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DON QUIJOTE CO., LTD.
A N N U A L R E P O R T
2000
DON QUIJOTEDON QUIJOTEDON QUIJOTEDON QUIJOTEDON QUIJOTEDON QUIJOTE
W h a t m a k e s t h e n i g h t m a r k e t s o a t t r a c t i v e ?
Don Quijote Co., Ltd. is the pioneer of the night market in
city area. Since our first store in Fuchu-city, Tokyo in 1989,
we have opened a total of 29 stores in Tokyo and Kanto
area. Now we are making thorough preparations for more
stores to satisfy customer needs.
Japan’s uniquely low crime late in the city area is the
background of the establishment of the night market. In
addition to this, a large percentage of working women and
the young population working under flexible working hours
form a new type of consumer group.
City dweller’s active city life operates 24 hours a day. Don
Quijote has expanded its business by taking their needs.
Don Quijote gained a high evaluation of the market, and
we could list the shares as the first stock on NASDAQ
(National Association of Securities Dealers Automated
Quotation) JAPAN which started stock exchange in Japan
on June 19, 2000. Also, we have been listed on the First
Division of the Tokyo Stock Exchange on July 3. It attracts
attention of the stock exchange market as Don Quijote is
the first company which could list the shares both on
NASDAQ JAPAN and the First Section of the Tokyo Stock
Exchange.
Profile
Financial Highlights
Highlight of the Year
To Our Shareholders
New Stores
Key Figures
Five-Year Summary
Financial Review
Consolidated Balance Sheets
C o n t e n t s
1 Don Quijote Annual Report 2000
1
2
3
5
9
10
11
12
13
P r o f i l e
Consolidated Statements of Income
Consolidated Statements of Shareholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Public Accountants
Board of Directors and Corporate Auditors /Corporate Data / Net Work
Shareholders Information
15
16
17
18
24
25
26
For the Year:
Net Sales
Operating Income
Income before Income Taxes
Net Income
At Year-end:
Total Assets
Shareholders’ Equity
Per Share Data (Yen and U.S. Dollars) :
Net Income per Share
Cash Dividends per Share
¥ 73,402,102
4,639,485
5,874,791
2,829,465
34,228,974
18,561,177
¥ 283.51
5.00
$ 695,755
43,976
55,685
26,820
324,445
175,935
$ 2.69
0.05
0
15,000
30,000
60,000
45,000
96.6 97.6 98.6 99.6
11,373
15,954
25,515
46,522
00.6
73,402(millions of yen)
Net Sales(millions of yen)
Operating Income / Net Income
Operating Income
Net Income
0
1,000
0
2,000
3,000
4,000
96.6 97.6 98.6 99.6
290517
402
776 710
1,283
3,142
00.6
4,639
1,675
2,829
Return on Equity
Total Shareholders’ Equity
(millions of yen) (%)
Total Shareholders’ Equity / Return on Equity
10,000
5,000
0 0
10
20
3015,000
96.6 97.6 98.6 99.6
694
15,578
19.35
00.6
18,561
3,468
13.52
14.8116.58
7,041
Return on Assets
Total Assets
(%)
Total Assets / Return on Assets(millions of yen)
10,000
0 0
10
20
30
20,000
30,000
96.6 97.6 98.6 99.6
3,7835,883
11,174
15.69
22,938
14.68
18.12
00.6
34,228
17.40
Thousands of yen
Years ended June 30, 2000 and 1999
Note: U.S. dollar figures are calculated on an exchange rate of ¥ 105.5=$ 1, the prevailing rate as of June 30, 2000.
Don Quijote Annual Report 2000 2
Financial Highlights(Don Quijote and consolidated subsidiary)
Thousands of U.S. Dollars
2000 1999 2000
¥ 46,522,042
3,142,771
3,628,759
1,675,347
22,938,805
15,578,907
¥ 351.78
5.00
MAINTAINED HIGH GROWTH RATEWe achieved increasing both profit and revenue continuously
for 11 accounting periods. We achieved sales of ¥73,402
million, increased by 57.8% over last term. And net income
was ¥2,829 million, increased by 68.9% over last term. ROE
was 16.5% and EVA was ¥1,860 million. (All figures are on
consolidated accounts basis.)
Highlightof theYear
3 Don Quijote Annual Report 2000
ACHIEVED BRILLIANT SUCCESS INOPENING STORESWe newly opened 8 stores in this term. About 23.5 million people, which is
71% of the whole population of Tokyo, Chiba, Kanagawa and Saitama, visited
our total of 27 stores. (13.7 million as of the end of the previous term)
STABILIZED URBAN STORE MANAGEMENTKNOW-HOW BY RUNNING SHIBUYA STOREWe opened Shibuya store as our “urban power center”. The management style
is greatly different from the one for suburban stores. The business results in the
highly competitive business area will accelerate our plan to open stores in city
areas.
NEW MID-TERM MANAGEMENTPLAN “2 ✕ 4 PLAN”We plan to achieve the sales of ¥200,000 million and ROE
20.0% by the term of June 2004. We also aim the ordinary
profit of ¥20,000 million and newly open 20 stores. (2 ✕ 4
PLAN)
INTRODUCED MEMBERSHIPCARD, “DONKI MIRACLE CARD”Customers get one point for a purchase of ¥100, and various
kinds of service are rendered depending on the accumulated
points. It helps to make regular customers and improves
customer satisfaction.
BUDGETED THE ENVIRONMENTALUPKEEP COST AND PROMOTESOCIAL CONTRIBUTION ACTIVITIESTo cooperate with the local community, 5% of our ordinary
profit is allocated as the cost for environmental upkeep cost. As
part of the environmental policies, cleaning unit “Clean Crew”
cleans regularly the wide area around the store.
LISTED ON NASDAQ JAPAN ANDTOKYO STOCK EXCHANGEWe listed our shares on NASDAQ JAPAN and also on the First
Division of the Tokyo Stock Exchange to stabilize the
connection with stock holders and investors more than ever. It
increased the social recognition of the company.
June 1999-August 2000
LAUNCHED THE AMUSEMENTWEB SITE “LA MANCHA ISLANDS”We opened the amusement web site called “La Mancha Islands”
where you can play a new type of internet role playing game
“BARATARIO”. You can also enjoy “Mystery of BARATARIO”
in the i-mode version of which story is connected with
“BARATARIO”. We deliver the shop information, events and
hot items in the story to encourage players to visit our stores.
Don Quijote Annual Report 2000 4
5 Don Quijote Annual Report 2000
In last 4 years Don Quijote, the pioneer of the night market,
has achieved its sales increase by 545.4% and net profit by
874.0% both on consolidated basis for last 4 years. In this
term about 23.5 million people, it is about 71% of the
whole population of Tokyo, Kanagawa, Chiba and Saitama,
visited our stores. (It was 13.7 million in the last term).
