24 Oct 2008 11:05
October 17, 2008
To all stakeholders
Company name: SFCG Co., Ltd.
Representative Officer: Kenshin Oshima
Chairman and CEO
(Security code: 8597, 1st section of Tokyo Stock Exchange)
Enquiry: Toshihiro Takeshita
Director and General Manager
Accounting Division
TEL +813-3270-4177 (03-3270-4177)
(Correction)
Announcement of Partial Corrections to the Summary of Financial Results for the Fiscal Year Ended July 2008
SFCG Co., Ltd. has made the following corrections to the Summary of Financial Results for the Fiscal Year Ended July 31, 2008 (kessan tanshin) that was released on September 24, 2008.
1. Reasons for corrections
SFCG has made these corrections due to changes in some of the content of the Summary of Financial Results for the Fiscal Year Ended July 31, 2008 (kessan tanshin) that was released on September 24, 2008.
2. Corrections
Corrected sections are underlined.
(Before)
September 24, 2008
Summary of Financial Results for the Fiscal Year Ended July 2008
Company name: SFCG Co., Ltd. Stock Exchange Listing: Tokyo Stock Exchange, First Section
Stock code: 8597 URL: URL: http://www.sfcg-ir.com/jp/
Representative: Kenshin Oshima, President and Chairperson of the Board of Directors
Contact: Toshihiro Takeshita, Director, General Manager of Accounting Division (Phone: +81-3-3270-4177)
Regular general meeting of shareholders: October 24, 2008 Date of commencement of dividend payment: October 28, 2008
Date of filing securities report: October 27, 2008 Application of the unit stock system: Yes (Unit stock: 10 shares)
1. Consolidated Financial Results for the Fiscal Year Ended July 31, 2008 (August 1, 2007 − July 31, 2008)
(1) Results of operations (Consolidated)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| Fiscal year ended July 2008 | 136,401 | 24.2 | 20,261 | (43.8) | 18,950 | (46.8) | 6,851 | 165.1 |
| Net income per share (basic) | Net income per share (diluted) | Return on equity | Ratio of recurring profit to total assets | Ratio of operating profit to operating revenue | |
| Yen | Yen | % | % | % | |
| Fiscal year ended July 2008 | 559.05 | -- | 2.6 | 2.5 | 14.9 |
Notes: Equity in earnings (losses) of non-consolidated subsidiaries and affiliates
| Fiscal year ended July 2008: | (257 million yen) |
| Fiscal year ended July 2007: | (366 million yen) |
(2) Financial positions (Consolidated)
Percentages represent year-on-year changes
| Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
| Million yen | Million yen | % | Yen | |
| Fiscal year ended July 2008 | 750,470 | 282,218 | 35.5 | 21,756.79 |
Notes: Shareholders' equity
| Fiscal year ended July 2008: | 266,417 million yen |
| Fiscal year ended July 2007: | 260,203 million yen |
(3) Cash flow position (consolidated)
Percentages represent year-on-year changes
| Net cash provided by (used in) operating activities | Net cash provided by (used in) investing activities | Net cash provided by (used in) financing activities | Cash and cash equivalents at end of fiscal year | |
| Million yen | Million yen | Million yen | Million yen | |
| Fiscal year ended July 2008 | 91,275 | 690 | (114,565) | 17,858 |
3. Forecast (consolidated) for the Fiscal Year Ending July 2009 (August 1, 2008 − July 31, 2009)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | Net income per share | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen % | |
| Interim | 40,000 | (37.7) | 8,000 | (58.4) | 7,600 | (56.5) | 3,800 | (47.4) | 310.32 |
| Full year | 101,000 | (26.0) | 20,000 | (1.3) | 19,000 | (0.3) | 9,500 | 38.7 | 775.81 |
(For reference)
1. Non-consolidated Financial Results for the Fiscal Year Ended July 31, 2008 (August 1, 2007 − July 31, 2008)
(1) Results of operations (Non-consolidated)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| Fiscal year ended July 2008 | 83,989 | 18.4 | 6,049 | (75.4) | 7,318 | (72.9) | 336 | (97.7) |
2. Forecast (Non-consolidated) for the Fiscal Year Ending July 2009 (August 1, 2008 − July 31, 2009)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | Net income per share | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen % | |
| Interim | 24,000 | (41.2) | 1,600 | (79.5) | 1,800 | (81.0) | 900 | (83.8) | 734.98 |
(After)
September 24, 2008
Summary of Financial Results for the Fiscal Year Ended July 2008
Company name: SFCG Co., Ltd. Stock Exchange Listing: Tokyo Stock Exchange, First Section
Stock code: 8597 URL: URL: http://www.sfcg-ir.com/jp/
Representative: Kenshin Oshima, President and Chairperson of the Board of Directors
Contact: Toshihiro Takeshita, Director, General Manager of Accounting Division (Phone: +81-3-3270-4177)
Regular general meeting of shareholders: October 24, 2008 Date of commencement of dividend payment: October 27, 2008
Date of filing securities report: October 27, 2008 Application of the unit stock system: Yes (Unit stock: 10 shares)
1. Consolidated Financial Results for the Fiscal Year Ended July 31, 2008 (August 1, 2007 − July 31, 2008)
(1) Results of operations (Consolidated)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| Fiscal year ended July 2008 | 136,401 | 24.2 | 19,735 | (45.2) | 18,568 | (47.9) | 6,851 | 165.1 |
| Net income per share (basic) | Net income per share (diluted) | Return on equity | Ratio of recurring profit to total assets | Ratio of operating profit to operating revenue | |
