9.30 - melco inc.

tMELCO HOLDINGS INC. Stock Information
Making digital life enjoyable
(as of September 30, 2011)
Fiscal year-end
March 31
Scheduled shareholders’ meeting
June
Dates to determine stock ownership
Shareholders entitled to vote: March 31
Shareholders entitled to year-end dividend: March 31
Shareholders entitled to interim dividend: September 30
Stock listings
First Section of Tokyo Stock Exchange and First Section of Nagoya Stock Exchange
Securities code
6676
Number of shares issued
22,237,873 (shares excluding treasury stock : 22,214,275)
Number of shareholders
9,113 (as of September 30, 2011)
Number of shares per trading unit
100 shares
Method of public notice
http://melco-hd.jp/koukoku/
Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
1-4-5 Marunouchi, Chiyoda-ku, Tokyo
Stock agencies
All branch offices of Mitsubishi UFJ Trust and Banking Corporation in Japan
B U S I N E S S
201 1.4.1
R E P O R T
201 1.9.30
*If you have any inquiries about stock-related procedures, please contact the Corporate Agency
Department of Mitsubishi UFJ Trust and Banking Corporation between 9:00 a.m. and 5:00 p.m.
on business days.
Tel: 0120-232-711 (toll free)
*If you need any stock-related forms, please call Mitsubishi UFJ Trust and Banking Corporation
or access its website at any time, 24/7.
Tel: 0120-244-479 (toll free)
http://www.tr.mufg.jp/daikou
Managing Underwriters
MELCO HOLDINGS. INC
Daiwa Securities Capital Markets (lead manager), Nomura Securities, Mizuho Investors
Securities and SMBC Nikko Securities (co-managers)
（Securities Code: 6676）
http://melco-hd.jp
Headquarters
Akamon-dori, 3-30-20 Ohsu, Naka-ku, Nagoya 460-8315, Japan
Tel: 81-52-251-6891 Fax: 81-52-249-6609
BUFFALO. INC
http://buffalo.jp
Headquarters
Akamon-dori, 3-30-20 Ohsu, Naka-ku, Nagoya 460-8315, Japan
Tel: 81-52-249-6610 Fax: 81-52-249-6609
Tokyo Branch Office
Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo 104-0033, Japan
Tel: 81-3-3523-3333 Fax: 81-3-3523-3300
Melco Group
2 0 1 1
CORPORATE
DIRECTION
S T R A T E G Y
Making digital life more enjoyable
Demand for wireless LANs used in digital home electronics, such as smartphones and digital terrestrial TVs, is growing rapidly.
The Group focused on the spread of home network that helps to realize digital lifestyles by introducing wireless routers
compliant with the higher data rate of standard 450 Mbps than that of 300 Mbps both defined in IEEE802.11n (standard value).
In proposing the idea that a Network Attached Storage (NAS) hard disk drive can be used as a private cloud storage facility
whereby one can manage data (photos, music and videos) stored on a home NAS via a terminal such as a smartphone, at will,
anywhere, anytime, we made it possible to lower hurdles to the introduction of NAS through the development of a new
application which enables the setup of NAS via a smartphone without using a computer.
Makoto Maki
President and CEO
MELCO HOLDINGS INC.
Promoting Growth Strategy by Constantly Taking
on New Challenges
Expansion of
overseas markets
Strengthening Business Structure for a
Melco Group, a comprehensive manufacturing organization with Buffalo Inc. as its core member, produces and markets digital
Further Leap Forward
circumstances due to adverse effects from the Great East Japan Earthquake, the Japanese economy was on a recovery trend
on the back of reconstruction of supply chains. However, uncertainty over the economy has been increasing due to the sharp
appreciation of the yen, the electricity shortage and the unrest in European financial markets.
In the digital home electronics industry, in which the Group is involved, its peripherals equipment market expanded, driven by
last-minute orders for televisions associated with the end of analog TV broadcasting in July 2011 (excluding Iwate, Miyagi and
Fukushima Prefectures) and the diffusion of smartphones. Meanwhile, the computer peripherals market continued to be
difficult due to product price erosion and stagnant consumer confidence.
