Village Vanguard Co., Ltd. · TSE:2769
Village Vanguard — Q2 FY05/11 Earnings Presentation
35 slides from Village Vanguard's earnings presentation, 2011
Slide 1: Q2 FY05/11 Results Presentation
表紙ＶＶ Q2 FY05/11 Results Presentation
Slide 2: Note
Note: Any current plans, forecasts, strategy projections, expressions of confidence and other statements made by us in these materials are premised on the information that was available at the moment of the initial publication and on models that depend on uncertain factors that could impact future e
Slide 3: P&L (Consolidated)
P&L (Consolidated) Income Statement FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est Q4 Est Sales 7,343 7,462 9,739 8,682 8,630 8,273 10,290 9,456 9,359 9,125 11,176 10,018 SG&A 2,270 2,723 2,798 2,831 2,799 2,879 3,069 3,117 3,120 3,265 3,488 3,514 Labor 995 1,094 1,150 1,
Slide 4: BS (Consolidated)
BS (Consolidated) Balance Sheet FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est Q4 Est Cash & Deposit 2,750 2,387 3,011 3,078 2,685 2,957 3,503 4,037 3,045 3,378 3,097 3,460 Inventories 11,340 13,711 13,881 14,131 15,003 15,928 15,315 15,466 16,182 17,044 17,084 17,031 Oth
Slide 5: CF (Consolidated)
CF (Consolidated) Cash Flow Statement FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est Q4 Est Operating Cash Flow -419 -533 -1,758 -735 -292 -146 298 1,647 -730 -347 -953 508 Change in Inventories -412 -2,783 -2,953 -3,203 -872 -1,796 -1,183 -1,335 -644 -1,506 -1,517 -1,464
Slide 6: Parent Company Village Vanguard Corporation
Parent Company Village Vanguard Corporation © Village Vanguard corporation, All rights reserved. P.6
Slide 7: What We Do
What We Do ■Village Vanguard ■Diner Our concept is “A bookstore where you can play.” By bringing together various An old-school hamburger shop products such as books, variety goods, and CDs, our stores have a unique feel. modeled after an American diner. ■new style ■QK ■Online For those who want to
Slide 8: Examples of Our Merchandising Approach (1)
Examples of Our Merchandising Approach (1) We offer merchandise by creating a unique retail space aimed at entertaining the customer Toy digital camera “mini digital camera” Camera-shaped and a USB memory shoulder bag stick Camera-shaped hand mirror Photo albums Scrap books Toy camera Masking tape “
Slide 9: Examples of Our Merchandising Approach (2)
Examples of Our Merchandising Approach (2) © Village Vanguard corporation, All rights reserved. P.9
Slide 10: Examples of Our Merchandising Approach (3)
Examples of Our Merchandising Approach (3) © Village Vanguard corporation, All rights reserved. P.10
Slide 11: How Do We Sell?