Meanwhile we received complaints from neighborhood
about the noise caused by opening stores late at night and
we needed to take measures to solve the problem. We
learned greatly from those experiences.
Since then, we have strong sense of mission as an
enterprise which positively promote environmental
policies. Not only by doing daily volunteer work, we build
trust and connections with the local community by
communication and cooperation.
Also we decided to allocate 5% of ordinary profit to the
environmental upkeep cost to take the most appropriate
measures to promote social contribution activities.
Cooperation with the local community forms the basis of
Don Quijote. We believe it is the social responsibilities an
enterprise should take. Our company was founded upon
cooperation with its neighboring community, and we intend
to continue taking this corporate social responsibility which
should be exercised by all companies. Despite of the
negative current of severe competition and lowered
consumer spending, in order for us to maintain company
growth we intend to strive for further corporate effort by
concentrating on sound management of corporate
resources.
president
Takao Yasuda
To Our Shareholders
Don Quijote Annual Report 2000 6
Tell us about the business in this term and DREAM PLAN 21.
A1The consolidated net sales in this term are ¥73,402 million, increase
by 57.8% over last term. Consolidated net income was ¥2,829
million, increase by 68.9% over last term. And ROE was 16.5%,
then EVA was ¥1,860 million. DREAM PLAN 21 means Don
Quijote Revolution to Advanced Management Plan 21. The three
Questions and Answers
Q1
important points of this plan are to probe deeply into the potentiality
of the night market, to transfer more management power to employees
for company growth, and to structure the store management system to
grasp customer needs quickly. Moreover, we develop our store
management know-how from customers’ point of view to make stores
loved by customers. It is also
very important to structure a
system to support it. The success
in this term was resulted from
reinforcement of internal control
system and new management
information system, which is the
outcome of the DREAM PLAN
21.
DREAM PLAN 21
Lucrative market
High return multi-storedevelopment
Expanding Corporate Value
Growth into a company which sells100 billion yen in the 21st century
Business managementsystem
DREAM PLAN 211. Advancing authority assignment (enpowerment)2. Betterment of customer-first policy (customer value)3. Improvement in cycle response (speed)
Don Quijote Revolution to Advanced Management PLAN 21Adopt 21st century systems, and the evolution continues.
A2We could successfully list the shares on NASDAQ JAPAN as its
international and innovative nature matched our business policy. We
consider listing the shares requires providing information to
shareholders. Periodic reporting the quarterly accounting enhances
the clarity of operations. We also need to attain high company
recognition among foreign investors as stock markets globalize.
NASDAQ JAPAN is a new stock market, so we listed the shares
with taking a long view of its future. Listing our shares on the First
Section of the Tokyo Stock Exchange was a good opportunity to
show that Don Quijote is not just a new comer, any more but has the
status of leading company.
We would like to keep growing through the unique business scheme
and exercise the corporate social responsibility.
Tell us about the importance of listing shares on NASDAQ JAPAN and also on theFirst Section of the Tokyo Stock Exchange.Q2
7 Don Quijote Annual Report 2000
A4“2✕4 PLAN” is the name for our new mid-term management plan,
for betterment of customer-first principles and improvement of
corporate value. It aims to achieve ¥200 billion of sales, 20.0% of
ROE, ¥20 billion of ordinary profit and new openings of 20 stores by
the term of June 2004.We will be able to build the greatest model in
retail business by realizing this plan.
What’s the new “2✕4 PLAN”?Q4
A3We used to open stores in the suburbs on the assumption that
customers drive to shop. But now we started opening stores in
downtown where is the forefront of the new culture and the sight of a
hard-fought battle in retail business. We were fully prepared to do so
to utilize our experience and know-how of running stores. There is a
wide range of customer needs in the areas around terminal stations. It
is a very effective way to differentiate our stores from others by our
wide range of products and its bargain price.
Shibuya Store opened as our first urban store in December 1999.
There are department stores, movie theaters and major bookstores in
the area, so multiplier effect of gathering customers can be expected.
Actually more and more customers visit our store since its opening.
Shinjuku Higashi-guchi Store opened as the second urban store in
November 2000. It’s located in the right heart of one of Japanese
largest cities. Our new computer system and POS cash registers
enabled the start of our year-round 24-hour operations.
The currents of deregulation in retail business also supported us
opening new stores. The Large-Scale Retail Stores Location Act,
Tell us about the meaning of opening stores in downtown Shibuya and ShinjukuHigashi-guchi. What's the plan for other new stores?Q3
which attaches greater importance to upkeep of local environment,
started to take effect in June 2000 instead of the old Large-Scale
Retail Store Act. However, we already had our own environmental
upkeep standard which was more demanding, so not only that it did
not affect our store opening plans, but also speeded up. Moreover it is
expected that financial institutions’ streamlining plan starts in earnest
from 2001, thereby providing more potential locations for new stores
in the inner city area.
Don Quijote Annual Report 2000 8
A5According to “The Internet White Paper 99”(research done in
February and published on June 28, 1999 by Impress Co., Ltd.), there
are about 15.08 million internet users in Japan. It increased by 49.4%
compared with the last year’s 10.09 million. It shows that the
internet has been spreading rapidly among all levels of society.
Based on the circumstances, we started dealing with e-media by
selling computers and by opening the web-site called “La Mancha
Islands” in August 2000. You can enjoy exciting adventure game
“BARATARIO” on the site, and it can be accessed by i-mode since
October. The customer data obtained in consideration of providing
T o O u r S h a r e h o l d e r s
Tell us about Don Quijote's e-business plan.Q5
exciting games and bargain goods information timely is used for new
product/shop development and product lineup. In the field where we
can make the most of the characteristic of internet, we have positive
plan taking B to C into account, such as providing custom-made
goods and products difficult to keep in stores. In e-media business
there are always problems of payment and logistics, but we do not
have to invest great amount of money on the infrastructure and system
development as our stores and its opening hours are suitable for our e-
business plan.
Also on B to B, we started the 24 hour business negotiation system
called “Chokketsu-kun” in July 1999.
Thorough this epoch-making system,
vendors can directly promote products to us
at any time of the day.
customer
e-media business store
promotion
•create motivation to visit store•timely product lineup•effective marketing strategy
repeatingpurchase
advertisement
marketing support
•customer analysis•marketing•product development
gamesbargain goodsinformation
•customer’s personal information•customer’s purchase information
9 Don Quijote Annual Report 2000
Shibuya StoreShibuya Store opened as the first store in the center of a city in
December 2000. It is located in a great business district, and
multiplier effect of gathering customers can be expected.
Also, the location diversified our customer group. Shibuya Store is
visited by young people, housewives with children, middle-aged
couple. Also many customers come from high-class residential area.