Under such market circumstances, besides our continued efforts to maintain domestic market share and cut loss-inducing
costs by such means as reduction of inventory write-downs through tighter management, we focused on strengthening our
01
will continue to help realize a wide range of comfortable digital lifestyles by introducing high value-added products.
Focusing on the Fast-growing Digital Home Electronics Peripherals Market
home electronics and computer peripherals. During the first two quarters of the current fiscal year, under harsh economic
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This integration of digital home electronics, home network and peripherals has expanded digital home applications. The Group
overseas businesses. We also launched new, products aiming at rapidly popularized smartphones market. We also strove to
The Group will continue to lead the growing digital home electronics peripheral
"expansion of overseas markets" and the "development of new businesses"
which are the most prioritized strategic objectives for our future leap, we will
aggressively invest in developing global human resources and
Home
network
establishing stractures for developing new businesses.
By working in concert to realize these objectives, we
Broadband
aim to grow while building up the business
structure for the next generation. Your
Internet
expectation to our further growth is
greatly appreciated.
Digital home
Ubiquitous
network
outlets, and helping to create attractive sales floors in response to the surge in demand associated with the transition to digital
decreased year-on-year, being severely affected by a decline in unit prices.
Development of
new businesses
market by introducing high value-added products. In order to achieve the
expand our growing business by proactively suggesting uses for such products in the home electronics sections of retail
terrestrial broadcasting. As a result, net sales increased by 2.4% year-on-year to ￥60,344 million. However, operating income
Diffusion of digital
home-related
products
Three strategies for growth
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BUSINESS
OVERVIEW
Digital Home Products
O U T L I N E
Digital home products are designed to allow "digital
lifestyles" to be enjoyed with digital home electronics
and computers. The Melco Group is expanding its lineup
Memory Products
of peripherals for digital home electronics. Recent
A memory module is a device used to expand a computer's memory
USB flash drive
capacity and help it to improve its performance in speed and comfort.
A USB flash drive is a removable data storage device. We offer a wide
variety of USB flash drives from design-conscious to high-security models.
Secure Digital (SD) cards and microSD cards used in portable devices
such as digital cameras and mobile phones have been advancing in terms
Memory module
microSD card
of data transfer and storage capacity.
additions include "Choi Tele i", a 1-seg tuner for iPhone /
Digital terrestrial tuner
for computer
iPad / iPod touch which allows users to watch TV easily,
digital terrestrial tuners for upgrading analogue TVs to
digital terrestrial TVs, and HDD recorders for TVs, with
an easy manipulation for viewing and recording digital
HDD recorder
1 seg tuner
terrestrial broadcast programs and playing back recorded
programs.
Other Products
tSupplies and Accessories
Storage Products
In order to make digital home electronics more user-friendly and enjoyable, the Group offers a wide variety of
accessories, from input devices, such as PC mouses and keyboards, to cases and protection films for popular
Storage devices are designed to store data and/or software.
smartphones.
tExternal Hard Disk Drive
An external hard disk drive is a device for storing computer-generated data, photos or videos captured with digital
cameras. As an increasing number of people want to record digital terrestrial broadcasting programs, demand for
additional installation of hard disk drives has been increasing lately.
tOther Products and Services
We offer "Kurouto Shikou” (pro-oriented) products; i.e., high-specifications-oriented DOS/V parts, and a home-PC
setup service for individual users.
tNAS (Network Attached Storage) Hard Disk Drive
Kurouto Shikou (pro-oriented)
brand products
A NAS hard disk drive is a device that can be connected to a network and enables a number of computers or digital
home electronics to share its stored data. Recently, the use of a hard disk as a private cloud storage facility has been
attracting attention. This application allows users to access data stored in a home-based NAS hard disk drive from
outside the home via a smartphone.
