Okuwa Co., Ltd. · TSE:8217

Okuwa — FY2021 Earnings Presentation

48 slides from Okuwa's earnings presentation, Apr 5, 2022

  1. Slide 1: Financial Results Presentation Material

    Fiscal year ended February 20, 2022 Financial Results Presentation Material OKUWA Co., Ltd. (8217) April 5, 2022 Copyright © OKUWA Co., Ltd. All Rights Reserved. -1-

  2. Slide 2: Consolidated Operating Results: P/L

    Consolidated Operating Results: P/L (Million yen) Fiscal year Fiscal year Fiscal year Year-on-year Year-on-year ended February ended February ended February change change (%) 20, 2020 20, 2021 20, 2022 Operating income 265,398 279,217 266,532 (12,685) 95.5 Operating profit 3,448 7,845 5,233 (2,611)

  3. Slide 3: Consolidated Operating Results: P/L (Comparison against Forecast)

    Consolidated Operating Results: P/L (Comparison against Forecast) (Million yen) Comparison Financial results Fiscal year ended against Difference forecast forecast February 20, 2022 (%) Operating income 270,000 266,532 (3,467) 98.7 Operating profit 4,800 5,233 +433 109.0 Ordinary profit 5,100 5,463

  4. Slide 4: Consolidated Operating Results: Operating Income by Company

    Consolidated Operating Results: Operating Income by Company (Million yen) Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year Year-on-year February 20, 2020 February 20, 2021 February 20, 2022 change change (%) OKUWA 261,431 275,304 262,734 (12,570) 95.4 Hiramatsu 6,729 6,830 6,229 (6

  5. Slide 5: Consolidated Operating Results: Ordinary Profit by Company

    Consolidated Operating Results: Ordinary Profit by Company (Million yen) Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year Year-on-year February 20, 2020 February 20, 2021 February 20, 2022 change change (%) OKUWA 3,671 7,828 5,303 (2,525) 67.7 Hiramatsu (118) (37) (62) (25) － OAK F

  6. Slide 6: Consolidated Operating Results: Management Indicators

    Consolidated Operating Results: Management Indicators Fiscal year ended Fiscal year ended Fiscal year ended February 20, 2020 February 20, 2021 February 20, 2022 (Profitability) Operating profit/Operating income (%) 1.30 2.81 1.96 Ordinary profit/Operating income (%) 1.42 2.87 2.05 (Capital efficien

  7. Slide 7: Consolidated Operating Results: Management Indicators, B/S

    Consolidated Operating Results: Management Indicators, B/S (Million yen) February 20, 2020 February 20, 2021 February 20, 2022 Total assets 136,362 137,863 133,513 Equity 74,875 77,475 77,876 (Safety) Equity ratio (%) 54.91 56.20 58.33 Debt-to-equity (D/E) ratio 0.35 0.29 0.26 (times) Net D/E ratio

  8. Slide 8: Consolidated Operating Results: C/F

    Consolidated Operating Results: C/F (Million yen) Operating CF Balance of cash +8,590 Balance of cash and cash and cash equivalents at equivalents at end beginning of period of period +18,239 +16,668 Investing CF (7,016) Financing CF (3,144) Main elements of financing CFs ・Proceeds from long-term bo

  9. Slide 9: Non-consolidated Operating Results: P/L

    Non-consolidated Operating Results: P/L (Million yen) Comparison Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year Year-on-year against February 20, 2020 February 20, 2021 February 20, 2022 change change (%) forecast （％） Operating income 261,431 275,304 262,734 (12,570) 95.4 98.8 Ne

  10. Slide 10: Non-consolidated Operating Results: Breakdown of Operating Income

    Non-consolidated Operating Results: Breakdown of Operating Income (Million yen) Operating revenue 9,493 Supply of merchandise 4,978 Tenant sales 11,577 Operating revenue 9,500 250,000 Supply of merchandise 4,527 New stores and closing stores Tenant sales 10,046 4,687 New stores and closing stores 3,

  11. Slide 11: Non-consolidated Operating Results: Net Sales from Existing Stores

    Non-consolidated Operating Results: Net Sales from Existing Stores Year-on-year change Net sales Number of Average sales for existing stores (%) Number of products Unit price per customers per customer purchased product 1H 96.5 96.4 100.2 99.0 101.2 2H 98.8 97.6 101.3 99.3 102.0 Full year 97.7 96.9