It contributes to take customer needs more precisely. Shibuya Store
was the great strategic move for our advance into the center of
Tokyo.
Kannana-Honancho StoreKannana-Honancho Store was opened near the Ohara intersection on
the Kannana highway in May 2000. As it is located in the center of
heavy traffic, the store has our largest parking lot for customers’
convenience. However, it is also next to a big residential area, so we
take measures for the environment upkeep of neighborhood. The
entrance is situated only on Kannana highway side to avoid noise and
light pollution at night.
The store has a sales space of 1,800 square meters. Through our
technique of compact display, we help customers discover the joy of
shopping by offering great variety of product.
Shinjuku Higashi-guchi StoreThe Shinjuku Higashi-guchi Store was opened on Shinjuku-Yasukuni
Street in November 2000. It is in the right center of a big city with
heavy pedestrian traffic, and a great impact of advertising sign can be
expected. This store marks the start of our year-round 24-hour
operations.
Also, the Shinjuku Higashi-guchi Store functions as the key store of
our store opening plan and financial strategy. The acquisition of the
store, originally conceived as a real estate acquisition, was treatable
as an off-book ground lease transaction. For that purpose, a Special
Purpose Corporation was established, with which a fixed-term ground
lease agreement was agreed. Through this method, we were able to
successfully acquire a valuable location with maintaining a high ROE
while avoiding the increase of assets.
New Stores
Don Quijote Annual Report 2000 10
Others 3.1%
Home electricalappliances
23.5%
Miscellaneoushousehold goods
23.8%Foods
17.2%
Watches and Fashionmerchandise
22.8%
Sporting goods andLeisure goods
9.6%
Breakdown Sales by Products (Non-Consolidated / term of June 2000)
(Year ended June, 2000)
Net Sales per Employee
Net Sales per 1m2 of Stores
(thousands of yen)
Net Sales per Employee / Net Sales per 1m2 of Stores (Non-Consolidated)
20,000
10,000
0
30,000
40,000
50,000
96.6 97.6 98.6 99.6
42,78939,960 39,937
47,819
3,800 3,330 4,233 4,602
00.6
41,725
3,714
Number of Stores
20
10
0
30
40
50
60
90
98.6
10
2005.6(Prospect)
97.6
7
96.6
6
99.6
19
2000.6
27
100100
Key Figures
Consolidated ROE Ranking 1999
123456789
101112131415161718192021222324252627282930
ROE(%)66.431.225.622.921.721.620.419.418.518.418.318.117.917.617.116.816.716.615.815.815.415.415.314.814.814.714.614.514.514.4
Comparison(point)
11.919.60.3
11.020.74.13.97.12.20.33.86.24.72.0
–5.52.36.17.52.80.62.84.41.35.71.63.30.61.44.2
∗
∗
∗
∗
Sanrio Co.,Ltd.Konami Corp.Tomy Co.,Ltd.Fast Retailing Co.,Ltd.
Takasago Electric Industry Co.,Ltd.Joyfull Co.,Ltd.Mitsui Mining and Smelting Co.,Ltd.Nichiro Corp.Ryohin Keikaku Co.,Ltd.Meiwa Estate Co.Ltd.MKC.Stat Corp.Sumitomo Real Estate Sales Co.,Ltd.Sunkus & Associates Inc.Fujitsu Devices Inc.Paris Miki Inc.Mycal Hokkaido Corp.Nissin Kogyo Co.,Ltd.Hosiden Corp.Yamae Hisano Co.,Ltd.Misumi Corp.Union Tool Co.Fuji Heavy Industries Ltd.Nichii Gakkan Co.Don QuijoteBelluna Co.,Ltd.Nippon Television Network Corp.Foster Electric Co.,Ltd.Seven-Eleven Japan Co.,Ltd.Kojima Co.,Ltd.Torii Pharmaceutical Co.,Ltd.
means “minus”. – means comparative data is unavailable.
∗ data based on unconsolidated accounts.
(Nikkei Newspaper, August 10, 2000)
Nikkei Growth Ranking
12335677999
121212151515151515
Score9695949493929191909090898989888888888888
Hokuyaku Inc.Atol Co.,Ltd.Kyoden Co., Ltd.Asagami Corp.MKC.Stat Corp.Bosch Braking Systems Co., Ltd.Joint Corp.Maxvalu Chubu Co., Ltd.Macnica,Inc.Trans Cosmos Inc.Sumitomo Pipe & Tube Co.,Ltd.Takasago Electric Industry Co.,Ltd.Watami Food Servise Co.,Ltd.Z-Plus Co.,Ltd.Saizeriya Co.,Ltd.Tose Co.,Ltd.Goldcrest Co.,Ltd.Don QuijoteHino Motors,Ltd.Izuhakone Railway Co.,Ltd.
(Nikkei Newspaper, September 16, 2000)
Net Income to Net Sales
Net Income
(millions of yen) (%)
Net Income / Net Income to Net Sales
1,000
500
0 0
2
1
4
5
31,500
2,000
2,500
290
710
2.552.78
2,829
3.85
2.52
402
3.60
1,675
96.6 97.6 98.6 99.6 00.6
(millions of yen)
Net Sales
20,000
10,000
0
30,000
40,000
50,000
60,000
70,000
96.6 97.6 98.6 99.6
11,37315,954
25,515
46,522
00.6
73,402
(millions of yen)
Selling, General andAdministrative Expenses
4,000
2,000
0
6,000
8,000
10,000
96.6 97.6 98.6 99.6
1,844
2,606
4,277
00.6
11,811
7,003
Financial Section
11 Don Quijote Annual Report 2000
Five-Year Summary (Consolidated Date)
For the Year
Net Sales
Cost of Sales
Selling, General and Administrative Expenses
Operating Income
Income before Income Taxes
Net Income
At Year-end
Total Assets
Shareholders’ Equity
Per Share Data
Net Income
Cash Dividends
Key Ratio
Return on Assets (ROA)
Return on Equity (ROE)
¥ 73,402,102
56,951,004
11,811,613
4,639,485
5,874,791
2,829,465
¥ 34,228,974
18,561,177
¥ 283.51
5.00
17.40
16.58
¥ 11,373,216
9,011,271
1,844,874
517,070
581,187
290,500
¥ 3,783,991
694,378
¥ 80.69
—
—
—
$ 695,755
539,820
111,959
43,976
55,685
26,820
$ 324,445
175,935
$ 2.69
0.05
Thousands of yen
Years ended June 30
Note: U.S. dollar figures reflect an exchange rate of ¥ 105.5=$ 1, the prevailing rate as of June 30, 2000.