Wireless blue light-emitting
diode (LED) mouse
Smartphone cases
Internet setup service (Buffalo Service Alliance)
T he E xpandi ng Di g i t al Hom e
External hard disk drive
External hard disk drive for TV
Portable hard disk drive
Network Attached Storage hard disk drive
We have helped make it possible to enjoy various types of digital content both at and away from home.
The concept of the digital home combining digital home electronics, home networks, and computer peripherals will
continue to expand, creating a variety of
comfortable lifestyle scenarios.
Office
Network Products
ng
C onn e c
smartphones. In particular, a wireless Local Area Network (LAN) device is the most appropriate for
a home network because it does not require complicated wiring. A mobile Wi-Fi router makes it
Connectin
ng
all data at
me
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Videos
ho
O
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L
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rom outsid
gf
f home
eo
where the wireless LAN is used.
St o
ri
possible and easy to connect to the Internet even when outside the home, expanding occasions
e
me
Internet
the entir
ho
ti
We can share data or access the Internet using network devices connected to computers, TVs or
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Music
Wireless access point for SMB
(Small and Medium-sized Business)
with built-in network administrator functionality
Photos
Mobile Wi-Fi router
Layer-3 Gigabit intelligent switch
Wireless LAN router
* iPhone®, iPod touch® and iPad® are trademarks of Apple Inc.
04
FINANCIAL
INFORMATION
tConsolidated net sales
Digital Home Products
( ￥million)
139,571
134,000
Other products
Memory products
21,570
123,749
120,276
116,911
Network products
20,957
Storage products
29,800
24,672
20,151
35,850
15,800
23,607
19,850
20,352
21,425
22,982
16,621
30,400
27,414
Other Products
In the digital home product segment, digital terrestrial
In the supply and accessory product segment, we
tuners for analogue TVs saw an increase in sales
enhanced our lineup of smartphone-related merchandise,
volume associated with the transition to digital
launching bubble-less films for smartphones and tablet
terrestrial broadcasting. In addition, we focused on
computers. We also offered something new to the
selling easy-to-operate digital terrestrial recorders
market by launching a series of items which help to
with a built-in tuner which would be the best choice to
reduce power consumption by computers or peripherals.
fill the demand for VCR replacement. Through these
Consequently, sales volume rose by 20.7% year-
efforts, sales volume rose by 174.9% year-on-year,
on-year and sales revenue increased by 10.4% year-
and sales revenue increased by 169.5% year-on-year
on-year to ￥5,399 million.
to ￥5,198 million.
59,168
55,355
55,480
58,000
55,038
tConsolidated Ordinary Income and Consolidated
Overseas Sales
2008/3
2009/3
2010/3
2011/3
2012/3 (estimate)
Ordinary Income Margin
Although we continued to face difficult business
conditions, we sought to expand overseas sales and
Storage Devices
（￥million）
10
10,000
succeeded in lifting sales revenue by 9.3% year-on-year.
8,000
We also strove to address our top priority, namely,
6,000
strengthening and enhancing of our overseas business
4,000
structures. Specifically, we focused on developing
2,000
7,652
8.9
8
6
6.5
5,439
4
3.9
2,258
2
1.9
emerging country markets, such as those in South
In the storage product segment, mainstay external hard disk drives saw an increase in sales volume, driven by the sales
(%)
10,954
0
0
2008/3
America and Russia.
2009/3
2010/3
2011/3
growth of digital terrestrial TVs which can be recorded to external hard disk drives, with the sales increase of 22.3%
year-on-year, but sales revenue dipped slightly by 0.4% year-on-year to ￥20,034 million due to a drop in unit prices.
