Edion Corporation · TSE:2730
Edion — Q2 FY03/21 Earnings Presentation
22 slides from Edion's earnings presentation, Nov 12, 2020
Slide 1: EDION Corporation Analyst Meeting Q2 FY03/21
EDION Corporation Analyst Meeting Q2 FY03/21 November 12, 2020 © EDION Corporation
Slide 2: Greetings & Combating COVID-19
Greetings & Combating COVID-19 We respectfully offer our sympathies to all those affected by the spread of the novel coronavirus disease (COVID-19). Additionally, we would like to express our deepest sympathies to the victims of the torrential rains in July 2020 and wish for the earliest possible re
Slide 3: Q2 FY03/21 Net Sales
Results Q2 FY03/21 Net Sales ● In July, the rainy season continued until the end of the month, causing cooler temperatures that depressed air conditioner sales. On the other hand, same-store sales were 104.3% of FY03/20 due to the government furthering the dispensation of special cash payments and n
Slide 4: Consolidated Statements of Income
Results Consolidated Statements of Income Operating profit and ordinary profit were at Q2 record levels Q2 FY03/20 Q2 FY03/21 Million Yen, % % of Q2 % of Q2 Difference % of Sales Results % of Sales Results YoY Change FY03/19 FY03/20 vs. Plan Net Sales 100.0 396,736 112.6 100.0 382,629 96.4 -14,107 +
Slide 5: Net Sales at Edion-Owned Chains (POS Basis)
Results Net Sales at Edion-Owned Chains (POS Basis) Same-Store Sales for Edion-Owned Chains (% of Year-Earlier Level) 101.7% of Q1 FY03/20 88.9% of Q2 FY03/20 102.9% of Q1 FY03/20 (incl. e-commerce) 90.1% of Q2 FY03/20 (incl. e-commerce) 94.4％ of 1H FY03/20 95.6％ of 1H FY03/20 (incl. e-commerce) Apr
Slide 6: Net Sales by Product (POS Basis)
Results Net Sales by Product (POS Basis) POS Sales for Edion-Owned Chains (% of Year-Earlier Level) (%) 1H 1H (Reference) 1H 1H Product April May June July August September (Versus (Versus (Versus (Versus FY03/20) FY03/19) Recorded basis FY03/20) FY03/19) TVs 105.8 133.2 125.4 119.1 92.8 77.8 104.6
Slide 7: E-Commerce Earnings (Recorded)
Results E-Commerce Earnings (Recorded) Recorded Sales 1H FY03/20 1H FY03/21 1H FY03/21 % of Full-Year FY03/21 Versus Plan (Million Yen) Actual Plan Actual 1H FY03/20 Plan Edion Net Shop 6,350 8,220 9,819 154.6% 119.5% 18,000 • Sales expanded dramatically as Edion Net Shop users increased due to the
Slide 8: Factors Affecting Sales by Product (Recorded)
Results Factors Affecting Sales by Product (Recorded) (Million Yen, %) Change versus % of % of Product Q2 FY03/19 Q2 FY03/20 Q2 FY03/21 YoY Change Q2 FY03/19 Q2 FY03/19 Q2 FY03/20 Audio-Visual 40,066 47,233 46,936 +6,870 -297 117.2% 99.4% Equipment Home Appliances 168,403 184,628 179,197 +10,794 -5,
Slide 9: Gross Profit Margin
Results Gross Profit Margin Gross Profit Margin by Quarter Sales Composition 1H FY03/20 1H FY03/21 Audio-Visual Equipment 11.9% 12.3% 1H 30.1% 1H 29.4% Home Appliances 13.9% 14.1% (Air Conditioners) Home Appliances (Other) 32.6% 32.7% Information Appliances 13.3% 14.5% (PCs, etc.) Information Applia
Slide 10: SG&A Expenses
Results SG&A Expenses 1H FY03/20 1H FY03/21 Million Yen % of Difference vs. % of Sales Results % of Sales Results YoY Change 1H FY03/20 Plan Total SG&A Expenses 26.7% 105,933 25.8% 98,639 93.1% -7,293 -3,860 Advertising Expenses and 8.7% 34,377 7.4% 28,400 82.6% -5,977 -473 Selling Expenses [Of whic
Slide 11: Consolidated Balance Sheet (Assets)
Results Consolidated Balance Sheet (Assets) Million Yen Sept. 30, 2019 March 31, 2020 Sept. 30, 2020 Vs End-FY03/20 YoY Change Current Assets 162,499 153,296 183,485 +30,189 +20,985 Cash and Cash Equivalents 11,866 15,974 42,842 +26,867 +30,976 Accounts Receivable – Trade 45,531 33,666 33,104 -562 -
Slide 12: Consolidated Balance Sheet (Liabilities & Net Assets)
