Okuwa Co., Ltd. · TSE:8217

Okuwa — FY2024 Earnings Presentation

48 slides from Okuwa's earnings presentation, Apr 2, 2025

  1. Slide 1: Financial Results Presentation Material

    Fiscal year ended February 20, 2025 Financial Results Presentation Material OKUWA Co., Ltd. (8217) April 2, 2025 Copyright © OKUWA Co., Ltd. All Rights Reserved. -1-

  2. Slide 2: Consolidated Sales Results

    Consolidated Sales Results (Million yen, %) Fiscal year Fiscal year Comparison ended ended Year-on-year Forecast* against February 20, February 20, change forecast 2024 2025 Operating income 247,378 250,150 254,000 101.1 98.5 Operating profit 2,888 1,328 2,450 46.0 54.2 Ordinary profit 3,098 1,442 2

  3. Slide 3: Consolidated Operating Income by Company

    Consolidated Operating Income by Company (Million yen, %) Fiscal year ended Fiscal year ended Year-on-year February 20, 2024 February 20, 2025 change OKUWA 245,933 248,636 101.1 OAK FOODS 1,305 1,370 105.0 Retail Backoffice Support 287 308 107.4 SUNRISE 5,120 5,403 105.5 Consolidation adjustment (5,

  4. Slide 4: Consolidated Ordinary Profit by Company

    Consolidated Ordinary Profit by Company (Million yen, %) Fiscal year ended Fiscal year ended Year-on-year February 20, 2024 February 20, 2025 change OKUWA 2,990 1,341 44.9 OAK FOODS 76 87 114.4 Retail Backoffice Support 45 41 90.3 SUNRISE 67 40 59.8 Consolidation adjustment (98) (42) － Share of loss

  5. Slide 5: Consolidated Management Indicators

    Consolidated Management Indicators Fiscal year ended Fiscal year ended Fiscal year ended February 20, 2023 February 20, 2024 February 20, 2025 Operating profit/Operating income (%) 1.19 1.17 0.53 Ordinary profit/Operating income (%) 1.28 1.25 0.58 Return on equity (ROE, %) 1.19 1.28 (3.12) Return on

  6. Slide 6: Consolidated Cash Flows

    Consolidated Cash Flows (Million yen) Fiscal year ended Fiscal year ended Year-on-year February 20, 2024 February 20, 2025 change Cash and cash equivalents at beginning of period 15,386 16,182 +796 Operating CF 9,692 6,596 (3,096) Investing CF (7,942) (8,741) (799) Financing CF (954) (2,885) (1,931)

  7. Slide 7: Non-consolidated Sales Results

    Non-consolidated Sales Results Comparison (Million yen, %) Fiscal year ended Fiscal year ended Year-on-year Forecast* against February 20, 2024 February 20, 2025 change forecast Operating income 245,933 248,636 252,600 101.1 98.4 Net sales from direct operation 239,439 241,913 － 101.0 － Gross profit

  8. Slide 8: Non-consolidated Net Sales from Existing Stores

    Non-consolidated Net Sales from Existing Stores Year-on-year change for Number of Average sales Number of existing stores (%) Net sales customers per customer Unit price products per product purchased 1H 100.2 99.7 100.6 98.4 102.2 2H 100.4 99.3 101.1 99.1 102.1 Full year 100.3 99.5 100.8 98.7 102.2

  9. Slide 9: Non-consolidated Net Sales by Region

    Non-consolidated Net Sales by Region (Million yen, %) Year-on-year Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2024 February 20, 2025 change existing stores Wakayama 76,383 76,855 100.6 100.6 Nara 47,072 47,373 100.6 98.3 Osaka 35,236 35,575 101.0 99.6 Hyogo 619 588 95.0

  10. Slide 10: Non-consolidated Net Sales by Business Type

    Non-consolidated Net Sales by Business Type (Million yen, %) Year-on-year Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2024 February 20, 2025 change existing stores SC 9,746 9,772 100.3 100.3 SSM 113,286 115,071 100.7 100.1 SM 8,703 8,745 100.5 100.5 Regular 131,737 133,5

  11. Slide 11: Non-consolidated Net Sales by Department

    Non-consolidated Net Sales by Department (Million yen, %) Year-on-year Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2024 February 20, 2025 change existing stores Fresh foods 101,813 102,945 101.1 100.3 Processed foods 103,871 105,026 101.1 100.5 Foods 205,685 207,972 101.

