses and other liabilities ................................................ Other-net ................................................................................................................................. 2000 ¥4,330 ¥4,190 (2,121) 1,530 (836) 24 213 106 (10) (1,229) 1,622 103 33 18 342 (65) (808) 464 110 2 (49) 0 695 9 (341) (1,020) (143) (2) 542 1 (273) 2 Total adjustments .............................................................................................................. (671) (410) Net cash provided by operating activities ...................................................................... 3,659 3,780 (4) (301) 700 3 (1,109) (387) INVESTING ACTIVITIES: Payments for deposits ................................................................................................................. Decrease in time deposits ............................................................................................................ Proceeds from sales of property and equipment .......................................................................... Acquisition of property and equipment ........................................................................................ Payment for acquisition of additional shares of associated company ........................................... Proceeds from sales and redemptions of investment securities .................................................... Payments for purchases of investment securities ......................................................................... Net increase in investments in and advances to subsidiaries and associated companies ............. Proceeds from sales and redemptions of marketable securities ................................................... Payments for purchases of marketable securities ........................................................................ Other-net ..................................................................................................................................... 12 (2,474) (400) 837 (1,219) (50) 1,331 (798) 123 Net cash provided by (used in) investing activities ......................................................... (2,642) (Continued on following page.) (13) (56) 3,224 (1,801) (80) 180 Millions of Yen 2001 2000 1,533 (1,498) 1,060 (2,377) (192) Net cash used in financing activities .............................................................................. EFFECT OF FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS ............................................................................................ NET INCREASE IN CASH AND CASH EQUIVALENTS ............................................................... CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ........................................................ CASH AND CASH EQUIVALENTS, END OF YEAR ..................................................................... ¥ 463 5 (959) 2 (661) (456) (2,168) (82) 479 5,337 ¥5,816 ¥ (74) 1,718 3,619 ¥5,337 Millions of Yen 2001 NON-CASH FINANCING ACTIVITIES: Convertible bonds converted into common stock ........................................................................ See notes to consolidated financial statements. 2000 ¥4,407 CONSOLIDATED STATEMENTS OF CASH FLOWS FINANCING ACTIVITIES: Proceeds from short-term bank loans .......................................................................................... Repayments of short-term bank loans ......................................................................................... Redemption of convertible bonds ................................................................................................ Proceeds from issuance of common stock of subsidiary .............................................................. Proceeds from sales of treasury stock-net ................................................................................... Dividends paid ............................................................................................................................. 21 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MANDOM Corporation and Consolidated Subsidiaries Years ended March 31, 2001 and 2000 22 1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Securities and Exchange Law (the “Law”) and its related accounting regulations and in conformity with generally accepted accounting principles and practices in Japan, which are different in certain respects as to application and disclosure requirements of International Accounting NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Standards. The consolidated financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. In preparing the consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated c. Foreign Currency Financial Statements The balance sheet accounts of the consolidated overseas subsidiaries are translated into Japanese yen at the current exchange rates as of the balance sheet date except for shareholders’ equity, which is translated at historical rates. Revenue and expense accounts of consolidated foreign subsidiaries are translated into yen at the average exchange rate. Prior to April 1, 2000, differences arising from such translations were shown as “Foreign currency translation