| Yen | Yen | % | % | % | |
| Fiscal year ended July 2008 | 559.53 | -- | 2.6 | 2.5 | 14.5 |
Notes: Equity in earnings (losses) of non-consolidated subsidiaries and affiliates
| Fiscal year ended July 2008: | (257 million yen) |
| Fiscal year ended July 2007: | (366 million yen) |
(2) Financial positions (Consolidated)
Percentages represent year-on-year changes
| Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
| Million yen | Million yen | % | Yen | |
| Fiscal year ended July 2008 | 748,971 | 282,219 | 35.6 | 21,756.83 |
Notes: Shareholders' equity
| Fiscal year ended July 2008: | 266,417 million yen |
| Fiscal year ended July 2007: | 260,203 million yen |
(3) Cash flow position (consolidated)
Percentages represent year-on-year changes
| Net cash provided by (used in) operating activities | Net cash provided by (used in) investing activities | Net cash provided by (used in) financing activities | Cash and cash equivalents at end of fiscal year | |
| Million yen | Million yen | Million yen | Million yen | |
| Fiscal year ended July 2008 | 91,042 | 2,422 | (116,065) | 17,858 |
3. Forecast (consolidated) for the Fiscal Year Ending July 2009 (August 1, 2008 − July 31, 2009)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | Net income per share | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen % | |
| Interim | 40,000 | (37.7) | 8,000 | (58.4) | 7,600 | (56.6) | 3,800 | (47.4) | 310.32 |
| Full year | 101,000 | (26.0) | 20,000 | 1.3 | 19,000 | 2.3 | 9,500 | 38.7 | 775.81 |
(For reference)
1. Non-consolidated Financial Results for the Fiscal Year Ended July 31, 2008 (August 1, 2007 − July 31, 2008)
(1) Results of operations (Non-consolidated)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| Fiscal year ended July 2008 | 83,989 | 18.4 | 6,049 | (75.4) | 6,935 | (74.3) | 336 | (97.7) |
2. Forecast (Non-consolidated) for the Fiscal Year Ending July 2009 (August 1, 2008 − July 31, 2009)
Percentages represent year-on-year changes
| Operating revenue | Operating profit | Recurring profit | Net income | Net income per share | |||||
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen % | |
| Interim | 24,000 | (41.2) | 1,600 | (79.5) | 1,800 | (81.0) | 900 | (83.8) | 73.50 |
Page 4
1. Results of Operations
(Before)
② Real Estate
The real estate segment represents mainly the rent guarantee business and the revitalization of existing residential buildings.
Subsidiary MAG, Inc., which is engaged primarily in the rent guarantee business, continued to increase the number of customers by conducting high-profile sales activities. In addition, there was growth in the number of registered real estate companies at MAGnet, the real estate information Web site operated by this company.
Subsidiary e-MAX Co., Ltd., which is engaged primarily in the revitalization of residential buildings, had to cope with challenging market conditions caused by the downturn in the existing housing market and the sharp increase in construction costs.
Segment operating revenue decreased 27.6% to 14,413 million yen and operating profit was down 40.2% to 1,888 million yen.
(After)
② Real Estate
The real estate segment represents mainly the rent guarantee business and the revitalization of existing residential buildings.
Subsidiary MAG, Inc., which is engaged primarily in the rent guarantee business, continued to increase the number of customers by conducting high-profile sales activities. In addition, there was growth in the number of registered real estate companies at MAGnet, the real estate information Web site operated by this company.
Subsidiary e-MAX Co., Ltd., which is engaged primarily in the revitalization of residential buildings, had to cope with challenging market conditions caused by the downturn in the existing housing market and the sharp increase in construction costs.
Segment operating revenue decreased 27.6% to 14,413 million yen and operating profit was down 32.4% to 2,133 million yen.
(Before)
④Others
Revenue in the others segment represents mainly the sale of PC-related products, outsourced software development, and outsourced call center operations.
Fiscal 2008 performance was lackluster in all of these businesses.
As a result, segment operating revenue decreased 27.7% to 3,576 million yen and there was an operating loss of 1,343 million yen, representing a 231.7% decline, from fiscal year 2007.
(After)
④Others
Revenue in the others segment represents mainly the sale of PC-related products, outsourced software development, and outsourced call center operations.
Fiscal 2008 performance was lackluster in all of these businesses.
As a result, segment operating revenue decreased 27.7% to 3,576 million yen and there was an operating loss of 1,343 million yen (there was a profit of 1,020 million yen in fiscal year 2007).
(Before)
(2) Financial Condition
(Assets, liabilities and net assets)
As of July 31, 2008, total assets were 750,470 million yen, 96,538 million yen less than at the end of fiscal 2007. Current assets decreased 59,308 million yen to 716,151 million yen mainly because of a decline in commercial notes bought. Non-current assets decreased 37,229 million yen to 34,319 million yen mainly because of a decline in investments in securities.
