Shimamura Co., Ltd. · TSE:8227
Shimamura — FY2/21 Earnings Presentation
28 slides from Shimamura's earnings presentation, Apr 6, 2021
Slide 1: Financial Results for FY2/21 and Mid-term Management Plan
Financial Results for FY2/21 and Mid-term Management Plan Tuesday, April 6, 2021 1
Slide 2: Consolidated Results: Income Statement
Consolidated Results: Income Statement Net sales increased by 4.0% YoY. Operating income increased by 65.4% YoY. Net income increased by 99.3% YoY. Extraordinary losses shrank significantly. （Million yen/％） Ratio to FY2/20 Q4 FY2/21 FY2/20 YoY YoY sales (Dec.-Feb.) Net sales 542,608 100.0 521,98
Slide 3: Sales by Business
Sales by Business Even under the COVID-19 crisis, domestic sales increased by 4.0% YoY, through the brand restructuring, adapting to "new normal" lifestyles, enhancing product planning capability. （Million yen/％） FY2/21 Composition FY2/20 YoY FY2/20 Q4 YoY ratio (Dec.-Feb.) Shimamura 412,095 75.9
Slide 4: Consolidated Results: SG&A Expenses
Consolidated Results: SG&A Expenses Advertising expenses: Decreased by 22.8％ due to expansion of digital advertising, etc. Rent: Decreased by 1.8％ due to the closure of stores with sluggish sales, etc. （Million yen/％） Ratio to Ratio to FY2/21 FY2/20 YoY sales sales Salary 61,892 11.4 58,962 11.3
Slide 5: Consolidated Results: Balance Sheets
Consolidated Results: Balance Sheets Assets: Merchandise inventory remains at an appropriate level. Cash and deposits increased. Liabilities: Accounts payable and income taxes payable increased due to higher sales. （Million yen/％） Ratio to Ratio to End-FY2/21 End-FY2/20 Vs. End-FY2/20 sales sale
Slide 6: Number of Customers, Number of Items Purchased, Unit Price (YoY)
Number of Customers, Number of Items Purchased , Unit Price (YoY) Number of customers: The number of customers in the two businesses increased in 4Q due to progress in brand restructuring. Number of items purchased: Increased in each business due to bulk buying trends and strengthened proposal c
Slide 7: Gross profit, Discount, Inventory YoY
Gross profit, Discount, Inventory YoY Gross profit improved as a result of reduced price discounting due to improved inventory control, addition of hot-selling products through short-term production, and curbing of limited-time discounts. （％） Gross profit Discount Inventory Business Period Gross G
Slide 8: Shimamura Business ①
Shimamura Business ① Strengthening product appeal -Rebranding and responding to changes in consumption trends ① Rebranding of the PB/JB Fiber series ▼ Redefine the concept and appeal through the trinity of products, sales space, and sales promotion. ▼ JB has also launched a new brand, offering vario
Slide 9: Shimamura Business ②
Shimamura Business ② Strengthening product appeal -Expansion of digital advertising and strengthening regional marketing ① Diversification of sales promotion methods and expansion of digital advertising ▼ In line with the increase in social media followers, expand the ratio of web flyers to about ha
Slide 10: Avail Business
Avail Business Strengthening product appeal and sales promotion -Responding to stay-at-home demand and improvement of store layout ① Increase sales by responding appropriately to stay-at-home demand ▼ Expand loungewear and sportswear for both men and women. ▼ Expand customer base by enhancing produc
Slide 11: Birthday Business
Birthday Business Strengthening product appeal and sales promotion -Revision or abolition of brands and strengthen proposal capabilities ① Expand product lineup for mainstay JBs. Restructuring of existing JBs. Launched new JB. ▼ JB "tate a tete" expanded to include wear and bedding, and sales increa
Slide 12: EC Business
EC Business Launched an EC center and an online store ① The EC Center started operation in August 2020. ▼ Located in the existing Higashi-Matsuyama Product Center. Operating based on "low-cost e- commerce". ▼ About 90% of all customers prefer to pick up their products at the store. Effective for mut
Slide 13: Business Forecasts for FY2/22
Consolidated Business Forecasts for FY2/22 Net sales are expected to increase by 2.3% YoY, and operating income is also expected to increase by 1.6% YoY. Dividend per share is planned to be 220yen. （Million yen/％) FY2/22 Ratio to FY2/21 Ratio to YoY Forecast sales Result sales Net sales 554,837
Slide 14: Business Forecasts for FY2/22 (Management Policy)
Consolidated Business Forecasts for FY2/22 (Management Policy) Unified theme "Reborn -Revitalization and Evolution" ① Strengthen product appeal ▼ Expansion of existing brands and development of new brands for PB and JB ▼ Strengthen branding through the trinity of products, sales space, and sales pro
Slide 15: Business Forecasts for FY2/22 (Sales Plan)
Consolidated Business Forecasts for FY2/22 (Sales Plan) All businesses plan to increase sales for the full year, excepting Divalo, which will see a decline in stores. （％） YoY (All store) 1H 2H Full-year Shimamura 108.3 96.7 102.1 Avail 107.0 98.9 102.7 Birthday 103.1 102.2 102.6 Chambre 108.5 103.