adjustments” as either an asset or liability in the balance sheet. Effective April 1, 2000, such differences are shown as “Foreign currency translation adjustments” in a separate component of shareholders’ equity in accordance with the revised accounting standard for foreign currency translations. financial statements issued domestically in Japan in order to present them in a form which is more familiar to readers outside Japan. Certain reclassifications have been made in the 2000 financial statements to conform to the classifications used in 2001. d. Cash Equivalents Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents include time deposits, certifi- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Consolidation Policy The consolidated financial statements include the accounts of MANDOM CORPORATION (the “Company”) and its significant 10 subsidiaries (together, the “Group”). Under the control or influence concept, those companies in which the Parent, directly or indirectly, is able to exercise control over operations are fully consolidated. All significant inter-company transactions and balances have been eliminated. Significant unrealized profits included in assets were eliminated. The excess of cost over the net assets of subsidiaries acquired is amortized over a period of five years. Investments in unconsolidated subsidiaries and associated companies are stated at cost, because the Company’s equity in earnings or losses of these companies is not significant. b. Foreign Currency Transactions cates of deposit, commercial paper and mutual funds investing in bonds representing short-term investments, all of which mature or become due within three months of the date of acquisition. e. Short-term Investments and Investment Securities Prior to April 1, 2000, listed securities included in short-term investments and investment securities were stated at the lower of moving-average cost or market. Effective April 1, 2000, the Group adopted a new accounting standard for financial instruments, including securities included in short-term investments and investment securities. The standard requires all applicable securities to be classified and accounted for, depending on management’s intent, as follows: 1) trading securities, which are held for the purpose of earning near term capital gains, are reported at fair value, and the related unrealized gains and losses are included in earnings, 2) held-to-maturity debt securities, which management has the posi- Prior to April 1, 2000, short-term receivables and payables tive intent and ability to hold to maturity, are reported at amortized denominated in foreign currencies were translated into Japanese cost and 3) available-for-sale securities, which are those securi- yen at the current exchange rate at each balance sheet date, while ties not classified as either of the aforementioned securities, are long-term receivables and payables denominated in foreign reported at fair value, with unrealized gains and losses, net of currencies were translated at historical rates. applicable taxes, reported in a separate component of sharehold- Effective April 1, 2000, the Group adopted a revised account- ers’ equity. The Companies’ securities (included in “short-term ing standard for foreign currency transactions. In accordance with investments” and “investment securities”) are all classified as the revised standard, all short-term and long-term monetary available-for-sale. receivables and payables denominated in foreign currencies are The effect of adoption of the new standard was to decrease translated into Japanese yen at the exchange rates at the balance income before income taxes and minority interests by ¥93 sheet date. The foreign exchange gains and losses from transla- million. In addition, securities included in short-term investments tion are recognized in the statement of income to the extent that classified as current assets decreased by ¥2,751 million and they are not hedged by forward exchange contracts. investment securities increased by the same amount as of April 1, 2000. Inventories are stated at average cost. g. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment of the Company and its consolidated domestic subsidiaries is computed substantially by the decliningbalance method. However, the straight-line method is applied to buildings acquired after April 1, 1998. The range of useful lives is principally from 25 to 50 years l. Income Taxes The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. 