¥ 15,954,141
12,571,567
2,606,026
776,547
777,497
402,721
¥ 5,883,041
3,468,229
¥ 102.67
5.00
15.69
19.35
¥ 25,515,010
19,954,155
4,277,266
1,283,589
1,571,598
710,280
¥ 11,174,891
7,041,710
¥ 168.39
5.00
14.68
13.52
¥ 46,522,042
36,376,000
7,003,270
3,142,771
3,628,759
1,675,347
¥ 22,938,805
15,578,907
¥ 351.78
5.00
18.12
14.81
YenU.S. Dollars
(Note)
20001996 20001997 1998 1999
Thousands of U.S. Dollars
(Note)
%
Economic PerformanceJapanese economy during this term has shown certain signs of
recovery supported by the increase of investment in plant and
equipment in private companies. However, with employment and
personal income remaining stagnant, and personal consumption
having a long way to recovery, harsh conditions still prevail as a
whole.
In regards to retail industry, even though information-oriented
products such as cellular phones and personal computers sold
relatively well, with some unique products and companies becoming
popular, consumers were highly selective and companies’ price
competition became more severe. Japan’s economy is still in
recession and we do not really feel the economic recovery yet.
In this condition we returned to our original, “Customer-First
Principles”, whereby we think about our customers, try to see things
from their point of view and move their hearts for true satisfaction.
Also, as the pioneer of the night market, we made special effort in
laying in trendy goods and original product presentation to satisfy
customers’ various needs. We have worked hard to help customers
discover the true joy of shopping.
Furthermore, to solidify our business foundation, we opened the
Shibuya Store, Mejirodai Store and Kannana-Honancho Store in
Tokyo, Minato-Yamashita Store, Tomei-Sagamihara Store and
Yokosuka Store in Kanagawa, and Omiya-Owada Store in Saitama,
Chiba-chuo Store in Chiba. As of end of this term, the total number
of the stores had grown to 27 stores (19 stores as of the end of the
previous term.)
As a result, we achieved sales of ¥73,402 million ($695 million), an
increase by 57.8% over last term. Operating income was ¥4,639
million ($43 million), an increase by 47.6% over last term. In
addition, net income was ¥2,829 million ($26 million), an increase by
68.9% over last term. We have a continuous record of massive
increase both in revenue and profit.
Financial ConditionsMainly due to the increase in inventories in connection with the
increase in sales, current assets amounted to ¥14,998 million ($142
million), a 38.8% increase over last year. Property and equipment
was increased for the opening of eight stores during this term and for
acquisition of land and buildings for future stores to ¥13,733 million
($130 million). Investments amounted to ¥584 million ($5 million), a
80.8% increased over last year. Thus the total assets amounted to
¥34,228 million ($324 million), a 49.2% increase over last year.
Due to the increase in debt in connection with the expansion of
operation, current liabilities totaled ¥13,667 million ($129 million), a
106.8% increase over last year. Total liabilities and shareholders’
equity totaled ¥34,228 million ($324 million), a 49.2% increase over
last year.
Financial Review
Don Quijote Annual Report 2000 12
100
0
200
300
96.6 97.6 98.6 99.6
80.69
168.39
Net Income Per Share
00.6
283.51
102.67
351.78
(yen)(time)
Turnover rate of total assets
3
2
1
0
4
5
96.6 97.6 98.6 99.6
2.99
00.6
3.30
2.732.57
*Not calculated in fiscal 1996
(%)
Shareholders’ Equity Ratio
0
20
40
60
80
100
96.6 97.6 98.6 99.6
58.9563.01
67.92
00.6
54.23
18.35
Consolidated Balance Sheets
Current assets:
Cash
Notes receivable and Accounts receivable
Less:Allowance for doubtful accounts (Note 3)
Marketable securities (Note 3)
Inventories (Note 3)
Prepaid expense
Deferred tax assets (Note 12)
Other current assets
Total current assets
Investments:
Investments securities(Note 3)
Long-term loan receivable
Less:Allowance for doubtful accounts (Note 3)
Total Investments
Property and equipment, at cost (Note 6,11):
Buildings and structures
Vehicles and delivery equipments
Equipment
Less:Accumulated depreciation
Land
Construction in progress
Net property and equipment
Intangibles and deferred charge (Note 3)
Other assets:
Guarantee deposits
Deferred tax assets (Note 12)
Other non-current assets
Total other assets
Total Assets
The accompanying notes are an integral part of the statements
¥ 3,172,332
431,637
510,849
6,374,208
222,580
—
90,382
10,801,990
140,070
183,791
323,861
2,773,449
34,975
1,036,644
(849,547)
5,432,831
94,751
8,523,103
1,029,264
2,199,715
—
60,870
2,260,585
¥22,938,805
$ 23,768
5,101
17,015
87,691
3,507
1,520
3,560
142,162
3,806
1,733
5,539
53,519
712
15,952
(14,325)
73,752
566
130,176
9,746
31,004
517
5,301
36,822
$ 324,445
¥ 2,507,482
538,114
1,795,146
9,251,437
369,971
160,387
375,551
14,998,091
401,522
182,805
584,327
5,646,221
75,131
1,682,961
(1,511,327)
7,780,841
59,781
13,733,608
1,028,266
3,270,896
54,539
559,243
3,884,678
¥ 34,228,974
2000 1999 2000
Thousands of Yen
Thousands ofU.S. Dollars
(Note 1)
ASSETS
13 Don Quijote Annual Report 2000
As of June 30, 1999 and 2000
F i n a n c i a l S e c t i o n
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Current liabilities:
Account payables-trade
Short-term loan payable (Note 7,11)
Current maturities of long-term debt
Accrued income taxes
Accrued expenses
Other liabilities
Total current liabilities
Long -term liabilities:
Long-term debt (Note 7,11)
Allowance for retirement benefits for directors
Consolidation adjustment
Other liabilities
Total long-term liabilities
Total Liabilities
Shareholders’ equity (Note 3,9 ):
Common Stock, non-par value
Authorized: 1999 - 19,000 thousands shares
2000 - 39,000 thousands shares
Issued and Outstanding:
1999 - 4,990 thousands shares
2000 - 9,980 thousands shares
Additional paid-in capital
Retained Earnings
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
The accompanying notes are integral part of the statements.
