Contents
1 A LETTER FROM THE CHAIRMAN 2 FINANCIAL HIGHLIGHTS
3 AN INTERVIEW WITH THE PRESIDENT— PROACTIVELY EXPANDING MARKET SHARE
AGGRESSIVELY PURSUING NEW BUSINESS OPPORTUNITIES 18 KOKUYO AT A GLANCE
18 STATIONERY SEGMENT 19 FURNITURE SEGMENT 20 KOKUYO’S BUSINESS ACTIVITIES
20 STATIONERY BUSINESS 22 FURNITURE BUSINESS 24 SIX-YEAR SUMMARY
25 MANAGEMENT’S DISCUSSION AND ANALYSIS 30 CONSOLIDATED BALANCE SHEETS
32 CONSOLIDATED STATEMENTS OF OPERATIONS
33 CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY 34 CONSOLIDATED STATEMENTS OF CASH FLOWS
35 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 45 INDEPENDENT AUDITOR’S REPORT
46 BOARD OF DIRECTORS/CORPORATE DATA/CONSOLIDATED SUBSIDIARIES/OVERSEAS NETWORK
Cautionary Statement with Respect to Forward-Looking Statements
This annual report contains statements about Kokuyo’s future business plans and strategies as well as estimates. Statements regarding the Company’s projected business results are not based on historical facts and are subject to various risks and uncertainties. These risks and uncertainties relate to economic conditions in Kokuyo’s business envi- ronment, particularly the state of private-sector and public-sector capital investment, competitive pricing pressures in the marketplace, and Kokuyo’s ability to continue designing and developing products that will be accepted in markets. However, it should be noted that elements affecting performance are not limited to the previously mentioned factors.
vision of superior products and services.” Having originally special- ized in stationery goods, the Group has expanded its operational scope to include office furniture. Kokuyo is currently continuing its corporate growth and evolution as Japan’s largest office supplies provider.
Kokuyo has been implementing a business structure reform plan designed to expedite the reattainment of a high level of profitability. In line with the plan, the Company has made large cost cuts and thoroughgoing expense reductions in addition to introducing other measures to streamline its operations, and these efforts have gen- erated substantial benefits. Kokuyo has also worked to increase the autonomy of its divisions and thereby clarify responsibilities and expedite decision making through such measures as the intro- duction of an internal company system and the shift of consider- able decision-making authority to internal company managers. These moves are designed to improve our managers’ capabilities for flexibly responding to changes in the operating environment.
The Kokuyo Group expects to continue facing challenging conditions in its principal markets due to uncertain trends in the Japanese economy and heightened instability in international affairs as well as a continued slump in private-sector capital investment and personal consumption. At the same time, the Group expects to sustain steady corporate growth and business development by accurately and creatively responding to the increasingly diverse requirements of customers.
Established in 1905, Kokuyo is the top company in
Japan’s office supplies industry. Originally a manufac-
turer of accounting ledger covers, the Company has
steadily diversified its operations by undertaking the
manufacture of such paper products as notebooks,
accounting ledgers, business forms, and files. In the
early 1960s, we began manufacturing file cabinets in
response to requests from customers who wanted help
in storing their files. Following this initial step into the
furniture field, we began supplying desks, tables,
chairs, flooring and ceiling materials, and other prod-
ucts that enable us to provide customers with compre-
hensive interior design proposals for offices. In this
way, we have become the only manufacturing company
in the world that can supply everything needed for
offices, from stationery goods through furniture.
Having traditionally defined its mission as contribut-
ing to society by providing superior products, Kokuyo
is now striving to further upgrade its capabilities for
generating customer satisfaction through the imple-
mentation of a management strategy that will be com-
pleted in 2005, the year of the Company’s centennial
anniversary. In line with our goal of being “a company
that plays a leading role in promoting progress in cus-
tomers’ knowledge activities by sustaining its own
rapid evolution and continually providing customers
with inspiration, efficiency, and amenity,” we are
doing out utmost to increase shareholder value.
We hope our shareholders will continue to favor us
with their understanding, support, and encouragement.
Shounosuke Kuroda
Chairman
A Letter from the Chairman
Net Sales
0 100,000 200,000 300,000 400,000
(Millions of yen)
1998 1999 2000 2001 2002 2003 272,199
0 3,000 6,000 9,000 12,000
1998 1999 2000 2001 2002 2003 231 (1,422)
Net Income (Loss)
(Millions of yen)
0 20 40 60 80 100
1998 1999 2000 2001 2002 2003 1998 1999 2000 2001 2002 2003
1.51 0.1
0.1
Net Income (Loss) Per Share
(Yen)
Primar y* Diluted
ROE & ROA
(%)
0 1 2 3 4 5 6 7
ROE ROA
(0.4) (0.7) (11.05)
Thousands of Millions of yen U.S. dollars
2003 2002 2003
For the year:
Net sales ¥272,199 ¥276,584 $2,264,551
Operating income 4,998 779 41,581
Net income (loss) 231 (1,422) 1,922
At year-end:
Total assets 285,789 307,010 2,377,612
Total shareholders’ equity 181,430 190,274 1,509,401
Amounts per share (in yen and U.S. dollars):
Net income (loss) ¥01.51 ¥(11.05) $0.01
Diluted net income 1.51 — 0.01
Cash dividends applicable to the year 15.00 15.00 0.12
Note: The U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥120.2=U.S.$1 the approximate exchange rate prevailing at March 31, 2003.
