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(1)

Cleanup Corporation

Tokyo Stock Exchange,

1st Section, Code 7955

Announcement of FY 2008

Interim Results

November 17, 2008

(2)

I. Inter i m Resul ts Outl i ne

(3)

1. Outl i ne of Consol i dated Resul ts for Inter i m Per i od Ended Septem ber 2008

Net Sales

Operating

Income

Ordinary

Income

Interim

Net Income

Interim Net Income Per Share

54,193

606

652

1,020

20.91 yen

2008/9

(Actual Results)

58,400

450

350

0

0.00

2008/9

(Initial Plan)

1.0

- %

Change From Prev. Period

Compared To Revised Plan

0.4

- %

- %

- %

- %

54,400

800

900

1,250

25.57

2008/9

(Revised Plan)

- %

- %

- %

54,759

306

352

740

15.15 yen

2007/9

(Actual Results)

(Units: millions of yen)

*Initial Plan: Announced May 8, 2008

*Revised Plan: Announced August 6, 2008

(4)

0

2007/9 2008/9

Net Sales

Cost of Sales

Gross Profit

54.19

36.20

17.98

33.2

66.8

Cost of Sales Ratio

△ 0.56 billion yen

+ 0.39 billion yen

1.4

△ 0.96 billion yen

System Kitchens 280 million yen ・SS △100 million yen ・CLEANLADY △980 million yen Increasingly popular class, primarily RAKUERA

Sectional System Kitchen 300 million yen

Decrease Due to Decreased Earnings

370 million yen

● Increase Due to Increased Cost of Sales Ratio +770 million yen

●Worsening Kitchen Section Product Mix (S.S. Servo Campaign, etc.) 1.2 points

Increase in System Bathroom Cost Ratio +0.6 points

● Sales Route Distribution Ratio △0.1points

Increase in Cost of Raw Materials 0.4 points

Cost Decrease 0.7 points

Decrease Due to Decreased Earnings

190million yen

Decrease in Gross Profit Ratio 770 million yen

54.75

35.80

18.95

34.6

65.4

2. Consol i dated Pr ofi ts Net Sal es, Gr oss Pr ofi t

Increased/Decreased Values (Rates) Main Increase/Decrease Factors (Units: billions of yen)

(5)

2. Consol i dated Pr ofi ts SGA Expenses, Oper ati ng Inc om e

-500

2007/9 2008/9

Gross Profit

Operating Income

17.98

18.59

0.60

(△ 1.1

34.3SGA Ratio

△ 0.96 billion yen

△ 0.66 billion yen

0.9

△ 0.29 billion yen

●Sales Expenses 0.7 points

●Distribution Expenses 0.2 points

●Change in Gross Profit 960 million yen

●Change in SGA Expenses 660 million yen

●Sales Expenses 390 million yen

●Distribution Expenses 140 million yen

●Repair Expenses (Showroom Renovation) 90 million yen

●R&D Costs 40 million yen

18.95

19.25

0.30

(△ 0.6

35.2

Increased/Decreased Values (Rates)

SGA Expenses

【 Main Increase/Decrease Factors 】 (Units: billions of yen)

(6)

3. Sal es Com posi ti on By Segm ent (Consol i dated)

2007/9 2008/9 2008/3 2009/3

41,618 10,881

2,260

88,451 20,596

4,453

87,863 20,244 4,704

41,190 10,721 2,282

0 20,000 40,000 60,000 80,000 100,000 120,000

Other

Bathtubs & Washstands Kitchin Equipment

77.9% 18.2

3.9

54,759

112,811

2007/9

76.0

19.9

4.1

2008/9

76.0

19.8

4.2

54,193

77.9% 17.9

4.2

113,500

Term-End Forecast (Current Interim Period)

Ki tc hen Equi pment Bathtubs &

Washstands

Other

Ki tc hen Equi pment Bathtubs &

Washstands

Other (Units: millions of yen)

(7)

3. Sal es Com posi ti on By Sal es Route (Non-Consol i dated)

2006/9 2007/9 2008/9

0

Di rect-Sales (Condomi ni um owners) Housi ng Constructors

General Routes (Constructi on Contractors - Home Renovati on)