¥ 3,832,593
50,000
578,400
1,406,712
383,416
357,243
6,608,365
676,600
49,601
11,574
13,755
751,531
7,359,897
5,427,900
6,743,030
3,407,977
15,578,907
¥22,938,805
$ 55,458
28,910
13,479
18,300
5,068
8,333
129,548
17,892
530
—
540
18,962
148,510
51,449
63,915
60,571
175,935
$324,445
¥ 5,850,877
3,050,000
1,422,000
1,930,662
534,630
879,118
13,667,289
1,887,600
55,914
—
56,992
2,000,506
15,667,796
5,427,900
6,743,030
6,390,247
18,561,177
¥34,228,974
2000 1999 2000
Thousands ofU.S. Dollars
(Note 1)
Don Quijote Annual Report 2000 14
Thousands of Yen
Consolidated Statements of Income
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses (Note 13)
Operating income
Other income (expenses):
Interest income and dividend income
Interest expense
Stock issuance cost
Other income, net (Note 10)
Income before income taxes
Income taxes (Note 12):
Current
Deferred
Tax effects attribute to prior year adjustments
Net income
Amount per share of common stock:
Net income
Cash dividends applicable to the year
The accompanying notes are an integral part of the statements
¥ 46,522,042
36,376,000
10,146,041
7,003,270
3,142,771
4,390
(55,910)
(36,222)
573,731
3,628,759
1,953,411
—
—
¥ 1,675,347
$ 695,755
539,820
155,935
111,959
43,976
3,708
(554)
—
8,555
55,685
28,083
(352)
1,134
$ 26,820
¥ 73,402,102
56,951,004
16,451,098
11,811,613
4,639,485
391,167
(58,412)
—
902,553
5,874,791
2,962,798
(37,172)
119,700
¥ 2,829,465
2000 1999 2000
Thousands of Yen
Thousands ofU.S. Dollars
(Note 1)
Yen U.S. Dollars
¥ 283.51
¥ 5.00
¥ 351.78
¥ 5.00
$ 2.69
$ 0.05
15 Don Quijote Annual Report 2000
For the year ended June 30, 1999 and 2000
F i n a n c i a l S e c t i o n
Common stock:
Balance at beginning of year
Issuance of common stock
Balance at end of year
Additional paid-in capital:
Balance at beginning of year
Issuance of common stock
Balance at end of year
Retained earnings:
Balance at beginning of year
Prior year adjustments for application
for deferred tax accounting
Net income
Cash dividends
Balance at end of year
The accompanying notes are an integral part of the statements
¥ 1,985,100
3,442,800
5,427,900
3,300,230
3,442,800
6,743,030
1,756,380
—
1,675,347
(23,750)
¥ 3,407,977
$ 51,449
—
51,449
63,915
—
63,915
32,303
1,685
26,820
(237)
$ 60,571
¥ 5,427,900
—
5,427,900
6,743,030
—
6,743,030
3,407,977
177,754
2,829,465
(24,950)
¥ 6,390,247
2000 1999 2000
Thousands of Yen
Thousands ofU.S. Dollars
(Note 1)
Consolidated Statements of Shareholders’ Equity
Don Quijote Annual Report 2000 16
For the year ended June 30, 1999 and 2000
Consolidated Statements of Cash Flows
2000 1999 2000
Thousands of Yen
Thousands ofU.S. Dollars
(Note 1)
17 Don Quijote Annual Report 2000
For the year ended June 30, 1999 and 2000
—¥ 1,675,347
489,740(959)
3,3631,395
49,057
(164,048)(2,881,591)
11,0862,291,070
858,4342,332,894
———
2,332,894
(510,849)(119,453)
(4,043,164)(1,288,953)
—(985,911)
(6,948,330)
—1,025,400
(1,000,000)—
6,885,600(23,750)
6,887,250
2,271,816900,516
¥ 3,172,332
$55,685
6,6828
(1)185
(2,658)
(1,008)(27,272)(4,195)19,1316,789
53,346939
(601)(24,251)29,433
(8,333)(3,040)
(56,288)(11,379)(2,698)(1,671)
(83,409)
192,89130,332
(164,455)(10,857)
—(237)
47,674
(6,302)30,070
$23,768
¥ 5,874,791—
704,964802(71)
19,497(280,464)
(106,293)(2,877,229)
(442,521)2,018,284
716,2935,628,053
99,069(63,421)
(2,558,547)3,105,154
(879,166)(320,749)
(5,938,418)(1,200,445)
(284,573)(176,303)
(8,799,654)
20,350,0003,200,000
(17,350,000)(1,145,400)
—(24,950)
5,029,650
(664,850)3,172,332
¥ 2,507,482
Cash flows from operating activities:Income before income taxNet incomeAdjustments to reconcile net incometo net cash providedby (used in ) operating activities:Depreciation and amortization, includingamortization of consolidation differenceProvision for (reversal of) doubtful accountsLoss(Gain) on disposal of fixed assetsValuation loss of investments securitiesOther, netChanges in assets and liabilities:Increase in trade receivableIncrease in inventoriesIncrease (decrease) in current assetsIncrease in trade payableIncreased in current liabilities
Received interest and dividend income (Note 1)Interest paid (Note 1)Income tax paid (Note 1)Net cash provided by operating activities
Cash flows from investing activities:Payments for purchase of marketable securitiesPayments for purchase of investments securitiesPayments for purchases of tangible fixed assetsand intangible assetsIncrease in guarantee depositsIncrease in insurance policyOther, netNet cash used in investing activities
Cash flows from financing activities:Borrowing in short-term loan payableBorrowing in long-term loan payableRepayment of short-term loansRepayment of long-term loansIssuance of common stockPayments of cash dividendsNet cash provided by financing activities
Net increase (decrease) in cash and cash equivalentsCash and equivalents at beginning of the yearCash and equivalents at end of the year
The accompanying notes are an integral part of the statements
F i n a n c i a l S e c t i o n
Notes to Consolidated Financial Statements
The accompanying consolidated financial statements of the Don
Quijote Co.,Ltd (the “Company”) accounts of its subsidiary on a
consolidated basis.
The consolidated financial statements are prepared in accordance
with accounting principles and practices generally accepted in Japan
under the requirements of the Japanese Commercial Code, and other
applicable rules and regulations for domestic purpose, and were filed
with the Ministry of Finance (MOF) as required by the Securities and
Exchange Law. In preparing these financial statements, certain
reclassifications and rearrangements have been made to the original
financial statements issued domestically in Japan, for the
conveniences of reader outside of Japan.
In addition, the accompanying notes include information, which is
not required under generally accepted accounting principles and
practices in Japan, but is presented herein as additional information.
In preparing the accompanying consolidated financial statements,
certain reclassifications have been made in the consolidated financial
Note 1. Basis of Presenting Consolidated Financial Statement
The accompanying consolidated financial statements are prepared in
conformity with accounting principles generally accepted in Japan.
Differences from IAS include the following.
Translation of foreign currency items
Foreign currency monetary items of the Company due after one year
are recorded at historical rate, while items due within one year are
recorded at the closing rate. In this respect, the accounting policy is
not in accordance with IAS 21 which requires foreign currency
monetary items be reported at the closing rate.
Marketable Securities (Note 5)
Although IAS 25 requires that marketable securities recorded in
investments be stated at market value or at the lower of cost or
market on portfolio basis, the Company determines the value of the
marketable securities at the lower of cost or market on an item-by-
item basis in order to state their value of the securities more
conservatively.