How Do We Sell? We delegate both purchasing and sales decisions to the store level Marketing - Pursue customer needs in each store Store manager has Purchasing absolute discretion - Reflect customer needs directly - Unique challenge to discover new needs Proposition - POP, zone creations, and displa
Slide 12: Hiring Strategy
Hiring Strategy Full Time Customer Temp Staff Employee ■ Hiring people who really understand the company ■ Even temporary staff are allowed to make purchasing decisions ■ Long-term practical on-the-job training © Village Vanguard corporation, All rights reserved. P.12
Slide 13: Store Openings (Parent)
Store Openings (Parent) * Figures in parentheses indicate the number of FC stores. 347 stores nationwide 323 * Figures that show an increase over Tohoku Hokkaido Directly Managed (DM) Q1 are in red. DM 22 DM 15 278 VV format FC 2 Aomori 28 new style format Breakdown 5 7 QK format Hokkaido Akita 10 D
Slide 14: Parent Income Statement
Parent Income Statement Estimated values for Q3 and Q4 FY05/11 reflect the revised budget. Income Statement FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Sales 7,096 7,144 9,438 8,397 8,271 7,827 9,888 9,008 8,783 8,402 10,664 9,501 Gross Profit 2,821 2,880 3,73
Slide 15: Comparable Store Sales (Village Vanguard Stores)
Comparable Store Sales (Village Vanguard Stores) 6.0% 4.8% 4.0% 2.5% 2.0% 0.5% 0.6% 0.0% -0.5% -2.0% -1.0% -1.3% -2.7% -4.0% -3.2% -3.4% -4.2% -4.0% -3.9% -4.7% -6.0% -6.1% -6.3% -8.0% -7.0% Comparable-Store (FY05/10) -7.6% Comparable-Store (FY05/11) -10.0% -9.8% -12.0% Oct-09 Dec-09 Oct-10 Dec-10 J
Slide 16: Comparable Store Sales (All Parent Formats)
Comparable Store Sales (All Parent Formats) Sales by Format FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total 6,442 12,483 20,268 27,134 6,734 13,353 22,497 30,695 8,333 16,240 Comp Stores YoY 3.9% 2.5% 1.5% 0.2% -5.7% -6.5% -5.6% -4.9% -0.4% 0.2% Village Vanguard 5,964
Slide 17: Sales by Category
Sales by Category Sales by Category FY05/09 FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SPICE (Parent) 5,109 5,243 7,102 6,310 6,193 5,926 7,785 6,904 6,780 6,461 Books (Parent) 1,038 1,041 1,171 1,087 1,045 997 1,147 1,117 1,023 1,039 NM (Parent) 810 723 997 801 844 664 771 76
Slide 18: Comparable Store Sales (by Store Age)
Comparable Store Sales (by Store Age) Year In Operation 6th and Older 5th 4th 3rd 2nd 1st (Directly Managed Stores) Number of Stores * 130 42 25 50 41 35 YoY Sales (%) -2.8% 1.0% -0.1% 1.9% 6.0% - *excluding online and closed stores © Village Vanguard corporation, All rights reserved. P.18
Slide 19: OP Analysis – 1H
OP Analysis – 1H Increase in OP from new stores (less than 13 Decline in OP due to decreased non-store GP months since opening) -93 million yen 172 million yen Main reasons: 1,500 GP Impact from Other Sales (sales to FCs, subs) -14 million yen 1,400 -93 172 1,300 40 -150 1,200 1,100 Total decline in
Slide 20: Store Openings (Incl. Titicaca Subsidiary)
Store Openings (Incl. Titicaca Subsidiary) New Openings & Closures FY05/09Act FY05/10Act FY05/11Act FY05/11Est FY05/11Est Full-Year Full-Year 1H 2H Full-Year Openings Village Vanguard 42 30 16 17 33 new style 8 1 2 4 6 QK 5 0 0 0 0 Diner 4 1 0 0 0 FC 0 2 0 0 0 Titicaca 12 16 5 9 14 Total New Opening
Slide 21: Theme 1: Dedicated Area Managers
Theme 1 Sales Improvement from the Introduction of Dedicated Area Managers Dedicated area managers were introduced in Comp. Store Sales YoY by Area Managers Dedicated area managers introduced in March 2010 March 2010. YoY ** * Playing managers were in charge before March 2010 30 106.0% People 1 2 2
Slide 22: Theme 2: Splitting the Internal Sourcing Team
Theme 2 Expanding merchandise variation by splitting the internal sourcing team into two competing units Despite an increase in the number of suppliers …this hasn’t led to sales growth at the stores. shipping merchandise and a higher share of shipments of new products… Comp. YoY of sales and purchas
