Slide 1: Financial Results for FYE May 2021
Financial Results for FYE May 2021 July 15, 2021 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: Hiron
Slide 2: FYE May 2021 Results / FYE May 2022 Plan
FYE May 2021 Results 1. Statement of Income 2. Balance Sheet 3. Statement of Cash Flows 4. Store Openings/Closings 5. Performance Highlights 6. Statement of Income (Non-Consolidated) FYE May 2022 Plan 1. Targets for Consolidated Performance for FYE May 2022 2. Growth Strategy 3. Response to Lifestyl
Slide 3: FYE May 2021 Results
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Slide 4: Consolidated Statement of Income for FYE May 2021
1. Consolidated Statement of Income for FYE May 2021 ■Sales and profits have risen steadily for three consecutive years FYE May 2020 FYE May 2021 Results Results YoY (Millions of yen) Share (Millions of yen) Share Vs plan (%) (%) change (%) (%) Net sales 319,588 100.0 338,476 100.0 105.9 100.0 Gross
Slide 5: Consolidated Balance Sheet for FYE May 2021
2. Consolidated Balance Sheet for FYE May 2021 (Millions of yen) Total assets Breakdown of change 163,824 Total assets ■ Current assets +3,921 +10,401 +1,160 ・Increase in accounts receivable 153,423 ・Increase in products +3,524 Total liabilities ■ Non-current assets +6,479 Total liabilities Current
Slide 6: Consolidated Statement of Cash Flows for FYE May 2021
2. Consolidated Statement of Cash Flows for FYE May 2021 (Millions of yen) Breakdown of change FYE May FYE May Change 2020 2021 ■Cash flows from operating activities Cash flows from operating activities 22,765 11,572 –11,193 –11,193 Cash flows from ・Change in inventories –2,527 investing activities
Slide 7: Store Openings/Closings
3. Store Openings/Closings Store openings/closings and renovations ・Store openings: 39 drug stores / 34 prescription drug stores Kanagawa Tokyo Shizuoka Chiba Saitama Ibaraki Aichi Total Store Drug stores 25 7 1 3 1 0 2 39 opening Prescription drug stores 24 5 0 3 1 1 0 34 Store closings: 5 drug sto
Slide 8: Store Openings
3. Store Openings/Closings Store openings + Integration with Cremo format (Northport Mall) ■Large, more than 990 m2 non-food store in a shopping center ・One of Create’s largest assortments of merchandise →One of the largest assortments of merchandise in ■ the healthcare, beauty, and daily necessitie
Slide 9: Performance Highlights: Monthly trend in YoY sales
4. Performance Highlights Monthly trend in YoY sales ■Existing stores: Up 0.2% YoY (1H: Up 3.8%; 2H: Down 3.4%) Reactionary drop following Reactionary drop following previous year’s previous year’s consumption tax hike COVID-19-related demand Reduction of operating hours and continuation of voluntar
Slide 10: Performance Highlights: Net sales by segment
4. Performance Highlights Net sales -Net sales by segment- ■Demand for products related to preventing infection (masks and disinfectants) and quarantining (food and daily necessities) was up, but demand for makeup and general drugs for the common cold was down associated with people voluntarily stay
Slide 11: Gross profit margin/SG&A ratio
4. Performance Highlights Gross profit margin/SG&A ratio ■Gross profit margin: 27.77% Down 0.24 pts YoY <Factors pushing gross profit margin down> <Factors pushing gross profit margin up> ・Downward pressure from expansion of EDLP ・Boost from increase in prescriptions as a products percentage of sale
Slide 12: Dispensing department: sales, prescriptions, unit price
4. Performance Highlights Dispensing department -Net sales/No. of prescriptions/prescription unit price- ■Sales at all stores: Up 10.5% YoY Sales at existing stores: Up 6.9% YoY ・Number of prescriptions down and unit prices up in 1H due to fewer exams and longer-term prescriptions, but demand bounce
Slide 13: Dispensing department: existing store trends
4. Performance Highlights Dispensing department -Net sales/No. of prescriptions/prescription unit price- ■Sales at existing stores: Up 6.9% YoY (Number of prescriptions: Up 3.0%; Unit prices: Up 3.8%) ・Number of prescriptions down and unit prices up through 3Q due to fewer exams and longer- term pre
Slide 14: Non-consolidated Statement of Income for FYE May 2021
5. Non-consolidated Statement of Income for FYE May 2021 FYE May 2020 FYE May 2021 Results Results YoY (Millions of yen) Share (Millions of yen) Share Vs plan (%) (%) change (%) (%) Net sales 316,249 100.0 331,914 100.0 105.0 100.0 Gross profit 88,610 28.0 92,189 27.8 104.0 100.4 SG&A expenses 71,83
Slide 15: FYE May 2022 Plan
FYE May 2022 Plan 15
Slide 16: Revised FYE May 2022 Plan (Consolidated)
1. Revised FYE May 2022 Plan (Consolidated) ■Sales and profits expected to increase FYE May 2021 FYE May 2022 (Consolidated Targets) (Consolidated Results) (Millions of yen) Share (%) (Millions of yen) Share (%) YoY change (%) Net sales 338,476 100.0 352,600 100.0 104.2 Gross profit 93,365 27.6 95,8
Slide 17: Growth Strategy
2. Growth Strategy Accelerate promotion of in-store Drug stores 659 prescription drug stores In-store pharmacies 226 May 31, 2021 Rate of in-store pharmacies 34.3% Promote continued opening of No. of stores in-store prescription drug stores Dedicated prescription drug stores 36 (Results) and launch
Slide 18: Response to Lifestyle Changes
3. Response to Lifestyle Changes Strengthening of competitiveness of existing stores Respond to changes in lifestyles and purchasing behavior arising from COVID-19 and focus on achieving short-time, one-stop shopping ■Existing-store renovations: 32 stores ■Review of sales promotion methods ・Renovati
Slide 19: Promotion of Digital Transformation (DX)
4. Promotion of Digital Transformation (DX) Improvement of customer and patient experience Utilize digital tools to provide customers and patients with a new experience ■Optimization of marketing ■Response to diverse transaction methods ・Update point system ・Cashless transaction ratio: 46.4% (May 31
Slide 20: Contribution to Community Health
5. Contribution to Community Health Enhanced Professionalism Promote development of pharmacies that will be chosen by patients in the community in the aim of becoming a company that contributes significantly to community health in a super aging society ■Promotion of certification as ■Promotion of sh
Slide 21: Capital Investment and Dividends
6. Capital Investment and Dividends Trend in capital investment Trend in dividends ■Planning aggressive capital investment ■10 consecutive years of dividend increases →New stores, renovations, land purchases, system →Dividend increased 2 yen from initial plan in FYE May investments, etc. 2021 Stock
Slide 22: Promotion of Sustainable Management
7. Promotion of Sustainable Management Management philosophy We value being close to our customers and interacting with them Through interaction with local customers, we aim to become a company that contributes to community health as a lifeline protecting daily life and resolve social issues to real