2007/3 2008/3 2009/3

0

76.4 17.6

6.0 72.9 72.0

16.9

17.1 10.2

10.9

76.2 17.5

6.3 73.3

17.5 9.2

75.5 18.1 6.4

【First-Half Base

【Full-Term Base

(Current Interim Period) Term-End Forecast

(8)

4. Consol i dated Bal anc e Sheet Sum m ar y – 1/ 2

32.54 30.35

29.64

6.77 6.56

3.04 4.71

40.72

39.73 39.88

6.04 4.96

0. 00

2007/9 2008/3 2008/9

+ 0.92 billion yen

+ 0.15 billion yen

+ 1.67 billion yen

△ 0.70 billion yen

80.81

●Current Assets 1,620 million yen

●Fixed Assets 700 million yen

●Cash and Deposit 1,160 million yen

●Notes and Accounts Receivable 1,010 million yen

●Increase in Direct-Sales Inventory (Condominiums)

● Tangible Fixed Assets

460 million yen

● Intangible Fixed Assets (Software) 150 million yen

●Decrease in Negotiable Securities (CP) 690 million yen

●Accounts Receivable (Factoring) 430 million yen

△ 0.20 billion yen

79.89

84.27

Total Assets

Cash and Deposits Notes and Accounts Receivable

Inventory

Fixed Assets

Other Current Assets

Main Increase/Decrease Factors

Increased/Decreased Values

Assets

Current Assets

(Units: billions of yen)

(9)

4. Consol i dated Bal anc e Sheet Sum m ar y – 2/ 2

59.07

55.89 54.33

4.93

6.13 6.06

20.26

17.86 20.41

0. 00

2007/9 2008/3 2008/9

79.89

+ 2.55 billion yen

△ 0.07 billion yen

△ 1.55 billion yen

80.81

●Accounts Payable 620 million yen

●Short-Term Debt 1,500 million yen

●Advance Receipts 530 million yen

●Long-Term Debt 240 million yen

●Accrued Retirement Benefits 100 million yen

●Retained Earnings 1,480 million yen

●Treasury Shares 90 million yen

84.2 7

【 Main Increase/Decrease Factors 】

【 Increased/Decreased Values 】

LiabilitiesMinority InterestsAssets

Current Liabilities

Total Assets

Long-Term Liabilities

(Units: billions of yen)

(10)

5. Consol i dated Cash Fl ow Statem ent Sum m ar y

2.62

1.14

△ 2 . 0 1

△ 1 . 1 7

△ 0 . 8 1

0.14

16.42 16.47

△ 5. 00 0. 00 5. 00 10. 00 15. 00 20. 00

Cash Flow from Operating Activities Cash Flow from Investing Activities

Cash Flow from Financing Activities Interim (Year-End) Cash & Cash Equivalents Balance

2007/9 2008/9

0.84

0.16

16.30

(2008/3)

1.48

0.96

Compared to Year-End Balance (Units: billions of yen)

(11)

6 Capi tal Investm ents (Consol i dated)

2007/9 2008/9 2008/3 2009/3

0.73 3.21

1.92

4.304.15

1.30 4.35 4.67

1.42

0.62 1.71

2.00

0.00 2.00 4.00 6.00

R&D Costs

Capital Investment

Deprecation Costs

① Dies for New Products

240 million yen

② Showroom Renovations, etc.

930 million yen

③ Information Investment

330 million yen

① Production-Related

950 million yen

② Operations-Related

800 million yen

③ Information-Related

740 million yen

FY2008 Major Capital Investment Details

First-Half Results

Second-Half Plans

(Term-End Forecast) (Current Interim Period)

(Units: billions of yen)

(12)

7. Outl i ne of Non-Consol i dated Resul ts for Inter i m Per i od Ended Septem ber 2008

52,341

899

706

950

19.48 yen

56,700

180

300

50

1.02 yen

1.5

- %

- %

- %

- %

0.7

- %

- %

- %

- %

52,700

1,000

850

1,100

22.50 yen

53,149

479

148

498

10.19 yen

Net Sales

Operating

Income

Ordinary

Income

Interim

Net Income

Interim Net Income Per Share

2008/9

(Actual Results)