Leases (Note 4)
The Company and its consolidated subsidiary in Japan treated finance
leases of the Company where ownership does not transfer to the
lessees are not capitalized in the same way as operating leases under
accounting principles generally accepted in Japan, which differ from
IAS 17.
Note 2. Significant Differences Between Accounting Policies Followed by theCompany and a Domestic Subsidiary and International Accounting Standards
statements issued domestically, including the 2000 consolidated cash
flow statements prepared in accordance with the “ Standards for
Preparation of Consolidated Cash Flow Statements, etc” effective in
1999, in order to present them in a form which is more familiar to
readers outside Japan and not required to be filed with MOF at that
time.
Significant differences between the accounting policies followed by
the Company and International Accounting Standards are described
in Note 2.
Under the all yen figures are rounded down to nearest thousand.
Accordingly breakdown figures may not add up to sums. The U.S.
dollar amounts presented in the accompanying financial statements
are converted solely for convenience at the rate of ¥105.5 to U.S.
$1.00, which was the exchange rate prevailing on June 30, 2000.
Certain reclassifications have been made in the 1999 financial
statements to conform to the presentation for 2000.
Tax effect accounting
Through 1999 the Company did not recognize tax effects of
temporary differences as described in Note 3. Therefore, the
Company’s policy differed from IAS 12, which requires that the tax
expense for a period be determined on the basis of tax effect
accounting. In 2000 the Company has adopted tax effect accounting
in accordance with the new accounting standards in Japan.
Impairment of assets accounting
Accounting for impairment of assets is not required under generally
accepted accounting principles and practices in Japan, which differ
from IAS 36.
Amount of significant effects on the consolidated financial
statements
Had IAS applied, the significant effects on the accompanying
consolidated financial statements would have been as follows:
Don Quijote Annual Report 2000 18
Lease (Note 4)
Equipment
Liabilities
¥ 330,449
¥ 330,449
$ 2,659
$ 2,659
¥ 280,545
¥ 280,545
2000 1999 2000
Thousands of YenThousands ofU.S. Dollars
Notes to Consolidated Financial Statements
19 Don Quijote Annual Report 2000
(a) Consolidation
The consolidated financial statements included the accounts of the
parent company and its subsidiary such as the Company and Leader
Co., Ltd. Corporation.
SP Net work Corporation is accounted for the equity method.
The Company prepared the consolidated financial statements for the
year ended June 30,2000 in accordance with the revised Accounting
Principles for Consolidated Financial Statements (the “Revised
Accounting Principles”) effective for the year ended March 31,2000.
The consolidated financial statements for 2000 include the accounts
of the Company and significant companies which are controlled by
the Company through substantial ownership of more than 50% of the
voting rights or through ownership of high percentage of the voting
rights and the existence of certain conditions evidencing control by
the Company of the decision-making body of such companies.
Under the Revised Accounting Principles, certain companies of
which the Company has less than 20% of the voting rights in the case
where the Company has the ability to exercise significant influence
over operating and financial policies of the investees are also
accounted for using the equity method.
Previously, only majority-owned companies were consolidated and
only investments in companies of which the Company owns 20% to
50% of the voting rights and has the ability to significantly influence
financial, operational or business policies were accounted for using
the equity method.
Significant intercompany balances, transactions and profits have been
eliminated in consolidation.
(b) Statements of cash flow
In preparing the cash flow statements for the year ended June 30,
2000 for MOF reporting purpose, cash is considered to be “cash and
cash equivalent”, which includes cash on hand, readily-available
deposit and highly liquid investments with original maturities of not
exceeding three months.
(c) Marketable securities and investments in securities
Listed trading marketable securities are valued at lower of average
cost being determined by the moving average method or market, as
applied separately to each security.
Investments in securities are valued at cost being determined by the
moving-average method.
(d) Inventories
The Company adopted that inventories are valued at cost determined
by the retail method.
The subsidiary adopted that inventories are valued at cost determined
Note 3. Summary of Significant Accounting Policiesby the most recent purchase price method.
(e) Property and equipment
Property and equipment are carried at cost. Significant renewals and
additions are capitalized; maintenance and repaired, and minor
renewals and improvements, are charged to income as incurred,
Interest costs relating to construction of property, equipment are not
capitalized.
In accordance with the amendment of the Japanese Corporation Tax
Law, the buildings acquired after April 1, 1998 was computed on the
straight-line method. Other properties and equipments were computed
on the declining balance method at rules based on the Japanese
Corporation Tax Law. There was no material effect due to the
amendment.
(f) Intangibles
Amortization of software used for the Company is computed by the
straight-line method for five years.
(g) Common stock issue costs
Common stock issue costs are directly charged to income as incurred.
Japanese Commercial Code prohibits charging such stock issue costs
to capital accounts.
(h) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount that is
deemed sufficient to cover estimated future losses.
(i) Allowance for retirement benefits for directors.
The Company adopted a retirement benefit plan for directors and
statutory auditors. Directors and statutory auditors entitle to be paid a
lump-sum retirement benefit determined on the basis of rules of the
Company.
(j) Income taxes
Income taxes are determined by using the liability method, where
deferred tax assets and liabilities are recognized for temporary
differences between tax basis of assets and liabilities and their
reported amounts in the financial statements.
(k) Leased transaction
Finance leases of the Company where ownership does not transfer to
the lessees are not capitalized and are accounted for the same manner
as operating leases (“non-capitalized finance leases”)
(l) Dividends
Dividends are declared by the Board of Directors and approved by
the shareholders at meetings held subsequent to the fiscal year to
which the dividends are applicable, and shareholders of record as at
the end such fiscal year are entitled to the subsequently declared
dividends. Dividends charged to retained earnings represent
F i n a n c i a l S e c t i o n
Note 4. Leases transactionCertain related information at June 30,2000 and 1999 are summarized
as follows.
Don Quijote Annual Report 2000 20
dividends approved by the shareholders and paid during the respective
years.
(m) Bonuses to directors and statutory auditors
Bonuses to directors and statutory auditors, which are subject to
shareholders’ approval at the annual shareholders’ meeting under the
Japanese Commercial Code, are accounted for as an appropriation of
retained earnings.
(n) Shareholders’ Equity
The Japanese Commercial Code provides that an amount equivalent to
at least 10 % of cash dividends and directors’ and statutory auditors’
bonuses paid with respect to each financial period be appropriated to
legal reserve until such reserve equals 25% of common stock.
The Code also provides that neither capital surplus nor legal reserve is
available for cash dividends, but that both may be used to reduce a
deficit by resolution of shareholders or may be capitalized by
resolution of the Board of Directors.
(o) Per Share Data
Per share data in the accompanying statements of income are
computed using the weighted average number of shares outstanding.