Interview with the President
Proactively Expanding Market Share
Aggressively Pursuing
New Business Opportunities
STRUCTURAL REFORMS & STRATEGIES FOR THE FUTURE
The President’s Overview of Business Results . . . 4
Results of the structural reform plan and other cost reductions aimed at restoring high levels of profitability
Kokuyo’s Current Situation . . . 7
Qualitative change in the operating environment A newly reborn Kokuyo
Kokuyo’s Corporate Evolution and Vision . . . 8
Strengthened corporate governance and compliance
Introduction of an internal company system and consideration of the adoption of a holding company system Successful implementation of measures to reduce production costs and operating expenses
Product Development Capabilities and Office Furniture Business . . . 10
Strengthened capabilities for developing universal design products The top company in our industry in terms of Good Design Awards
Handling 37% of all orders related to urban redevelopment in the Tokyo metropolitan area
Kaunet and Distribution Reforms . . . 12
Kaunet sales reach ¥21.6 billion, with an operating loss of ¥2.6 billion
Expansion in the scope of low-cost operations and in the reflection of customer suggestions Successful switch from exclusive agents to distribution affiliates
An Environment-Friendly Company . . . 14
Proactively developing and marketing environment-friendly products
Becoming the world’s top stationery and furniture manufacturer in terms of environment friendliness Share of ecoproduct sales surpasses 47%
Overseas Business Expansion/Message to Shareholders . . . 16
Establishing procurement, manufacturing, and marketing bases in China
Increasing the share of overseas procurement to 25% of total by the year ended March 31, 2005
Sustained implementation of structural reforms and the concentration of resources in selected strategic fields Sustained repurchasing of outstanding shares
The President’s Overview of Business Results
Summary
Results of the structural reform plan and other cost reductions aimed at restoring high levels of profitability Net sales: ¥272.2 billion; Operating income: ¥5.0 billion; Net income: ¥0.2 billion
Segment breakdown: Stationery segment sales: ¥138.2 billion; Gross profit: ¥45.7 billion; Operating income ¥2.6 billion Furniture segment sales: ¥134.0 billion; Gross profit: ¥41.7 billion; Operating income ¥2.3 billion
on the return to the government of the substitutional
portion of the employees’ pension fund was counter-
balanced by extraordinary losses of ¥4.6 billion due
to the expense of a voluntary early retirement program
and ¥3.7 billion on the write-down of investment secu-
rities. Consequently, net income totaled ¥231 million.
In the stationery segment, our programs to reduce
costs and improve the profitability of business involv-
ing such low-margin products as paper for plain paper
copiers and other office automation equipment
enabled us to generate ¥138.2 billion in sales, down
0.3% from the previous year. Gross profit totaled
¥45.7 billion, and the gross profit ratio improved 3.5
percentage points, to 33.1%. Operating income grew
to ¥2.6 billion, compared with a ¥1.2 billion operating
loss in the previous year.
In the furniture segment, we significantly boosted
our share of the market associated with urban redevel-
opment plans in the Tokyo metropolitan area, even as
overall sales were adversely affected by the low level
of private-sector capital investment associated with
the economic slump. Sales amounted to ¥134.0 bil-
lion, down 2.9% from the previous year. Gross profit
added up to ¥41.7 billion, and the gross profit ratio
edged up 0.2 percentage point, to 31.1%. Operating
income rose ¥0.4 billion compared with the previous
fiscal year, to ¥2.4 billion.
Q: Could you briefly describe
Kokuyo Co., Ltd.’s performance
in the fiscal year ended March
31, 2003?
After the fiscal year ended March 31, 2002—the
first year since listing its shares in which Kokuyo had
recorded a consolidated net loss—we began imple-
menting a structural reform plan aimed at restoring a
high level of profitability, proceeded with substantial
cost reductions, and otherwise worked to streamline
and strengthen the Kokuyo Group’s capabilities.
The Group continued to face harsh conditions in
its principal markets with no sign of improvement,
however, due to uncertain trends in the Japanese
economy and heightened instability in international
affairs as well as continued slumps in private-sector
capital investment and personal consumption.
In the fiscal year ended March 31, 2003, Kokuyo
recorded ¥272.2 billion in consolidated net sales,
down 1.6% from the previous year. This decline reflect-
ed a generalized dip in domestic demand. Turning to
the question of profitability, our proactive initiatives
enabled us to boost operating income 541.6%, to
¥5.0 billion, and largely reflected a ¥5.1 billion cut in
selling, general and administrative (SG&A) expenses
despite the consolidation of additional distribution
affiliates. A ¥4.3 billion extraordinary gain recorded
Akihiro Kuroda, President
Customer needs are
changing more rapidly
than ever before,
and Kokuyo is proactively
pursuing new business
opportunities to
meet these needs.
Proactively Expanding Market Share
Aggressively Pursuing New Business
“
”
Q: How would you describe
the changes under way in the
operating environment?
We see two main types of change. First, while busi-
ness success previously hinged on high-volume pro-
ductivity, success is now increasingly dependent on
capabilities for proposing high-value-added customer
solutions and speedily responding to customer needs.
Second, although manufacturers used to play leading
roles in shaping markets, today market trends are
almost completely customer-driven.
Kokuyo is a company with a history nearly a cen-
tury long, and it has never before seen customers
take such strong initiatives aimed at taking control
of and changing their business and information
environments.
Q: What is Kokuyo currently
doing to respond to changes
in the market environment?
Frankly, we have been a bit too complacent due to the
strength of the Kokuyo brand, which has a domestic
name recognition rate of more than 90%. As a result,
I think it can be said that we did not previously have
a sufficient sense of crisis.
Fully roused by the dramatic changes in our operat-
ing environment, however, we have created a new cor-
porate vision and marshalled substantial creative
dynamism in our work to realize that vision. Employee
mind-sets have changed, and it is clear that we are
now more intent on giving top priority to responding to
customer needs. We are still in the process of enact-
ing reforms aimed at fundamentally transforming
Kokuyo, and the positive effects of our initiatives
are increasingly evident.
Kokuyo’s Current Situation
Summary
Qualitative change in the operating environment A newly reborn Kokuyo
y
e
s Opportunities
Q: What is the corporate vision
that Kokuyo adopted in
December 2000?
Centered on the theme “Always Innovating for Your
Knowledge,” our vision calls for Kokuyo to be a com-
pany that delivers inspiration, efficiency, and amenity
while promoting its own corporate evolution by con-
stantly leading the evolution of its customers’ knowl-
edge. In concrete terms, we are determined to achieve
such goals as ensuring that management systems
consistently emphasize shareholder benefits, strength-
ening capabilities for customer-oriented marketing and
R&D activities, and creating new businesses.
We also plan to equip this new version of Kokuyo
with stronger corporate governance and compliance
systems. The main elements of our corporate gover-
nance system are shown in the chart below.
Q: Kokuyo has made a fresh
strategic start following the
introduction of its internal
company system. Please
describe your new strategies.
For the fiscal year ending March 31, 2004, we have
adopted the strategic theme of “proactiveness.”
Rather than being defensive and trying to restore the
Kokuyo of the past or just continuing and extending
our operations along previous lines, we are focused
on building new markets and “new corporate growth
potential.” We will be entering markets in which
Kokuyo has never had a presence and are dedicated
to establishing systems for “responding to all kinds
of needs as well as incipient needs” in fields where
we have not previously ventured.