2007/9

(Actual Results)

2008/9

(Initial Plan) Change From

Prev. Period

Compared To Revised Plan

2008/9

(Revised Plan)

*Initial Plan: Announced May 8, 2008

*Revised Plan: Announced August 6, 2008

(Unit: millions of yen)

(13)

8. Non-Consol i dated Sal es Com posi ti on by Segm ent

2007/9 2008/9 2008/3 2009/3

38,109 8,463

2,419 805 3,354

79,001 15,656

4,940 1,850 8,553

77,957 15,288

4,956 1,898 9,259

37,516 8,395

2,326 963 3,141

0 20,000 40,000 60,000 80,000 100,000 120,000

Other

Industrial Kitchen Equipment Washstands

Bathrooms

Kitchen Equipment

53,149

73.7% 12.7%

4.3%

52,341

109,358

2007/9

71.7 15.9

2008/9

1.5 7.8

4.6

71.7 16.0

4.4

6.3 1.5

6.0 1.8

71.8 14.2%

4.5% 1.7 7.8%

118,500

Term-End Forecast (Current Interim Period)

Bathr ooms

Other

Washstands Industr i al

Ki tc hen Equi pment

Ki tc hen Equi pment

Bathr ooms

Other

Washstands Industr i al

Ki tc hen Equi pment

Ki tc hen Equi pment (Unit: millions of yen)

(14)

9. Sal es Resul ts for Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 1/ 4

1,049

1,131 1,186 1,181 1,247 1,228

561 14.3 15.2 17.5 17.0

16.3 17.4 15.7

0 200 400 600 800 1,000 1,200 1,400

03/3 04/3 05/3 06/3 07/3 08/3 08/9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Demand Volume Cleanup Share (%)

67.6

74.2

83.4 82.7 82.1

72.5 73.8 186.5 182 211.5

206 207 184

165

0 20 40 60 80 100

03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 50 100 150 200 250 300 Monetary Value Volume

35.0 80

Complete System Kitchen Sales Results Demand Trends and Market Share

(Planned)

Current Interim Period

(Current Interim Period)

(Billions of yen) (Thousands

of Sets)

(Thousands of Sets)

(15)

9. Sal es Resul ts for Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 2/ 4

589

547 559 546

515

438

191 14.7 15.7 13.4 14.5

13.3 14.4 14.8

0 200 400 600 800

03/3 04/3 05/3 06/3 07/3 08/3 08/9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Demand Volume Cleanup Share (%)

7.7

7.2

6.5 6.2 6.1

5.5 5.2

65 63 73 75

74 85 81

0 2 4 6 8 10

03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 30 60 90 120 150 Monetary Value Volume

2.5 30

Sectional System Kitchen Sales Results Demand Trends and Market Share

(Planned) (Current Interim Period)

Current Interim Period (Thousands

of Sets) (Thousands

of Sets)

(Billions of yen)

(16)

9. Sal es Resul ts for Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 3/ 4

608

645 667

770

367 718

767

4.6 4.2 4.2

4.2 4.9

5.2 5.4

0 200 400 600 800

0 3 / 3 0 4 / 3 0 5 / 3 0 6 / 3 0 7 / 3 0 8 / 3 0 8 / 9 0.0 2.0 4.0 6.0 8.0 10.0 Demand Volume Cleanup Share

(%)

15.2 16.3 15.9 15.1 14.8 14.9 15.3

30.5 31.3 32

33 32 35

32

0 5 10 15 20

03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 10 20 30 40 50 Monetary Value Volume

8.2

17

Modular System Bathroom Sales Results Demand Trends and Market Share

(Planned) (Current Interim Period)

Current Interim Period

Note: Total number of companies increased from 11 to 15 in FY2005

(Billions of yen) (Thousands

of Sets) (Thousands

of Sets)

(17)

