Valor Holdings Co., Ltd. · TSE:9956
Valor — FY2025 Earnings Presentation
47 slides from Valor's earnings presentation, May 14, 2025
Slide 1: FY 2025 Financial Presentation
FY 2025 Financial Presentation May 14, 2025 ＜Cautionary Statement Regarding This Document＞ Forward-looking statements are based on the information available to Valor and its consolidated subsidiaries when preparing this presentation. Various factors in the future may cause our actual results to be m
Slide 2: Message from President
Message from President Developing an Outstanding Presence as a Destination Company Approximately seven years ago, we began experimenting with a new store model, adapting quickly to environmental changes such as population decline and the COVID-19 pandemic. The core of this transformation has been th
Slide 3: Key Points
Key Points ➢ Summary of FY2025 Financial Results ・ 30th consecutive year of revenue growth; Record-high operating revenues ・ Higher personnel expenses (e.g., wage increases) offset by gross profit growth; operating profit increased ・Supermarket Valor same-store sales: +4.1% ・ Record-high net income
Slide 4: Contents
Contents Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Update: Action to Implement Management That Is Conscious of Cost of Capital and Stock Price Ⅲ．Valor Group Growth Strategy Ⅳ．(Reference) Segment Overview ©2025 Valor Holdings Co.,Ltd. 4
Slide 5: Summary of FY2025 Financial Results; FY2026 Forecast
Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Executive Director and Managing Director Akira Shinohana ©2025 Valor Holdings Co.,Ltd. 5
Slide 6: FY2025 Consolidated Business Results
FY2025 Consolidated Business Results ➢ Record-high operating revenues (30th consecutive year of growth) and net income ➢ Second-highest on record: operating income and ordinary income ➢ SM segment drove both revenue and profit growth ➢ Strengthened investment management; impairment losses down ¥1.4B
Slide 7: Factors of Increase/Decrease in Operating Income
Factors of Increase/Decrease in Operating Income ➢ Operating Gross Profit Increased by ¥14.3B, driven by revenue growth and improved gross profit margin (26.7% → 26.8%) ➢ Absorbed ¥7.7B increase in personnel expenses (e.g., wage hikes) and secured growth in operating profit (Yen in millions） 40000 I
Slide 8: Quarterly Results
Quarterly Results ➢ Record-high operating and ordinary income in Q3 and Q4 (For details, see p.7) (Yen in millions） Results YoY H1 Q3 Q4 H2 Total H1 Q3 Q4 H2 Total Operating 422,016 224,949 207,469 854,435 +5.7% +6.4% +5.2% +5.8% revenues Net sales 408,488 217,625 201,429 827,543 +5.7% +6.2% +5.3% +
Slide 9: Operating Results by Segment
Operating Results by Segment ※ For details, see p. 35 - ➢ Supermarkets: Profit increased, driven by strong same-store sales (SM Valor: +4.1%) ➢ Drugstores: Profit declined due to increased personnel costs and investments in fresh food offerings ➢ Home Improvement Centers: Despite higher profits in Q
Slide 10: Trends in Key Management Indicators
Trends in Key Management Indicators ➢ Profit Growth Led to Higher ROE and ROIC, Enhancing Profitability ➢ D/E ratio remained largely flat, maintaining financial soundness FY2023 FY2024 FY2025 Results Results Results ROA 5.6％ 5.9% 5.8% ROR 3.0% 3.2% 3.1% Total Asset Turnover 1.8 1.9 1.9 ROE 5.0% 7.5%
Slide 11: Contents
Contents Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Update: Action to Implement Management That Is Conscious of Cost of Capital and Stock Price Ⅲ．Valor Group Growth Strategy Ⅳ．(Reference) Segment Overview ©2025 Valor Holdings Co.,Ltd. 11
Slide 12: FY2026 Forecast
FY2026 Forecast ➢ Supermarkets: Store expansion in Kansai and Kanto regions → 8 new Valor stores + 4 additional stores ➢ Drugstores: Strengthening fresh food and prescription offerings; building lifelong customer relationships with families raising children ➢ Home Improvement Centers: Unifying manuf
