MARUI CO., LTD.

CONSOLIDATED OPERATIONS
In the fiscal period under review, total operating revenues
amounted to ¥353.4 billion. Cost of goods sold of ¥227.0
billion and gross profit of ¥126.4 billion gave a gross profit
ratio of 35.8%. Selling, general and administrative (SGA)
expenses totaled ¥110.4 billion. And, SGA expenses as a
ratio of operating revenues were 31.2%. Consequently, the
Company posted operating income of ¥16.0 billion and
ordinary income of ¥16.4 billion.
In special gains (losses), loss on devaluation of fixed
assets of ¥14.0 billion and special termination benefits paid
to employees of ¥14.9 billion offset a ¥28.6 billion gain on
winding up of the non-contributory defined benefit pension
plan, associated with the liquidation of the Marui Welfare
and Pension Fund. As a result, total special losses were ¥3.3
billion.
Marui therefore recorded income before income taxes and
minority interests of ¥13.2 billion and net income of ¥6.2
billion. Diluted net income per share was ¥17. Return on
total assets was 0.8%, while return on stockholders’ equity
was 1.5%.
CASH FLOW AND FINANCIAL CONDITION
The Company generates adequate cash flow to fund timely
strategic capital investment for growth. Also, Marui
maintains and strengthens the soundness of its financial
position by taking steps to reduce total assets. Thanks to
such measures in the fiscal period under review, we were
able to maintain our solid financial position.
In cash flows from operating activities, income before
income taxes and minority interests of ¥13.2 billion,
depreciation and amortization of ¥12.2 billion, and income
taxes paid in cash of ¥10.6 billion contributed to net cash
provided by operating activities of ¥15.9 billion.
In cash flows from investing activities, net cash used in
investing activities totaled ¥5.3 billion, which was mainly
related to payments for purchase of property and equipment
for the opening of new stores and the remodeling of
existing stores.
DIVIDENDS
Cash dividends per share were ¥15, giving a dividend
payout ratio of 87.1%. Dividends as a proportion of
stockholders’ equity were 1.3%. In addition, the Company
In cash flows from financing activities, payments for
purchase of treasury stock of ¥10.5 billion largely offset an
¥11.7 billion net increase in short-term loans and long-term
debt. Consequently, net cash used in financing activities was
¥6.8 billion.
As a result, cash and cash equivalents at the end of the
fiscal period increased ¥3.8 billion from the previous fiscal
year-end, to ¥68.6 billion.
At the end of the fiscal period, total current assets stood at
¥413.6 billion and total current liabilities amounted to
¥180.9 billion. Working capital was ¥232.8 billion and the
current ratio was 2.3 times. Meanwhile, total assets were
¥734.2 billion, total stockholders’ equity was ¥414.5 billion,
and the equity ratio was 56.5%.
paid ¥10.5 billion for the purchase of treasury stock in the
fiscal period under review.
Operating Income
Net Income
Total Assets and Stockholders’ Equity
(Billion ¥)
50
(Billion ¥)
20
20
(%)
5
(Billion ¥)
800
(%)
100
40
41
15
4
600
80
30
20
10
3
2
400
60
40
10
5
1
200
20
0
’00/1 ’01/1 ’02/1 ’03/1’03/9* ’05/3**
(Estimated)
* Eight months ended September 30, 2003
** Full year ending March 31, 2005
0
0
’00/1 ’01/1 ’02/1 ’03/1’03/9* ’05/3**
(Estimated)
Return on Total Assets (right scale) Return on Equity (right scale)
* Eight months ended September 30, 2003
** Full year ending March 31, 2005
0
’00/1 ’01/1 ’02/1 ’03/1 ’03/9*
Stockholders’ Equity Equity Ratio (right scale)
* Eight months ended September 30, 2003
0
11