Results Consolidated Balance Sheet (Liabilities & Net Assets) Million Yen Sept. 30, 2019 March 31, 2020 Sept. 30, 2020 Vs End-FY03/20 YoY Change Liabilities 190,241 169,623 188,265 +18,642 -1,975 Notes and Accounts Payable - Trade 41,200 34,434 44,273 +9,838 +3,072 Short-Term Borrowings 40 70 70 +0
Slide 13: Total Asset Turnover & Inventory Turnover
Results Total Asset Turnover & Inventory Turnover Total Asset Turnover Inventory Turnover Q2 FY03/17 Q2 FY03/18 Q2 FY03/19 Q2 FY03/20 Q2 FY03/21 Q2 FY03/17 Q2 FY03/18 Q2 FY03/19 Q2 FY03/20 Q2 FY03/21 • Total Asset Turnover: Maintained a level above 2.0 since FY03/20. • Inventory Turnover: Maintained
Slide 14: Overview of Store Openings
Results Overview of Store Openings Change in the Number of Stores (April 2020 through September 2020) Relocated/ March 2020 Newly Opened Closed Change Sept. 2020 Remodeled Home Electrical 396 5 1 0 +5 401 Appliance Stores Non-Home Electrical 37 0 0 -1 -1 36 Appliance Stores Total Edion-Owned 433 5 1
Slide 15: Key Initiatives for 2H
Plan Key Initiatives for 2H (1) Respond to New Lifestyles • Increase in time spent at home: Respond to increased demand for TVs, games, entertainment, cooking appliances, and other products • Consumer attention to safety and security: Respond to demand for antivirus products and products such as air
Slide 16: Home Electronics Initiatives in 2H
Plan Home Electronics Initiatives in 2H Aiming to Capture Replacement Demand Centered on TVs • TVs have a replacement cycle of roughly nine to 11 years. Ten years have passed since the discontinuation of analog broadcasting. We aim to strengthen sales through proposals for large-screen TVs, which ar
Slide 17: ELS Initiatives in 2H
Plan ELS Initiatives in 2H 2H Market Background • Inquiries for large projects are on the rise, including for work on bathrooms, kitchens, and exterior wall painting services. • With the increase in time spent at home, there is strong demand for products conducive to a comfortable living environment
Slide 18: 2H Consolidated Statements of Income (YoY Comparison)
Plan 2H Consolidated Statements of Income (YoY Comparison) Million Yen, % 2H FY03/20 Results 2H FY03/21 Plan Change Notes We do not anticipate a reactionary decline in demand due to special cash payments dispensed by the government in Net Sales 336,839 377,370 40,531 1H. The plan targets same store
Slide 19: Consolidated Statements of Income (FY03/21 Plan)
Plan Consolidated Statements of Income (FY03/21 Plan) FY03/20 FY03/21 Million Yen, % % of Sales Results % of FY03/19 % of Sales Plan % of FY03/20 Net Sales 100.0% 733,575 102.1% 100.0% 760,000 103.6% Gross Profit 28.7% 210,605 100.4% 28.9% 219,488 104.2% SG&A Expenses 27.0% 198,321 103.3% 25.9% 196,
Slide 20: Revised Profit Levels, ROE, Dividends
Plan Revised Profit Levels, ROE, Dividends (100 Million Yen) (%) Ordinary profit Net income ROE ROIC ROE forecast Previous: 4.1 Revised: 7.0 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 (forecast) *Excludes the impact of deferred tax assets: FY03/17 +5.8 billion yen *Formulae: ROE = Net income ÷ Average
Slide 21: FY03/21 Store Openings (Plan)
Plan FY03/21 Store Openings (Plan) Six Stores in 1H (Actual) Apr. JR Ashiya Station Store (Hyogo Prefecture) Toyota Shigo Store (Aichi Prefecture) Furniture Dome Okazaki Daijuji Store (Aichi Prefecture) June Sea Mall Shimonoseki Store (relocated; Yamaguchi Prefecture) Sept. Ibaraki Fujinosato Store
Slide 22: ESG Management
ESG ESG Management We have published our integrated report for FY03/20 https://www.edion.co.jp/en/ir/library/integration The purpose of the integrated report is to provide all stakeholders with easy-to-understand information on not only the financial aspects of the Edion Group’s corporate activities