Belluna Co., Ltd. · TSE:9997
Belluna — FY2013 Earnings Presentation
38 slides from Belluna's earnings presentation, May 30, 2014
Slide 1: Corporate Presentation (Fiscal Year Ended March 31, 2014)
CORPORATE PRESENTATION (Fiscal Year Ended March 31, 2014) ▲ ▲ BELLUNA - Main catalog Gift catalog Mail order service for nurses a clothing store for BELLUNA Best Thanks - example of infirmière middle-aged women products Friday, May 30, 2014
Slide 2: Contents
Contents 1. Financial Highlights P.2 3. Special Feature: Reorganization P.22 1. Financial Summary 1. Acquisition of infirmière 2. Consolidated Income Statement 2. Acquisition of Best Thanks 3. Consolidated Balance Sheet 3. Assignment of Bell-Net Credit 4. Consolidated Statement of Cash Flows 5. Plan
Slide 3: 1. Financial Highlights
1. Financial Highlights 1. Financial Summary 2. Consolidated Income Statement 3. Consolidated Balance Sheet 4. Consolidated Statement of Cash Flows 2
Slide 4: 1-1. Financial Summary
1-1. Financial Summary (Unit: Billion Yen) FY2013 FY2014 Consolidated FY2012 Plan *1 Actual vs. Plan YoY Change Plan YoY Change Net Sales 117.88 130.00 125.41 -3.5% +6.4% 128.00 +2.1% Gross Profit 65.72 71.91 68.74 -4.4% +4.6% 71.69 +4.3% Selling, General & Administrative Expenses 58.64 62.41 60.94
Slide 5: 1-2. Consolidated Income Statement
1-2. Consolidated Income Statement (Unit: Billion Yen) FY2012 FY2013 FY2014 Consolidated Actual Ratio Actual Ratio Plan Ratio Net Sales 117.88 100.0% 125.41 100.0% 128.00 100.0% Cost of Sales 52.17 44.2% 56.67 45.2% 56.31 44.0% Selling, General & Administrative Expenses 58.64 49.7% 60.94 48.6% 63.29
Slide 6: 1-2. Consolidated Income Statement: Sales and Operating Income by Segment
1-2. Consolidated Income Statement Consolidated Sales and Operating Income by Segment (Unit: Billion Yen) FY2013 (Actual) YoY YoY Op. Income YoY Net Sales Op. Income*1 Change Change Ratio Change General Mail Order 75.39 -3.4% 1.58 -39.3% 2.1% -1.2 P Specialty Mail Order 27.27 +15.8% 1.54 -17.4% 5.7%
Slide 7: 1-2. Primary Factors for Change of Operating Income
1-2. Consolidated Income Statement Primary Factors for Change of Operating Income*1 ■ Property Business +1.14 bil yen (Unit: Billion Yen) General Mail Order - Gain on sales of real estate for sale +0.86 bil yen Specialty Mail Order 10.0 Retail Store Sales - Gain on rent revenue +0.18 bil yen Solutio
Slide 8: 1-3. Consolidated Balance Sheet
1-3. Consolidated Balance Sheet (Unit: Billion Yen) FY2012 FY2013 Change Current Assets 65.09 66.67 1.58 Cash and deposits 14.83 16.40 1.57 Merchandise and finished goods 12.75 14.33 1.57 Real estate for sale/in process 3.92 1.46 -2.45 Fixed Assets 49.99 63.98 13.99 Tangible fixed assets 35.23 42.75
Slide 9: 1-4. Consolidated Statement of Cash Flows
1-4. Consolidated Statement of Cash Flows (Unit: Billion Yen) FY2012 FY2013 Actual Actual YoY Change Cash flows from operating activities 7.28 5.77 -1.51 Decrease (Increase) in real estate for sale -0.61 2.45 3.06 Increase (decrease) in notes and accounts payable 2.02 -1.78 -3.80 Cash flows from inv
Slide 10: 1-5. Plan for FY2014: Divergence from the Short-Term Plan
1-5. Plan for FY2014 Divergence from the Short-Term Plan (Unit: Billion Yen) FY2012 FY2013 FY2014 FY2015 Consolidated Short-Term Short-Term Short-Term Actual Actual Plan Plan *1 Plan *1 Plan *1 Net Sales 117.88 130.00 125.41 140.00 128.00 160.00 (Net Sales of General Mail Order Business) 78.01 81.70
Slide 11: 2. Results by Segment
2. Results by Segment 1. General Mail Order 2. Specialty Mail Order 3. Retail Store Sales 4. Solution 5. Finance 6. Property 7. Other 10
Slide 12: 2-1. Results by Segment: General Mail Order
2-1. Results by Segment: General Mail Order Consolidated Net Sales 125.41 bil yen [General Mail Order Business] Results and Summary (FY2013) 60.1% (■ Catalog / ■EC Sales: Billion Yen) (■Operating Income: Billion Yen) 100.0 10.0 FY2013 YoY (Actual) Change 78.01 80.0 74.25 75.39 8.0 Active members 4.4
Slide 13: 2-1. Results by Segment: General Mail Order