In the Network Attached Storage (NAS) hard disk drive product segment, we made various efforts to boost demand for
tConsolidated Net Income and Consolidated
t
Changes in Overseas Sales
Net Income Margin
（￥ million）
（￥ million）
26,268
NAS products. For example, suggesting how they could be used as private cloud storage facilities at point-of-sale,
provided an application for an easy setup of NAS via a smartphone, and expanded the lineup of models with a virus
6
4,990
5,000
checking function to accommodate corporate security needs. Consequently, sales volume increased by 15.7%
20,260
12,062
year-on-year, and sales revenue grew by 2.7% year-on-year to ￥6,397 million.
(%)
6,277
6,000
5.1
3,615
4,000
19,246
3
3,000
15,883
9,740
8,552
2.6
2,000
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Sales volume of memory products decreased by 24.4%
Network Devices
year-on-year, due to lower demand for additional purchases of
demand for wireless LANs used in digital
home electronics such as smartphones and
initially installed in computers. This, combined with a drop in DRAM
digital terrestrial TVs, we focused on the
prices, pushed sales revenue down by 47.1% to ￥2,584 million.
smartphone market, launching convenient
We made various efforts to create demand for flash memory
Wi-Fi adaptors, which are useful for Wi-Fi
products. For example, we sought to expand sales of memory
cards, such as SD cards, and enhanced the lineup of models
communication via smartphones. As a result,
compliant with the next-generation USB standard (USB 3.0)
on-year to ￥13,259 million due to a drop in
realizing faster transfer rates. Thanks to these efforts, sales
unit prices.
volume rose by 17.2% year-on-year, and sales revenue increased
by 2.0% year-on-year to ￥3,838 million.
2009/3
2010/3
2011/3
9,454
4,574
2,898
6,063
4,750
tConsolidated Shareholders' Equity and Consolidated
2008/3
Return on Equity
6,554
6,119
4,456
2010/3
2009/3
20,000
9,751
4,248
2,495
1,561
2,200
3,007
3,081
Europe
2009/9
28,652
17.8
16.4
12.9
15
10
10,000
5
3,516
3,123
3,718
29,464
8,491
7,767
5,467
(%)
33,240
2011/3
11,386
2008/9
38,606
（￥ million）
30,000
sales volume increased by 27.7% year-on-year,
but sales revenue fell slightly by 0.4% year-
0
0
Regarding network products, amid growing
memory modules resulting from greater amounts of memory being
1
0.6
2008/3
Memory Products
2
707
1,000
6,430
5
4
4.3
2008/3
3,526
2010/9
North America/Latin America
2.5
0
1,448
2011/9
Asia/Oceania
2009/3
0
2010/3
2011/3
Forward-looking Statements
The earnings forecasts are calculated based on currently available
information and may include uncertain factors. Accordingly, actual earnings
results may differ from these forecasts due to changes in business
conditions.
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FINANCIAL
INFORMATION
tConsolidated Balance Sheet
Item
（￥million）
As of
September 30, 2011
As of
September 30, 2010
As of
March 30, 2011
Assets
62,403
57,772
65,616
4,991
5,297
5,984
940
1,051
956
Intangible fixed assets
1,856
2,088
2,223
Investments, etc.
