A N N U A L R E P O R T 1 9 9 9

More documents

Recommendations

Info

Interest Rate Contracts 1998 Millions of yen Notional amounts Due within one year Due after one year Total Fair value Unrealized gain (loss) Interest rate swap contracts— Pay floating rate, receive floating rate ¥1,000 ¥6,000 ¥7,000 ¥(2) ¥(2) Pay floating rate, receive fixed rate — — — — — Total ¥1,000 ¥6,000 ¥7,000 ¥(2) ¥(2) 1999 Millions of yen Notional amounts Due within one year Due after one year Total Fair value Unrealized gain (loss) Interest rate swap contracts— Pay floating rate, receive floating rate ¥6,000 ¥ — ¥ 6,000 ¥3 ¥3 Pay floating rate, receive fixed rate — 10,000 10,000 1 1 Total ¥6,000 ¥10,000 ¥16,000 ¥4 ¥4 Thousand of U.S. dollars Notional amounts Due within one year Due after one year Total Fair value Unrealized gain Interest rate swap contracts— Pay floating rate, receive floating rate $49,587 $ — $ 49,587 $25 $25 Pay floating rate, receive fixed rate — 82,645 82,645 8 8 Total $49,587 $82,645 $132,232 $33 $33 The above table excludes all the forward exchange contracts entered into to hedge receivables and payables denominated in foreign currencies, since they have been translated and reflected at the corresponding contracted rates in the accompanying balance sheets as of March 31, 1998 and 1999. The fair value of interest swap contracts has been required to be disclosed from fiscal 1998. 8. Commitments and Contingent Liabilities Commitments outstanding as at March 31, 1999, for capital expenditures approximated ¥58,966 million ($487,322 thousand). As at March 31, 1999, the Company and its subsidiaries were contingently liable for trade notes receivable discounted with banks of ¥42 million ($347 thousand). The average interest rate of the notes discounted with banks was 1.8% per annum as at March 31, 1999. The Company and its subsidiaries were also contingently liable as guarantors for the borrowings of certain subsidiaries, affiliates and subcontractors, amounting to ¥2,472 million ($20,430 thousand) as at March 31, 1999. The Company and its consolidated subsidiaries had cancellable and non-cancellable long-term lease agreements, principally for office space and computer equipment. Annual rental expenses for the year ended March 31, 1999, were ¥18,249 million ($150,818 thousand). 9. Segment Information The Company conducts various printing activities classified as the “printing” segment and non-printing activities classified as the “other” segment. A summary of net sales, costs and expenses and operating income by segment of business activities for the years ended March 31, 1997, 1998 and 1999, is shown on the next page. As described in Note 1 (Depreciation), effective April 1, 1998, the Company changed its depreciation method for buildings, excluding building fixtures, from the declining-balance method to the straight-line method. As a result of this change, operating income and assets of the Printing segment for the year ended March 31, 1999, increased by ¥2,651 million ($21,909 thousand) and ¥3,233 million ($26,719 thousand), respectively. Also, as described in Note 1 (Depreciation), effective April 1, 1998, the Company shortened the estimated useful lives of buildings, excluding building fixtures. As a result of this change, operating income and assets of the Printing segment decreased by ¥701 million ($5,793 thousand) and ¥833 million ($6,884 thousand), respectively. Also, as described in Note 1 (Allowance for doubtful receivables), effective from the year ended March 31, 1999, the Company changed the policy for providing the allowance for doubtful receivables from using the formula provided by the Corporation Tax Law to applying a percentage based on collection experience to the remaining account. As a result of this change, operating income and assets of the Printing segment increased by ¥434 million ($3,587 thousand) and ¥1,868 million ($15,438 thousand), respectively. Also, operating income and assets of the Other segment increased by ¥28 million ($231 thousand) and ¥136 million ($1,124 thousand), respectively. Geographical segment information was not presented as the sales and assets of consolidated domestic subsidiaries for the years ended March 31, 1997, 1998 and 1999 exceed 90% of consolidated net sales and assets. The overseas sales of the Company and its consolidated subsidiaries for the years ended March 31, 1997, 1998 and 1999, were less than 10% of consolidated net sales. 34
