1. Change in Accounting Policies. 2. Scope of Consolidation

Transcription

1 1. Change in Accounting Policies 1) Consolidation Number of Consolidation: Total 36 Increase : 3 Taiwan Yamanouchi Pharmaceutical Co., Ltd. Korea Yamanouchi Pharmaceutical Co., LtdYamanouchi Pharma AE(GREECE) Decrease : 26 Shaklee Corporation Shaklee Philippines, Inc. Bear Creek Direct Marketing, Inc. Shaklee U.S., Inc. Shaklee Argentina S.A. Harry and David Shaklee International, Inc. Shaklee Far East, Inc. Bear Creek Stores, Inc. Shaklee Canada Inc. Shaklee Produtos Naturais Ltda. Jackson & Perkins Company Shaklee (Asia) Inc. Bear Creek Corporation Bear Creek Operations, Inc. Shaklee Mexico S.A. de C.V. Bear Creek Orchards, Inc. INOBYS Ltd. Shaklee Products (Malaysia) Sdn.Bhd. Jackson & Perkins Wholesale, Inc. Golden Gate management Inc. Shaklee (Thailand) Limited Jackson & Perkins Operations, Inc. Shaklee Japan Kabushiki Kaisha Yamanouchi Pharma Eastern Europe B.V. Yamanouchi Group Business LLC. * With respect to the nutritional products and personal care products business, as well as the food and roses business, the Company sold all the shares held by its U.S.subsidiary. Number of Company under Equity Method: Total 2 Increase : 1 Zepharma Kabushiki Kaisha 2)Yamanouchi Brocades B.V. changed its appellation to Yamanouchi Europe Holdinng B.V. Yamanouchi Consumer Inc. changed its appellation to Yamanouchi Consumer LLC. 2. Scope of Consolidation Total:39(Parent Company, Consolidated Subsidiaries 36, Company under Equity Method:2) Other Pharmaceuticals Nutritional Products Food and Roses Japan Asia Yamanouchi Pharmaceutical Tohoku Yamanouchi Yamanouchi Pharmaceutical (China) Taiwan Yamanouchi Pharmaceutical Korea Yamanouchi Pharmaceutical 3 3 Europe Yamanouchi UK Yamanouchi Ireland Yamanouchi Europe U.S.A. Yamanouchi Pharma America Yamanouchi Pharma Technologies Yamanouchi Venture Capital Other 1 1 Total Cautionary Statement re: Forward-Looking Information These documents include forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. Actual financial results may differ materially depending on a number of factors including, adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launches, pricing and product initiatives of competitors, the inability of the company to market existing and new products effectively, interruptions in production, infringements of the company's intellectual property rights and the adverse outcome of material litigation. 1

2 3. Consolidated Results Selected Results Net Sales % Y on Y Change 5.3% 0.9% -12.5% Cost of Sales % Ratio of Net Sales 34.6% 34.0% 31.6% Selling, general and administrative expenses % Ratio of Net Sales 44.5% 46.3% 44.0% Operating Income % Ratio of Net Sales 20.9% 19.7% 24.4% Ordinary Income % Ratio of Net Sales 20.5% 19.2% 24.6% Net Income % Ratio of Net Sales 11.8% 11.7% 7.5% - The results of "Nutritional and Personal Care Products" and "Food and Roses" are not included in the results forfy2003 and FY2004. The results of those business for FY 2003 are as follows; Net sales: 87.8 billion yen, Operating income: 3.8 billion yen - Extra shipment at the end of Mar. in preparation for a temporary stop of the ordering/distributing system following the merger contributed net sales and operating income 9.3 billion yen and 5.9 billion yen, respectively. The Impacts of the extra shipment on sales of main products; Gaster 2.0 bil. yen, Harnal 1.5 bil. yen, Lipitor 3.0 bil. yen and Micardis 2.0 bil. yen Shareholders' Equity per Share 2, , , EPS EPS (Diluted) Dividend per Share ROE 8.9% 8.6% 4.6% ROA 6.7% 6.7% 3.7% Yen Exchange Rate Yen/* Yen/USD Yen/EUR Effect on Net Sales* Effect on Operating Income* Effect on Ordinary Income* Effect on Net Income* Employees Consolidated 9,278 9,062 7,223-1,839 Non Consolidated 4,072 4,088 4,