Liabilities decreased 112,456 million yen to 468,252 million yen mainly because of a decline in short-term borrowings.
Net assets decreased 15,919 million yen to 282,218 million yen mainly because of an increase in minority interests.
(After)
(2) Financial Condition
(Assets, liabilities and net assets)
As of July 31, 2008, total assets were 748,971 million yen, 98,037 million yen less than at the end of fiscal 2007. Current assets decreased 60,807 million yen to 714,652 million yen mainly because of a decline in commercial notes bought. Non-current assets decreased 37,229 million yen to 34,319 million yen mainly because of a decline in investments in securities.
Liabilities decreased 113,956 million yen to 466,752 million yen mainly because of a decline in short-term borrowings.
Net assets decreased 15,919 million yen to 282,219 million yen mainly because of an increase in minority interests.
(Before)
Cash flow from operating activities
Net cash provided by operating activities was 91,275 million yen compared with a negative cash flow of 265,522 million yen one year earlier. Cash was provided mainly by a net decrease in loans to customers.
(After)
Cash flow from operating activities
Net cash provided by operating activities was 91,042 million yen compared with a negative cash flow of 265,522 million yen one year earlier. Cash was provided mainly by a net decrease in loans to customers.
(Before)
Cash flow from investing activities
Net cash used provided by investing activities was 690 million yen compared with a negative cash flow of 24,538 million yen one year earlier. The positive cash flow was attributable mainly to a decrease in payments for the purchase of investments in affiliates.
(After)
Cash flow from investing activities
Net cash used provided by investing activities was 2,422 million yen compared with a negative cash flow of 24,538 million yen one year earlier. The positive cash flow was attributable mainly to a sale of investment securities.
(Before)
Cash flow from financing activities
Net cash used in financing activities was 114,565 million yen compared with a positive cash flow of 268,954 million yen one year earlier. This was mainly the result of increases in repayments of short-term borrowings and long-term debt.
(After)
Cash flow from financing activities
Net cash used in financing activities was 116,065 million yen compared with a positive cash flow of 268,954 million yen one year earlier. This was mainly the result of increases in repayments of long-term debt.
Page 14
4. Consolidated Financial Statements
(1) Consolidated balance sheets
| Before | After | ||||||
| Account | Notes | Fiscal year ended July 2008 (As of July 31, 2008) | Fiscal year ended July 2008 (As of July 31, 2008) | ||||
| Amount (million yen) | Vs. Total (%) | Amount (million yen) | Vs. Total (%) | ||||
| ASSETS | |||||||
| I. Current assets | |||||||
| 5. Investment securities - operation | *2 | 16,519 | 15,020 | ||||
| Total current assets | 716,151 | 95.4 | 714,652 | 95.4 | |||
| Total Assets | 750,470 | 100.0 | 748,971 | 100.0 | |||
| LIABILITIES | |||||||
| I. Current liabilities | |||||||
| 5. Commercial paper | 4,700 | 3,200 | |||||
| Total current Liabilities | 125,466 | 16.7 | 123,966 | 16.6 | |||
| Total non-current liabilities | 342,785 | 45.7 | 342,785 | 45.8 | |||
| Total Liabilities | 468,252 | 62.4 | 466,752 | 62.4 | |||
| NET ASSETS | |||||||
| I. Shareholders' equity | |||||||
| 1. Common stock | 79,149 | 10.5 | 79,149 | 10.6 | |||
| 2. Capital surplus | 84,338 | 11.2 | 84,338 | 11.2 | |||
| Total shareholders' equity | 265,445 | 35.4 | 265,446 | 35.4 | |||
| Ⅱ. Valuation and translation adjustments | |||||||
| 3. Foreign exchange translation adjustments | (85) | (0.0) | (84) | (0.0) | |||
| Total valuation and translation adjustments | 971 | 0.1 | 971 | 0.1 | |||
| Ⅲ. Minority interests | 15,801 | 2.1 | 15,801 | 2.1 | |||
| Total Net Assets | 282,218 | 37.6 | 282,219 | 37.6 | |||
| Total Liabilities and Net Assets | 750,470 | 100.0 | 748,971 | 100.0 | |||
Page 17
(2) Consolidated statements of income
| Before | After | ||||||
| Account | Notes | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | ||||
| Amount (million yen) | Vs. Total (%) | Amount (million yen) | Vs. Total (%) | ||||
| Gross operating profit | 91,347 | 67.0 | 91,347 | 67.0 | |||
| Ⅲ Selling, general and administrative expenses | *1 | 71,085 | 52.1 | 71,611 | 52.5 | ||
| Operating Profit | 20,261 | 14.9 | 19,735 | 14.5 | |||
| Ⅳ Non-operating revenue | |||||||
| 6. Other non-operating revenue | 224 | 701 | 0.5 | 369 | 845 | 0.6 | |
| Ⅴ Non-operating expenses | |||||||
| Recurring Profit | 18,950 | 13.9 | 18,568 | 13.6 | |||
| Ⅵ Extraordinary profit | |||||||
| 1. Gain on sale of investments in affiliates | *2 | 238 | － | ||||
| 5. Gain on sale of investment securities | － | 238 | |||||
| 6. Other extraordinary profit | 125 | 747 | 0.5 | 126 | 747 | 0.5 | |
| Ⅶ Extraordinary loss | |||||||
| Income before income taxes, and minority interests | 17,026 | 12.5 | 16,644 | 12.2 | |||