1,730 1,813 1,786 1,844 1,834

1,750

793 5.5 5.3 5.2

5.5 5.4 5.7

5.3

0 400 800 1,200 1,600 2,000 2,400

03/3 04/3 05/3 06/3 07/3 08/3 08/9 0.0 2.0 4.0 6.0 8.0 10.0 Demand Volume Cleanup Share

9. Sal es Resul ts for Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 4/ 4

(%)

5.1 5.3 5.3 5.2 5.1 5.0 5.0

91 94 100 96

103 99 92

0 1 2 3 4 5 6 7

03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 30 60 90 120 150 Monetary Value Volume

2.3 44

Washstands/Vanities Demand Trends and Market Share

Current Interim Period

(Planned) (Current Interim Period)

(Billions of yen)

(Thousands of Sets)

(Thousands of Sets)

(18)

10. Showr oom s and Vi si tor Num ber s

85 87

95 101 104

107 109 109 109

456 470

255

314

380

450

480 495

460

0 40 80 120 160 200 240

01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3

0 100 200 300 400 500 600 Number of Showrooms Number of Visitors

(Planned)

Prev. Interim Period

233 thousand groups Current Interim Period 229 thousand groups

(-1.6%)

(Thousands of groups) (Locations)

(19)

11. For ec ast Consol i dated Resul ts for the Per i od Endi ng Mar c h 2009

112,811

1,301

1,382

3,078

122,000

1,700

1,600

800

1.2

1.2

2.7

1.4

1.3

0.7

113,500

600

650

1,450

2009/3

(Revised Plan)

2008/3

(Actual Results)

2009/3

(Initial Plan)

0.6

- %

- %

- %

Change From Prev. Period

0.5

0.6

1.3

-

-

-

7.0

- %

- %

- %

Compared To Initial Plan

-

-

-

Operating

Income

Ordinary

Income

Net Income

Net Sales

Operating Margin

Ordinary Income Margin

Net Income Margin

(Unit: millions of yen)

(20)

12. For ec ast Non-Consol i dated Resul ts for the Per i od Endi ng Mar c h 2009

109,358

1,831

1,484

3,042

118,500

1,250

1,300

700

1.7

1.4

2.8

1.1

1.1

0.6

2009/3

(Revised Plan)

2008/3

(Actual Results)

2009/3

(Initial Plan)

Change From Prev. Period

Compared To Initial Plan

110,000

1,100

1,000

1,600

0.6

- %

- %

- %

1.0

0.9

1.5

-

-

-

7.2

- %

- %

- %

-

-

-

Operating

Income

Ordinary

Income

Net Income

Net Sales

Operating Margin

Ordinary Income Margin

Net Income Margin

(Unit: millions of yen)

(21)

Medi um-Ter m Str ategy Pr ogr ess

(22)

1. FY 2008 Basi c Managem ent Pol i c y

Focus on Base Bui l di ng (Establ i sh Foothol d)

● “The Ki tc hen Company”

Creating a product lineup and system, in our role as the leading company in kitchen-

related goods, suited to the needs of a new age and the business environment.

● Rec onstr uc ti on of the busi ness pr oc ess

Undertaking a complete review of the business process with a focus on keywords such as

“efficiency”, “speed” and “uniformity”.

Conti nue Wor ki ng fr om a Medi um-Ter m Vi ewpoi nt

● Constant str engtheni ng of food/ housi ng c ommuni c ati on

Increasing the Cleanup brand value and building medium-term kitchen demand by proposing

a new kitchen culture.

1

2

(23)

2. Str engthen Mai n Pr oduc ts Rec ent Effor ts

● フルモデルチェンジ

Luxury System Kitchen

“S.S.” series

Mid/High-Quality System Kitchen

“CLEANLADY” series

Popular System Kitchen

“RAKUERA”

● “S.S.” Full MC

FY 2007

FY 2008

(1

st

Half)

Sept 2007

● “S.S. Servo” On Sale

Feb 2008

● “S.S. Light Package” On Sale

May 2008

● Streamlined Handles for Entire “S.S.” Series On Sale

●“S.S. Light Package” Door Colors Expanded to 5 Series and 47 Colors

Sept 2008

●“CLEANLADY” Full MC

Sept 2007

Sept 2008

● Introduced “One-Week Kitchen Renovation” Policy with the “CLEANLADY Light Package”