Slide 13: Business Strategy by Segment
Business Strategy by Segment ➢ Supermarkets: 12 new store openings (Assumed same-store sales growth: SM: +2.5%, Drugstores: +2.5%, Home Improvement Centers: -1.0% ➢ Pet Stores: Full-year contribution from M&A-acquired company (from prior fiscal year) ➢ Others: Earnings improvement expected in credit
Slide 14: Store Count and Capital Investment Plan
Store Count and Capital Investment Plan ➢ Over 1,500 stores across the Group; Pet store business targeting 200 locations ➢ Ampachi Integrated Center: Early infrastructure investment planned; operational in 2028 FY2024 FY2025 FY2026 Plan （Number of Stores） FY End FY End Open Closed FY End Supermarket
Slide 15: Cash Flow
Cash Flow ➢ Operating CF decreased due to an increase in working capital, despite higher profit before income taxes. ➢ Investing CF significantly increased, mainly due to purchases of property, plant and equipment and acquisition of subsidiary shares. ➢ Financing CF rose from an increase in interest
Slide 16: Shareholder Return
Shareholder Return (Dividend Forecast for FY25） ➢ FY2025: Annual dividend of ¥68 (Interim: ¥29 + Year-end: ¥39) → ¥2 increase YoY; 15th consecutive year of dividend increases ➢ FY2026 (Forecast): Annual dividend of ¥70 (Interim: ¥35 + Year-end: ¥35) → Equalized interim and year-end dividends （%） （JP
Slide 17: Contents
Contents Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Update: Action to Implement Management That Is Conscious of Cost of Capital and Stock Price Ⅲ．Valor Group Growth Strategy Ⅳ．(Reference) Segment Overview ©2025 Valor Holdings Co.,Ltd. 17
Slide 18: Contents
Contents Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Update: Action to Implement Management That Is Conscious of Cost of Capital and Stock Price Ⅲ．Valor Group Growth Strategy Ⅳ．(Reference) Segment Overview ©2025 Valor Holdings Co.,Ltd. 18
Slide 19: Valor Group Growth Strategy
Ⅲ．Valor Group Growth Strategy President & Director Takayuki Koike ©2025 Valor Holdings Co.,Ltd. 19
Slide 20: Summary of the First Year of the Medium-Term Strategic Plan
Summary of the First Year of the Medium-Term Strategic Plan ➢ A first step toward realizing the ¥1 trillion revenue vision ➢ Store expansion strategy focused on Kansai and major urban areas Business Environment ・1,000 人材 Talent new hires （1）Accelerated industry consolidation growing push toward mark
Slide 21: The ¥1 Trillion Vision & Evolution of Group Strategy
“The ¥1 Trillion Vision" & Evolution of Group Strategy ➢ Accelerating area expansion in Kansai and Kanto, with supermarkets at the core Growth Through Area Expansion Business Portfolio Concept Profitability ・Kansai: ¥100 B Distribution Growth Challenge Domain ・Kanto : ¥50 B Others Pet ・Supermarket s
Slide 22: Evolution of Group Synergies and Store Development Capabilities
Evolution of Group Synergies and Store Development Capabilities ➢ Cross-format collaboration (e.g., Home improvement Center [HC] Inazawa Heiwa × Supermarket [SM] conversion sites used by Amigo) ➢ Flexible store development through strategic combinations of location, size, and format HC × SM Inazawa
Slide 23: Destination Store Strategy for SM Valor
Destination Store Strategy for SM Valor ➢ Same-store sales: +4.1% (FY 2025) ➢ Enhanced profitability per store and wider ripple effect Quantifiable Returns on Investment Moving Beyond Flyers Sales per Store Advertising Cost as a Percentage of Sales 124% 0.5% 100% 1.59% FY2020 FY2025 Streamlined Prod
Slide 24: Refining the Destination Store Strategy
Refining the Destination Store Strategy ➢ Distinctive and Specialized Sales Floors ➢ Building trust in fresh food to expand our curated product offerings. Edgy, purpose-driven sections Becoming “the Place” customers that attract intentional shoppers associate with specific products Meat ◼ Thick-cut