| Income taxes (Income Tax, Inhabitant Taxes, Enterprise Tax) | 14,239 | 13,856 | |||||
| Deferred Tax | (5,754) | 8,484 | 6.2 | (5,754) | 8,102 | 5.9 | |
| Minority interests | 1,690 | 1.2 | 1,690 | 1.2 | |||
| Net income | 6,851 | 5.0 | 6,851 | 5.0 | |||
Page 20
(3) Statement of Changes in Consolidated Shareholders' Equity
(Before)
| Shareholders' equity | |||||
| Common stock | Capital surplus | Retained earnings | Treasury stock | Total shareholders' equity | |
| Balance as of July 31, 2007 (million yen) | 79,149 | 84,338 | 97,151 | (3) | 260,635 |
| Changes in current consolidated fiscal year | |||||
| Dividends paid | (3,673) | (3,673) | |||
| Net income | 6,862 | 6,862 | |||
| Acquisition of treasury stock | (1) | (1) | |||
| Changes in interest in consolidated subsidiaries | 1,190 | 1,190 | |||
| Changes due to corporate restructuring | 3,767 | 3,767 | |||
| Changes due to exclusion of consolidated subsidiaries | (3,324) | (3,324) | |||
| Net changes in items other than shareholders' equity | |||||
| Aggregate change in the current consolidated fiscal year (million yen) | -- | -- | 4,822 | (1) | 4,822 |
| Balance as of July 31, 2008 (million yen) | 79,149 | 84,338 | 101,973 | (4) | 265,457 |
| Valuation and translation adjustments | Minority interests | Total net assets | ||||
| Valuation difference on available-for sale securities | Gains or losses on deferred hedges | Foreign currency translation adjustments | Total valuation and translation adjustments | |||
| Balance as of July 31, 2007 (million yen) | 63 | (792) | 296 | (432) | 6,095 | 266,299 |
| Changes in current consolidated fiscal year | ||||||
| Dividends paid | (3,673) | |||||
| Net income | 6,862 | |||||
| Acquisition of treasury stock | (1) | |||||
| Changes in interest in consolidated subsidiaries | 1,190 | |||||
| Changes due to corporate restructuring | 3,767 | |||||
| Changes due to exclusion of consolidated subsidiaries | (3,324) | |||||
| Net changes in items other than shareholders' equity | 1,834 | (49) | (380) | 1,405 | 9,706 | 11,111 |
| Aggregate change in the current consolidated fiscal year (million yen) | 1,834 | (49) | (380) | 1,405 | 9,706 | 15,932 |
| Balance as of July 31, 2008 (million yen) | 1,897 | (841) | (84) | 971 | 15,801 | 282,229 |
(After)
| Shareholders' equity | |||||
| Common stock | Capital surplus | Retained earnings | Treasury stock | Total shareholders' equity | |
| Balance as of July 31, 2007 (million yen) | 79,149 | 84,338 | 97,151 | (3) | 260,635 |
| Changes in current consolidated fiscal year | |||||
| Dividends paid | (3,673) | (3,673) | |||
| Net income | 6,851 | 6,851 | |||
| Acquisition of treasury stock | (0) | (0) | |||
| Changes in interest in consolidated subsidiaries | 1,190 | 1,190 | |||
| Changes due to corporate restructuring | 3,767 | 3,767 | |||
| Changes due to exclusion of consolidated subsidiaries | (3,324) | (3,324) | |||
| Net changes in items other than shareholders' equity | -- | ||||
| Aggregate change in the current consolidated fiscal year (million yen) | -- | -- | 4,811 | (0) | 4,811 |
| Balance as of July 31, 2008 (million yen) | 79,149 | 84,338 | 101,962 | (4) | 265,446 |
| Valuation and translation adjustments | Minority interests | Total net assets | ||||
| Valuation difference on available-for sale securities | Gains or losses on deferred hedges | Foreign currency translation adjustments | Total valuation and translation adjustments | |||
| Balance as of July 31, 2007 (million yen) | 63 | (792) | 296 | (432) | 6,095 | 266,299 |
| Changes in current consolidated fiscal year | ||||||
| Dividends paid | -- | (3,673) | ||||
| Net income | -- | 6,851 | ||||
| Acquisition of treasury stock | -- | (0) | ||||
| Changes in interest in consolidated subsidiaries | -- | 1,190 | ||||
| Changes due to corporate restructuring | -- | 3,767 | ||||
| Changes due to exclusion of consolidated subsidiaries | -- | (3,324) | ||||
| Net changes in items other than shareholders' equity | 1,834 | (49) | (380) | 1,405 | 9,706 | 11,111 |
| Aggregate change in the current consolidated fiscal year (million yen) | 1,834 | (49) | (380) | 1,405 | 9,706 | 15,919 |
| Balance as of July 31, 2008 (million yen) | 1,897 | (841) | (84) | 971 | 15,801 | 282,219 |
Page 21
(4) Consolidated Statements of Cash Flows
| Before | After | ||
| Account | Notes | Fiscal year ended July 2008 (August 1, 2007－ July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－ July 31, 2008) |
| Amount (million yen) | Amount (million yen) | ||
| Ⅰ Cash flows from operating activities | |||
| 1. Income before income taxes and minority interests | 17,026 | 16,644 | |
| 2. Depreciation | 2,347 | 774 | |
| 11. Gain on sale of investment in securities | 184 | (238) | |
| 13. Gain on sale of fixed assets | (11) | (25) | |
| 14. Loss on disposal of fixed assets | 84 | 98 | |
| 22. Other-net | (3,336) | (1,574) | |
| Subtotal | 99,853 | 99,237 | |
| 23. Interest and dividend income received | 1,356 | 1,357 | |
| 25. Income tax paid | (9,041) | (8,658) | |