  12. Slide 12: Non-consolidated Gross Profit Margin by Department

    Non-consolidated Gross Profit Margin by Department (Million yen, %) Fiscal year ended Fiscal year ended Year-on-year February 20, 2024 February 20, 2025 change Fresh foods 32.1 31.5 (0.6) Processed foods 23.3 23.0 (0.3) Foods 27.7 27.2 (0.4) Household supplies 28.4 28.2 (0.2) Clothing 35.1 35.6 +0.5

  13. Slide 13: Non-consolidated SG&A Expenses

    Non-consolidated SG&A Expenses (Million yen, %) Ratio to net sales Fiscal year ended Fiscal year ended Year-on-year Ratio to net (fiscal year ended February 20, 2024 February 20, 2025 change sales February 20, 2024) Net sales 233,694 236,132 +2,437 100.0 100.0 Selling expenses 2,087 1,976 (110) 0.8

  14. Slide 14: Non-consolidated Capital Expenditures

    Non-consolidated Capital Expenditures (Million yen, %) Fiscal year ended Fiscal year ended Year-on-year (Plan) February 20, February 20, Fiscal year ending change 2024 2025 February 20, 2026 New stores 1,846 5,083 275.3 2,600 Existing stores, etc. 4,026 3,359 83.4 2,150 Systems 1,210 1,271 105.1 950

  15. Slide 15: Non-consolidated Store Distribution

    Non-consolidated Store Distribution (As of Feb. 20, 2025) Total by region Wakayama 31 7 8 3 49 Nara 22 5 5 1 33 Osaka 18 2 1 － 21 Hyogo － － 1 － 1 (Kinki area) 71 14 15 4 104 Mie 14 3 5 － 22 Gifu 4 (PM: 1) 10 － － 14 Aichi 8 (PM: 3) 2 － 2 (PM: 2) 12 Shizuoka 1 (PM: 1) 1 － － 2 (Tokai area) 27 16 5 2 50

  16. Slide 16: Impairment Losses

    Impairment Losses Amount Amount Place Type (Million yen) (Million yen) Wakayama 2,117 Buildings and structures 2,394 Gifu 589 Land 923 Osaka 522 Leasehold interests in land 382 Other 689 Other 218 Total 3,918 Total 3,918 In addition to reducing the book value of operating stores with declining profi

  17. Slide 17: Capital Policy and Financial Strategy

    Capital Policy and Financial Strategy Acquisition of treasury shares The number of shares acquired: 2,168,000 shares (From April 3 to December 12, 2024) Total acquisition cost of shares: 1,999,964,200 yen Total number of shares retired: 3,300,000 shares (Date of retirement: February 14, 2025) Target

  18. Slide 18: Store Strategy (1)

    Store Strategy (1) New store openings: 3 stores (2 stores in Kinki area and 1 store in Tokai area) July 4 Super Center Chita Store (Aichi) ➢ Opened the first Super Center in 4 years ➢ The 30th Super Center type store July 26 Nishiyamato Store (Nara) ➢ Opened a store in Nara for the first time in 9 y

  19. Slide 19: Store Strategy (2)

    Store Strategy (2) Dedicated stores: 2 stores (1 store in Kinki area and 1 store in Tokai area) September 18 ANDDELICA Tanimachi Store (Chuo-ku, Osaka City) ➢ A store dedicated to delicatessen and bakery products December 1 Atsuta Komachi by Pare Marche (Atsuta-ku, Nagoya City) ➢ A store dedicated t

  20. Slide 20: Product Strategy

    Product Strategy OKUWA Brand Five years have passed since the brand launch. Composition ratio in foods: 12.9% (+0.8%) Fiscal 2024 Sales results: 26.5 billion yen Kurashi More The brand concept is Fiscal 2024 “Be next to customers all the time and in the future.” Sales results: 29.0 billion yen Compo

  21. Slide 21: Marketing Strategy

    Marketing Strategy (1) Analysis of customer clusters including ID-POS (2) Customer surveys (3) Employee surveys Clusters with large sales Products purchased by all clusters Clusters with many younger and middle generation people Environmental improvements for utilization progressed as planned. We as

  22. Slide 22: Promotion of IT Strategy (DX)

    Promotion of IT Strategy (DX) To reduce working hours We assigned staff to cash registers using AI and reduced total working hours for cash registers to 96.6% year on year. Total working hours (at existing stores) was 98.9% year on year. Copyright © OKUWA Co., Ltd. All Rights Reserved. -22-