Slide 23: Theme 3: Impact of Organizational Changes
Theme 3 Impact of organizational changes (Themes 1 & 2) in FY05/11 Costs were included in FY05/11 budget but any positive effects were not Theme 1 Theme 2 Dedicated area managers Two HQ sourcing teams Impact to FY05/11 Cost increase of 450 million yen Cost increase of 150 million yen (included in bu
Slide 24: Theme 4: Inventory Control
Theme 4 Inventory Control (Million Yen) FY05/09 FY05/09 FY05/09 FY05/10 FY05/10 FY05/10 FY05/10 FY05/11 FY05/11 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Cash Flows From Operations -565 -1,694 -669 -197 -173 380 1,756 -718 -523 ■Net Income Before Tax 1,116 2,276 3,149 821 1,320 2,498 3,256 502 1,015 ■Net Increase
Slide 25: Company Profile Titicaca
Company Profile Titicaca © Village Vanguard corporation, All rights reserved. P.25
Slide 26: Outside Titicaca Stores
Outside Titicaca Stores Lake Town Lalaport Shin Shibuya store store Misato store (Shibuya, Tokyo) (Koshigara , Saitama) (Misato, Saitama) Early days Now Started as a folk art shop, with signs and store fixtures Warm, natural store interior, Image of a Mexican resort hand-made by staff, in order emph
Slide 27: Outside of New Stores
Outside of New Stores New Store Design Hill’s Walk Tokushige Gardens With the aim of creating colorful, vibrant Opened in Nov. 2010 stores to provide a fun atmosphere for customers, we have designed stores with a genuine Mexican resort hotel motif. We have taken particular care to create an atmosphe
Slide 28: Inside Titicaca Stores
Inside Titicaca Stores Apparel Accessories Silver Accessories © Village Vanguard corporation, All rights reserved. P.28
Slide 29: Titicaca - Results: Income Statement
Titicaca - Results 1. Income Statement Met Q2 budget - Sales +51.9%, Recurring Profit 120.0% YoY Estimated values for Q3 and Q4 FY05/11 reflect the revised budget. Titicaca Income Statement FY05/10 FY05/11 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Sales 361 474 416 467 579 720 519 529 Operatin
Slide 30: Titicaca - Results
Titicaca - Results 1) 1H Sales 10.7% above budget (+125 million yen vs. budget) Existing stores: +11.9% (+91 million yen) New stores: +10.4% (+36 million yen) Wholesale and FC sales: -4.0% (-2 million yen) Store Amount vs. Breakdown Types Budget Comp. +91 million Q2 cumulative comparable store sales
Slide 31: Titicaca - Comparable Store Sales and Store Openings
Titicaca - Results 2. Comparable store sales +16.7% YoY cumulative through Q2 (%) 150% 140% Achieving positive YoY sales for the 35 consecutive months 130.3% since Feb. 2008 130% Still setting new records 124.8% 121.7% 120.8% 120% 118.3% 120.0% 118.3% Dec. 2010 110% figure is 107.4% 107.8% prelimina
Slide 32: Efforts to Increase Profitability of Directly-Managed Stores
Titicaca - Results 5. Efforts to increase profitability of directly-managed stores 1) Store management system by store type Store management systems depending on the nature and sales patterns Decisions are made based on 1. How fashionable is the store location? individual store type 2. How big is th
Slide 33: Village Vanguard (Hong Kong) Limited Company Profile
Village Vanguard (Hong Kong) Limited Company Profile (Consolidated from FY05/11) © Village Vanguard corporation, All rights reserved. P.33
Slide 34: Inside stores (VVHK)
Inside stores (VVHK） © Village Vanguard corporation, All rights reserved. P.34
Slide 35: Village Vanguard Hong Kong - Results
Village Vanguard Hong Kong - Results ■ Existing Stores Kowloon 2 DM ● (*As of November 2010 End) 2 Dragon Center store Opened in Dec. 2009 3 ■Store Opening Plan Megabox store Opened in Jun. 2010 Plan at start of term Results Openings: 0 Openings: 1 (*Dec. 2010) 4 Closures: 0 Closures: 1 (*mid-Jul. 2