Kokuyo’s Corporate Evolution and Vision
Summary
Strengthened corporate governance and compliance Introduction of an internal company system and
consideration of the adoption of a holding company system
Successful implementation of measures to reduce production costs and operating expenses
Internal Companies
General Meeting of Shareholders Elections/Dismissals Elections/Dismissals
Elections/ Dismissals Board of Directors/Directors Board of Auditors/Auditors
Nominations/Oversight Operational Oversight
President and Representative Directors Accounting Auditor Accounting Auditing
Group Companies Corporate Governance and Compliance Functions
Stationery Company and Six Other Companies
The introduction of our internal company system
and consideration of a holding company system
reflects our goal of shifting a large amount of authority
and responsibility to business units so that they can
make decisions more quickly and manage their opera-
tions with greater dynamic flexibility. Our adoption of
an internal company system has proven to be an
extremely effective means of increasing the speed
and innovativeness of our responses to market devel-
opments, and we expect the system to greatly pro-
mote the pioneering of new markets and creation
of new business models.
Q: The current fiscal year, ending
March 31, 2004, is the second
year of the structural reform
plan. What kind of progress have
you made in attaining the plan’s
objectives?
I am happy to report that, in the first year of the struc-
tural reform plan, we surpassed our targets. We trans-
ferred the parent company’s main paper product plant,
the Yao Factory, to a subsidiary, Kokuyo Kogyo Shiga
Co., Ltd., and we organizationally shifted the opera-
tions of a construction materials subsidiary, KOKUYO
MEIBEL Co., Ltd., to within the parent company’s
Shibayama Factory. At the same time, we reduced the
number of workers at the parent company and sub-
sidiaries by 430.
In the current fiscal year, we are aiming to realize
an additional ¥8.2 billion in cost reductions and ¥7.9
billion in expense cutbacks and are confident that we
can attain those targets.
PRESIDENT
CORPORATE STAFF RESEARCH & DEVELOPMENT &
INCUBATION DIVISION
IT COMMUNICATION COMPANY FURNITURE COMPANY STATIONERY COMPANY
CHANNEL PLANNING COMPANY NEW SHOP CREATION COMPANY
SHOP FITTINGS COMPANY INTERNATIONAL COMPANY OFFICE SYSTEM COMPANY SHARED SERVICE COMPANY
KOKUYO TOKYO SALES Co., Ltd. KOKUYO NISHIKANTO SALES Co., Ltd.
KOKUYO SAITAMA SALES Co., Ltd. KOKUYO CHUBU SALES Co., Ltd.
KOKUYO KINKI SALES Co., Ltd. KOKUYO CHYUGOKU SALES Co., Ltd.
KOKUYO KYUSHU SALES Co., Ltd. NET KOKUYO Co., Ltd.
KAUNET Co., Ltd. KOKUYO ENGINEERING Co., Ltd.
LOGISTICS COMPANY Consolidated Subsidiaries
Kokuyo’s Organization
Q: How has Kokuyo enhanced its
product development capabilities?
In our product development activities, we seek to cre-
ate universal design products that are easy for people
in all walks of life to use. Examples of such newly mar-
keted products include Tepita scissors, which have an
“open” handle on one side that makes it possible to
grasp and employ the scissors in diverse ways, and
Easy-to-Handle Tube Files, which are particularly easy
to place on and remove from shelves and file cabinets.
In addition to being easy for all kinds of people
to use, universal design products feature appealing
designs and have been highly evaluated in the market
since their initial introduction. The strong emphasis
we place on good design at the R&D stage has won
us high-profile recognition. At the 2002 Good Design
Awards program of Japan’s Ministry of Economy,
Trade and Industry, Kokuyo was the top company
in its industry sector and the fourth nationwide
regarding the number of awards won.
In the 2002 Good Design Awards program, the
AGATA/S high-performance office chair won the Minis-
ter of Economy, Trade and Industry Award, which is
given to products that are distinctly superior with
respect to design and functionality. This prestigious
award was last won by a Kokuyo product in 1991,
Product Development Capabilities and Office Furniture Business
Summary
Strengthened capabilities for developing universal design products
The top company in our industry in terms of Good Design Awards
Handling 37% of all orders related to urban redevelopment in the Tokyo metropolitan area
Top Company in Our Sector and Fourth Nationwide Regarding Number of 2002 Good Design Awards Won
(Items)
0 20 40 60 80
Sanyo Kokuyo* Sharp
Toshiba Matsushita
Electric
*Kokuyo won 26 items in the 2002 Good Design Awards. Sales of Universal Design Products
(Millions of yen)
0 200 400 1,500 3,000
2003/3 2002/3
2001/3 2000/3
Number of items: 48 (470 product variations) Easy-to-Handle Tube Files
Files with recessed grips along their spines that
make them easy to place on and remove from shelves and file cabinets
AGATA/V
A conference chair in the characteristically stylish AGATA line
namely, the Campus Notebook. In addition, the
AGATA/V Meeting Chair was awarded the silver prize
within the 2003 iF Design Award program, a well-
known awards program in Germany. Office furniture
that, like these products, features superior design has
attracted strong demand related to the Tokyo metro-
politan area urban redevelopment project.
Q: What kind of progress has been
made in the Tokyo metropolitan
area urban redevelopment project?
It can be said that the rise in urban redevelopment
activities is the biggest change in the office furniture
business environment. Amid harsh economic condi-
tions, total demand related to the Tokyo metropolitan
area urban redevelopment project is expected to
amount to roughly ¥40 billion in the period through
March 2005, down from an original forecast of about
¥50 billion due to cancellations and delays of portions
of the project.
Since Kokuyo is a Kansai-based company that
was relatively late to establish operations in the
Tokyo region, it has only about a 10% share of the
Tokyo office development market overall. In the Tokyo
metropolitan area urban redevelopment project, how-
ever, we initially set ourselves the target of obtaining
¥16.0 billion in sales, or about a 40% share of total
demand associated with the project. Currently, we
have an approximately 37% share, and it appears that
we will almost certainly attain our performance goals.
Users very familiar with the benefits of well-designed
offices place strong emphasis on comprehensively
customizing office furniture to augment individual pro-
ductivity and the efficiency of facility management. Our
superior capability to respond to such customization
needs has been a key factor underlying a rise in
orders. For example, we have launched such products
as the ALIOS desk system, which features a freely
customizable desktop; procured special equipment for
manufacturing customized wooden desktops; and
established development and design teams within our
marketing departments.