  12. Slide 12: Net Sales from Direct Operation (By Region)

    Non-consolidated Operating Results: Net Sales from Direct Operation (By Region) (Million yen) Year-on-year Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2020 February 20, 2021 February 20, 2022 change (%) existing stores (%) Wakayama 75,723 76,250 71,801

  13. Slide 13: Net Sales from Direct Operation (By Business Type)

    Non-consolidated Operating Results: Net Sales from Direct Operation (By Business Type) (Million yen) Year-on-year Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2020 February 20, 2021 February 20, 2022 change (%) existing stores (%) SC 18,900 17,228 12,421

  14. Slide 14: Net Sales from Direct Operation (By Department)

    Non-consolidated Operating Results: Net Sales from Direct Operation (By Department) (Million yen) Year-on-year Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year change for February 20, 2020 February 20, 2021 February 20, 2022 change (%) existing stores (%) Fresh foods 95,878 103,952

  15. Slide 15: Non-consolidated Operating Results: Product Gross Profit Margin

    Non-consolidated Operating Results: Product Gross Profit Margin (%) Fiscal year ended Fiscal year ended Fiscal year ended Year-on-year February 20, 2020 February 20, 2021 February 20, 2022 change (% points) Fresh foods 31.8 32.4 32.5 +0.1 Processed foods 22.6 23.7 23.2 (0.5) Foods 27.1 28.0 27.8 (0.

  16. Slide 16: Selling, General and Administrative Expenses

    Non-consolidated Operating Results: Selling, General and Administrative Expenses Fiscal year ended Fiscal year ended (Million yen) Fiscal year ended February 20, 2022 February 20, 2020 February 20, 2021 Ratio to Year-on-year Year-on-year Amount Amount net sales change change (%) (%) Net sales 252,15

  17. Slide 17: Factors behind Changes in Ordinary Profit

    Non-consolidated Operating Results: Factors behind Changes in Ordinary Profit (Million yen) Operating gross profit (3,689) Gross profit Selling, general and (3,469) administrative expenses +1,120 Non-operating income and expenses +43 Other Rent expenses +820 Operating Selling ＋489 Utilities revenue

  18. Slide 18: New Stores, Renovated Stores and Closed Stores

    New Stores, Renovated Stores and Closed Stores ■New stores: 2 Tanabe Higashiyama Store (Wakayama, March 6, 983 m2) Pare Marche Jingumae Store (Aichi, July 21, 1,256 m2) ■ Renovated stores: 10 Pavilion City Tanabe Store (Wakayama, April 17) Katsuragi Store (Wakayama, April 28) Hisai Shoda Store (Mie,

  19. Slide 19: Store Distribution

    Store Distribution (Number of store as of February 20, 2022) Total by region Wakayama 30 7 3 2 42 Nara 22 5 5 1 33 Osaka 16 2 1 ー 19 Hyogo 1 ー 1 ー 2 Kinki area 69 14 10 3 96 Mie 14 3 6 ー 23 Gifu 3 (PM: 1) 10 ー 1 (PM: 1) 14 Aichi 9 (PM: 4) 1 ー 2 (PM: 2) 12 Shizuoka 1 (PM: 1) 1 ー ー 2 Tokai area 27 15

  20. Slide 20: Management Policy for Fiscal Year Ending February 20, 2023

    Management Policy for Fiscal Year Ending February 20, 2023 Copyright © OKUWA Co., Ltd. All Rights Reserved. -20-

  21. Slide 21: Consolidated Financial Results Forecast

    Consolidated Financial Results Forecast (Million yen) Actual for Financial results forecast Year-on-year Full year fiscal year ended for fiscal year ending February change (%) February 20, 2022 20, 2023 Operating income 266,532 252,000 ー Operating profit 5,233 5,400 103.2% Ordinary profit 5,463 5,60

  22. Slide 22: Non-consolidated Financial Results Forecast

    Non-consolidated Financial Results Forecast (Million yen) Actual for Financial results forecast Year-on-year Full year fiscal year ended February for fiscal year ending February change (%) 20, 2022 20, 2023 Operating income 262,734 246,000 ー Operating profit 5,065 5,300 104.6% Ordinary profit 5,303