| Net cash provided by (used in) operating activities | 91,275 | 91,042 | |
| Ⅱ Cash flows from investing activities | |||
| 7. Payment for acquisition of investments in securities | (3,143) | (1,649) | |
| 8. Proceeds from sale of investments in securities | 9,782 | 10,020 | |
| Net cash provided by (used in) investing activities | 690 | 2,422 | |
| Ⅲ Cash flows from financing activities | |||
| 3. Proceeds from issuance of commercial paper | 23,400 | 4,500 | |
| 4. Payment for redemption of commercial paper | (54,400) | (37,000) | |
| Net cash provided (used in) by financing activities | (114,565) | (116,065) |
Page 26
| 4.Summary of significant accounting policies | Before | After |
| Fiscal year ended July 2008(August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | |
| 1) Valuation basis and methods for significant assets | a) Securities Other securities (Including certain Investments in Securities-Operation) Securities with market quotations Same as on the left. | (a) Securities Investment in affiliates (including investment in securities-operation) Accounted for by the equity method. Gain/loss on investment in securities-operation accounted for by the equity method is included in operating income/loss Other securities (Including certain Investments in Securities-Operation) Securities with market quotations Same as on the left. |
Page 29
| 2. Amortization of goodwill | Before | After |
| Fiscal year ended July 2008(August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | |
| Goodwill is amortized over five years by the straight-line method. Small amounts are amortized lump sum in the year in which they are recognized. | Goodwill is amortized using the straight-line method over a period it is expected to yield economic benefit but not exceeding 20 years. Small amounts are amortized lump sum in the year in which they are recognized. |
Page 32
Notes to Consolidated Balance Sheets
| Before | After | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal year ended July 2008 (as of July 31, 2008) | Fiscal year ended July 2008 (as of July 31, 2008) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| *2. Assets pledged as collateral Liabilities corresponding to assets pledged as collateral consisted of the following: Short-term borrowings (¥33,083 million), current portion of long-term debt (¥48,842 million), and long-term debt (¥198,826million)
| *2. Assets pledged as collateral Liabilities corresponding to assets pledged as collateral consisted of the following: Short-term borrowings (¥36,023 million), current portion of long-term debt (¥52,018 million), and long-term debt (¥277,084million)
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| The Company has entered into an agreement with certain banks and financial institutions under which the Company is required, at the lenders request, to furnish its "loans to customers" amounting to ¥2,252 million as collateral for debts to lenders. The balance of such debt, as of July 31, 2008 was ¥3,086 million, which was composed of the current portion of long-term debt amounting to ¥3,056 million and long-term debt amounting to ¥30 million. Furthermore, the Company has entered into agreements with financial institutions to transfer their commercial notes bought and loans to customers, on an ongoing basis, and have accounted for all these transactions as "loans with assets collateralized." The balances of loans to customers reported in the accompanying balance sheet as of July 31, 2008 include those collateralized under this securitization scheme, amounting to ¥353,561. In addition to the above, cash deposits related to securitization of commercial notes amounted to ¥33,004 million and ¥2,410 million were included in "other assets" under "investments and other assets." | The Company has entered into an agreement with certain banks and financial institutions under which the Company is required, at the lenders request, to furnish its "loans to customers" ¥2,252 million and other commercial notes ¥906million amounting to ¥3,158million as collateral for debts to lenders. The balance of such debt, as of July 31, 2008 was ¥3,086 million, which was composed of the current portion of long-term debt amounting to ¥3,056 million and long-term debt amounting to ¥30 million. Furthermore, the Company has entered into agreements with financial institutions to transfer their commercial notes bought and loans to customers, on an ongoing basis, and except certain transactions, have accounted for these transactions as "loans with assets collateralized." The balances of loans to customers reported in the accompanying balance sheet as of July 31, 2008 include those collateralized under this securitization scheme, amounting to ¥463,118. In addition to the above, cash deposits related to securitization of commercial notes amounted to ¥37,587 million and ¥2,410 million were included in "other assets" under "investments and other assets." | |||||||||||||||||||||||||||||||||||||||||||||||||||