Moreover, rather than simply marketing furniture,
we have helped our customers create excellent offices
by providing various services, such as general admin-
istration proxy services and project management
services.
Due to the intensity of competition, our sales
associated with the Tokyo metropolitan area urban
redevelopment project fell short of making a large con-
tribution to profitability. At the same time, participation
in the project has made it possible for us to obtain
sustained orders from customers that previously did
business almost exclusively with our competitors. In
this way, participation is expected to have significantly
positive effects on our future growth.
Q: What kind of performance
has Kokuyo recorded in its
Kaunet office supply direct-
marketing operations? How is
Kokuyo differentiating Kaunet
from competitors’ direct-
marketing operations?
As harsh economic conditions have spurred many
customers to reduce expenditure on office-use con-
sumables, targets for increasing Kaunet sales and
operating profit during the fiscal year under review
were short of the mark. However, the distribution of
the fifth issue of the Kaunet catalog from February
2003 has led to a steady rise in Kaunet sales.
To set apart Kaunet from its competitors, we are
single-minded about ensuring that all Kaunet offerings
are of dependably high quality in line with our strategy
for promoting customer confidence by providing top-
quality products and services. More than anything
else, we are currently seeking to broaden Kaunet’s
customer base. To do this, we are making additional
streamlining efforts, such as those involving the reduc-
tion of product procurement, call center, and distribu-
tion costs.
Kaunet and Distribution Reforms
Summary
Kaunet sales reach ¥21.6 billion, with an operating loss of ¥2.6 billion
Expansion in the scope of low-cost operations and in the reflection of customer suggestions Successful switch from exclusive agents to distribution affiliates
Kaunet website
Kaunet: Sales and Profits
(Billions of yen)
2004/3 2003/3
2002/3 2001/3
1.2
-1.2
-5.2
-2.6
0.5
12.5
21.6
33.6
-10 -5 0 5 10 15 20 25 30 35
Attainment of Profitability
Q: Is the shift from exclusive
agents to distribution affiliates
proceeding smoothly?
Distribution channels involving exclusive agents spe-
cializing in Kokuyo products played a key role in sup-
porting the Company’s growth during the 20th century.
The structure of those channels was predicated on a
rise in business volume, however, and, because such
a rise is not immediately expected, the channels are
functioning at below par.
During the fiscal year ended March 31, 2001, we
implemented a new distribution policy that involves
the vertical integration of exclusive agents in major
urban regions with our branches and offices. In
October 2002, we completed the conversion of our
distribution system in major urban regions with the
establishment of KOKUYO CHUBU SALES Co., Ltd.,
our seventh distribution affiliate.
In the fiscal year ended March 31, 2003, six of
our seven newly established distribution affiliates
were profitable while only one company, in the Kansai
region, was not. In the current fiscal year, all seven
companies are expected to be profitable, improve their
financial positions, and raise their profit rates.
These positive trends reflect the strengths of the
distribution affiliates. Rather than simply conducting
marketing as conventional wholesalers, our distribu-
tion affiliates are implementing a business model that
entails surveying user needs and proposing the provi-
sion of diverse services in line with those needs. The
distribution affiliates are also increasing efficiency by
customizing their approaches to different types of cus-
tomers. In the case of stores with relatively low sales
turnover, for example, salesperson visits are being
phased out and arrangements made for the placement
of orders via Kaunet’s call center and website. As a
result, sales staff are able to more frequently visit cus-
tomers with larger sales turnover or special needs.
As exclusive agents outside major urban regions
are also adopting this streamlined business model,
our entire distribution network has been restructured.
However, we have no plans to establish distribution
subsidiaries in nonmajor urban regions.
Business Model Reform
Net business (Kaunet, @office, etc.)
Direct sales (Office ser vices, government demand, etc.) Existing wholesaling
0 20 40 60 80 100
40% 30% 30%
2003/3 2004/3
(Target)
2005/3 (Target)
2006/3 (Target)
(% of net sales)
Q: The concept of sustainability
is of rising importance world-
wide. What kind of special activi-
ties does Kokuyo undertake to
protect the environment and
contribute to society as a
good corporate citizen?
Since its establishment, the Kokuyo Group has
defined its mission as contributing to the world by pro-
viding superior products. In line with this goal, we have
proactively worked to develop products with superior
environment friendliness. In the fiscal year under
review, we adopted Green Initiative 2010, a medium-
term environmental action plan that calls for progres-
sively increasing the strictness of our environmental
protection objectives. Based on the Kokuyo Group’s
six environmental protection principles, the plan
specifies quantitative environmental protection goals
and methods for attaining those goals, which we are
energetically striving toward. We are proceeding with
ongoing efforts to introduce environmental accounting
systems and disclose environment-related information,
reduce resource consumption while increasing
resource recycling, eliminate pollutant emissions,
develop and promote environment-friendly products,
expand the scope of green procurement programs,
and otherwise minimize the impact of corporate activi-
ties on the natural environment.
Green purchasing activities have become more and
more common in Japan since the country’s Law on
Promoting Green Purchasing took effect in 2001.
Corporate customers account for roughly 80% of our
direct sales, and such customers are ever more intent
on rigorously adhering to such green procurement poli-
cies as using only recycled paper. Many customers
have expressed concern that pure-white paper items
might not truly be recycled products. To ensure that
customers are fully aware of the environment friendli-
ness of Kokuyo products, we have begun using envi-
ronmental labels as appropriate. Noncorporate
An Environment-Friendly Company
Summary
Proactively developing and marketing environment-friendly products
Becoming the world’s top stationery and furniture manufacturer in terms of environment friendliness Share of ecoproduct sales surpasses 47%
Ecoproduct Sales (Non-consolidated basis)
(%)
2000/3 2001/3 2002/3 2003/3
0 5 10 15 20 25 30 35 40 45 50
42% 50%
24% 24%
32% 30%
40% 43%
Stationer y Furniture
customers are not yet as rigorous in their green pur-
chasing policies, but it is clear that their conscious-
ness of environment friendliness can only grow. In
light of this trend, Kokuyo intends to position itself as
the world’s top manufacturer of environment-friendly
stationery and furniture.
Q: What environmental
protection programs did Kokuyo
implement during the fiscal year
ended March 31, 2003?