2-1. Results by Segment: General Mail Order Trends of net sales to middle-aged women and young women (Unit: Billion Yen) EC Sales FY2013 YoY 80.0 ■連動型 ■完結型 Ratio (Actual) Change ■Middle-aged women ■Young women 57.84 60.03 60.45 58.50 60.0 155.0 Total 20.0% -0.2 P 153.5 40.0 127.5 (Middle-aged women)
Slide 14: 2-2. Results by Segment: Specialty Mail Order
2-2. Results by Segment: Specialty Mail Order Consolidated Net Sales 125.41 bil yen [Specialty Mail Order Business] Results and Summary 21.7% (FY2013) (■Net Sales: Billion Yen) (■Operating Income: Billion Yen) 40.0 35.98 8.0 30.0 27.27 6.0 22.33 23.54 20.0 4.0 10.0 2.0 1.82 1.87 2.18 1.54 (1) Food,
Slide 15: 2-2. Results by Segment: Specialty Mail Order
2-2. Results by Segment: Specialty Mail Order Gourmet Products Ozio (Unit: Billion Yen) (■ Net Sales) (■ Op. Income) (■ Net Sales) (■ Op. Income) * Above: Wine, 16.0 2.0 Below: Gourmet Products and Flowers 8.0 4.0 11.62 11.28 11.76 6.15 12.0 11.09 1.5 5.48 5.62 6.0 5.11 3.0 3.08 3.27 3.44 3.65 8.0 1
Slide 16: 2-3. Results by Segment: Retail Store Sales
4.9% 2-3. Results by Segment: Retail Store Sales Consolidated Net Sales 125.41 bil yen [Retail Store Sales] Results and Summary (FY2013) (■ Net Sales: Billion Yen) (■Operating Income: Billion Yen) 10.0 8.37 2.0 8.0 6.12 1.5 6.0 5.00 3.95 1.0 4.0 2.0 0.5 0.34 0.32 0.25 0.39 0.0 0.0 FY2011 FY2012 FY20
Slide 17: 2-3. Results by Segment: Retail Store Sales
2-3. Results by Segment: Retail Store Sales (i) Stores selling kimono and Japanese- (ii) Apparel stores style goods (Unit: Billion Yen) (■Net Sales) (■Op. Income) (■Net Sales) (■Op. Income) 6.0 5.77 2.0 4.0 2.0 4.90 5.0 4.50 3.86 1.5 3.0 2.60 1.5 4.0 3.0 1.0 2.0 1.0 1.22 2.0 0.5 1.0 0.50 0.5 1.0 0.6
Slide 18: 2-3. Results by Segment: Solution
3.7% 2-3. Results by Segment: Solution Consolidated Net Sales 125.41 bil yen [Solution Business] Results and Summary (FY2013) (■Net Sales: Billion Yen) (■Operating Income: Billion Yen) 6.0 6.0 5.0 4.64 4.73 5.0 3.99 3.84 4.0 4.0 Wrapping and Mailing Direct Marketing Service Outsourcing 3.0 3.0 Sendi
Slide 19: 2-4. Results by Segment: Finance
3.1% 2-4. Results by Segment: Finance Consolidated Net Sales 125.41 bil yen [Finance Business] Results and Summary (FY2013) (■Net Sales: Billion Yen) (■Operating Income: Billion Yen) <<Balance of trade loans>> 5.0 5.0 30.0 Loan to Bell-Net Credit Bell-Net Credit 3.88 Corporate Business Dept. 4.0 4.0
Slide 20: 2-4. Results by Segment: Finance
2-4. Results by Segment: Finance <<Trend in the balance of trade loans by sub-segment>> (i) Consumer Business Dept. (Unit: Billion Yen) (■Net Sales) (■Op. Income) 20.0 3.0 3.0 Consumer Business Dept. Corporate Business Dept. 15.03 2.35 15.0 Bell-Net Credit 13.08 2.07 Loan to Bell-Net Credit 2.0 2.0
Slide 21: 2-5. Results by Segment: Property
4.4% 2-5. Results by Segment: Property Consolidated Net Sales 125.41 bil yen [Property Business] Results and Summary (FY2013) (■Net Sales: Billion Yen) (■Operating Income: Billion Yen) 8.0 4.0 6.0 5.55 3.0 4.0 3.18 2.0 1.69 2.0 1.0 1.66 0.65 0.25 0.52 0.91 0.0 0.0 FY2011 FY2012 FY2013 FY2014 (Plan)
Slide 22: 2-6. Results by Segment: Other
2.4% 2-6. Results by Segment: Other Consolidated Net Sales 125.41 bil yen [Other Business] Results and Summary (FY2013) (■Net Sales: Billion Yen) (■Operating Income: Billion Yen) 4.0 2.0 3.52 3.11 3.01 3.0 2.80 1.5 2.0 1.0 1.0 0.5 0.16 0.02 0.04 0.0 0.0 -0.24 FY2011 FY2012 FY2013 FY2014 (Plan) (1.0)
Slide 23: 3. Special Feature: Reorganization
3. Special Feature: Reorganization 1. Acquisition of infirmière 2. Acquisition of Best Thanks 3. Assignment of Bell-Net Credit 22
Slide 24: 3-1. Acquisition of infirmière
3-1. Acquisition of infirmière Aim of Acquisition of infirmière 1. infirmière holds the largest share in the BtoC mail order business for nurses. Upon its acquisition, an overwhelming share of the industry will be secured, together with Nursery. - Realization of Japan's Top Mail Order Service for Nu
Slide 25: 3-2. Acquisition of Best Thanks
3-2. Acquisition of Best Thanks Aim of Acquisition of Best Thanks 1. Expansion of business domains (baby business, maternity business, gift business) 2. Horizontal expansion into other businesses of BELLUNA Group Acquisition cost 1.82 billion yen Gift catalog Baby catalog Maternity catalog Best Than