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 and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to the temporary differences. m. Bonuses to Directors and Corporate Auditors for buildings and structures, from 4 to 12 years for machinery Payments of bonuses to directors and corporate auditors as ap- and equipment. proved by the shareholders are accounted for as appropriations The straight-line method is principally applied to the property and equipment of consolidated foreign subsidiaries. h. Stock Issue Costs Stock issue costs are charged to income as incurred. i. Retirement Benefits and Pension Plans of retained earnings. n. Per Share Information The computation of net income per share of common stock assuming no dilution is based on the weighted average number of shares outstanding during each fiscal year. Net income per share assuming full dilution is based on the Prior to April 1, 2000, the Company and domestic subsidiaries provided for the liability for employees’ retirement benefits at 40% of the amounts which would have been required if all employees voluntarily terminated their employment at the balance sheet dates. Effective April 1, 2000, the Group adopted a new accounting standard for employees’ retirement benefits and accounts for the liability for retirement benefits based on the projected benefit obli- weighted average number of shares of common stock, adjusted retroactively for stock splits, that would have been outstanding during each fiscal year assuming full conversion at the beginning of each fiscal year, or issue date if later, of all convertible bonds and notes with a dilutive effect. Net income is adjusted for interest on such convertible bonds and notes, less applicable income taxes. The weighted average number of shares used in computing gations and plan assets at the balance sheet date. The full amount of the transitional benefit of ¥374 million, determined as of the beginning of the year, is credited to income and presented as other income in the statement of income. As a result, net periodic benefit costs as compared with the prior method, decreased by ¥669 million. Retirement benefits to directors and corporate auditors are net income per share assuming no dilution and assuming full dilution were as follows: Year ended March 31 Weighted average number of shares (thousands) Assuming no dilution Assuming full dilution 2001 24,815 2000 23,653 24,929 provided at the amount which would have been required if they retired at each balance sheet date. There were no dilutive securities outstanding during 2001. j. Research and Development Costs Research and development costs are charged to income Cash dividends per share presented in the accompanying con- as incurred. solidated statements of income are dividends applicable to the k. Leases All leases are accounted for as operating leases. Under Japanese accounting standards for leases, finance leases that deem to transfer ownership of the leased property to the lessee are permitted to be capitalized, while other finance leases are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information is disclosed in the notes to the lessee’s financial statements. 23 respective years, including dividends to be paid after the end of the year. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS f. Inventories 24 3. SHORT-TERM INVESTMENTS AND INVESTMENT SECURITIES Short-term investments and investment securities at March 31, 2001 and 2000 consisted of the following: March 31, 2001 were ¥801 million. Gross realized gains and losses on these sales, computed on the moving average cost basis, were ¥1 million and ¥64 million, respectively. The carrying values of debt securities by contractual maturities Millions of Yen 2001 2000 for securities classified as available-for-sale at March 31, 2001 are Short-term investments: as follows: Time deposits other than cash equivalents ¥ 12 ¥ 8 Marketable equity securities ...................... NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Proceeds from sales of available-for-sale securities for the year ended Corporate bonds ...................................... 897 99 Trust fund investments .............................. 2,152 Unlisted foreign corporate bonds .............. 450 Commercial paper .................................... 199 Total .......................................................... Millions of Yen 50 ¥ 909 ¥2,958 Due in one year or less ........................................... ¥ 897 Due after one year through five years ...................... 902 Total .................................................................... ¥1,799 Carrying amounts and aggregate market values of marketable securities at March 31, 2000 were as follows: Investment securities: Millions of Yen 2000 Marketable equity securities ...................... ¥3,026 ¥1,496 Non-marketable equity securities .............. 177 381 Corporate bonds ...................................... 602 Carrying amount ................................................. Trust fund investments .............................. 786 Aggregate market value ...................................... Unlisted foreign corporate bonds .............. 200 Foreign trust fund investment .................... 54 59 Total .......................................................... ¥4,845 ¥1,936 Short-term investments: ¥2,301 2,217 Unrealized loss .................................................... ¥ 84 Investments securities: Carrying amount ................................................. ¥1,555 Information regarding the securities classified as available-for-sale at March Aggregate market value ...................................... 4,068 31, 2001 is as follows: Unrealized gain ................................................... ¥2,513 Cost Millions of Yen Unrealized Unrealized Gains Losses Fair Value Equity securities ........ ¥1,626 ¥1,468 ¥ 68 ¥3,026 Debt securities ........... 1,100 2 3 1,099 Others ....................... 