Our manufacturing and marketing divisions are collab-
oratively working to increase the share of consolidated
net sales accounted for by ecoproducts, a clearly dis-
tinguishable brand of products bearing the Kokuyo
Ecoproduct label. In the fiscal year ended March 31,
2003, the share of sales accounted for by ecoprod-
ucts has been adopted as a basis for the performance
evaluations of all Kokuyo Group units, including mar-
keting companies, and these units have accordingly
been redoubling their efforts to increase that share.
Reflecting these developments, the Group’s sales
of ecoproducts surpassed ¥91.0 billion, a level
corresponding to more than 46% of non-consolidated
net sales.
On October 26, 2002, Kokuyo and the Morizukuri
Mie (Mie Forest Builders) volunteer group cooperative-
ly launched a tree planting program in the
Higashiyama Fureai no Mori forest of Nabari City, Mie
Prefecture. While this was our first tree planting pro-
gram in that forest, we have previously used our facili-
ties throughout Japan as bases for organizing tree
planting programs. In 2002, the Company and its
labor union began cooperating with the “Midori no
Bokin” fund-raising program of Japan’s National Land
Afforestation Promotion Organization. Following the
start of that cooperation, we decided to organize our
own full-scale tree planting programs in Mie
Prefecture, which is where our principal factories are
located. Plans have already been made for additional
tree planting programs during the next three fiscal
years.
Tree Planting in Mie Prefecture A highly successful program that involved 88 volunteer participants in October 2002
Q: How has Kokuyo been expand-
ing its overseas operations?
We are strategically positioning China as a base for a
growing volume of procurement, manufacturing, and
marketing activities.
In August 2002, we established Hong Kong–based
KOKUYO INTERNATIONAL ASIA CO., LTD., to acceler-
ate procurement operations in China. In April 2003,
we arranged an alliance with AURORA FURNITURE Co.,
Ltd., of the AURORA Group—China’s top manufacturer
of such products as office furniture for computers and
communications equipment—and began marketing
middle-range office chairs in China. AURORA FURNI-
TURE has more than 170 offices throughout China and
has built a solid marketing network in that country. In
July 2003, we opened a showroom in Shanghai. We
are projecting that our sales in China will rise to
approximately ¥3 billion in the fiscal year ending
March 31, 2005, and ¥10 billion in the fiscal year
ending March 31, 2008.
As for overseas procurement, Kokuyo is committed
to increasing the share of its products manufactured
overseas, primarily in China, to 25% by the fiscal year
ending March 31, 2005. This share represents a value
of roughly ¥35 billion. We anticipate that augmenting
overseas procurement will enable cost savings of
¥6.9 billion over the next three years.
While it might be thought that overseas manufactur-
ing programs would be primarily focused on low-priced
products, we are seeking to manufacture products
with quality equal to that of high-grade products manu-
factured in Japan. Rather than working to strengthen
our competitiveness in fiercely competitive markets
for low-priced products, we are aiming to augment
our capabilities for generating profits from the mar-
keting of high-value-added products with the tradition-
ally high level of quality for which Kokuyo products
are renowned.
Overseas Business Expansion/Message to Shareholders
Summary
Establishing procurement, manufacturing, and marketing bases in China
Increasing the share of overseas procurement to 25% of total by the year ended March 31, 2005
Sustained implementation of structural reforms and the concentration of resources in selected strategic fields
Sustained repurchasing of outstanding shares
Dynafit Chair EXAGE This rotating office chair with a design that maximizes comfort is being marketed in China.
Q: Kokuyo took proactive mea-
sures to realize a performance
recovery and enter new business
fields during the fiscal year
ended March 31, 2003. Please
explain your goals for the current
fiscal year and tell shareholders
about your future plans for the
Kokuyo Group.
Economic trends in the current fiscal year remain
unpredictable, although we are anticipating a challeng-
ing operating environment. Despite this, we project
that growth in Kaunet sales and strong demand relat-
ed to redevelopment in the Tokyo metropolitan area
will enable us to boost consolidated net sales to
¥280.0 billion. Regarding profitability, we expect to
generate ¥7.0 billion in recurring profit as a result of
cost reductions achieved through structural reforms as
well as the achievement of profitability on the parts of
Kaunet operations and distribution affiliates. Reflect-
ing extraordinary losses associated with restructuring
measures, we are projecting net income for the year
amounting to ¥2.9 billion.
Kokuyo is working to increase the efficiency of its
capital employment and raise shareholder value by
adopting the use of such business indicators as ROE
and KVA (Kokuyo Value Added) as well as by strategi-
cally concentrating its resources by taking such mea-
sures as withdrawing from and reorganizing certain
businesses. As another means of augmenting share-
holder value, the Company spent ¥5.7 billion to
repurchase 4.6 million of its outstanding shares dur-
ing the fiscal year under review. Having previously
repurchased 1.65 million shares, we had thus repur-
chased 6.25 million shares as of March 31, 2003,
and we are prepared to repurchase as many as 3.0
million shares during the current fiscal year. Also, we
have reduced the minimum trading unit for our stock
from 1,000 shares to 100 shares, with the goal of
broadening our investor base.
During the past year, all employees in the Kokuyo
Group worked concertedly—based on the recognition
that the Group faces a real challenge—to efficiently
implement structural reforms. I believe that Kokuyo
has displayed exemplary innovativeness and speed in
this regard. In the past, we projected an image of tra-
ditional value, reliability, and peace of mind; today, we
are moving to create a new brand image. I believe that
the current fiscal year can be seen as an important
new starting point for Kokuyo’s operations.
In the course of this major transitional year in our
corporate history, we look forward to your continued
understanding and support.
July 2003
Stationery Segment
Market Trends
Annual sales in Japan’s business-to-business market for stationery goods are estimated to be in the range of ¥1 trillion to ¥1.1 trillion(*1). According to government figures, the number of paper and stationery goods retail stores decreased 25%—from 21,000 to 16,000—in the five years through fiscal 2003. At the same time, relatively large stores with 30 or more employees accounted for roughly 25% of outlets, a figure that is increasing, reflecting the progressive consolidation of the retailing industry and the growing contrast between losers and winners within the industry. Similarly, the number of paper and stationery goods wholesalers has decreased 19%—from 846 to 688—in the four years through fiscal 2003.