“RAKUERA” On Sale

March 2008

●“CLEANLADY Light Package” On Sale

(24)

2. Str engthen Mai n Pr oduc ts Char ac ter i sti c s of Rec entl y Devel oped Pr oduc ts

Cl eanup l i fest yl e pr oposal s i n-step

wi th the ti m es

Pr ovi di ng Cl eanup tec hnol ogy and qual i t y

Product Creation for

Satisfying Lifestyles

Keyword

● Adjusting the product lineup to reflect the benefits of Cleanup’s roots - the stainless kitchen

Providing a relaxing, quiet kitchen through the development of the “Beautiful Silent Sink”

Development, provision, etc., of various functions that are “firsts in the industry”

Ac ti vel y r espondi ng to c ustom er needs

S.S.

Added a new streamlined handle design after receiving many customer requests to make our kitchens more compatible with interior design, like furniture.

S.S. Light Package

● Limited to the two most-requested “S.S.” sizes (I-model, 2550mm and 2700mm)

● Stringent selection of popular “S.S.” door colors (Expanded to 5 series, 47 colors from September)

CLEANLADY Light Package

● Standardized Washable Range Hood specifications to simplify cleaning and reflect customer requests for easier cleaning and storage

In showroom surveys, customers revealed they expected kitchen renovation to take approx. 1 week, from product selection to completion. In response, we implemented the “One-Week Kitchen Renovation.”

(25)

2. Str engthen Pr oduc t Li neup Pr oduc t MD Map

In addi ti on to the devel opm ent of the popul ar “RAKUERA” c l ass and the i ntr oduc ti on of the “l i ght

pac kages” to the l uxur i ous “S.S.” c l ass, the i ntr oduc ti on of the “l i ght pac kages” to the m i d- to top-r ange

“CLEANLADY” c l ass c om pl etes a pr oduc t l i neup that c an ac c ur atel y r espond to the var i ous needs of a br oad r ange of c ustom er s.

“CLEANLADY

Light Package”

On sale Sept 2008

Packaged CLEANLADY products with a reasonable price.

High-Value-Added Products

Widespread Products

Low Price High Price

Popular System Kitchen

“RAKUERA”

On Sale March 2008

Company System Kitchen

“COLTY”

New colors added June 2007

Mid/High-Quality System Kitchen

“CLEANLADY”

Full MC Sept 2007

“S.S. Light Package”

On sale May 2008

Luxury System Kitchen

“S.S.”

Full MC Sept 2007

A model allowing consumers to experience the beauty of stainless at a reasonable price.

Our standard brand as “The Kitchen Company”

Products aimed at customers who want both financial savings and added value.

A branded product allowing consumers to experience Cleanup’s high-quality.

Highly functional, stylish, product designed for urban life with limited space.

(26)

2. Str engthen Pr oduc t Li neup Effec ts of New Pr oduc t Intr oduc ti on

12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0

0 2000 4000 6000 8000 10000

Apr May June July Aug Sept

Total number of luxury systems shipped Cleanup’s S.S. share

S.S. Light Package (Standard Package Plan)

Units (%)

Si nc e the l aunc h of the “S.S. Li ght Pac kage” i n May 2008, Cl eanup’s S.S. has r api dl y r ec over ed and i nc r eased i ts shar e of the l uxur y system ki tc hen c l ass.

2008

S.S. Light Package On Sale

(27)

3. System Str engtheni ng Resul ts Reduc ed Lead Ti m e

Real i zati on of “One-Week Renovati on” wi th the “CLEANLADY Li ght

Pac kage” on sal e fr om September 1, 2008

We made one-week renovations possible by

reducing the lead time in our made-on-demand

production system from 6 days to 4 days.

* We are currently the only

company capable of providing this service without maintaining stock.