808 65 134 739 4. INVENTORIES Inventories at March 31, 2001 and 2000 consisted of the following: Millions of Yen 2001 2000 Merchandise ................................................. ¥1,544 ¥1,926 The carrying amounts of available-for-sale securities whose fair value Finished products ......................................... 2,242 2,475 was not readily determinable as of March 31, 2001, were as follows: Work in process ........................................... 151 117 Raw materials and supplies .......................... 1,349 1,429 Total ............................................................. ¥5,286 ¥5,947 Carrying amount Millions of Yen Equity securities ................................................ ¥ 15 Debt securities ................................................... 700 Total ............................................................... ¥715 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES The components of net periodic benefit costs for the year ended March 25 31, 2001 are as follows: Investments in and advances to unconsolidated subsidiaries and asso- Millions of Yen 2001 2000 Investments .................................................. ¥665 ¥718 Advances ..................................................... 183 232 Total ............................................................. ¥848 ¥950 6. SHORT-TERM BANK LOANS Service Cost ........................................................... ¥186 Interest Cost ........................................................... 70 Expected return on plan assets .............................. (56) Subtotal .................................................................. 200 Contribution for the multiemployer pension plan ..... 93 Net periodic benefit costs ....................................... ¥293 Assumptions used for the year ended March 31, 2001 are set forth Short-term bank loans at March 31, 2001 and 2000 consisted of notes to bank and bank overdrafts. The annual interest rates applicable to the short-term bank loans ranged from 7.25 % to 15.75 % and from 0.71 % as follows: Discount rate 3.0% Expected rate of return on plan assets 3.0% to 25.00 % at March 31, 2001 and 2000, respectively. In addition, the Company and certain of its consolidated subsidiaries 7. RETIREMENT BENEFITS AND PENSION PLANS participate in a contributory multiemployer pension plan covering The Company and certain of its consolidated subsidiaries have sever- substantially all of their employees. The pension fund assets available for ance payment plans for employees, directors and corporate auditors. benefits under this plan were approximately ¥2,665 million at March Under most circumstances, employees terminating their employment 31, 2001 are entitled to retirement benefits determined based on the rate of pay at The liability balances for retirement benefits at March 31, 2001 and the time of termination, years of service, and certain other factors. Such 2000 included accruals for directors and corporate auditors in the amount retirement benefits are made in the form of a lump-sum severance of ¥578 million and ¥876 million, respectively. The retirement benefits for payment from the Company and certain consolidated subsidiaries and directors and corporate auditors are paid subject to the approval annuity payments from a trustee. Employees are entitled to larger of shareholders. payments who satisfy the necessary conditions. And an employee who terminated at the mandatory retirement age with at least 20 years of The amounts contributed to the fund which were charged to income for the year ended March 31, 2000 were ¥544 million. service was entitled to 100% of the total retirement benefits from the trustee of the fund. The Company provided all other employees with lump-sum payments upon termination of employment. Effective November 2000, the above plans have fully transferred to the funded pension plan. 8. INCOME TAXES The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in normal effective statutory tax rates of approximately 42% for the years Effective April 1, 2000, the Group adopted a new accounting standard for employees’ retirement benefits. ended March 31, 2001 and 2000, respectively. Foreign subsidiaries are subject to income taxes of the countries in which they operate. The liability for employees’ retirement benefits at March 31, 2001 consisted of the following: Millions of Yen Projected benefit obligation .................................... ¥3,008 Fair value of plan assets ......................................... (2,102) Unrecognized actuarial loss .................................... 736 Net liability .............................................................. 170 Prepaid pension expenses ...................................... 