Slide 1: Financial Results for FYE May 2022
Financial Results for FYE May 2022 July 14, 2022 The earnings forecasts in this document are based on the business environment as of the time of writing. Actual results may differ from projections due to a variety of factors.Note also that inquiries should be submitted in Japanese. Inquiries: Hirono
Slide 2: FYE May 2022 Results, FYE May 2023 Plan, Medium-term Management Plan
FYE May 2022 Results 1. Consolidated Statement of Income 2. Consolidated Balance Sheet 3. Store Openings/Closings (Non-Consolidated) 4. Performance Highlights (Non-Consolidated) FYE May 2023 Plan 1. New Store Openings and Renovation of Existing Stores 2. Sales Measures 3. Digital Strategy 4. Capital
Slide 3: FYE May 2022 Results
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Slide 4: 1. Consolidated Statement of Income for FYE May 2022
1. Consolidated Statement of Income for FYE May 2022 [Reference] Estimates Based on FYE May 2021 Results FYE May 2022 Results Old Standard FYE May 2022 Results YoY Vs YoY (Millions of yen) Share (Millions of yen) Share chang (Millions of yen) Share plan change (%) (%) e (%) (%) (%) (%) Net sales 338
Slide 5: 2. Consolidated Balance Sheet for FYE May 2022
2. Consolidated Balance Sheet for FYE May 2022 May 31, 2021 May 31, 2022 (Millions of yen) Total assets Total assets 163,824 176,910 ■ Current assets +7,031 +13,086 Increase in cash equivalents +2,784 Increase in accounts receivable +1,476 Total Increase in merchandise +2,159 Current liabilities Tot
Slide 6: 3. Store Openings/Closings (Non-Consolidated)
3. Store Openings/Closings (Non-Consolidated) Store closings: 3 drug stores (1 for S&B, and 2 after ■ Store openings/closings and renovations completion of contract), 1 dedicated prescription drug store (after completion of contract) No. of store openings Kanagawa Tokyo Shizuoka Chiba Aichi Other To
Slide 7: 3. Store Openings/Closings: Conversion to drug store complex
3. Store Openings/Closings (Non-Consolidated) Conversion to drug store complex ■ Kawasaki Hoshigaoka store (Kawasaki City, Kanagawa) ・Opened in collaboration with Yuri Store supermarket ・Opened tenant stores in existing supermarkets, renovating into complex establishment ・In-store prescription drug
Slide 8: 4. Performance Highlights (Non-Consolidated)
4. Performance Highlights (Non-Consolidated) OTC: Reactionary drop to previous year’s special demand for antiviral and stay-at-home products Prescription drug stores: Sales remained firm with people going back for medical exams after the previous year ■ YoY net sales comparison at existing stores (c
Slide 9: 4. Performance Highlights: Net sales by segment
4. Performance Highlights (Non-Consolidated) ■ Net sales by segment ・Prescriptions as a percentage of sales up from 9.7% to 10.6% (up 0.9 pts from previous year) ・Reactionary drop following previous year’s special demand for antiviral products, cold medicines and make- up cosmetics still sluggish ・F
Slide 10: 4. Performance Highlights: Gross profit margin/SG&A ratio
4. Performance Highlights (Non-Consolidated) ■ Gross profit margin/SG&A ratio (Based on Old Standard) Gross profit margin: 28.06% Up 0.29 pts YoY Up 0.12 pts vs target Improvement factors: ・ Increase in prescriptions as percentage of sales ・ Increase sales of antigen testing agents and antipyretic a
Slide 11: 4. Performance Highlights: Prescription drug store department
4. Performance Highlights (Non-Consolidated) ■ Prescription drug store department With people going back for medical exams and the end to longer-term prescriptions in previous year, both number of prescriptions and net sales were firm YoY change FYE May 2021 Results FYE May 2022 Results (%) Sales at
Slide 12: FYE May 2023 Plan
FYE May 2023 Plan 12
Slide 13: 1. New Store Openings and Renovation of Existing Stores
1. New Store Openings and Renovation of Existing Stores ■New store openings May 31, 2022 May 31, 2023 No. of stores No. of stores 40 drug stores / 65 prescription drug stores In-store pharmacy rate 46.9% (+7.0 pts) Drug stores 686 723 ・Greater dominance in different types of store In-store pharmacie