1.Book value of leased assets
2.The equivalent amount of accumulated depreciation
3.Total future lease payments of non-capitalized lease
4.Future lease payments of non-capitalized lease due within one year
5.Lease expense paid
6.The equivalent amount of depreciation.
7.The equivalent amount of interest expense
¥ 621,928
211,083
330,449
144,873
109,156
104,578
4,219
$ 7,085
4,508
2,659
1,448
1,773
1,713
61
¥747,440
475,601
280,545
152,769
187,042
180,732
6,397
2000 1999 2000
Thousands of YenThousands ofU.S. Dollars
Note 5. Marketable securities and investments securitiesThe company invests in equity securities and classified its
investments in equity securities primarily as available for sale.
The following table sets forth book value, unrealized gain(loss) and
estimated market value as of June 30, 2000:
As of June 30, 2000:Current:Short-term investments:
Equity securitiesOthers
Non-current:Investments in securities:
Equity securities
¥ 94,517(6,925)
¥ 87,592
¥360,072¥360,072
¥ 162,0001,710,739
¥1,872,739
¥ 473,035¥ 473,035
¥ 67,4821,717,664
¥1,785,146
¥ 112,962¥ 112,962
Book value Unrealizedgain (loss)
Estimatedmarket value
Thousands of Yen
As of June 30, 2000:Current:Short-term investments:
Equity securitiesOthers
Non-current:Investments in securities:
Equity securities
$ 896(66)
$ 830
$ 3,413$ 3,413
$ 1,53616,215
$ 17,751
$ 4,484$ 4,484
$ 64016,281
$ 16,921
$ 1,071$ 1,071
Book value Unrealizedgain (loss)
Estimatedmarket value
Thousands of U.S. Dollars
Thousands of Yen
Notes to Consolidated Financial Statements
Note 6. DepreciationThe useful lives of property and equipments for computing
depreciation, which are identical with the useful lives stipulated under
the Japanese Corporate Tax regulations, are as shown below:
21 Don Quijote Annual Report 2000
Note 8. Financial InstrumentsThe Company has not been used derivative financial instruments.
Years
Buildings and structures 3 to 50
Equipment and vehicles 2 to 15
Note 7. Short-term loan and long-term debtShort-term loans are principally comprised of bank loans.
The interest rate was 0.6% as of June 30, 2000.
As is customary in Japan, substantially all loans from banks
(including short-term loans) are made under general agreements
which provide that, at the request of the banks, the borrower is
required to provide collateral or guarantors (or additional collateral or
guarantors, as appropriate) with respect to such loans, and that all
assets pledged as collateral under such agreements will be applicable
to all present and future indebtedness to the banks concerned.
2001
2002
2003
¥ 1,422,000
1,047,600
840,000
¥ 3,309,600
$ 13,479
9,930
7,962
$ 31,371
Note 9. Stock incentive planThe shareholders of the Company approved a stock incentive plan on
September 25, 1998. The plan provides for the issuance of up to 20,000
shares in the form of options to 4 directors and provides for the issuance of
up to 30,000 shares in the form of options to 47 managers. The options
may be exercised during the period from October 2, 2000 until October 1,
2003, and the exercise price was equal to the fair market value based on
the average stock price which had been traded on Tokyo Stock Exchange
( TSE ) during September,1998.
The shareholders of the Company approved a stock incentive plan on
September 28, 1999. The plan provides for the issuance of up to 20,000
shares in the form of options to 40 managers. The options may be
exercised during the period from October 2, 2001 until October 1, 2004,
and the exercise price was equal to the fair market value based on the
average stock price which had been traded on TSE during November, 1999.
The shareholders of the Company approved a stock incentive plan on
September 26, 2000. The plan provides for the issuance of up to 20,000
shares in the form of options to 4 directors and provides for the issuance of
up to 80,000 shares in the form of options to 179 employees. The options
may be exercised during the period from October 2, 2002 until October 1,
2006, and the exercise price was equal to the fair market value based on the
average stock price which had been traded on TSE during September, 2000.
Long-term debt has an interest rate of 1.4% and started to repay
principle.
The aggregate annual maturities of the long-term debt are as follows.
Note 10. Other income, netOther income, net was consisted of other income and other expense. Other income and other expense were as follows.
Other income:
Gain on sale of securities
Rental fee for computer system
Tenant income
Marketing support fees from suppliers
Other income
Other income total
¥ 117,260
230,230
62,877
42,003
167,988
620,360
$ 977
3,513
1,185
705
2,497
8,877
¥ 103,032
370,624
125,037
74,411
263,369
936,478
2000 1999 2000
Thousands of YenThousands ofU.S. Dollars
Thousands ofU.S. Dollars
F i n a n c i a l S e c t i o n
Don Quijote Annual Report 2000 22
Other expense:
Initial public offering expense
Loss on disposal of fixed assets
Valuation loss of securities
Prior year adjustment of retirement benefit for directors
Other
Other expense total
Other income, net
—
3,363
1,395
41,289
580
46,629
¥ 573,731
104
1
185
—
32
322
$ 8,555
10,992
71
19,497
—
3,365
33,925
¥ 902,553
Note 11. Pledged assets
The assets pledged as collateral for the Company’s liabilities at June
30, 2000 and 1999, were as follows:¥ 3,114,479
720,042
¥ 3,834,522
$ 29,521
6,596
$ 36,117
¥ 3,114,479
695,866
¥ 3,810,345
2000 1999 2000
Thousands of YenThousands ofU.S. Dollars
Land
Buildings
Short-term loan
Current maturitiesof long-term debt
Long-term debt
¥578,400
676,600
¥ 1,255,000
$ 28,436
13,166
17,257
$ 58,859
¥ 3,000,000
1,389,000
1,820,600
¥ 6,209,600
2000 1999 2000
Thousands of YenThousands ofU.S. Dollars
Liabilities related with the assets pledged at June 30,2000 and 1999
were as follows:
Note 12. Income taxIn 2000, the Company adopted tax effect accounting in accordance
with the new standards as described in Note 2. With regard to the
cumulative effect on prior years of adopting tax effect accounting, net
income for the year ended June 30, 2000 increased by ¥37,172
thousand ($ 352 thousand) and retained earning as of June 30, 2000
increased by ¥ 214,926 thousand ($ 2,037 thousand) as presented in
the accompanying statements of shareholders' equity and deferred tax
assets as of June 30, 2000 recorded ¥214,926 thousand ($ 2,037
thousand) as presented in the accompanying statements of
consolidated balance sheets.
The normal effective statutory income tax rate in Japan arising out of
the aggregation of corporate, enterprise and inhabitants taxes was
approximately 42%, 48% for 2000 and 1999, respectively.
The significant components of deferred tax assets and liabilities are as
follows.
