Village Vanguard Co., Ltd. · TSE:2769
Village Vanguard — Q2 FY05/10 Earnings Presentation
27 slides from Village Vanguard's earnings presentation, 2010
Slide 1: 2nd Quarter of FY05/10 Results Meeting Presentation
表紙ＶＶ 2nd Quarter of FY05/10 Results Meeting 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: PL (Consolidated)
ＰＬ（Consolidated） Income Statement Cons.Act. Cons.Act. Cons.Est. FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 7,343 7,462 10,739 7,682 8,630 8,273 10,352 10,385 SG&A 2,270 2,723 2,798 2,831 2,799 2,879 3,148 3,301 Labor 995 1,094 1,150 1,198 1,248 1,246 1,438 1,380 Rent 632 650 833 752
Slide 4: BS (Consolidated)
ＢＳ（Consolidated） Balance Sheet Cons.Act. Cons.Act. Cons.Est. FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash & Deposit 2,750 2,387 3,011 3,078 2,685 2,957 2,677 3,436 Inventories 11,340 13,711 13,881 14,131 15,003 15,928 15,889 16,384 Other 2,421 2,372 2,225 2,486 2,601 2,345 2,458 2,607
Slide 5: CF (Consolidated)
ＣＦ（Consolidated） Cash Flow Statement Cons.Act. Cons.Act. Cons.Est. FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Cash Flow -419 -533 -1,758 -735 -292 -146 -724 1,133 Change in Inventories -412 -2,783 -2,953 -3,203 -872 -1,796 -1,757 -2,253 Other -6 2,250 1,194 2,467 579 1,650 1,033
Slide 6: Village Vanguard Corporation K.K. Parent Company
Parent Company Village Vanguard Corporation K.K.
Slide 7: What We Do
What We Do ■Village Vanguard ■Diner Burger shop modeled after an American diner. ■new style ■QK ■Online For 30 year-olds with unique tastes. 「Exciting book store for kids」 Book, accessories, CDs – 2,500 items. Not only toys. ‘Kids Entertainment’ for kids.
Slide 8: Examples of Our Merchandising Approach (1)
Examples of Our Merchandising Approach (1) Set for making BAR JAZZ CD cocktails “You are not going Compilation to invoke a bar home tonight, my atmosphere Darling!” ”Cocktail Book” “Rolling Coaster” ”To the Bar” Selection of 64 bars Pour someone a drink and roller-skate it to a person across Japan i
Slide 9: Examples of Our Merchandising Approach (2)
Examples of Our Merchandising Approach (2) A store manager built this Gundam Suit in his free time! He is actually inside there!
Slide 10: How We Sell?
How We Sell? We delegate both purchasing and sales decisions to the store level Marketing Store manager has the absolute discretion Purchasing Store Merchandising and Display We create sales spaces that answer unique customer needs store by store, in real time Store level ideas driving buying impuls
Slide 11: Hiring Strategy
Hiring Strategy Full Time Customer Temp Staff Employee We hire people who really understand what we do Even temporary staff are allowed to make purchasing decisions Real On-the-Job training that spans years
Slide 12: Store Openings (Parent)
Store Openings (Parent) Nationwide 326 Figures: Directly Managed, (Franchise Tohoku Stores) Hokkaido DM 21 DM 299 DM 18 ＦＣ 1 ＦＣ 2 Aomori VV 253 5 new style 26 Hokkaido Akita QK 10 20（2） Iwate 4 5 Diner 10 Yamagata ＦＣ 27 Hokuriku Miyagi 6（1） DM 11 Niigata Chugoku & 5 Fukushima Shikoku Toyama Gunma To
Slide 13: Parent Income Statement
Parent Income Statement Income Statement Cons.Act. Cons.Act. Cons.Est. FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 7,343 7,462 10,739 7,682 8,630 8,273 10,352 10,385 SG&A 2,270 2,723 2,798 2,831 2,799 2,879 3,148 3,301 Labor 995 1,094 1,150 1,198 1,248 1,246 1,438 1,380 Rent 632 650
Slide 14: Comparable Store Sales
Comparable Store Sales 10.0% 7.4% Comparable-Store (FY05/09) 8.0% Comparable-Store (FY05/10) 6.0% 4.6% 4.0% 3.1% 2.0% 1.0% 1.0% 0.3% 0.0% 0.0% -2.0% -1.3% -1.4% -4.0% -3.2% -3.4% -3.4% -6.0% -4.5% -4.7% -5.4% -6.1% -8.0% -7.0% -7.6% -10.0% 08/9 Negative after 90 months of positive -9.8% -12.0% Apr-0