  23. Slide 23: Maximization of the Value of Human Capital

    Maximization of the Value of Human Capital Fiscal 2024 Development of vision and strategy Human resources vision A company where every employee can fulfill their aspirations through work and fully demonstrate (Reference) Fiscal 2023 their abilities Establishment of a dedicated department Personnel s

  24. Slide 24: Sustainability Management

    Sustainability Management Food Drive Activities The activities started in June 2024 and were implemented at 16 stores in the first year. (8 stores in Wakayama, 4 stores in Nara, and 4 stores in Osaka) CDP’s Climate Change Assessment As in the previous year, we responded to the questionnaire from CDP

  25. Slide 25: Summary of Financial Results

    Summary of Financial Results Sales indicators for existing stores (Plan) *Image of achievement Number of customers Net sales from Unit price per 101.0% product existing stores 103.0% Average sales per 102.0% customer Number of products 102.0% purchased (Results) 100.0% Number of customers Net sales

  26. Slide 26: Gross Profit Amount Composition Ratio (By Business Type)

    Gross Profit Amount Composition Ratio (Existing Stores: By Business Type) (Sales) (Million yen) レギュラー (Gross Profit Amount) スーパーセンター プライスカット メッサ Regular and Super Center types account for the majority of the gross profit amount. Copyright © OKUWA Co., Ltd. All Rights Reserved. -26-

  27. Slide 27: Gross Profit Amount Composition Ratio (By Department)

    Gross Profit Amount Composition Ratio (Existing Stores: By Department) (Sales) Agricultural (Million yen) product Agricultural product Others Livestock (Gross profit amount) product Livestock product Marine product Marine product Delicatessen food Daily food General food Delicatessen food General fo

  28. Slide 28: By Business Type and Department (1)

    By Business Type and Department (1) Regular type (Existing stores) -0.6% (Results) *Image of achievement Number of vs. plan customers Net sales from 99.4% Unit price per existing stores -1.3% product vs. plan 102.2% 100.2% Average sales per -1.4% customer Number of products vs. plan 100.7% purchased

  29. Slide 29: By Business Type and Department (2)

    By Business Type and Department (2) Super Center type (Existing stores) (Results) *Image of achievement -2.5% Number of vs. plan customers Net sales from Unit price 99.5% per product existing stores -1.1% 100.4% Average sales per vs. plan 102.0% -1.1% customer Number of products vs. plan 100.9% purc

  30. Slide 30: By Business Type and Department (3)

    By Business Type and Department (3) By department (Existing stores) (1) Livestock product department Due to higher raw material costs, we reviewed our selling prices. As a result, we were unable to secure a competitive edge in price competition with our competitors, resulting in sluggish sales. Alth

  31. Slide 31: By Business Type and Department (4)

    By Business Type and Department (4) By department (Existing stores) (3) Delicatessen food department Sales increased thanks to the strengthening of branding and the steady expansion of sales of factory products. As a result, sales remained above the year-on-year level. (4) Daily food department Gros

  32. Slide 32: Management Policy for Fiscal Year Ending February 20, 2026

    Management Policy for Fiscal Year Ending February 20, 2026 Copyright © OKUWA Co., Ltd. All Rights Reserved. -32-

  33. Slide 33: Medium-Term Management Plan and Acquisition of Treasury Shares

    Medium-Term Management Plan and Acquisition of Treasury Shares Medium-Term Management Plan As already announced, we have determined that it will be difficult to achieve the numerical operating targets of the Medium-Term Management Plan announced last March in the fiscal year ending February 20, 2027

  34. Slide 34: Sales-related Indicators

    Sales-related Indicators Sales indicators for existing stores (Plan for the fiscal year ending February 20, 2026) *Image of achievement Number of customers Net sales from Unit price per 100.0% product existing stores 101.8% Average sales per 102.8% customer Number of products 101.8% purchased 99.0%

  35. Slide 35: Development of Fixed Customers (1): New OKUWA app

    Development of Fixed Customers and Improvement of Return Visit Rate (1) New OKUWA app • The number of registered members to the app is 242 thousand (as of February 20), exceeding the plan. • The number of new members is approximately 300% year on year. • We aim for 100 thousand new members for the f

  36. Slide 36: Development of Fixed Customers (2): Child Care Club

    Development of Fixed Customers and Improvement of Return Visit Rate (2) Child Care Club Aiming to acquire 30,000 members Target Parents or guardians who are members of the OKUWA app, with children under the age of 18 Member benefits (1) 5X O-CARD points on the third Saturday of every month and the f