Slide 14: 2. Sales Measures (Drug Store Department)
2. Sales Measures (Drug Store Department) ■ Review business hours to meet customer needs ・Review business hours of drug stores which were ・Earlier store open: reduced all across the country because of the pandemic Approx. 30 stores in line with the local area and customer needs ・Longer evening hours
Slide 15: 2. Sales Measures (Prescription Drug Store Department)
2. Sales Measures (Prescription Drug Store Department) ■ Greater dominance in prescription drug stores ・New store openings Prescription drug stores 65 stores In-store pharmacy rate 46.9% (+7.0 pts) ・As of May 31, 2024: In-store pharmacy rate 50% (forecast) ・Strengthen cooperation with neighboring me
Slide 16: 3. Digital Strategy
3. Digital Strategy ■ Promote use of official app and expand functionality ・Promote shift from traditional card members to app members ... Distributing various coupons on the app ・Expand prescription functionality on the official app ... Prescription forwarding, electronic prescription record, onlin
Slide 17: 4. Capital Investment and Dividends
4. Capital Investment and Dividends ■Trend in capital investment ■Trend in dividends Planning aggressive capital investment 10 consecutive years of dividend increases ⇒ New stores and renovations, land purchases, ... Stable and continuous dividend increase distribution centers, system investments, e
Slide 18: 5. FYE May 2023 Full Year Plan (Consolidated)
5. FYE May 2023 Full Year Plan (Consolidated) *After standard for revenue recognition applied FYE May 2022 Results FYE May 2023 Plan Full-year Share Share YoY Difference (Millions of yen) (Millions of yen) change (%) (%) (Millions of yen) (%) Net sales 350,744 100.0 371,300 100.0 105.9 +20,555 Gross
Slide 19: Medium-term Management Plan
Medium-term Management Plan 19
Slide 20: Medium-term Management Plan
Medium-term Management Plan ■ Net sales target (consolidated) ■ Store opening strategy (Billions of yen) ・Concentrate store openings in areas of population 500.0 growth in Kanto/Tokai region 500 ・Greater dominance with different types of store openings 450 420.0 Prefectures Gunma with a growing 5 st
Slide 21: Sustainability Management
Sustainability Management 21
Slide 22: Promoting Sustainability Management
Promoting Sustainability Management ■ Initiatives in FYE May 2021 * Establishment of the Sustainability Promotion Committee * Establishment of the Nomination and Remuneration Committee consisting primarily of independent outside directors * Creation of Basic Policy on Sustainability and identificati
Slide 23: Sustainability Initiatives
Sustainability Initiatives ■ Business activities with the global environment in mind Continued ISO 14001* certification *ISO 14001 - An international standard for environmental management systems ⇒ Since 2001, continuous certification at all stores for more than 20 years ・Reducing waste (plastic bot
Slide 24: Sustainability Initiatives
Sustainability Initiatives ■ Contribution to health of customers, patients and to community medical care Support base that assists daily life, prevention, treatment, and nursing care ・Promotion of family pharmacies ・Social contributions in the nursing care field, collaboration with home medical care
Slide 25: Sustainability Initiatives
Sustainability Initiatives ■ Realization of a rewarding company that values its employees Good work environment and diversity for employees ・Creation of a work environment that is comfortable for women to work in (finding ways to limit heavy loads in distribution centers and with work equipment) ・Ch
Slide 26: Promoting Sustainability Management
Promoting Sustainability Management ■ Priority material issues Material Issues Group Direction Example Initiative Business activities with the ・Reduction of greenhouse gas emissions ・Acquisition and maintenance of ISO 14001 certification at all global environment in mind ・Improved resource and energ