Slide 15: Comparable Store Sales Analysis
Comparable Store Sales Analysis Existing comp sales were flat to down slightly over last year’s level 30.0% FY05/10 20.0% 10.0% 0.0% December 2009 -10.0% New comp sales data impacted by New Comps: -1.6% initial store opening promotions. Existing Comps: -3.7% -20.0% Total Comps: -3.4% December comp s
Slide 16: Category Sales
Category Sales Sales by Category FY05/08 FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SPICE (Parent) 4,304 4,077 5,546 5,011 5,109 5,243 7,102 6,310 6,193 5,926 Books (Parent) 1,025 988 1,118 1,044 1,038 1,041 1,171 1,087 1,045 997 NW (Parent) 673 743 914 898 810 723 997 801 844
Slide 17: Store Age Sales YoY
Store Age Sales YoY Store Age Analysis 6+ 5 4 3 2 <1 (Directly Managed Stores) Number of Stores * 102 38 44 23 46 46 Stores with record sales ** 17 13 19 10 17 - YoY Sales (%) -8.1% -1.3% -4.6% -2.1% -12.9% - *excluding online and closed stores ** monthly stores with all-time high sales as of Dec. 2
Slide 18: OP Analysis
OP Analysis （Millions of yen） 1,600 Other Sales (sales to FCs, subs)31m yen Profit from new stores (<13 months in 1,500 operation) 607 million yen 31 1,400 HQ overhead-170 1,300 Decline in OP from Comps -253m yen （largest reasons for decline） Lower profitability of Comps -146m yen 1,200 Decline in O
Slide 19: Openings
Openings New Openings & Closures FY05/08Act FY05/09Act FY05/10CoE Full-Year Full-Year 1H 2H Full-Year Openings Village Vanguard 22 42 17 13 30 new style 3 8 1 0 1 QK 1 5 0 0 0 Diner 1 4 1 0 1 Titicaca - 12 7 5 12 Total New Openings 27 71 26 18 44 Closures Village Vanguard 5 6 3 3 6 new style - - 0 0
Slide 20: Initiatives: Strengthening Imported Merchandise
Initiatives Strengthening Imported Merchandise Problem Could not source enough imported merchandise (normally high GPM) – GPMs for HQ sourcing team merchandise contracted. 65.0% Overall gross profitability continues rising... HQ Sourcing Team Merchandise GPM 60.0% 62.9% Due to more items sold by the
Slide 21: Initiatives: Inventory Control
Initiatives Inventory Control (Millions of yen) FY05/0 FY05/0 FY05/0 FY05/0 FY05/0 FY05/09 FY05/10 FY05/10 8 8 9Ｑ1 9 9 Q４ Ｑ1 Q2 Ｑ2 Ｑ4 Ｑ2 Ｑ3 Cash Flows From Operations 459 1,076 -393 -565 -1,694 -669 -197 -173 ■Net Income Before Tax 1,276 2,917 744 1,116 2,276 3,149 821 1,320 ■Net Increase (Decrease)
Slide 22: Consolidated Subsidiary
i) aa FF DN Consolidated Subsidiary Tale OOF im. oe a a7, — = 4
Slide 23: Titicaca Subsidiary Results
Results Achieved RP targets – fewer stores opened, lower expenses. Titicaca Subsidiary Income Statement FY05/09 FY05/10 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 251 322 306 299 361 474 482 460 Operating Profit 10 26 7 -7 23 55 5 1 Recurring Profit 8 21 5 -9 20 50 0 -3 Net Profit 8 20 3 -40 18 48
Slide 24: Outside Titicaca Stores
Outside Titicaca Stores Standalone Shop ‘In-Shop’ Shopping centers, railway stations Apparel Focused Store
Slide 25: Inside Titicaca Stores
Inside Titicaca Stores Dozens of alpacas, Titicaca stores’ signature item
Slide 26: Unconsolidated Subsidiary
Unconsolidated Subsidiary Village Vanguard (Hong Kong) Limited
Slide 27: Topics
TOPICS ■ Stores: #1 opened on Nov. 28, 2009 at JUSCO Kornhill(148.5sq m) #2 opened on Dec. 15, 2009 at Dragon Center（237.6sq m） ■Business Directly managed Village Vanguard stores(same concept as in Japan) ■Situation Changing the store according to the needs of H.K. customers ■Future Plans To open mo