Annual sales by office supply direct-marketing programs in Japan are estimated to be roughly ¥200 billion(*2), and this market is expected to continue expanding. Kokuyo offers a variety of direct-marketing programs tailored to meet the needs of different kinds of customers, including the Kaunet program for small-scale businesses, the @office program for medium-scale businesses, and the Internet-based BenriNet program for large businesses.
The Japanese market for PC supplies is estimated to be worth about ¥100 billion(*1)annually, and this market is expected to continue growing. The increasing popularity of color printers and digital cameras is sharply boosting demand for ink-jet printer, label-printing, and digital camera-use paper, and Kokuyo is strengthening its capabilities for business in such products.
*1: Kokuyo estimate *2: Figures for nationwide direct-marketing programs only
Principal Products
Paper products—notebooks and business forms, etc. File products—binders and courier packs, etc.
Stationery products—writing utensils and adhesives, etc.
PC supply products—ink-jet printer paper and notebook PC carrying bags, etc.
Fiscal 2003 Performance
Sales—Despite increases in sales of environment-friendly products and sales through Kaunet, a decrease in overall demand and the impact of a decreasing price trend kept overall sales weak.
Product Trends—Sales of universal design products: up 83%; sales of ink-jet printer paper: up 16%; sales of laser printer paper: up 32%; sales of office-use paper products: down 4%
Gross Profit—The gross profit ratio increased 3.5 percentage points, to 33.1%, reflecting the effect of a new OA equipment product procure- ment system, a rise in the profitability of copier-use paper, and an improvement in the profitability of Kaunet operations.
Operating Income—Cost-cutting measures and a reduction of the operating loss from Kaunet operations boosted profitability from a ¥1.2 bil- lion operating loss in the previous year to ¥2.6 billion in operating income.
Fiscal 2004 Outlook
Net sales:¥142.9 billion Operating income:¥3.8 billion
With persisting slack economic conditions in Japan, the operating environment is projected to be challenging. Kokuyo will further augment its line of universal design products while striving to boost overseas procurement and otherwise reduce costs. Regarding distribution methods, the Company will further strengthen its Kaunet office supply direct-marketing operations, aiming to increase net sales from those operations to ¥33.6 billion.
The Company will also complete the transformation of its exclusive agent-based distribution system outside major urban regions.
Stationery Segment Sales
0 40,000 80,000 120,000 160,000 200,000
(Millions of yen) (%)
1999 2000 2001 2002 2003 50.8
138,185
0 1,000 2,000 3,000 4,000 5,000 6,000
1999 2000 2001 2002 2003 3,247
Capital Expenditure and Depreciation and Amortization
(Millions of yen)
Capital Expenditure Depreciation and Amor tization 0
10 20 30 40 50 60
Segment Sales as a Percentage of Net Sales
4,426
Segment Operating Income (Loss)
0 3,000 6,000 9,000 12,000 15,000
(Millions of yen) (%)
1999 2000 2001 2002 (152.2)
(1,186) 2003 52.7
2,632
0 10 20 30 40 50 60 70 80 90
Segment Operating Income (Loss) as a Percentage of Consolidated Operating Income
Furniture Segment
Market Trends
Annual sales in Japan’s office furniture market are estimated to be approximately ¥300 billion*. Market trends are closely linked with trends in corporate capital investment, and the protracted economic slowdown has led to unremittingly tough market conditions. However, in the Tokyo metropolitan area more than two million square meters of new office space came on the market during fiscal 2003—roughly twice the level during the peak of the bubble economy era. This high level of new office building construction is expected to generate approximately ¥40 billion in annual demand for office furniture in the region. Although some observers are concerned that the market may quickly cool off, firm demand is expected in the Tokyo metropolitan area, owing to demand associated with the renovation of offices when tenants relocate as well as demand stemming from a projected surge in urban redevelopment projects.
* Kokuyo estimate
Principal Products
Office furniture—desks, tables, chairs, and cabinets, etc. Construction materials—OA flooring materials and partitions, etc. Store fixtures—various types of fixtures for retail stores, etc. Industry-specific furniture—products for schools and theaters, etc.
SOHO furniture—various products suitable for Small Office/Home Office (SOHO) businesses, etc.
Fiscal 2003 Performance
Sales—Kokuyo greatly increased its share of the market for office furniture associated with redevelopment projects in the capital region. Despite this, overall sales declined owing to the impact of the drop in private-sector capital investment.
Product Trends—Sales of office furniture: down 8%; sales of school-use furniture: up 39%; sales of office fixtures: up 45%
Gross Profit—The gross profit ratio increased 0.2 percentage point, to 31.1%. Although steady progress was made in realizing cost reduc- tions, a worsening of the profitability of marketing subsidiary Kokuyo Office System Co., Ltd., kept growth in consolidated gross profit to a small margin.
Operating Income—Operating income rose ¥0.4 billion compared with the previous fiscal year, to ¥2.4 billion.
Fiscal 2004 Outlook
Net sales:¥137.1 billion Operating income:¥3.2 billion
Despite a modest trend toward recovery in corporate capital investment, the operating environment for office furniture-related business is expected to remain harsh. Regarding the capital region redevelopment market, Kokuyo expects to come close to its original goal of capturing a 40% market share and is augmenting its proactive marketing activities with the objective of obtaining a market share of more than 40%. In view of the severe conditions hampering profitability in fiscal 2003, the Company plans to place greater emphasis on profitability in its marketing activities and will work to boost its profit performance. Regarding overseas business development, Kokuyo is beginning to market office furniture in China. From April 2003, the Company began collaborating with the Chinese company AURORA FURNITURE Co., Ltd., in the marketing of middle-range office chairs. In July 2003, the Company opened a showroom in Shanghai.
Furniture Segment Sales
0 40,000 80,000 120,000 160,000 200,000
(Millions of yen) (%)
1999 2000 2001 2002 2003 49.2
134,014
0 1,000 2,000 3,000 4,000 5,000
1999 2000 2001 2002 2003 2,967
Capital Expenditure and Depreciation and Amortization
(Millions of yen)
Capital Expenditure Depreciation and Amor tization 0
10 20 30 40 50 60
Segment Sales as a Percentage of Net Sales
3,653
Segment Operating Income
0 1,000 2,000 3,000 4,000 5,000 6,000
(Millions of yen) (%)
1999 2000 2001 2002 252.2
2003 2,366 47.3
0 10 20 30 40 50
앒
240 250 260
Segment Operating Income as a Percentage of Consolidated Operating Income
앒 앒
RELABEL Recyclable address labels
D-Ring File <ER>
Simple-to-use metal-ring file
Stationery Business
Environment-Friendly Products, Universal Design Products
RELABEL Recyclable Address Labels
Kokuyo has successfully developed OA labels that use water-soluble glue, enabling them to be recycled while still affixed to envelopes or copy paper. Both the labels and release paper contain 75% recycled paper. The unprinted label material remaining on the release paper may be recycled without being peeled off.