205 Liability for retirement benefits ................................. ¥ 375 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Millions of Yen ciated companies at March 31, 2001 and 2000 were as follows: 26 The tax effects of significant temporary differences and loss carryfor- The Code also requires companies to appropriate from retained wards which resulted in deferred tax assets and liabilities at March 31, earnings to a legal reserve an amount equal to at least 10% of all cash 2001 and 2000 are as follows: payments which are made as an appropriation of retained earnings until Millions of Yen 2001 2000 amount, which is included in the retained earnings amount, totals ¥514 million and ¥427 million as of March 31, 2001 and 2000, respectively, Deferred Tax Assets: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS such reserve equals 25% of stated capital. The Company’s reserve and is not available for dividends but may be used to reduce a deficit by Accrued bonuses ...................................... ¥131 ¥100 Enterprise tax ............................................ 71 83 Inventories ................................................ 55 44 The Company may transfer portions of additional paid-in capital and Pension and severance costs ................... 342 461 legal reserve to stated capital by resolution of the Board of Directors. The resolution of the shareholders. Company may also transfer portions of unappropriated retained Unrealized loss on available-for-sale securities ................................................. 93 earnings, available for dividends, to stated capital by resolution of Devaluation of investment securities .......... 63 the shareholders. Property and equipment ........................... 46 34 Under the Code, the Company may issue new common shares to existing shareholders without consideration as a stock split pursuant to Non-marketable equity securities .............. Other ........................................................ 84 15 resolution of the Board of Directors. The Company may make such a 69 stock split to the extent the aggregate par value of the shares outstanding after the stock split does not exceed the stated capital. However, the Deferred tax assets ....................................... 885 806 amount calculated by dividing the total amount of shareholders’ equity by the number of outstanding shares after the stock split cannot be less than ¥50. Deferred Tax Liabilities: Dividends are approved by the shareholders at a meeting held Unrealized gain on available-for-sale securities ................................................. subsequent to the fiscal year to which the dividends are applicable. 645 Semiannual interim dividends may also be paid upon resolution of the Special reserve for tax-purpose depreciation ............................................ 26 27 Depreciation .............................................. 41 44 Liability for retirement benefits ................... Board of Directors, subject to certain limitations imposed by the Code. As of March 31, 2001, the Company is authorized to repurchase, at management’s discretion, up to 690 thousand shares of the Company’s 111 stock for the purpose of cancelling the shares by charging such amounts Undistributed earnings of associated companies .............................................. 129 111 Other ............................................................ 1 4 to retained earnings. Under the Code, the amount available for dividends is based on retained earnings as recorded on the Company’s books. At March 31, Deferred tax liabilities .................................... 953 186 Net deferred tax assets (liabilities) ................. ¥ (68) ¥620 2001, retained earnings recorded on the Company’s books were ¥12,953 million, which is available for future dividends subject to the approval of shareholders and legal reserve requirements. 11. LEASES 9. RESEARCH AND DEVELOPMENT The Company leases office space, office equipment and certain other Research and development costs charged to income for the years assets under operating leases and finance lease arrangements. ended March 31, 2001 and 2000 were ¥1,525 million and ¥1,501 million, respectively. Total rental expenses for the years ended March 31, 2001 and 2000 were ¥711 million and ¥734 million, respectively, including ¥139 million and ¥142 million of lease payments under finance leases. 10. SHAREHOLDERS’ EQUITY The Japanese Commercial Code (the “Code”) requires at least 50% of the issue price of new shares, with a minimum of the par value thereof, to be designated as stated capital as determined by resolution of the Board of Directors. Proceeds in excess of amounts designated as stated capital are credited to additional paid-in capital. Pro forma information of leased property under finance leases that 14. SEGMENT INFORMATION do not transfer ownership of the leased property to the lessee on an “as Information about operations in different industry segments, foreign if capitalized” basis for the years ended March 31, 2001 and 2000 was operations and sales to foreign customers of the Company and as follows: consolidated subsidiaries for the years ended March 31, 2001 and 2000 27 is as follows: Acquisition cost ............................................ ¥696 ¥736 Accumulated depreciation ............................ 376 345 Net leased property ...................................... ¥320 ¥391 (1) Operations in Different Industries Sales of cosmetics represent more than 90% of the Companies’ operations. (2) Geographical Segments The Geographical Segments of the Company and its consolidated subsidiaries for the years ended March 31, 2001 and 2000 are summarized as follows: Obligations under finance leases at March 31, 2001 and 2000 were Millions of Yen 2001 Eliminations/ Asia Corporate Consolidated as follows: Japan Millions of Yen 2001 2000 Sales to customers ¥33,271 ¥6,786 Due within one year ...................................... ¥124 ¥132 Interarea transfer ... 