Thousands of Yen Thousands ofU.S. Dollars
¥ 144,586
8,208
7,591
160,387
23,540
26,461
4,537
54,539
¥ 214,926
$ 1,370
78
72
1,520
223
251
43
517
$ 2,037
2000 2000
A reconciliation of the difference between the statutory tax rate and
the effective income tax rate reflected in the accompanying statements
of operation for the ended June 30, 2000 is as follows.
Statutory tax rate
Permanent difference
Flat tax of inhabitant tax
Tax on the undistributed profits
Others
Effective tax rate
42.1%
0.2%
1.2%
5.0%
1.3%
49.8%
2000
Deferred tax assets (current):
Provision for enterprise tax
Valuation loss of investment securities
Others
Sub-total
Deferred tax assets (non- current )
Accrued retirement benefits
Depreciation
Others
Sub-total
Total
23 Don Quijote Annual Report 2000
Notes to Consolidated Financial Statements
Employees’ compensation and benefit
Occupancy and rental
Commission
Depreciation
Provision for retirement benefits for directors
Other
Total
¥ 2,656,014
772,219
772,331
489,740
8,312
2,304,654
¥ 7,003,270
$ 42,600
13,592
14,838
6,363
60
34,506
$ 111,959
¥ 4,494,345
1,433,932
1,565,390
671,299
6,312
3,640,335
¥ 11,811,613
2000 1999 2000
Thousands of Yen Thousands of U.S. Dollars
Note 13. Selling, general and administrative expensesMajor elements of selling, general and administrative expense for
2000 and 1999 are summarized as follows:
Note 14. Subsequent eventsAppropriation of retained earnings under the Commercial Code of
Japan, a plan for appropriation of retained earnings proposed by the
Board of Directors must be approved at a shareholders’ meeting to be
held within three months after the end of the fiscal year. The
appropriation of retained earnings for the year ended June 30, 2000
was approved by the shareholders’ meeting held on September 26,
2000 as follows:
Thousands of Yen Thousands ofU.S. Dollars
Cash dividends (¥5.0 ($0.05) per share) 49,900 473
Note 15. Segment informationThe discount store operations, which mainly comprise 27 discount
retail stores in Japan, principally sell household goods, food,
beverage, cosmetics, toiletries, sports goods, CD, DVD, etc.
Don Quijote Annual Report 2000 24
F i n a n c i a l S e c t i o n
Report of Independent Public Accountants
We have audited the accompanying balance sheets (expressed in yen) of Don Quijote
Co.,Ltd and a subsidiary as of June 30, 1999 and 2000, and the related consolidated
statements of income, stockholders’ equity and cash flows for each of the years in the
two-year period ended June 30. Our audits were made in accordance with generally
accepted audit standards in Japan and accordingly included such tests of the accounting
records and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the consolidated financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Don Quijote Co.,Ltd and a
subsidiary as of June 30, 1999 and 2000, and the consolidated result of their operations
and their cash flows for each of the years in the two-year period ended June 30, in
conformity with generally accepted accounting principles in Japan.
Also, in our opinion, the accompanying consolidated financial statements expressed in
yen have been translated into U.S. dollars on the basis set forth in Note 1.
To the Shareholders and the Board of Directors ofDon Quijote Co.,Ltd.
Tokyo, Japan
November, 2000
Big Apple & Co.
Certified Public Accountants
Statements on accounting principles and auditing standards
This statements is to remind users that accounting principles and auditing standards and their application in practice may vary
among nations and therefore could affect, possibly materially, the reported financial position, and result of operations. The
accompanying financial statements are prepared based on accounting principles generally accepted in Japan, and the auditing
standards and their application in practice are those generally accepted in Japan. Accordingly the accompanying financial
statements and the auditors’ reports presented above are for users familiar with Japanese accounting principles, audit standards
and their application in practice.
25 Don Quijote Annual Report 2000
Board of Directors and Corporate Auditors
Takao Yasuda President and Representative Director
Mitsuo Takahashi Director
Junji Narusawa Director
Kouji Ohara Director
Satoshi Ueda Director
Isao Matsuura Standing Statutory Auditor
Mutsuo Takahashi Statutory Auditor
Hitoshi Ehara Statutory Auditor
Masaru Ueno Statutory Auditor
(As of June 30, 2000)
Head Office
Tokyo Metropolitan AreaFuchu store Suginami store Shinjuku store Kasai storeKanpachi Setagaya storeKannana Umejima storeKeihin Kamata storeKeio Horinouchi storeTohachi Mitaka storeKoganei Koen storeShibuya storeMejirodai storeKannana Honancho storeShinjuku Higashi-guchi store
Kanagawa PrefectureTomei Kawasaki storeShin-Yokohama storeMinato Yamashita storeTomei Sagamihara storeYokosuka storeTomei Yokohama Inta store
Chiba PrefectureKisarazu storeMakuhari store Ichihara storeBaraki Nishifunabashi storeChiba Chuo store
Saitama PrefectureOmiya storeWako storeUrawa Kagetsu storeOmiya Owada store
(As of November, 2000)
Company Name Don Quijote Co., Ltd.President and Representative Director Takao YasudaHead Office 4-14-1, Kitakasai, Edogawa-ku, Tokyo 134-0081,
JapanTel. +81-3-5667-7511Fax. +81-3-5667-7522
Established September 5, 1980
Paid-in Capital ¥5,427,900 Thousand
Number of Employees 576
(As of June 30, 2000)
Corporate Data
Network
Don Quijote Annual Report 2000 26
F i n a n c i a l S e c t i o n
Shareholders Information
Total Number of Shares Authorized 39,000,000
Number of Shares Issued9,980,000
Number of Shareholders4,531
Principal ShareholdersName
Takao Yasuda
UBS (Trust and Banking) Limited
The Chase Manhattan Bank NA London
The Nomura Trust & Banking Co., Ltd.
The Sumitomo Trust & Banking Co., Ltd.
MLP FS Custody
The Nikko Trust & Banking Co., Ltd.
The Mitsubishi Trust & Banking Corporation
The Daiwa Bank
The Toyo Trust & Banking Co., Ltd.
Total
Number ofShares Held
5,202.0
381.5
270.3
258.8
182.7
174.0
153.3
129.6
128.7
119.1
7,000.0
Percentage ofTotal Shares
in Issue
(%)
52.12
3.82
2.70
2.59
1.83
1.74
1.53
1.29
1.28
1.19
70.14
Share Ownership by Category
Financial Institutions
Securities Companies
Other Japanese Corporations
Foreign Corporations and Individuals
Japanese Individuals and Others
Total
Number ofShareholders
33
20
82
115
4,281
4,531
Number of Shares Held
2,024.3
64.1
51.5
1,741.5
6,098.6
9,980.0
Percentage of Total Shares
in Issue
(%)
20.28
0.64
0.52
17.45
61.11
100.00
(As of June 30, 2000)
(thousands)
(thousands)