  37. Slide 37: Development of Fixed Customers (3): Review of advertised items

    Development of Fixed Customers and Improvement of Return Visit Rate (3) Review of advertised items • Select flyer items based on marketing analysis • List items that attract customers with a focus on groceries 1.3% improvement in customer visits on Saturdays and Sundays *Results of Saturdays and Sun

  38. Slide 38: Store Strategy (1) (Regular Business Type)

    Store Strategy (1) (Regular Business Type) Reestablishment of the regular business type The measures for the new app and marketing strategies have been effective. As a result, sales-related indicators for 4Q were close to the target. Number of customers (Results of SSM type) Number of products (3Q)

  39. Slide 39: Store Strategy (2) (Super Center Type)

    Store Strategy (2) (Super Center Type) Reestablishment of the SuC type (Initiatives for the fiscal year ended February 20, 2025) Lower the gross profit margin for the agricultural product and daily food categories, and increase the number of customers by drawing attention to low prices Agricultural

  40. Slide 40: Store Strategy (3) (Price Cut Type and Small Stores)

    Store Strategy (3) (Price Cut Type and Small Stores) Reestablishment of the PRC type and small stores Average sales per customer: Improve from 100.5% in 1H to 101.5% in 2H Personnel expenses: (1Q) 102.7%, (2Q) 100.0%, (3Q) 99.1%, (4Q) 98.5% Aim to improve profitability by maintaining the same level

  41. Slide 41: Store Strategy (4) (Livestock and Marine Product Departments)

    Store Strategy (4) (Livestock and Marine Product Departments) (Livestock product department) • Progressive marketing strategies improved sales by 2.8% compared to 1H year on year, marking the highest improvement among all departments. There are many products that attract the clusters with the top sa

  42. Slide 42: Store Strategy (5) (Delicatessen Food and Daily Food Departments)

    Store Strategy (5) (Delicatessen Food and Daily Food Departments) (Delicatessen food department) • The department strategy functioned well, resulting in the average sales per customer remaining in line with expectations. It is becoming clear that there are potential customers in the clusters with th

  43. Slide 43: Store Strategy (6) (New Store Openings)

    Store Strategy (6) (New Store Openings) Date of opening Store name Prefecture Business type Scheduled in late June Toyoake Store Aichi SSM (2,218m2) Scheduled in 2H Sakai-Shi Ekimae Store Osaka SSM (1,475m2) (Toyoake Store) ➢The 13th store in Aichi ➢Commercial complex (Sakai-Shi Ekimae Store) ➢Opene

  44. Slide 44: Initiatives for Sustainable Management

    Initiatives for Sustainable Management Human capital management Logistics initiatives • Promotion of women in managerial positions FY2025: 5% (Reference) FY2030: 20% • Ratio of paid leave taken FY2025: 65% (Reference) FY2030: 100% • Ratio of eligible male employees taking childcare leave FY2025: 85%

  45. Slide 45: Consolidated Financial Results Forecast

    Consolidated Financial Results Forecast Fiscal year ended Fiscal year ending Growth rate Full year (Million yen) February 20, 2025 February 20, 2026 (%) Operating income 250,150 259,000 103.5 Operating profit 1,328 2,100 158.1 Ordinary profit 1,442 2,100 145.6 Profit* (2,381) 800 － *Profit represent

  46. Slide 46: Non-consolidated Financial Results Forecast

    Non-consolidated Financial Results Forecast Fiscal year ended Fiscal year ending Full year (Million yen) February 20, 2025 February 20, 2026 Growth (%) Operating income 248,636 258,000 103.8 Operating profit 1,197 2,000 167.0 Ordinary profit 1,341 2,000 149.1 Profit (2,411) 750 － Fiscal year ended F

  47. Slide 47: Financial results forecast (Details)

    Non-consolidated Financial Results Forecast Financial results forecast (Details) Operating income: 258.0 billion yen ・Net sales from existing stores: 101.8% year on year ・Net sales from direct operation: 103.6% year on year ・Two stores to newly open Ordinary profit: 2.0 billion yen ・Selling, general

  48. Slide 48: Surprise and excitement in everyday life

    Surprise and excitement in everyday life Copyright © OKUWA Co., Ltd. All Rights Reserved. -48-

OKUWA — FY2024 Earnings Presentation on 6ix