1,691 264 ¥(1,955) Due after one year ........................................ 196 259 Total sales ... 34,962 7,050 (1,955) 40,057 Total ............................................................. ¥320 ¥391 Operating expenses 30,962 5,975 (1,959) 34,978 Operating income .. ¥ 4,000 ¥1,075 ¥ 4 ¥ 5,079 Assets ................... ¥31,138 ¥5,077 ¥ 3,761 ¥39,976 The cost of leased property and obligations under finance leases include ¥40,057 imputed interest expense. Depreciation expenses, which are not reflected in the accompanying statements of income, computed by the straight-line method were ¥139 million and ¥142 million for the years ended March 31, 2001 and Corporate assets of ¥9,507 million, included in “Eliminations/Corporate”, are principally marketable and investment securities of the Company. Millions of Yen 2000 Eliminations/ Asia Corporate Consolidated 2000, respectively. Japan 12. RELATED PARTY TRANSACTIONS Major transactions with unconsolidated subsidiaries and associated companies for the years ended March 31, 2001 and 2000 were as follows: Sales ............................................................ Sales to customers ¥34,236 ¥6,109 Interarea transfer ... 1,575 271 ¥40,345 ¥(1,846) Total sales ... 35,811 6,380 (1,846) 40,345 Millions of Yen 2001 2000 Operating expenses 31,699 5,435 (1,857) 35,277 ¥403 ¥398 Operating income .. ¥ 4,112 ¥ 945 ¥ 11 ¥ 5,068 140 Assets ................... ¥29,161 ¥4,866 ¥ 8,641 ¥42,668 Purchases .................................................... 21 Interest and dividend income ........................ 22 22 Other income (expenses)-net ........................ (255) (254) Corporate assets of ¥13,768 million, included in “Eliminations/Corporate”, are principally foreign currency translation adjustments, and marketable and investment securities of the Company. 13. SUBSEQUENT EVENTS The following appropriations of retained earnings of the Company for the year ended March 31, 2001 were approved at the shareholders’ meeting held on June 27, 2001: (3) Sales to Foreign Customers Sales to foreign customers for the years ended March 31, 2001 and Millions of Yen Cash dividends, ¥17 per share ............................... ¥422 Bonuses to directors and corporate auditors .......... 59 Total ....................................................................... ¥481 2000 amounted to ¥7,135 million and ¥6,473 million, respectively. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Millions of Yen Furniture Furniture and and Fixtures Fixtures 2001 2000 INDEPENDENT AUDITORS’ REPORT INDEPENDENT AUDITORS’ REPORT 28 To the Board of Directors and Shareholders of MANDOM CORPORATION: We have examined the consolidated balance sheets of MANDOM CORPORATION and consolidated subsidiaries as of March 31, 2001 and 2000, and the related consolidated statements of income, shareholders’ equity, and cash flows for the years then ended. Our examinations were made in accordance with auditing standards, procedures and practices generally accepted and applied in Japan and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the consolidated financial statements referred to above present fairly the financial position of MANDOM CORPORATION and consolidated subsidiaries as of March 31, 2001 and 2000, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles and practices generally accepted in Japan applied on a consistent basis. As described in Note 2, effective April 1, 2000, the consolidated financial statements have been prepared in accordance with new accounting standards for employees’ retirement benefits and financial instruments and a revised accounting standard for foreign currency transactions. June 27, 2001 CORPORATE DATA コーポレートデータ MANDOM Corporation 株式会社マンダム Head Office 5-12, Juniken-cho, Chuo-Ku, Osaka, 540-8530, Japan 本社 〒 540-8530 大阪市中央区十二軒町 5-12 Established December 23, 1927 創業 Shares of Common Stock Issued and Outstanding (As of March 31, 2001) 24,814,906 shares 発行済株式の総数（平成 13 年 3 月 31 日現在） 24,814,906 株 29 Number of Employees (As of March, 2001) 4,509 (Consolidated) 448 (Non-Consolidated) Board of Directors (As of June 26, 2001) President Motonobu Nishimura 株主数（平成 13 年 3 月 31 日現在） 7,957 名 従業員数（平成 13 年 3 月 31 日現在） 4,509 名（連結） 448 名（単独） 役員（平成 13 年 6 月 26 日現在） 取締役社長 西村 元延 取締役副社長 亀井 浩 Executive Vice President Hiroshi Kamei 専務取締役 栗原 洋 Senior Managing Director Hiroshi Kurihara 常務取締役 西海 義勝 佐治 健二 山田 憲治 Managing Directors Yoshikatsu Nishiumi Kenji Saji Kenji Yamada Directors Koji Nozaki Masayoshi Momota Osamu Nakaguchi Shunichi Oshita Toshihito Higuchi Mitsuo Goto Corporate Auditors Yoshikazu Taniguchi Kanetoyo Matsuyama Kiyoshi Kobayashi Kazuya Kotera Corporate Officers Hironao Suzuki Yoshiaki Saito 取締役・執行役員 野崎 浩治 桃田 雅好 中口 修 大下 俊一 樋口 俊人 取締役 後藤 光男 常勤監査役 谷口 義和 松山 金豊 監査役 小林 貴好 小寺 一矢 執行役員 鈴木 博直 斉藤 嘉昭 コーポレートデータ Number of Shareholders (As of March, 2001) 7,957 資本金（平成 13 年 3 月 31 日現在） 9,753,067,459 円 CORPORATE DATA Paid-in Capital (As of March, 2001) ¥9,753,067,459 1972 年（昭和 2 年） 12 月 23 日 Printed in Japan