| *3: The following assets were taken off the balance-sheet through asset liquidation:
| *3: The following assets were taken off the balance-sheet through asset liquidation:
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| *4. ――――――――― | *4. Items applicable to non-consolidated subsidiaries and affiliates consisted of the following:
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 5: Contingent liabilities
| 5: Contingent liabilities
|
Page 36
Notes to Changes in Consolidated Shareholders' Equity
(Before)
(1) Dividends paid
| Resolution | Type of shares | Aggregate amount of dividend (million yen) | Dividend per share (yen) | Record date | Effective date |
| Meeting of Board of Directors (March 29, 2008) | Common shares | 31,836 | 150 | Jan 31, 2008 | April 8, 2008 |
(After)
| Resolution | Type of shares | Aggregate amount of dividend (million yen) | Dividend per share (yen) | Record date | Effective date |
| Meeting of Board of Directors (March 29, 2008) | Common shares | 1,836 | 150 | Jan 31, 2008 | April 8, 2008 |
Page 37
Notes to Consolidated Statements of Cash Flows
| Before | After | ||||||||||||
| Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | ||||||||||||
| 1. Reconciliation of balance sheet items to cash and cash equivalents in the consolidated statements of cash flows
| 1. Reconciliation of balance sheet items to cash and cash equivalents in the consolidated statements of cash flows
| ||||||||||||
| 2. Significant non-cash transactions
|
Page 44
Segment information
Consolidated fiscal year ended July 31, 2008 (August 1, 2007 - July 31, 2008)
(Before)
Yen in millions
| Financing and investment | Real estate | Sales and manufacturing of sporting and other goods | Other businesses | Total | Eliminations or Corporate | Consolidated | |
| I. Sales and operating profit/loss | |||||||
| Sales | |||||||
| 1) Sales to external customers | 102,273 | 14,413 | 16,137 | 3,576 | 136,401 | -- | 136,401 |
| 2) Inter-segment sales and transfers | 995 | 90 | 6 | 3,708 | 4,799 | (4,799) | -- |
| Total | 103,268 | 14,503 | 16,143 | 7,285 | 141,200 | (4,799) | 136,401 |
| Operating expenses | 86,015 | 12,615 | 14,382 | 8,628 | 121,642 | (5,503) | 116,139 |
| Operating profit | 17,253 | 1,888 | 1,760 | (1,343) | 19,558 | (703) | 20,261 |
| II. Assets, depreciation expenses and capital expenditure | |||||||
| Assets | 735,897 | 18,875 | 26,989 | 4,894 | 786,657 | (36,186) | 750,470 |
| Depreciation expenses | 524 | 17 | 525 | 45 | 1,113 | -- | 1,113 |
| Capital expenditure | 158 | 42 | 478 | 875 | 1,555 | -- | 1,555 |
(After)
| Financing and investment | Real estate | Sales and manufacturing of sporting and other goods | Other businesses | Total | Eliminations or Corporate | Consolidated | |
| I. Sales and operating profit/loss | |||||||
| Sales | |||||||
| 1) Sales to external customers | 102,273 | 14,413 | 16,137 | 3,576 | 136,401 | -- | 136,401 |
| 2) Inter-segment sales and transfers | 1,521 | 90 | 6 | 3,708 | 5,326 | (5,326) | -- |
| Total | 103,794 | 14,503 | 16,143 | 7,285 | 141,727 | (5,326) | 136,401 |
| Operating expenses | 86,541 | 12,370 | 14,382 | 8,628 | 121,923 | (5,257) | 116,665 |
| Operating profit | 17,253 | 2,133 | 1,760 | (1,343) | 19,803 | (68) | 19,735 |
| II. Assets, depreciation expenses and capital expenditure | |||||||
| Assets | 725,118 | 18,875 | 26,989 | 4,894 | 775,878 | (26,907) | 748,971 |
| Depreciation expenses | 186 | 17 | 525 | 45 | 774 | -- | 774 |
| Capital expenditure | 158 | 42 | 478 | 875 | 1,555 | -- | 1,555 |
Page 46
Per share information
| Before | After | ||||||||||||
| Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | ||||||||||||
|
| ||||||||||||
Page 68
Per share information
| Description about potential stocks that are not taken into account in the calculation of net income per share (diluted) since they have no dilution effect. | Before | After |
| Bonds with subscription warrants issued in 2004 (the total face amount: ¥950 million), a class of subscription warrants (the number of warrants: 9,500), and bonds with subscription warrants issued in 2008 (the total face amount: ¥40,000 million) , a class of subscription warrants (the number of warrants: 40,000), | Bonds with subscription warrants issued in 2004 (the total face amount: ¥950 million), a class of subscription warrants (the number of warrants: 950), and bonds with subscription warrants issued in 2008 (the total face amount: ¥40,000 million) , a class of subscription warrants (the number of warrants: 40,000), |
Page 52
5. Non-consolidated Financial Statements
(1) Balance sheets
| Before | After | ||||||
| Account | Notes | Fiscal year ended July 2008 (As of July 31, 2008) | Fiscal year ended July 2008 (As of July 31, 2008) | ||||
| Amount (million yen) | Vs. Total (%) | Amount (million yen) | Vs. Total (%) | ||||
| ASSETS | |||||||
| Ⅰ Current assets | |||||||
| 3. Accounts receivable | -- | 4,851 | |||||
| 4. Loans to customers | *1 | 470,703 | 470,990 | ||||
| 5. Investment securities - operation | 13,953 | 13,953 | |||||
