Reportwatch

Daiwa House

Report rating (Rating scale below)

Profile-Mission(Excerpts, as from the report)

Strongest

• Four messages from the top: one statement from the Chairman to all “Stakeholders”, one from the CEO, one from the COO, and one from the CFO.
• A number of annuals feature a CFO statement or an endorsement that goes further than post-enronish Sox lip service. This one goes beyond: a standing CFO explains the links between the statements and the rationale behind year-on-year changes on numerous statements’ items. The same CFO concludes in his shirtsleeves (see Selected Page below) that he “will be completely committed to cash flow management and will aim to reach a 9% ROE.” Daring, not only by Japanese standards, but also compared with the fearful behavior now prevailing across the boards.
• Cleverly put: the Business Portfolio comparing sales and market growth rates; and the relations between statements.

Good Too

• A real thread in a document designed with style and laid out with a concern for readability. Strikes a good balance between visuals, texts, numbers, charts, tables, pictures.
• Charts and graphs put many figures in perspective, also for macroeconomic indicators.
• Future through Personal Pledges made as a portrayed message board.

Buts

• Although investor and shareholder information is not bad (see e.g. changes in foreign shareholdings over time, compared with other Japanese listed companies), it still lacks a number of indicators and comments.
• The MD&A doesn’t go deeply enough.
• Corporate governance spreads over less than two pages.
• Etc.

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item.
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