Slide 25: Manufacturing & Distribution: The Backbone of Our Destination Store Strategy
Manufacturing & Distribution: The Backbone of Our Destination Store Strategy ➢ Strengthening manufacturing and distribution capabilities to enhance local store presence and group-wide competitiveness Manufacturing & Specialty Store Operations Distribution Synergy • Daien Foods • Hirakata (Osaka) Dis
Slide 26: A Supply Chain That Retains Profit Within the Group
A Supply Chain That Retains Profit Within the Group ➢ Building an efficient supply chain ➢ Enhancing delivery efficiency and product quality to support the destination store modeｌ (Honda Suisan Co., Ltd.) Production Procurement Distribution areas Processing Stores Customers We retain profit Daien Fo
Slide 27: Strengthening Organic Customer Traffic Without Promotional Flyers
Strengthening Organic Customer Traffic Without Promotional Flyers ➢ Buzz-worthy products like sushi and fruit-based desserts are spreading through word of mouth and social media. ➢ Creating new reasons to visit Continuously evolving reasons The evolution of “mechanisms to be chosen that drive store
Slide 28: Our Group of Supermarket Companies Driving Overall Growth
Our Group of Supermarket Companies Driving Overall Growth ➢ Identifying and sharing insights from exceptional metrics in distinct formats (e.g., high sales/m²) Tachiya Shokusenkan Taiyo ・Tokai ・Tokai ・２2 stores ・16 stores ・ ～990 m² ・ ～990 m² ・Complete sell- ・「Your second through of fresh refrigerato
Slide 29: Kansai ¥100 Billion Initiative
Kansai ¥100 Billion Initiative ➢ From the initial ¥50 B target to ¥100 B ※（Covering Kyoto, Osaka, Hyogo, Nara, and Wakayama） Kyoto Yaosen Uozaki Minami Nigiritate Garam to Masala Delica Kitchen AEON Mall （Hyogo） Liv Sumiyoshi（Hyogo） Abeno Q's MALL（Osaka） Kyoto Gojo（Kyoto） Kansai Region Sales(Yen in
Slide 30: Kanto ¥50 Billion Initiative
Kanto ¥50 Billion Initiative (around Tokyo) ➢ Integration of Koｈseiya (2016) and Terao Store (2019) into the Group ➢ As of the end of March 2025: 84 stores, approx. ¥18 B in sales Target: ¥50 B ➢ This fiscal year marks SM Valor’s first store opening in the Kanto region ※（Ｃｏｖｅｒｉｎｇ Tokyo, Kanagawa, Ch
Slide 31: Drugstore Business
Drugstore Business ➢ Profit declined this fiscal year due to drug price revisions and weak performance of seasonal products ➢ Promoting the integration of in-store dispensing pharmacies ➢ Strengthening engagement with families raising children through expanded offerings of baby products and fresh fo
Slide 32: Home Improvement Center Business
Home Improvement Center Business ➢ Procurement structure reform – Expanding initiatives from HC Valor and TIME ➢ Customer acquisition model of the Inazawa Heiwa store ➢ Targeting ¥10 billion in e-commerce sales and 20% private brand ratio Procurement structure reform Growth in EC sales Manufacturer
Slide 33: Pet Store Business
Pet Store Business ➢ Toward becoming Japan’s No.1 pet store chain ➢ Targeting ¥60 B in sales by FY2030(¥50 B from the Alleanza Group ・Nationwide ・Tokyo ・58 stores outskirts ・23 stores ・Nationwide ・Greater ・85 stores Tokyo area ・16 stores ©2025 Valor Holdings Co.,Ltd. 33
Slide 34: Sports Club Business
Sports Club Business ➢ Toward sustainable growth through public collaboration and diversified operations ➢ Operation of public facilities (designated management) and school swimming instruction ➢ Aiming to maintain a positive earnings trend going forward School Swimming Programs Learning from our gr
Slide 35: Dining and Credit Card Businesses
Dining and Credit Card Businesses ➢ Dining business positioned as a customer touchpoint creator ➢ Approx. ¥380 million in payment cost savings via in-house platform (FY2025) Popular maguro (tuna) restaurant in Yokkaichi Number of applications received（thousands） 32 18 2024/3 FY2024 2025/3 FY2025 （Ye