  23. Slide 23: Key Points in Financial Results Forecast (Non-consolidated)

    Key Points in Financial Results Forecast (Non-consolidated) ○Operating income: 246.0 billion yen (*100.8% year on year) • Net sales from existing stores: 101.8% year on year • Net sales from direct operation: Approx. 239.8 billion yen (100.5% year on year) • Two stores newly opened, five fully renov

  24. Slide 24: Product Gross Profit Plan

    Product Gross Profit Plan Full-year product gross profit margin: 27.8% (up 0.2% year on year) Full-year product gross profit: Approx. 65.0 billion yen (101.3% year on year) Priority issues for Fiscal 2022 (1) Food waste reduction targets Reduction of 100 million yen annually (2) OKUWA brand product

  25. Slide 25: New Stores, Renovated Stores and Closed Stores

    New Stores, Renovated Stores and Closed Stores ●New stores ・Nakatsugawa Nakamura Store opened on March 24 (Thurs.). Directly- Business Date of Prefecture operated sales type opening floor area Nakatsugawa Gifu SSM 2,459 m2 March 24 Nakamura Store MESA Iwade Wakayama MESA 3,156 m2 2H Store (tentative

  26. Slide 26: (New Store) Nakatsugawa Nakamura Store

    (New Store) Nakatsugawa Nakamura Store Fresh fish and Solar power daily food section generation Agricultural product section Delicatessen Fresh fish Bakery section food section section Copyright © OKUWA Co., Ltd. All Rights Reserved. -26-

  27. Slide 27: (Fully Renovated) Kishiwada Hatsuta Store

    (Fully Renovated) Kishiwada Hatsuta Store ●A 100-yen shop “Daiso” has been newly introduced. • The introduction of Daiso has allowed the strengthening of the product assortment of the whole household supplies category. • Cash registers exclusive for Daiso were eliminated and lump-sum payment can be

  28. Slide 28: OKUWA Brand (1)

    OKUWA Brand (1) This year marks the third anniversary since the launch of the brand. The sales amounts and SKUs have been steadily expanding. ⚫ Brand that places strong ⚫ Brand that buyers who are emphasis on the production well-versed in product areas, raw materials and knowledge recommend producti

  29. Slide 29: OKUWA Brand (2)

    OKUWA Brand (2) OKUWA Premium No. 1 Brand that places strong emphasis on sales the production areas, raw materials and among production methods OKUWA Premium products OKUWA Premium OKUWA Marche OKUWA Marche Brand that buyers who are well-versed in product knowledge recommend OKUWA Marche Copyright ©

  30. Slide 30: Jointly Developed Private Brand “Kurashi More”

    Jointly Developed Private Brand “Kurashi More” Kurashi More Make lemon sours at home. So easy Thick cut potato chips Copyright © OKUWA Co., Ltd. All Rights Reserved. -30-

  31. Slide 31: DX (Digital Transformation) at OKUWA

    DX (Digital Transformation) at OKUWA Promotion of building of digital customer service tools and operational reforms in tandem Increased convenience Provision of information to customers for customers Provision of information concerning ・Diversification of payment means house-brand products ・Use of

  32. Slide 32: Initiatives for DX at OKUWA (Progress)

    Initiatives for DX at OKUWA (Progress) Improved ordering operations efficiency (Major progress in fiscal 2021) ■Improving accuracy of automated ordering system Progress in fiscal 2021 Targets in fiscal 2022 Agricultural • Newly introduced for approx. 200 items and in • Number of stores with the syst

  33. Slide 33: Initiatives for DX at OKUWA (New)

    Initiatives for DX at OKUWA (New) OKUWA’S new shopping app ■A smartphone cash register “Shopimo Regi” introduced (Shopimo) introduced for an experiment purpose • Honsha Nakajima Store introduced the cash register on April 1, 2022 on an experimental basis. ■Introduction of electronic shelf labels • K

  34. Slide 34: Online Supermarket

    Online Supermarket ● Enhanced services • At the all 19 stores providing an online supermarket function, customers are able to receive goods purchased “at storefront” or “drive-through” (17 stores deliver goods purchased at storefront, and two stores, drive-through). • The service will be expanded to

  35. Slide 35: Sustainability Policy and Environment (1)

    Sustainability Policy and Environment (1) ■Establishment of the “Sustainability Promotion Office” • The “Sustainability Promotion Office” was newly established in September 2021, and the new “Sustainability Policy” was formulated in December 2021. Sustainability policy Our aspiration OKUWA Managemen