D-Ring File <ER> Enables Easy Opening
and Closing of Rings
This universal design metal-ring file releases its lock with a light pinch of the rings, making it simple for any- one to open and close.
Tepita Scissors Prevent Tired Hands
Kokuyo has developed three kinds of scissors with
“open” grips (rather than rings) on one side to enhance usability. The handles of such scissors are thicker than those of conventional scissors, allowing the user to bring a larger section of their hand to bear, thereby conveying more power to the blades and enabling prolonged use of the scissors without tiring.
The Second Annual Design Awards
The Second Annual Kokuyo Design Awards were held under the theme of “Universal Design.” Award- winning creations were selected at a ceremony held on July 6, 2003. The winner of the first design award, Kadokeshi, an eraser with a shape that incorporates small cubes in an innovative design to create extra corners that facilitate fine-tuned erasing, was launched in April to a favorable reception.
Tepita
Comfortable, easy-to-use scissors
Increased Share of Computer Supplies Market
Growth in Kaunet Sales
Stronger Strategic Alliance
In June 2002, Kokuyo arranged an alliance with Arvel Inc. that gives the two companies a combined ranking of third in terms of net sales in the computer supplies market. We will launch several new product series in summer 2003, includ- ing a CD case and a mouse series, and plan to launch jointly developed products approximately three times a year.
raf raf
A selection of PC-related products and desk accessories developed in cooperation with Arvel Inc.
Kaunet Sales Surpass
the ¥20 Billion Mark
Kokuyo progressed with the reduction of Kaunet’s dis- tribution costs and contact center expenses. More- over, the issuance of new catalogs in September 2002 and January 2003 helped sustain steady growth in annual Kaunet sales, which have surpassed
¥20.0 billion.
Kaunet Catalog Vol. 5
A cornucopia offering approximately 18,000 office-related items
Toward a 40% Share
Kokuyo is receiving a steady stream of orders related to the ¥40.0 billion market associated with the Tokyo metropoli- tan area urban redevelopment project, of which the Company aims to capture 40% share. In light of the marked rise in office vacancies in 2003, we are redoubling efforts to expand our building renewal business, working to further broaden the scope of business opportunities.
In the 2002 Good Design Awards program of Japan’s Ministry of Economy, Trade and Industry, the AGATA/S high-performance office chair won the Minister of Economy, Trade and Industry Award. In addition, the Agata/V conference chair won the silver prize in Germany’s iF design awards, a first for a Japan- based furniture manufacturer.
AGATA/S
A rotating office chair with a backrest that changes shape with the touch of a lever
Furniture Business
Expanded Share of Tokyo Metropolitan Area Urban Redevelopment Project
AGATA Series, Winner of Design Awards in Japan and Germany
Responding to Diverse User Needs
Kokuyo has introduced the new ALIOS workstation series, which features easily customized desktops as well as a variety of colors for the legs of the desks.
Another product, the TRENZA office chair (see fac- ing page), the first to boast a “suspension back” con- struction, allows the user to get a true fit for his or her back and has been highly evaluated for offering a high ratio of functionality to cost.
ALIOS
A desk system that features easily customized desktops and leg sections
Launch of BOOTH Aluminum
Die-Cast Furniture
In July 2002, we established the wholly owned subsidiary BOOTH, Inc., which uses know-how gleaned from cutting-edge race car technology to produce a variety of light and durable die-cast aluminum furniture in the BOOTH brand line. The products’ novel designs invite users into a richly imagi- native world.
Alliance with AURORA FURNITURE
Co., Ltd., China’s Leading Furniture
Manufacturer
In April 2003, in light of the stream of foreign compa- nies into the Chinese market after the country was admitted into the World Trade Organization, Kokuyo
formed a strategic alliance with AURORA FURNITURE, a company that has 176 business and sales offices in China as well as an extensive logistics net- work and highly efficient user delivery system.
TRENZA
This rotating office chair with a “suspension back” that gently sup- ports users’ backs is being marketed in China.
Manufacture and Sale of Office Furniture in China
Increased Share of Computer Supplies Market
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2000 1999 1998 2003
For the year:
Net sales ¥272,199 ¥276,584 ¥295,310 ¥280,335 ¥291,664 ¥317,218 $2,264,551
Cost of sales 184,800 192,894 206,322 198,190 214,950 233,287 1,537,438
Selling, general and
administrative expenses 82,401 82,911 77,132 67,823 65,284 64,409 685,532
Operating income 4,998 779 11,856 14,322 11,430 19,522 41,581
Net income (loss) 231 (1,422) 7,192 1,192 4,986 8,706 1,922
At year-end:
Total assets 285,789 307,010 329,505 314,039 309,099 304,774 2,377,612
Working capital 54,242 70,860 82,803 89,688 88,874 78,559 451,264
Property, plant and equipment—net 98,482 98,522 102,207 103,342 102,318 104,452 819,318
Total liabilities 103,913 115,925 128,570 120,321 117,244 115,858 864,501
Interest-bearing debt 20,188 20,554 21,861 21,120 19,536 7,815 167,953
Total shareholders’ equity 181,430 190,274 200,442 193,380 190,676 187,732 1,509,401
Yen U.S. dollars
Per share data:
Net income (loss) ¥0001.51 ¥ (11.05) ¥ 55.44 ¥ 9.13 ¥ 38.14 ¥ 66.59 $0,0000.01
Diluted net income 1.51 — 55.39 9.16 38.11 66.51 0.10
Cash dividends applicable
to the year 15.00 15.00 17.50 17.50 15.00 15.00 0.12
Shareholders’ equity 1,483.73 1,498.49 1,544.92 1,490.49 1,458.41 1,435.89 11.72
%
Ratios:
Ratio of operating income to net sales 1.8 0.3 4.0 5.1 3.9 6.2
Return on sales 0.1 (0.5) 2.4 0.4 1.7 2.7
Return on equity 0.1 (0.7) 3.6 0.6 2.6 4.7
Return on assets 0.1 (0.4) 2.2 0.4 1.6 2.8
Equity ratio 63.5 62.0 60.8 61.6 61.7 61.6
Debt-to-equity ratio 11.1 10.8 10.9 10.9 10.2 4.2
Thousands of shares
Common stock:
Number of shares issued 128,742 128,742 129,742 129,742 130,742 130,742 Note: The U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥120.2=US$1, the approximate
exchange rate prevailing at March 31, 2003.