2,195
2,157
2,805
67,395
63,070
71,601
Current assets
Fixed assets
Tangible fixed assets
tConsolidated Income Statement
Six months ended
September 30, 2011
Six months ended
September 30,2010
Fiscal year ended
March 31, 2011
Net sales
60,344
58,933
123,749
Cost of sales
47,590
46,073
96,518
Selling, general and administrative expenses
8,751
8,104
16,487
Operating income
4,002
4,756
10,743
333
241
262
87
175
51
4,248
4,822
10,954
Extraordinary income
9
104
240
Extraordinary loss
7
134
476
Net income before taxes and other adjustments
4,250
4,792
10,718
Income, resident and enterprise taxes
1,489
1,772
4,049
198
50
340
△4
54
50
2,566
2,915
6,277
Item
Non-operating income
Non-operating expenses
Total assets
（￥million）
Ordinary income
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
24,082
24,239
29,586
3,062
3,127
3,407
27,144
27,366
32,994
Net assets
Shareholders' equity
Common stock
Additional paid-in capital
Income taxes - deferred
1,000
1,000
1,000
774
774
774
Gains (losses) attributable to minority interests
Net income
Retained earnings
Treasury stock
Total shareholders' equity
38,112
33,516
36,435
△60
△58
△59
39,827
35,232
38,150
tConsolidated Cash Flow Statement
Item
（￥ million）
Six months ended
September 30, 2011
Six months ended
September 30, 2010
Fiscal year ended
March 31, 2011
Accumulated other comprehensive income
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07
2,215
5,566
10,719
Cash flows from investing activities
△2,243
△4,545
△10,340
△314
Cash flows from financing activities
△889
△444
△889
△207
△213
Effect of exchange rate changes on cash and cash
equivalents
19
△10
△50
ー
4
ー
666
673
670
Total net assets
40,250
35,703
38,606
Total liabilities and net assets
67,395
63,070
71,601
69
66
95
Cash flows from operating activities
0
△2
5
Foreign currency translation adjustments
△312
△271
Total accumulated other comprehensive income
△243
Net unrealized gains (losses) on other securities
Deferred gains or losses on hedges
Stock option
Minority interest in consolidated subsidiaries
Net increase (decrease) in cash and cash equivalents
△898
565
△562
Cash and cash equivalents at beginning of period
11,415
11,977
11,977
Cash and cash equivalents at end of period
10,516
12,543
11,415
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MELCO
G R O U P
GROUP
C O M P A N I E S
tMELCO HOLDINGS INC.
Company Name
MELCO HOLDINGS INC.
Board Members (as of September 30, 2011)
Incorporated
July 1, 1986
President and CEO
Makoto Maki
Capital
1 billion yen
Senior Managing Director
Kuniaki Saiki
Business activities
Melco Holdings is a pure holding company that
Director
Hidetoshi Yamaguchi
owns the shares of the group’s operating
Director
Tamio Matsuo
companies. It governs the operating companies
Director
Lee Yanghun
and provides support for their business activities.
Director
Iwao Tsusaka
Number of employees 82 MELCO Group consolidated: 862
Director
Hiroyuki Maki
Number of group companies 14 (domestic: 9; overseas: 5)
Senior Corporate Auditor
Hiromichi Maki
Corporate Auditor
Toshio Nishikawa
Corporate Auditor
Yuzuru Kawashima
Corporate Auditor
Tomotsune Sumi
Subsidiaries
Overseas Subsidiaries
BUFFALO KOKUYO SUPPLY INC.
tDevelopment
and sales of accessories and supplies
<Asia>
for PC and digital home electronics.
Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya
460-8315, Japan
Tel. 81-52-249-6608 Fax. 81-50-5830-8808
SALES INC.
tAnCFDall-around
PC parts supplier,operating under
the Kurouto Shikou(pro-oriented) brand name.
Akamon-dori Bldg., 3- 30-20 Ohsu, Naka-ku, Nagoya
460-8315, Japan
Tel. 81-52-249-6606 Fax. 81-50-5830-8824
BUFFALO IT SOLUTIONS INC.
tPC
setup, network installation, maintenance and
other services to consumers and businesses.
Kayabacho Tower, 1- 21-2 Shinkawa, Chuo-ku, Tokyo
104-0033, Japan
Tel. 81-3-6280-0777 Fax. 81-3-6280-0779
tBUFFALO INC.
BUFFALO LEASE INC.
tEquipment
leasing services to communications
Company Name
BUFFALO INC.
Board Members
Founded
May 1, 1975
Chairman and CEO
Incorporated
August 5, 1978
President and COO
Kuniaki Saiki
Capital
320 million yen
Senior Managing Director
Hidetoshi Yamaguchi
Business activities
Development, manufacture, and sales of digital
Director
Tamio Matsuo
home electronics and computer peripherals
Director
Masanao Tsuzuki
Director
Hajime Nakai
Director
Takashi Ishidoshiro
Director
Kiwami Kurisawa
Corporate Auditor
Hiromichi Maki
Corporate Auditor
Nobumasa Kaneko
clerical personnel, mainly to Melco Group companies.
