Exercise : Examine the Trend-analysis Income Statement of five Japanese companies and comment on at least two points. Compare COGS and Gross profit margin of each company. Compare SG&A expense of each company. Find significant R&D expense >> Because "Income from operations" represents profits from their main business, you should first check the trend from "Revenue" to "Income from operations". - Compare ROS of each company. - Explain these differences in relation to companies' information. Isetan-Mitsukoshi (Trend analysis) 3/31/2018 3/31/2016 3/31/2016 3/31/2015 1,268,865 99.7% 1,253,457 98.5% 1,287,253 101.2% 1,272,130 100.0% Revenue 901.582 98.4% 96.9% 925,484 101.0% 916,673 100.0% GOGS 367,283 103.3% 365,609 102.9% 361,769 101.8% 355,457 100.0% Gross Profit O NA O NA O NA Research Development O NA 101.8% 295,341 100.0% Selling General and Administrative 316,298 107.1% 314,119 106.4% 300,742 Others 26,571 27,554 101.9% 27,918 103.3% 27,031 100.0% 72.3% 33,109 100.1% 33,085 100.0% Income from operations 24,414 73.8% -839 67.5% -986 79.3% -1,089 87.6% -1.243 100.0% Interest income, net 22,820 351.8% 10,198 157.2% 5,818 89.7% 6,486 100.0% Other income, net 2,433 8.7% 14,724 52.9% 28,380 101.9% 27,842 100.0% Income before income tax 3.2% 2,956 -147.8% -2.000 100.0% Provision for income tax 3,279 -164.0% 100.0% 9666 61.6% 8977 57.2% 9371 59.7% 15694 Minority interest 100.0% -846 -2.8% 14,788 49.6% 25,424 85.2% 29,842 Income before nonrecurring items O NA O NA Nonrecurring items O NA O NA 29,886 100.0% 960 -3.2% 14,976 50.1% 26,506 88.7% Net Income 10Nidec (trend analysis) 3/31/2018 3/31/2016 3/31/2016 3/31/2015 Revenue 1,488,090 144.7% 1,199,311 116.6% 1,178,290 114.6% 1,028,385 100.0% 1,130,926 143.8% 913,680 116.2% 115.7% 786,486 100.0% ES6'606 GOGS 100.0% Gross Profit 357,164 285,631 118.1% 268.337 110.9% 241,899 Research Development 55,438 52,807 51,978 115.0% 45,179 100.0% 133,091 155.2% 108.3% 114.8% 85,781 100.0% Selling General and Administrative 98,460 O NA O NA O NA O NA Others 139,927 1 126.1% 117,899 106.3% 110,939 100.0% Income from operations 168,635 152.0% 180.5% -2.335 157.0% -1,437 Interest income, net -5,075 341.3% -2,684 100.0% SOE'S Other income, net 9,250 174.4% 1,298 24.5% 3,070 57.9% 117,164 109.4% 107,121 100.0% Income before income tax 164,460 153.5% 141,313 131.9% 32,339 111.4% 29,356 101.1% 26,166 90.1% 29,033 100.0% Provision for income tax 9234 113.6% 8346 102.7% 3127 100.0% Minority interest 9890 121.7% Income before nonrecurring Items 132,121 169.2% 111,957 143.4% 90,998 78,088 O NA O NA O NA Nonrecurring items O NA Net Income 131,434 172.9% 111,007 146.0% 89,945 118.3% 76,015 100.09% 13 Takeda pharmaceutical (trend analysis) 3/31/2018 3/31/2016 3/31/2016 3/31/2015 1,7 99.6% 1,732,051 97.4% 1,807,378 101.7% 1,777,824 100.0% Revenue 495.556 95.3% 557,676 107.2% 535,115 102.9% 520,213 100.0% GOGS 101.4% 93.4% 100.0% Gross Profit 1,274,975 1,174,375 1,272,263 101.2% 1,257,611 100.0% Research