1997 Millions of yen Printing Other Total Elimination Consolidated Net sales— Outside customers ¥ 1,151,132 ¥ 123,207 ¥1,274,339 ¥ — ¥1,274,339 Intersegment 25,556 44,734 70,290 (70,290) Total 1,176,688 167,941 1,344,629 (70,290) 1,274,339 Costs and expenses 1,090,269 166,218 1,256,487 (70,290) 1,186,197 Operating income ¥ 86,419 ¥ 1,723 ¥ 88,142 ¥ — ¥ 88,142 Assets ¥ 1,111,036 ¥ 64,928 ¥1,175,964 ¥ (24,081) ¥1,151,883 Depreciation ¥ 51,426 ¥ 332 ¥ 51,758 ¥ — ¥ 51,758 Capital expenditures ¥ 77,996 ¥ 499 ¥ 78,495 ¥ — ¥ 78,495 1998 Millions of yen Printing Other Total Elimination Consolidated Net sales— Outside customers ¥ 1,172,178 ¥ 111,967 ¥1,284,145 ¥ — ¥1,284,145 Intersegment 21,324 46,352 67,676 (67,676) — Total 1,193,502 158,319 1,351,821 (67,676) 1,284,145 Costs and expenses 1,100,129 157,367 1,257,496 (67,676) 1,189,820 Operating income ¥ 93,373 ¥ 952 ¥ 94,325 ¥ — ¥ 94,325 Assets ¥ 1,260,724 ¥ 57,825 ¥1,318,549 ¥ (17,900) ¥1,300,649 Depreciation ¥ 55,732 ¥ 277 ¥ 56,009 ¥ — ¥ 56,009 Capital expenditures ¥ 128,148 ¥ 586 ¥ 128,734 ¥ — ¥ 128,734 1999 Millions of yen Printing Other Total Elimination Consolidated Net sales— Outside customers ¥1,116,534 ¥ 106,905 ¥1,223,439 ¥ — ¥1,223,439 Intersegment 17,631 47,278 64,909 (64,909) — Total 1,134,165 154,183 1,288,348 (64,909) 1,223,439 Costs and expenses 1,069,271 153,860 1,223,131 (64,909) 1,158,222 Operating income ¥1,264,894 ¥ 323 ¥1,265,217 ¥ — ¥1,265,217 Assets ¥1,226,042 ¥ 61,875 ¥1,287,917 ¥ (20,560) ¥1,267,357 Depreciation ¥1,258,186 ¥ 293 ¥1,258,479 ¥ — ¥1,258,479 Capital expenditures ¥1,100,485 ¥ 436 ¥1,100,921 ¥ — ¥1,100,921 1999 Thousands of dollars Printing Other Total Elimination Consolidated Net sales— Outside customers $ 9,227,553 $ 883,513 $10,111,066 $ — $10,111,066 Intersegment 145,712 390,726 536,438 (536,438) — Total 9,373,265 1,274,239 10,647,504 (536,438) 10,111,066 Costs and expenses 8,836,950 1,271,571 10,108,521 (536,438) 9,572,083 Operating income $ 536,315 $ 2,668 $ 538,983 $ — $ 538,983 Assets $10,132,579 $ 511,363 $10,643,942 $(169,917) $10,474,025 Depreciation $ 480,876 $ 2,421 $ 483,297 $ — $ 483,297 Capital expenditures $ 830,455 $ 3,603 $ 834,058 $ — $ 834,058 35
Page 1 and 2: A N N U A L R E P O R T 1 9 9 9 Top
Page 3 and 4: FINANCIAL HIGHLIGHTS Toppan Printin
Page 5 and 6: Toppan is working to establish a fo
Page 7 and 8: With only one year remaining until
Page 9 and 10: ? Japan’s printing industry has a
Page 11 and 12: ? A large number of companies offer
Page 13 and 14: ? Electronics operations already ac
Page 15 and 16: Eco- Creativity To enable us to ful
Page 17 and 18: Securities and Cards In this field,
Page 19 and 20: Industrial Materials Toppan has use
Page 21 and 22: Management’s Discussion and Analy
Page 23 and 24: Cash Dividends per Share (¥) 15 10
Page 25 and 26: Toppan Printing Co., Ltd. and Subsi
Page 27 and 28: Liabilities and Shareholders’ Inv
Page 29 and 30: CONSOLIDATED STATEMENTS OF SHAREHOL
Page 31 and 32: NOTES TO CONSOLIDATED FINANCIAL STA
Page 33 and 34: Cash and Cash Equivalents For purpo
Page 35: The aggregate annual maturities of
Page 39 and 40: Board of Directors and Auditors 38
Page 41 and 42: Hiromichi Fujita Kenji Ejima Naoki
Page 43 and 44: D INDUSTRIAL MATERIALS Toppan Kenza
Page 45 and 46: D Siam Printing and Packaging Co.,
Page 47 and 48: Produced and printed in Japan by To

A N N U A L R E P O R T 1 9 9 9

Create successful ePaper yourself

Delete template?

Save as template?