Slide 26: 3-3. Assignment of Bell-Net Credit
3-3. Assignment of Bell-Net Credit Reasons for Assignment of Bell-Net Credit 1. Worsened circumstances surrounding the money- <Trends of maximum loan interest rate in South Korea> lending business in South Korea - Decrease in maximum loan interest rate 40.0% 39% - Continuing high loan-loss rate 34.9
Slide 27: 4. The 2nd Short-Term Business Plan
4. The 2nd Short-Term Business Plan 1. Change in Business Circumstances and New Issues 2. Management Policies 3. Initiatives Based on Management Policies 26
Slide 28: 4-1. Change in Business Circumstances and New Issues
4-1. Change in Business Circumstances and New Issues Trend in the mail order market (Unit: Billion Yen) 6,000.0 Mail order market (The Japan Direct Marketing Association) Retail market(Ministry of Economy, Trade and Industry) 135,000.0 5,410.0 5,000.0 5,090.0 130,000.0 4,670.0 4,000.0 4,310.0 125,00
Slide 29: 4-2. Management Policies
4-2. Management Policies A general mail order trading firm in a developed form of business operations based on the database EC Specialty General mail order mail order Database Outsourcing Fund services Human Managerial Finance resources resources Infor- Domestic mation BtoC Know- Infra- how structur
Slide 30: 4-2. Management Policies: Maturing of a General Merchant Company
4-2. Management Policies Management Policies Maturing of a General Merchant Company 1. Strengthen portfolio management 2. Promote the growth of new businesses 3. Maintain the mail order infrastructure 4. Review shareholder returns 29
Slide 31: 4-3. Initiatives: Strengthen Portfolio Management
4-3. Initiatives Based on Management Policies Policy 1: Strengthen portfolio management ■ General Mail Order business: Establishment of foundation for new growth - 10% increase in the amount purchased per order. - Abolition/reduction of unprofitable media, decrease in products to be published in med
Slide 32: 4-3. Initiatives: Promote the Growth of New Businesses
4-3. Initiatives Based on Management Policies Policy 2: Promote the growth of new businesses (i) Expand the Retail Store Sales business - Apparel: 24 stores to be launched and one to be withdrawn during this fiscal year 17 stores at the end of March 2014 40 stores at the end of March 2015 - Kimono
Slide 33: 4-3. Initiatives: Maintain the Mail Order Infrastructure
4-3. Initiatives Based on Management Policies Policy 3: Maintain the mail order infrastructure The Yoshimi Distribution Center will be established (after a total investment of approximately 13 billion yen). - Its full operation will commence in August 2014. ~ Construction is progressing as scheduled
Slide 34: 4-3. Initiatives: Review Shareholder Returns
4-3. Initiatives Based on Management Policies Policy 4: Review shareholder returns Revision to dividends Increase our annual dividend for FY2013 by 5 yen per share (FY2012) 7.5 yen per year (FY2013) 12.5 yen per share 15 Annual dividend per share ■Interim dividend 12.5 12.5 As of October 1, 2013 1
Slide 35: Summary
<<Summary>> For the current fiscal year, Belluna will establish the foundation for a new leap in the general mail order business and aim to achieve the target for operating income under the 2nd Short-Term Business Plan ahead of schedule by maximizing the use of managerial resources. 34
Slide 36: 5. Appendix
5. Appendix 1. [General Mail Order] Trends of Active Members 2. [General Mail Order] Characteristics of Registered Members 35
Slide 37: 5-1. [General Mail Order] Trends of Active Members
5-1. [General Mail Order] Trends of Active Members Trends of Active Members (Unit: ten thousand people) New + From non-active Former 433 438 443 459 448 419 419 396 426 369 391 348 Active Members FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 (Plan) 36
Slide 38: 5-2. [General Mail Order] Characteristics of Registered Members
5-2. [General Mail Order] Characteristics of Registered Members Characteristics of Registered Members (as of September 30, 2013) <Number of registered members> 15,407,000 people (up +5.8% YoY) <Comparison with Japanese Population (females only)> <Gender> Unknown (Unit: thousand people) 1.7% Over 85