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疋田直太郎社長写真

Business Activity and Financial Results (From March 1, 2016 to August 31, 2016)

 First of all, we would like to thank you very much for your continued support of KOHNAN SHOJI CO.,LTD.

 Due to the Japanese economy during the first half of the fiscal year, personal consumption remains weak even though labor supply and demand has improved. The overseas economy is also expected to remain challenging in the future due to the withdrawal of the United Kingdom from the European Union and the economic uncertainly in China and the other emerging countries.

 Under these conditions, we have established a medium term management plan “We love KOHNAN 2017” to be implemented from April 2015. To achieve this goal in the  second year, we are focusing on strengthen our plans of “revitalization of existing stores” and “reduction of merchandise”. These are considered our twin-turbo strategies and the results have exceeded our expectations in the second year.

 In order to further strengthen our selling power as well as to meet customers’ demands with a wide selection of goods, we have opened two Home Center stores and three PRO stores during the first half. On the other hand, we have closed four small format Home Center stores. There are now a total 314 stores (262 Home Center stores and 52 PRO stores) as of August 31, 2016.

 As for business results, same-store sales was 99.9% year on year, which was slightly lower than the previous year. However, thanks to the new stores, net sales was 150 billion 885 million yen (up 1.7% from the previous year). Gross profit was 55 billion 13 million yen (up 3.8% from the previous year). Operating income was 10 billion 23 million yen (up 17.3% from the previous year) and ordinary income was 9 billion 291 million yen (up 22.9% from the previous year). With impairment loss of 3 billion 562 million yen, this quarter net income became 3 billion 373 million yen (up 0.2% from the previous year).


Sustainable Growth and Improvement of the Enterprise Value by implementing the Medium-Term Management Plan

 We will be vigorously pursuing our medium-term management plan through the activities of revitalizing our existing stores. We will also reduce our merchandise to reduce the loans payable and improve our financial constitution for more sound corporate governance. We will continue to offer a product lineup dedicated to quality and reasonable prices to respond customer’s diversifying needs and tastes. We will also provide our customers the pleasure of shopping and choosing from a wide variety of good products with reasonable prices.

 Going forward, we will be striving to improve our enterprise value through the realization of sustainable profit growth and strong financial constitution so that we can meet the expectations of our shareholders.


In Commemoration of 20th Anniversary of Listing of our Stock, Higher Returning Profits to Our Shareholders

 We recognize it is a priority of business management to return our profits appropriately and actively to our shareholders as well as society. We consider it our fundamental policy to keep our dividends stable while remaining mindful of the balance with the internal reserves to expand our business.

 With this policy in mind, originally, we planned to pay 19 yen per share both an interim and a year-end dividend, which is the same amount as prior dividends. However, we will pay 22 yen per share to our valued shareholders for an interim and a year-end dividend (annual dividend is 44 yen per share) to commemorate the 20th anniversary of listing of our stock as well as to maximize shareholders value, which is a 3-yen increase from the prior interim and year-end dividends.

 In closing, we would like to thank all of our shareholders for your continued support of KOHNAN SHOJI CO.,LTD.



November 9th, 2016
KOHNAN SHOJI CO.,LTD.
PRESIDENT, Naotaro Hikida