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Financial Highlights
(Years ended March 31) 2006 2005 2004 2006 (%)
For the year
Net sales ¥ 321,700 ¥ 316,973 ¥ 320,033 $ 2,738,571 1.5
Operating income 31,979 28,963 23,203 272,231 10.4
Net income 15,389 16,612 14,051 131,004 7.4
At year-end
Millions of yen
Thousands of
U.S. dollars
Total assets ¥ 366,801 ¥ 361,105 ¥ 343,645 $ 3,122,508 1.6
Shareholders’ equity 263,199 258,139 244,439 2,240,564 2.0
* 1
Percent
change
Per share
Yen
U.S. dollars
Percent
change
Net income ¥ 125.09 ¥ 134.36 ¥ 113.61 $ 1.06 6.9
Cash dividends applicable to earnings of the year 30.00 30.00 30.00 0.26 —
Shareholders’ equity 2,167.81 2,091.16 1,980.14 18.45 3.7
Value & performance indicators
Operating margin (%) * 2 9.9 9.1 7.3
Return on assets (%) * 3 4.2 4.7 4.2
Return on equity (%) * 4 5.9 6.6 5.9
Inventory turnover (Times) * 5 12.6 12.9 13.6
Notes:
1. U.S. dollar amounts represent translations of yen, for convenience only, at US$1 = ¥117.47, the approximate rate prevailing on March 31, 2006.
2. Operating margin = Operating income / Net sales
3. Return on assets = Net income / Average total assets
4. Return on equity = Net income / Average total shareholders’ equity
5. Inventory turnover = Cost of sales / Average total inventory
> Net Sales
(Billions of yen)
Operating Income
(Billions of yen)
308.5 315.3 320.0 317.0 321.7 32.0
29.0
24.8 26.4 23.2
’02 ’03 ’04 ’05 ’06
’02 ’03 ’04 ’05 ’06
>
>
Net Income
(Billions of yen)
11.9
14.4 14.1
16.6
15.4
’02 ’03 ’04 ’05 ’06
Forward-looking Statements
This report contains forward-looking
statements regarding the Company’s
plans, outlook, strategies and results for
the future that are based on management's
estimates, assumptions and projections
at the time of publication.
Certain risks and uncertainties could
cause the Company’s actual results to
differ materially from any projections presented
in this report. These risks and
uncertainties include, but are not limited
to, the domestic and international economic
circumstances surrounding the
Company’s businesses, competitive
activity, related laws and regulations,
product development programs and
changes in exchange fluctuations.
Contents
Philosophy . . . . . . . . . . . . . . . . . . . . . . 1
History . . . . . . . . . . . . . . . . . . . . . . . . . 3
Operational Highlights . . . . . . . . . . . . . 4
Financial Highlights . . . . . . . . . . . . . . . . 5
President’s Letter . . . . . . . . . . . . . . . . . 6
Review of Operations . . . . . . . . . . . . . . 9
Quality and Safety . . . . . . . . . . . . . . . 16
Environmental Activities . . . . . . . . . . . 18
Corporate Governance . . . . . . . . . . . . 19
Founder Momofuku Ando:
Father of an Industry . . . . . . . . . . . . . . 20
Board of Directors . . . . . . . . . . . . . . . 22
Financial Section . . . . . . . . . . . . . . . . 23
Worldwide Network . . . . . . . . . . . . . . 48
Corporate Data . . . . . . . . . . . . . . . . . . 50
Investor Information . . . . . . . . . . . . . . 51
ANNUAL REPORT 2006
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