3 4. Detailed Information for Operating Results Net Sales % Cost of Sales % Ratio of Net Sales 34.6% 34.0% 31.6% Gross Profit % Selling, general and administrative expenses % Ratio of Net Sales 44.5% 46.3% 44.0% Advertising and sales promotional expenses % Research and development expenses % Personnel Expenses % Other Expenses % Operating Income % Ratio of Net Sales 20.9% 19.7% 24.4% Non Operating Income Interest Income Dividend Income Exchange Gain Other Non Operating Expenses Interest Expenses Exchange Loss Other Ordinary Income % Ratio of Net Sales 20.5% 19.2% 24.6% Special Gain Gain on sales and disposal of fixed assets Indemnity received Gain on Sales of Investment Securities of affiliates Gain on Sales of Investment Securities Special Loss Loss on sales and disposal of fixed assets Extraordinary Depreciation of Intangible Fixed Assets Loss on Devaluation of Investment Securities Loss on business restructuring Merger Expense Income before Income Taxes Income Tax - current Income Tax - deferred Net Income % Ratio of Net Sales 11.8% 11.7% 7.5% 3

4 5. Segment Information by Business Net Sales % Pharmaceuticals and Related Products % Ratio of Net Sales 81.2% 82.5% 99.2% Nutritional and Personal Care Products Ratio of Net Sales 6.0% 5.6% - Food and Roses Ratio of Net Sales 12.4% 11.5% - Other % Ratio of Net Sales 0.4% 0.4% 0.8% Operating Profit % Pharmaceuticals and Related Products % Ratio of Operating Profit 90.6% 92.6% 98.7% Nutritional and Personal Care Products Ratio of Operating Profit 2.7% 3.0% - Food and Roses Ratio of Operating Profit 3.4% 0.8% - Other % Ratio of Operating Profit 2.9% 3.2% 1.0% Eliminations Segment Information by Area Net Sales % Japan % Ratio of Net Sales 63.9% 63.4% 69.4% North America % Ratio of Net Sales 16.7% 15.5% 1.9% Europe % Ratio of Net Sales 19.0% 20.7% 26.9% Asia % Ratio of Net Sales 0.4% 0.4% 1.7% Operating Profit % Japan % Ratio of Operating Profit 97.3% 93.8% 98.0% North America Ratio of Operating Profit 3.0% -3.0% -1.3% Europe % Ratio of Operating Profit 5.8% 7.3% 3.5% Asia % Ratio of Operating Profit 0.1% 0.2% 0.9% Eliminations

5 7. Overseas Sales Overseas Sales % Ratio of Net Sales 38.5% 38.4% 32.4% North America % Ratio of Net Sales 22.8% 21.7% 9.4% Europe % Ratio of Net Sales 13.9% 14.9% 19.8% Asia % Ratio of Net Sales 1.6% 1.5% 2.3% Other % 8. Research and Development Expenses Research and Development Expenses % Ratio of Net Sales 13.2% 13.7% 13.2% *1 Pharmaceuticals and Related Products (Japan) *2 Pharmaceuticals and Related Products (Overseas) Pharmaceuticals and Related Products % Others *1: R&D expenses on a non-consolidated basis *2: Consolidated R&D expenses minus non-consolidated R&D expenses 9. Additions to Property, Plant and Equipment Additions to Property, Plant and Equipment Pharmaceuticals and Related Products (Japan) Pharmaceuticals and Related Products (Overseas) Nutritional and Personal Care Products Food and Roses Others Depreciation (Tangible Assets) Pharmaceuticals and Related Products (Japan) Pharmaceuticals and Related Products (Overseas) Nutritional and Personal Care Products Food and Roses Others Depreciation (Intangible Assets) Pharmaceuticals and Related Products (Japan) Pharmaceuticals and Related Products (Overseas) Others FY2004 Breakdown of Additions to Property, plant and Equipment Yamanouchi Pharmaceutical CO., Ltd.: 6.9 billion yen - R&D: 2.9 billion yen - Manufacturing: 0.8 billion yen - for merger: 3.1 billion yen 5