Management’s Discussion and Analysis
Overview
During fiscal 2003, ended March 31, 2003, such factors as the difficulty of forecasting prospective trends in the Japanese economy caused private-sector capital invest- ment and personal consumption to remain weak. Eco- nomic conditions remained difficult, with no signs of economic recovery emerging. Against this backdrop, the Kokuyo Group began implementing a structural reform plan aimed at restoring a high level of profitability, pro- ceeded with substantial cost and expense reductions, reformed its personnel systems, and otherwise worked to create more-streamlined and more-powerful capabilities.
In product development activities, Kokuyo emphasizes the development of such high-value-added offerings as environment-friendly products as well as universal design products that are easy for all kinds of people to use. In the 2002 Good Design Awards program of Japan’s Ministry of Economy, Trade and Industry, Kokuyo’s AGATA/S high- performance office chair won a high-profile award given to products with distinctively superior designs and functional- ity. Kokuyo was the top company in its industry and the fourth nationwide regarding the number of 2002 Good Design Awards won.
To reduce the environmental impact of its operations, Kokuyo has created a comprehensive system for recycl- ing all waste generated in production processes that has enabled it to achieve zero emissions at all its factories. In addition, the Company’s Environment Report 2002 earned the excellence prize in the Environment Report Awards, and the Company also received the 5th Green Procurement Awards’ Excellence Award, which is given in recognition of superior green procurement initiatives.
These awards reflect Kokuyo’s high evaluation as a lead- ing company regarding the environment.
In its Kaunet office supply direct-marketing operations, Kokuyo bases its product lineup on customer requests and product trends. During fiscal 2003, the Company issued its fifth catalog, which improves customers’ pur- chasing efficiency, and otherwise went all out to enhance customer service.
In August 2002, Kokuyo established Hong Kong–based KOKUYO INTERNATIONAL ASIA CO., LTD., to accelerate overseas procurement operations that contribute to addi- tional cost reductions. In October 2002, the Company set up KOKUYO CHUBU SALES Co., Ltd., to reinforce the operations of its three branches in Japan’s Chubu region. Also during the year, Kokuyo merged its five engineering companies, establishing KOKUYO ENGINEERING Co., Ltd., to strengthen capabilities for providing services relat- ed to office relocations and renovations.
Despite the benefits yielded by such initiatives, a down- turn in domestic demand led to a slight 1.6% year-on-year decline in Kokuyo’s consolidated net sales for the fiscal year, to ¥272.2 billion. Nevertheless, the Company’s proactive implementation of structural reform measures to reduce management expenses and other costs supported a 541.3% jump in operating income, to ¥5.0 billion. In addition, the Company recorded ¥4.3 billion in extraordi- nary income on the return to the government of the substi- tutional portion of the employees’ pension fund formerly managed by the Company. However, Kokuyo recorded extraordinary losses of ¥4.6 billion on special provisions accompanying voluntary retirements and of ¥3.7 billion on the write-down of investment securities. Consequently, net
Net Sales
Consolidated net sales for fiscal 2003 declined 1.6%, to ¥272.2 billion. Of this figure, the stationery segment accounted for 50.8%, up from 50.1% in the previous year, while the furniture segment contributed 49.2%, down from 49.9%. As these two business segments each generate approximately half of its net sales, Kokuyo considers its sales structure to be well-balanced. Regarding operating income, the stationery segment accounted for 52.7%, recovering from an operating loss in the previous year, while the furniture segment business contributed 47.3%. Thus, with the recovery of profitability in the stationery segment in fiscal 2003, the Company has achieved a bal- anced profit structure, with each business segment gener- ating roughly half its operating income.
Results by individual industry segment are as follows.
Stationery Segment
To expand Kokuyo’s share of the high-growth potential PC supplies market, in June 2002, the Company conclud- ed a strategic alliance with Arvel Inc., thereby expanding and diversifying its sales routes as well as enhancing its product lineup by providing cables and other communica- tions merchandise in addition to more traditional printer supplies. Kokuyo also focused on expanding the range of its products by developing and launching a number of new environment-friendly and Universal Design products. Among these are RELABEL, the industry’s first line of
features easy one-handed opening and closing of the binder rings; and the recyclable EcoTwin Tube File with handles, which has holes on the left and right sides of the spine that make it easy to grasp and carry.
During the fiscal year under review, Kokuyo’s market- ing programs were affected by the trends of weakening demand and declining market prices, which placed adverse pressure on the Company’s sales performance. Despite this, the Company achieved strong sales in laser and ink-jet printer paper as information technologies con- tinued to permeate the market, and sales of such OA labels as the environment-friendly Re-Label line were robust. Kaunet sales operations surged considerably, surpassing the ¥20.0 billion mark.
As a result, sales in the stationery segment edged down only 0.3% from the previous fiscal year, to ¥138.2 billion.
Furniture Segment
Kokuyo’s Dyna-Fit Chair 2, which features upholstery that incorporates far-infrared radiation ceramics, became the first product in the office furniture industry to receive the Japan Society of Physiological Anthropology’s PA Design Award. The Company also developed and brought to mar- ket the new ALIOS office desk system, which boasts easily customized desktop configurations and leg section col- oration to suit a wide variety of needs and tastes, and the BOOTH furniture series, which offers fresh new designs created using advanced aluminum die-casting technologies. Announced at Kokuyo’s new product fair
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
2001 2000 1999
1998 2002 2003 19981999200020012002
(0.5)
2003 0.1
Net Sales
272,199 (Millions of yen)
0 1 2 3 4 (%)
Personal Stationery and Household Effects Office Furniture and Fittings Office Paper Products, Stationery, and Equipment
*In fiscal 2000, Kokuyo reclassified its business segments.
Stationery Furniture
Net Sales by Industry Segment FY2003
Return on Sales (ROS)
138,185 50.8% 134,014
49.2% (Millions of yen, %)
Net sales 2,199
Stationery Furniture