  36. Slide 36: Sustainability Policy and Environment (2)

    Sustainability Policy and Environment (2) ・Sustainability priority issues (materiality) were identified. We will take measures to reduce environmental loads to preserve the global We will adhere to relevant laws, Reduce loads to preserve environment, aiming to create regulations and rules, and estab

  37. Slide 37: Reduction of Burdens to Protect the Environment

    Reduction of Burdens to Protect the Environment ■Solar power plants (1) Increased number of sites where solar power plants are introduced • The total volume of electricity generated in fiscal 2021 was approx. 3.94 million kWh (from 10 plants in total). • Additional five plants will commence operatio

  38. Slide 38: Coexistence with Local Communities

    Coexistence with Local Communities Support in time of disaster Promotion of culture, education and sports ■Conclusion of disaster-relief support agreements with ■OKUWA Educational and Cultural Promotion municipal governments of regions where our stores are Foundation located Agreements are entered i

  39. Slide 39: Where Diverse Human Resources Take on Challenges

    Creation of Appealing Workplace Where Diverse Human Resources Take on Challenges Promotion of diversity ■Promotion of active participation by women • At present, there are 28 female employees in managerial positions (up 11 from the previous fiscal year). • Starting from the current fiscal year, we w

  40. Slide 40: (Looking Back over) Medium-Term Management Plan

    (Looking Back over) Medium-Term Management Plan Fiscal year ended February 20, 2020 – Fiscal year ended February 20, 2022 Copyright © OKUWA Co., Ltd. All Rights Reserved. -40-

  41. Slide 41: Medium-Term Management Plan: Forecast vs Actual

    Medium-Term Management Plan (Fiscal Year Ended February 20, 2020 – Fiscal Year Ended February 20, 2022) (Million yen) ■Forecast figures (final forecast figures for each fiscal year) Initial Medium-Term Management Plan Fiscal year ended Fiscal year ended Fiscal year ended Consolidated February 20, 20

  42. Slide 42: Major Initiatives

    Medium-Term Management Plan (Fiscal Year Ended February 20, 2020 – Fiscal Year Ended February 20, 2022) Major Initiatives (1) Reborn (Transform ourselves) ・Inauguration of the new management and organizational reforms ・Closing down of unprofitable stores ・Review of stores and head office operations

  43. Slide 43: New Medium-Term Management Plan (Three Years)

    New Medium-Term Management Plan (Three Years) Fiscal year ending February 20, 2023 – Fiscal year ending February 20, 2025 Copyright © OKUWA Co., Ltd. All Rights Reserved. -43-

  44. Slide 44: OKUWA Management Vision

    New Medium-term Management Plan (1) OKUWA Management Vision “A supermarket that continues to transform, with a timeless spirit.” Recognized once again through operation during the Covid-19 pandemic • OKUWA’s essence • Importance as a lifeline • Meeting customers’ needs • Social responsibility and ro

  45. Slide 45: New Medium-Term Management Plan (1) (Key Measures)

    New Medium-Term Management Plan (1) (Key Measures) (1) Store strategy • Continuing with large-scale renovation of existing stores (an increase in successful cases and new challenges) • Trying new formats toward revitalization of the discount-type stores and SM-type stores • A share increase through

  46. Slide 46: New Medium-Term Management Plan (2) (Key Measures)

    New Medium-Term Management Plan (2) (Key Measures) (3) Labor strategy • Reduction in store operations through improved productivity of in-house plants • Leveling out of employees’ skills through promotion of education and improved motivation through a career-path system • Initiatives toward creation

  47. Slide 47: New Medium-Term Management Plan (3) (Key Measures)

    New Medium-Term Management Plan (3) (Key Measures) (5) Sustainability management • Enhancement of social contribution activities (support for children’s cafeterias offering free food, responses to food loss and waste, food banks, etc. ) • Environmental measures (energy conservation and reduction of

  48. Slide 48: Financial Results Targets (Consolidated)

    Financial Results Targets (Consolidated) Numerical targets for Fiscal year ending February 20, 2025 ○Operating income: 270.0 billion yen ○Ordinary profit: 6.5 billion yen ■Notes regarding handling of this material The plans, strategies, predictions of future business performance and business outlook

OKUWA — FY2021 Earnings Presentation on 6ix