Corporate Auditor
Seishi Toyooka
Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya
460-8315, Japan
Tel. 81-50-5830-8866 Fax. 81-50-5830-8867
Number of employees 438
(as of September 30, 2011)
Makoto Maki
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Sendai Sales Office
BUFFALO TECHNOLOGY (USA), INC.
tManufacture
and sales of broadband-related devices and
computer peripherals
11100 Metric Boulevard, Suite 750 Austin, Texas 78758-4072,
U.S.A
Tel. 1-512-349-1500 Fax. 1-512-339-7272
<Europe>
BUFFALO EU B.V.
tEuropean
headquarters
Polarisavenue 85, 2132 JH Hoofddorp, The Netherlands
Tel. 31-23-554-6010 Fax. 31-23-554-6019
BUFFALO TECHNOLOGY UK LIMITED
tSales
of computer peripherals and broadband devices
2, Bracknell Beeches, Old Bracknell Lane, Bracknell, Berkshire
RG12 7BW, United Kingdom
Tel. 44-1344-381700（Rep.） Fax.44-1344-381710
MELCO PERSONNEL SUPPORT INC.
tTemp
staffing agency recruiting and dispatching teams of
Kayabacho Tower, 1-21-2, Shinkawa, Chuo-ku, Tokyo
104-0033, Japan
Tel. 81-3-3523-3368 Fax. 81-3-3523-3300
Fax. 81-6-6398-5755
Fax. 81-52-249-6601
Fax. 81-22-298-9470
Yaoji Center Bldg., 4-9-2 Hakataekimae, Hakata-ku, Fukuoka 812-0011, Japan
Tel. 81-92-477-3711
Sapporo Sales Office
<United States>
Fax. 81-3-3523-3300
Miyagino Center Bldg., 4-5-22 Tsutsujigaoka, Miyagino-ku, Sendai 983-0852, Japan.
Tel. 81-22-291-0311
Fukuoka Sales Office
1155. 11th Beijing New Century Hotel, No. 6 Southern Road,
Capital Gym, Haidian District, Beijing 100044, China
Tel. 86-10-6849-2981 Fax. 86-10-6849-2980
Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya 460-8315, Japan
Tel. 81-52-249-6600
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Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya
460-8315, Japan
Tel. 81-50-5830-8886 Fax. 81-50-5830-8887
MELCO (BEIJING) INC.
tSales
of computer peripherals and broadband devices
Sumitomo Seimei Shin-Osaka Kita Bldg., 4-1-14 Miyahara, Yodogawa-ku, Osaka 532-0003, Japan
Tel. 81-50-5533-1250
Nagoya Sales Office
Fax. 81-52-249-6609
Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo 104-0033, Japan
Tel. 81-3-3523-3333
Osaka Branch Office
BUFFALO DIRECT INC.
tOnline direct marketer of Melco Group products.
4F, No. 18, Lane 609, Sec. 5, Chung Hsin Rd., Sanchung City,
Taipei Hsien, Taiwan
Tel. 886-2-2999-9860 Fax. 886-2-2999-2264
communication services.
Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya 460-8315, Japan
Tel. 81-52-249-6610
Tokyo Branch Office
Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo
104-0033, Japan
Tel.81-3-3523-3354 Fax. 81-3-3523-3300
computer peripherals
LIBERTY SHIP INC.
tOnline
consumer-to-consumer and business-to-consumer
Locations
Headquarters
carriers, video broadcasters, etc..
BUFFALO TECHNOLOGY (TAIWAN) INC.
tManufacture
and sales of broadband-related devices and
Fax. 81-92-477-3755
San Keisei Bldg., 1-4-1 Kitaichijo Higasi, Chuo-ku, Sapporo 060-0031, Japan
Tel. 81-11-200-8150
Fax. 81-11-200-8151
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