| 6. Supplies | 0 | 0 | |||||
| 7. Prepaid expenses | 1,838 | 1,838 | |||||
| 8. Deferred tax assets - current | 6,088 | 6,088 | |||||
| 9. Loans to affiliates | 13,710 | 13,710 | |||||
| 10. Accrued income | 2,762 | 2,762 | |||||
| 11. Deposits | *1 | 22,748 | 22,748 | ||||
| 12. Guarantee deposits | 611 | 611 | |||||
| 13. Advances | -- | 71,451 | |||||
| 14. Other current assets | 82,155 | 5,564 | |||||
| 15. Allowance for doubtful accounts | (22,815) | (22,815) | |||||
| Total current assets | 602,201 | 92.4 | 602,201 | 92.4 | |||
| Ⅱ Non-current assets | |||||||
| 1. Property and equipment | |||||||
| 1) Buildings | 441 | 411 | |||||
| Accumulated amortization | 295 | 146 | 264 | 146 | |||
| 4) Office equipment and fixtures | 862 | 796 | |||||
| Accumulated amortization | 716 | 146 | 649 | 146 | |||
| 5) Land | 272 | 272 | |||||
| Total property and equipment | 619 | 0.1 | 619 | 0.1 | |||
| 3. Investments and other assets | |||||||
| 1) Investments in securities | 23,855 | 498 | |||||
| 2) Investments in affiliates | 14,465 | 14,465 | |||||
| 3) Investments in other affiliates | -- | 23,356 | |||||
| LIABILITIES | |||||||
| I. Current liabilities | |||||||
| 7. Accounts payable other | 15,799 | 15,998 | |||||
| 8. Income taxes payable | 5,062 | 5,062 | |||||
| 9. Accrued expenses | 2,250 | 2,639 | |||||
| 11. Unearned income | 5 | 1,244 | |||||
| 12. Allowance for performance of loan guarantees | 694 | 694 | |||||
| 13. Other current liabilities | 2,065 | 238 | |||||
| Total current Liabilities | 133,809 | 20.5 | 133,809 | 20.5 | |||
Page 57
(2) Statements of income
| Before | After | ||||||
| Account | Notes | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | ||||
| Amount (million yen) | Vs. Total (%) | Amount (million yen) | Vs. Total (%) | ||||
| Ⅳ Non-operating revenue | |||||||
| 5. Miscellaneous revenues | 426 | 44 | |||||
| 6. Business consignment income | -- | -- | |||||
| 7. Other non-operating revenue | 74 | 1,420 | 1.6 | 74 | 1,038 | 1.2 | |
| Ⅴ Non-operating expenses | |||||||
| Recurring Profit | 7,318 | 8.7 | 6,935 | 8.3 | |||
| Ⅵ Extraordinary profit | |||||||
| 3. Gain on sale of investments in affiliates | 250 | 12 |
| ||||
| 4. Gain on sale of investment securities | -- | 533 | 0.6 | 238 | 533 | 0.6 | |
| Ⅶ Extraordinary loss | |||||||
| 6. Other extraordinary loss | 293 | 3,248 | 3.9 | 293 | 3,248 | 3.9 | |
| Income before income taxes, and minority interests | 4,603 | 5.4 | 4,221 | 5.0 | |||
| Income taxes (Income Tax, Inhabitant Taxes, Enterprise Tax) | 4,905 | 4,523 | |||||
| Deferred Tax | (638) | 4,266 | 5.0 | (638) | 3,884 | 4.6 | |
| Net income | 336 | 0.4 | 336 | 0.4 | |||
Page 59
(3) Statement of Changes in Shareholders' Equity
Fiscal year ended July 2008 (August 1, 2007 ― July 31, 2008)
(Before)
| Valuation and translation adjustments | Total net assets | |||
| Valuation difference on available-for-sale securities | Gains or losses on deferred hedges | Total valuation and translation adjustments | ||
| Balance as of July 31, 2007 (million yen) | 212 | (796) | (583) | 256,845 |
| Changes in current fiscal year | ||||
| Reclassification | ||||
| Dividends paid | (3,673) | |||
| Net income | 336 | |||
| Acquisition of treasury stock | (0) | |||
| Net changes in items other than shareholders' equity | 1,629 | (50) | 1,577 | 1,577 |
| Aggregate change in the current fiscal year (million yen) | 1,629 | (50) | 1,577 | 1,749 |
| Balance as of July 31, 2008 (million yen) | 1,841 | (846) | 994 | 255,086 |
(After)
| Valuation and translation adjustments | Total net assets | |||
| Valuation difference on available-for-sale securities | Gains or losses on deferred hedges | Total valuation and translation adjustments | ||
| Balance as of July 31, 2007 (million yen) | 212 | (796) | (583) | 256,845 |
| Changes in current fiscal year | ||||
| Reclassification | ||||
| Dividends paid | (3,673) | |||
| Net income | 336 | |||
| Acquisition of treasury stock | (0) | |||
| Net changes in items other than shareholders' equity | 1,629 | (50) | 1,577 | 1,577 |
| Aggregate change in the current fiscal year (million yen) | 1,629 | (50) | 1,577 | (1,759) |
| Balance as of July 31, 2008 (million yen) | 1,841 | (846) | 994 | 255,086 |
Page 63
Reclassifications
| Before | After |
| Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) |
| Notes to Statements of Income Effective from the current consolidated fiscal year, "Losses on returned interest" is presented as a separate account, which was included in "Others" under "Selling, general and administration expenses" in prior years and the amount was ¥162 million. | Notes to Statements of Income Effective from the current consolidated fiscal year, "Losses on returned interest", included in "Others" under "Selling, general and administration expenses" in prior years, is reclassified and presented as a line item. since the amount exceeded 5% (5/100) of the total "Selling, general and administrative expenses." In the previous fiscal year, "Losses on returned interest" totaled ¥162 million. Notes to balance sheets Effective from the current consolidated fiscal year, "Advances" included in "Others" under "Current assets" in prior years, is reclassified and presented as a line item since the amount exceeded 1% (1/100) of total assets. As of the end of the previous fiscal year, "Advances" totaled ¥84 million. |