This was made possible by our company structure

Focused improvement efforts in the CPS (Cleanup Production System)

1 Production System 2 Structure Reorganization 3 Group Reorganization

Organized a “Kitchen Business

Division” charged with integrated process management, from

development to production,

within a single department (from March 2008)

Improved efficiency of

nationwide installation/service systems and provision of high- quality services by Cleanup Techno Service

(28)

3. System Str engtheni ng Resul ts Evol uti on of “Water Sec ti on Wor kshop”

Total No. of “Water Section Workshop Members” (as of September 30, 2008) Approx.

1,200

businesses

No. of Stores Holding

Renovation Seminars

510

No. of Renovation Fairs

1,250

No. of Mobilized

Customers

4,200

(For the six-month period between April 2008 and September 2008)

● Began a membership registration system from Nov.

2006 to bring in local, popular contractors (builders,

remodeling specialists).

● Nearly all of the member contractors renewed their

registrations during the April 2008 renewal period.

We have established solid, mutually beneficial relationships

with member contractors to further business development.

C le a n u p M e m b e r C o n tr a c to rs L o c a l C u st o m e rs

Grasp customer

needs Grasp customer

and contractor needs

Reflect in product development

Provide products and know-how

Provide high-quality products and superior service

(29)

4. Busi ness Pr oc ess Rec onstr uc ti on IT System

Dur i ng the c ur r ent i nter i m per i od, Cl eanup i nvested 330 m i l l i on yen

i n our IT system i nfr astr uc tur e, the foundati on of our busi ness

pr oc ess r ec onstr uc ti on.

Core

System

Business

System

Accounting

System

Supporting fast and efficient

business operations

New CAD System Internal Control System

Promote effective use of

talented staff, including our

own former employees, by

transforming our CAD design

environment to allow

operation from the home

A system to promote

efficiency in internal

control auditing and daily

monitoring

CS Core System

Redesigned into a system

capable of making better use

in development and sales of

the customer database

derived from business

activities

(30)

4. Busi ness Pr oc ess Rec onstr uc ti on Logi sti c s

Aug 1969

Oct 2002

Nov 2002

Jan 2006

Apr 2008

Cleanup Transportation Co. established

Cleanup Logistics Co. established as a non-asset (business model without Cleanup assets such as distribution centers, vehicles, etc.) Cleanup Transportation Co. absorbs Tokyo Transportation and Storage Service Ltd.

Cleanup Transportation Co. absorbs Cleanup Okayama Transportation Co. Cleanup Logistics Co. absorbs

Cleanup Transportation Co.

History of the Reorganization of Distribution Subsidiaries

The Cl eanup Gr oup's l ogi sti cs r eor gani zati on i s near i ng com pl eti on fol l owi ng the Apr i l 2008 m er ger of Cl eanup Logi sti cs Co. and Cl eanup Tr anspor tati on Co.

A new system to achi eve fur ther l ogi sti cs effi ci ency

Modal shift from overland transport

via the Hokkaido main line to sea

transport

(31)

5. Conti nuous Str engtheni ng of Food/ Housi ng Com m uni c ati on

● Conti nuousl y hol di ng c ooki ng

c l asses usi ng showr ooms

● Newl y opened “Dr eami a Cl ub,” a

Web si te pr ovi di ng l i fest yl e i deas

(32)

6. “Cr eati on of Hom e Li vi ng Spac e Ser vi c es”

Sal es

Techni cal Devel opment

Home Renovati on

Constr ucti on Pr oduct

Devel opment Desi gn

Pr oducti on

Di str i buti on

Mai ntenance Sal es

Pr oposal s

Rel ati onshi p Str engtheni ng

Uni fi ed qual i t y m anagem ent system

Cr eati ng l i fest yl e-sati sf yi ng pr oducts Pr ovi di ng l i fest yl e-sati sf yi ng i nfor m ati on

20 year suppor t pr ogr am

Showrooms are customer

support centers.

Cleanup 】 【 Customer Homes

Creating Attractive Products

Providing Safe, Reliable Services

(33)

please contact:

Cleanup Corporation

Public Relations Section

Tel 03-3810-8241

Fax 03-3893-9577

URL http://www.cleanup.jp/english/index.html

(34)

This material is intended to provide information regarding FY2008

Interim Results (April 2008 September 2008) and does not

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