6 10. Detailed Segment Information by Business Pharmaceuticals and Related Products Net Sales % Y on Y Change 7.7% 2.5% 5.2% Japan % North America % Europe % Asia % Operating Income % Ratio of Net Sales 23.3% 22.2% 24.2% Sales of Major Products Harnal Sales by Yamanouchi Japan Europe Others Bulk and Royalties Vesicare Sales by Yamanouchi Europe North America Gaster (H2Antagonist) Sales by Yamanouchi Japan (including OTC) Others Bulk and Royalties Calcium antagonists (consolidated) Perdipine and Perdipine LA (consolidated) Hypoca Others Net Sales % Operating Profit % 6

7 11. (Reference) Detailed Information of Pharmaceuticals and Related Products Exclude for "Nutritional and Personal Care Products" and "Food and Roses" Net Sales % Y on Y Change 2.5% 5.6% Cost of Sales % Ratio of Net Sales 31.4% 30.4% 31.6% Selling, general and administrative expenses % Ratio of Net Sales 44.6% 46.7% 44.0% Operating Income % Ratio of Net Sales 24.0% 22.9% 24.4% Ordinary Income % Ratio of Net Sales 23.8% 22.2% 24.6% Net Income % Ratio of Net Sales 13.9% 13.6% 7.5% <Segment by regions> Net Sales % Japan % Ratio of Net Sales 76.1% 74.1% 69.4% North America % Ratio of Net Sales 0.1% 0.3% 1.9% Europe % Ratio of Net Sales 23.3% 25.0% 26.9% Asia % Ratio of Net Sales 0.5% 0.5% 1.7% Operating Profit % Japan % Ratio of Operating Profit 102.0% 95.6% 98.0% North America Ratio of Operating Profit -1.6% -5.1% -1.3% Europe % Ratio of Operating Profit 6.2% 7.6% 3.5% Asia % Ratio of Operating Profit 0.1% 0.2% 0.9% Eliminations Overseas Sales % Ratio of Net Sales 26.8% 28.0% 32.4% North America % Ratio of Net Sales 6.2% 6.4% 9.4% Europe % Ratio of Net Sales 13.9% 14.9% 19.8% Asia % Ratio of Net Sales 1.6% 1.5% 2.3% Other % 7

8 Balance Sheets (Assets) 30-Sep Mar-04 Amount Composition Amount Composition Change Assets % % 10.8 Current assets % % 78.4 Cash on hand and in banks Trade notes and accounts receivable Marketable securities Inventories Deferred tax assets Other Allowance for doubtful receivable Fixed assets % % Property, plant and equipment Buildings and structures Machinery, equipment and vehicles Tools, furniture and fixtures Land Construction in progress Other Intangible fixed assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful receivables Sep Mar-04 Amount Composition Amount Composition Change Liabilities and Shareholders' Equity % % 10.8 Liablities % % -4.7 Current liabilities % % 9.3 Trade notes and accounts payable Short-term loans payable Other accounts payable Accrued expenses Accrued income taxes Accrued consumption tax Deferred tax liabilities Sales related allowances Allowance for sales rebates and others Other Long-term liabilities % % Convertible bonds Long-term loans payable Deferred tax liabilities Accrued retirement benefits for employees Accrued retirement benefits for directors Other Minority interests % % -0.8 Shareholders' equity % % 16.5 Common stock % % 0.7 Additional paid-in capital % % 0.7 Retained earnings % % 24.4 Unrealized holding gain on securities % % -2.2 Translation Adjustments % % 5.4 Treasury Stock % %