Page 64
Notes to Non-consolidated Financial Statements
Notes to Non-consolidated Balance Sheets
| Before | After | ||||||||||||||||||
| Fiscal year ended July 2008 (as of July 31, 2008) | Fiscal year ended July 2008 (as of July 31, 2008) | ||||||||||||||||||
| *1. Assets pledged as collateral Liabilities corresponding to assets pledged as collateral consisted of the following: Short-term borrowings (¥14,826 million), current portion of long-term debt (¥45,918 million), and long-term debt (¥197,112 million)
| *1. Assets pledged as collateral Liabilities corresponding to assets pledged as collateral consisted of the following: Short-term borrowings (¥14,826 million), current portion of long-term debt (¥45,918 million), and long-term debt (¥197,112 million)
| ||||||||||||||||||
| The Company has entered into an agreement with certain banks and financial institutions under which the Company is required, at the lenders request, to furnish its "loans to customers" amounting to ¥2,252 million respectively as collateral for debts to lenders. As of July 31, 2008, the current portion of long-term debt amounting to ¥2,150 million falls into such debt. Furthermore, the Company has entered into agreements with financial institutions to transfer their commercial notes bought and loans to customers, on an ongoing basis, and have accounted for all these transactions as "loans with assets collateralized." The balances of loans to customers reported in the accompanying balance sheet as of July 31, 2008 include those collateralized under this securitization scheme, amounting to ¥353,561. In addition to the above, cash deposits related to securitization of commercial notes amounted to ¥31,922 million and ¥2,410 million were included in "cash deposits" under "specified money trusts." | The Company has entered into an agreement with certain banks and financial institutions under which the Company is required, at the lenders request, to furnish its "loans to customers" amounting to ¥2,252 million respectively as collateral for debts to lenders. As of July 31, 2008, the current portion of long-term debt amounting to ¥2,150 million falls into such debt. Furthermore, the Company has entered into agreements with financial institutions to transfer their commercial notes bought and loans to customers, on an ongoing basis, and except certain transactions, have accounted for these transactions as "loans with assets collateralized." The balances of loans to customers reported in the accompanying balance sheet as of July 31, 2008 include those collateralized under this securitization scheme, amounting to ¥22,748. In addition to the above, cash deposits related to securitization of commercial notes amounted to ¥31,922 million and ¥2,410 million were included in "cash deposits" under "specified money trusts." | ||||||||||||||||||
| *2. Assets removed from the balance sheet (off balance sheet) due to securitization Commercial notes bought ¥12,859 million Loans to customers ¥24,218 million | |||||||||||||||||||
| *2. Loan guarantees Loan guarantees consisted of the following: Bank borrowings and other liabilities
| *3. Contingent liabilities Loan guarantees Loan guarantees consisted of the following: Bank borrowings and other liabilities
| ||||||||||||||||||
| *3. Debts and credits to affiliates Debts and credits to affiliates other than separately presented in the balance sheet include the following: Current liabilities
| *4. Debts and credits to affiliates Debts and credits to affiliates other than separately presented in the balance sheet include the following: Current assets
Current liabilities
|
Page 65
Notes to Non-consolidated Statements of Income
| Before | After | ||||
| Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | Fiscal year ended July 2008 (August 1, 2007－July 31, 2008) | ||||
| *1. Items applicable to affiliates included in line items
| *1. Items applicable to affiliates included in line items
|
Page 67
Tax Effect Accounting
| Before | After | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal year ended July 2008 (As of July 31, 2008) | Fiscal year ended July 2008 (As of July 31, 2008) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. Significant components of deferred tax assets and liabilities
| 1. Significant components of deferred tax assets and liabilities
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2: The effective tax rate reflected in the consolidated statements of income differs from the statutory tax rate for the following reasons:
| 2: The effective tax rate reflected in the consolidated statements of income differs from the statutory tax rate for the following reasons:
|