Slide 16: Business Forecasts for FY2/22 (Policies by Business ①)
Consolidated Business Forecasts for FY2/22 (Policies by Business ①) Unified theme "Reborn -Revitalization and Evolution" ① Shimamura Business ▼ Expansion of PB, JB, and Fiber Series and development of new brands. ▼ Expansion of short-term production and improvement of inventory control accuracy. ▼ S
Slide 17: Business Forecasts for FY2/22 (Policies by Business ②)
Consolidated Business Forecasts for FY2/22 (Policies by Business ②) Unified theme "Reborn -Revitalization and Evolution" ④ Chambre Business ▼ Expanding JB as a core product in wear and household items, and strengthening special order products in household items. ▼ Create a sales floor that is tailor
Slide 18: Business Forecasts for FY2/22 (Store Opening/Closing Plan)
Consolidated Business Forecasts for FY2/22 (Store Opening/Closing Plan) Plan to open 25 stores. Strengthen Birthday and Chambre stores. Plan to close 18 stores. Decrease from the previous year through improving profitability of unprofitable stores. End-FY2/22 End-FY2/21 Planned Planned Number of
Slide 19: Business Forecasts for FY2/22 (Capital Investment Plan)
Consolidated Business Forecasts for FY2/22 (Capital Investment Plan) Capital investment of approximately 106 billion yen is planned, mainly for opening new stores. Plan to invest approximately 40 billion yen in land for centers and stores. (Million yen) Amount Breakdown Buildings 4,500 New store
Slide 20: Medium-term Management Plan 2023: Basic Policy
Medium-term Management Plan 2023: Basic Policy Basic Policy “Reborn” We will restore the original brilliance of the Shimamura Group and lay the foundation for growth through our Basic Policy of “Reborn.” In order to operate the Shimamura Group according to our philosophy, we have set the mission of
Slide 21: Medium-term Management Plan 2023: Numerical Target
Medium-term Management Plan 2023: Numerical Target Numerical targets for FY2023 *Figures in parentheses represent FY2020 results Domestic net sales Domestic operating income Domestic operating margin Number of stores 595 Billion yen 49.3 Billion yen 8.3 ％ 100 stores （536.6Billion yen） （38.1Billion y
Slide 22: Medium-term Management Plan 2023: Business Policy ①
Medium-term Management Plan 2023: Business Policy ① As a new initiative, we will maximize synergy between the EC business and approximately 2,200 brick-and-mortar stores nationwide by developing online stores for all businesses. Additionally, we will renew business at our shoe specialty store “Dival
Slide 23: Medium-term Management Plan 2023: Business Policy ②
Medium-term Management Plan 2023: Business Policy ② Product Policy Strengthen the product brand appeal Strengthen the supply chain •Expand the product lineup and price range •Strengthen short-term production system •Improve awareness among customers and •Increase the accuracy of inventory management
Slide 24: Medium-term Management Plan 2023: Business Policy ③
Medium-term Management Plan 2023: Business Policy ③ Optimize Expenses Advertising expenses Rent payments •Maximize cost effectiveness by diversifying advertising •Open new stores and relocate existing stores with methods an emphasis on profitability •Reduce cost and improve work efficiency through •
Slide 25: Medium-term Management Plan 2023: Initiatives for ESG Issues ②
Medium-term Management Plan 2023: Initiatives for ESG Issues ② Environment Eliminate wasteful garbage Reduce plastic waste Develop environment-friendly products and materials Product disposal Complete recycling ratio Product purchase ratio Usage ratio for auxiliary materials Numerical targets Zero (
Slide 26: Medium-term Management Plan 2023: Shareholder Return and Capital Policy
Medium-term Management Plan 2023: Shareholder Return and Capital Policy Shareholder returns: Become a company targeted for long-term investment In addition to improving business performance, Shimamura will earnestly address ESG Dividend payout ratio issues, and will strive to realize a sustainable s
Slide 27: Information Disclosure
Information Disclosure We have renewed our corporate website ① Financial Results (Disclosed on the website) ▼ Financial Results Briefing Materials (with comments): April 6 (Tuesday), PM ▼ Q&A Sessions at Results Briefing : Around April 10 ▼ Financial Results Briefing Materials in English (Summary of
Slide 28: Cautionary Statement Regarding Forward-Looking Statements, etc.
(Cautionary Statement Regarding Forward-Looking Statements, etc.) The forward-looking statements, including business forecasts, contained in this document are based on judgments made in accordance with information available at the time of this document's release and are subject to a number of uncert