Slide 36: Contents
Contents Ⅰ．Summary of FY2025 Financial Results Ⅱ．FY2026 Forecast Update: Action to Implement Management That Is Conscious of Cost of Capital and Stock Price Ⅲ．Valor Group Growth Strategy Ⅳ．(Reference) Segment Overview ©2025 Valor Holdings Co.,Ltd. 36
Slide 37: [Ref.] Reshown Business Strategy by Segment
[Ref.] Reshown Business Strategy by Segment ➢ Supermarkets: 12 new store openings (Assumed same-store sales growth: SM: +2.5%, Drugstores: +2.5%, Home Improvement Centers: -1.0% ➢ Pet Stores: Full-year contribution from M&A-acquired company (from prior fiscal year) ➢ Others: Earnings improvement exp
Slide 38: [Ref.] Supermarket Business
[Ref.] Supermarket Business ➢ Record-high profit ➢ Valor Co., Ltd.: Same-store sales +4.1% (Customer traffic +0.6%, Average spending per customer +3.4%) ➢ Renovated 18 stores into destination store formats; Opened 3 Yaosen stores and 2 Takoichi stores (Yen in 100 millions） Supermarket Segment Profit
Slide 39: [Ref.] Drugstore Business
[Ref.] Drugstore Business ➢ Profit declined due to inability to fully offset cost increases, including investments in 30 new stores and higher personnel expenses ➢ Chubu Yakuhin: Same-store sales +1.2% ➢ Promoting in-store pharmacy openings at existing locations, including through clinic partnership
Slide 40: [Ref.] Home Improvement Center Business
[Ref.] Home Improvement Center Business ➢ Despite profit growth in Q2–Q4, full-year profit declined due to weak performance in Q1, the peak demand period ➢ Sales of high-margin products such as lumber and hardware tools remained sluggish ➢ Strong performance in disaster preparedness, safety/security
Slide 41: [Ref.] Pet Store Business
[Ref.] Pet Store Business ➢ Sales of dogs and cats (live animals) and related pet supplies declined ➢ Strong performance in dog and cat food; sales of small animals (e.g., hamsters) increased ➢ Growing use of new services such as grooming, premium spa courses, and dog daycare programs (Yen in 100 mi
Slide 42: [Ref.] Sports Club Business
[Ref.] Sports Club Business ➢ Overall membership increased ➢ Enrollment in winter short-term swimming classes nearly tripled year-on-year ➢ Number of public elementary schools contracted for swimming classes through local government partnerships expanded to 7 (Yen in 100 millions） Sports Club Segmen
Slide 43: [Ref.] Distribution-related business
[Ref.] Distribution-related business ➢ Increased purchases of materials, fixtures, and equipment due to more new and renovated stores (supermarkets and drugstores). ➢ Logistics volume grew alongside higher sales. ➢ Absorbed additional costs from new logistics centers (Hirakata & Nagoya Minato), resu
Slide 44: [Ref.] Breakdown of Impairment Loss
[Ref.] Breakdown of Impairment Loss ➢ In accordance with the “Accounting Standard for Impairment of Fixed Assets,” Valor Holdings and its group companies recognized signs of impairment in certain fixed assets, such as stores, due to factors including a decline in profitability. As a result of assess
Slide 45: [Ref.] Sustainability KPI (to 2050)
[Ref.] Sustainability KPI（to 2050） FY24 FY27 FY30 FY50 Standard Sustainability Final year of current strategic plans Reference Vision 2030 （FY20 results*) (FY20 rate) (FY21 rate) Realizing a CO2 emissions at own sites CO2 emissions at own sites Total greenhouse Total greenhouse decarbonized society
Slide 46: Disclaimer
Disclaimer • This material is provided for informational purposes only and does not constitute a solicitation or recommendation to take any action. It has been prepared by Valor Holdings based on information deemed reliable at the time of preparation, but it includes risks and uncertainties. Valor H
Slide 47: https://valorholdings.co.jp/
https://valorholdings.co.jp/