Development 325,441 88.5% 311,625 84.7% 335,704 91.3% 367,741 Selling General and Administrative 628,106 102.5% 615,867 100.6% 650,336 612,489 100.0% 125,216 103.4% 116,439 96.1% 122,939 101.5% 121,134 100.0% Others 196,212 125.6% 130,444 83.5% 163,284 104.5% 100.0% Income from operations 130.4% -5,271 90.9% -5.796 100.0% Interest income, net -10,036 173.2% 15.6% 307,480 100.0% Other income, net -10.957 -3.6% -5.342 -1.7% 48,016 -82.9% 100.09% 217,205 -149.3% 143,346 -98.6% 120,539 Income before income tax 37,059 -1542.2% -2.403 100.0% 30,497 -1269.1% 27,833 -1158.3% 69129 100.0% Provision for income tax 19985 28.9% 54704 79.1% 62511 90.4% -58.4% 100.0% Minority interest -130.5% 115,513 -80.8% 83,480 186,708 O NA Income before nonrecurring items O NA O NA O NA -55.0% -145,775 100.0% Nonrecurring items 80,166 186,886 -128.2% 114,940 -78.8% Net Income3/31/2018 3/31/2016 3/31/2016 3/31/2015 Revenue 238,999 59.0% 237,022 58.5% 245,867 60.7% 404,947 100.0% GOGS 64.593 26.2% 71,057 28.8% 85,832 34.8% 246,802 100.0% Gross Profit 174,406 110.3% 165,965 104.9% 160,035 101.2% 158,145 100.0% Research Development O NA O NA O NA O NA Selling General and Administrative 106,474 97.7% 106,960 98.1% 107,930 99.0% 108,993 100.0% Others 32,688 154.9% 27,751 131.5% 22,489 106.5% 21,109 100.0% Income from operations 35,244 125.7% 31,254 111.5% 29,616 105.6% 28,043 100.0% nterest income, net Bon2 Oy -1,492 79.8% -1,682 89.9% -1,797 96.196 -1.870 100.0% Other income, net 4,849 82.0% 4.895 82.8% 4.509 76.2% 5.914 100.0% Income before income tax 31,887 132.9% 28,041 116.8% 26,904 100.0% Provision for income tax 10,959 138.1% 9,293 9,110 114.8% 7,938 100.0% Minority interest 466 111.0% 453 107.9% 437 104.0% 420 100.0% Income before nonrecurring items 20,928 130.3% 18,748 116.7% 17,794 110.8% 100.0% Nonrecurring items O NA O NA O NA O NA Net Income 20,907 130.4% 18,724 116.8% 17,771 110.8% 16,036 100.0% 11 ZOZO (Trend analysis) ) inleo>luatiM-npioa 3/31/2018 3/31/2016 3/31/2016 3/31/2015 Revenue 98,432 239.0% 76,393 185.5% 54,422 132.1% 41,182 100.0% 7,967 7,179 298.5% 4,337 180.3% 2,405 100.0% GOGS 69,214 178.5% 50,085 129.2% 38,777 100.0% Gross Profit 90,465 233.3% O NA O NA Research Development O NA O NA 30,819 137.0% 22,498 100.0% Selling General and Administrative 56,493 251.1% 41,260 183.4% 100.0% 1,301 108.9% 1,668 139.6% 1,509 126.3% 1,195 Others 32,671 216.6% 26,286 174.3% 17,757 117.7% 15,084 100.0% Income from operations 66.7% 100.0% -6 Interest income, net 150.0% 100.0% 4,260 1007.1% 1,633 386.1% -66.4% 423 100.0% Other income, net 18,044 123.0% 14,667 100.0% Income before income tax 28,420 193.8% 24,657 168.1% 8,264 145.8% 7,622 134.5% 6,058 106.9% 5,668 100.0% Provision for income tax 0 0.0% 452 92.6% 455 93.2% 188 100.0% Minority interest 100.0% 666'8 17,035 11,986 133.2% Income before nonrecurring items 20,156 224.0% 189.3% O NA Nonrecurring items O NA O NA O NA 20,156 224.0% 17,035 189.3% 11,988 133.2% 8.999 100.0% Net Income 12