Edion Corporation · TSE:2730
Edion — H1 FY03/24 Earnings Presentation
26 slides from Edion's earnings presentation, Nov 2, 2023
Slide 1: EDION Corporation Analyst Meeting 1H FY03/24
EDION Corporation Analyst Meeting 1H FY03/24 November 2, 2023 © EDION Corporation
Slide 2: 1H FY03/24 Results; FY03/24 Earnings Forecast and Key Topics
１. 1H FY03/24 Results ２． FY03/24 Earnings Forecast and Key Topics © EDION Corporation 1
Slide 3: 1H FY03/24 Results
１. 1H FY03/24 Results ２． FY03/24 Earnings Forecast and Key Topics © EDION Corporation 2
Slide 4: Review of 1H FY03/24
Review of 1H FY03/24 YoY comparisons for all stores (orders received at POS) （％） 1H YoY 99.6% (Vs. 2021 101.1％) 1Q YoY 95.0％ (Vs. 2021 98.4％) 2Q YoY 103.8％ (Vs. 2021 103.4％) General Comments 1H YoY 99.6％ In Japan, personal consumption was affected by soaring food and utility costs Vs. 2021 101.1％ 1Q
Slide 5: Consolidated Statements of Income
Consolidated Statements of Income 1H cumulative consolidated results are as follows 1H FY03/23 1H FY03/24 Million yen, % % of 1H % of 1H % of Sales Results % of Sales Results YoY Change FY03/22 FY03/23 Net Sales 351,115 100.7 352,577 100.4 1,462 Gross Profit 30.40 106,754 100.6 30.22 106,544 99.8 △2
Slide 6: Despite special factors, our sales remained robust
1H Earnings Despite special factors, our sales remained robust Due to the effects of the (JPY bn.) Consum COVID-19 lockdown in Net sales Shanghai, China, it is ption undeniable that there is a tax hike shortage of products, and stay-at-home demand interest in air conditioners JPY325.5bn in particula
Slide 7: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 1H FY03/24; includes orders (orders received at POS) （％） TVs YoY 90.8 % （Vs. 2021 77.4） Remained Sluggish Although sales appear weak, demand remains solid due to the increase in the number of video content subscribers and replacement of large-sized TV
Slide 8: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 1H FY03/24; includes orders (orders received at POS) （％） Refrigerators YoY 98.7 % （ Vs. 2021 104.3） Were Weak Customer needs are shifting from large capacity refrigerators to medium capacity (400L class), but replacement purchases are progressing stea
Slide 9: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 1H FY03/24; includes orders (orders received at POS) （％） 110 PCs 93.3 94.1 100 88.5 89.1 84.8 90 YoY 88.1 % 78.5 （ Vs. 2021 83.9） 80 89.3 84.9 88.4 82.0 70 78.4 78.8 Remained 60 Sluggish Apr. May Jun. Jul. Aug. Sep. The rush to buy products due to the
Slide 10: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 1H FY03/24; includes orders (orders received at POS) （％） Mobile Phones 120 117 (by units sold) 110 108 108.3 107.7 110 105.6 100.6 YoY 103.2 % 97.2 96.9 106.9 100 104.7 （ Vs. 2021 107.2） 100.3 90 Remained Apr. May Jun. Jul. Aug. Sep. Favorable Mobile
Slide 11: 1H Gross Profit Margin and SG&A Ratio
1H Gross Profit Margin and SG&A Ratio 1 Gross profit margin 2 SG&A-to-sales ratio （％） （％） 33 33 31 30.43 30.40 30.22 31 30.14 29.41 29 29 27.6 27.5 27.2 26.7 27 27 25.8 25 25 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ●Gross profit margin: 30.22% in 1H FY03/2024, ●SG&A expenses: 1H FY03/24.:
Slide 12: 1H Consolidated Balance Sheet and Consolidated Statements of Cash Flows
1H Consolidated Balance Sheet and Consolidated Statements of Cash Flows Consolidated Balance Sheet （Million yen） Consolidated Statements of Cash Flows （Million yen） End-March End-September YoY Change 2023 2023 1H FY03/23 1H FY03/24 Cash and cash equivalents 13,235 17,325 4,089 CFs from Operating 7,8
Slide 13: Inventory Status
Inventory Status (JPY bn.) Sales decreased by 14 billion yen from the end of the previous fiscal year to 122.3 billion yen TVs Air Air conditioner inventory in preparation for Condit the summer sales season was sold as planned ioners Washing Refrigerators Machines PCs ELS Other End-June 2023 End-Sep
Slide 14: FY03/24 Earnings Forecast and Key Topics
１. 1H FY03/24 Results ２． FY03/24 Earnings Forecast and Key Topics © EDION Corporation 13
Slide 15: Consolidated Earnings Forecast
Consolidated Earnings Forecast 1H 2H FY03/24 % of Million yen, % Results YoY Change Forecast YoY Change % of Sales Forecast YoY Change FY03/23 Net Sales 352,577 100.4 392,422 106.2 100.0 745,000 103.4 +24,415 Gross Profit 106,544 99.8 111,805 107.4 29.3 218,350 103.5 +7,473 SG&A Expenses 95,765 99.3
Slide 16: Key Topics; Rapid Decision-Making in Management
Key Topics; Rapid Decision-Making in Management As of October 1, 2023, the organization was reorganized and a responsible officer was appointed Sales Department >>> New business, product, marketing, etc. Masataka Kubo E-commerce >>> EDION own site management, planning and Department Chairman and CEO
Slide 17: Key Topics; Expansion of Logistics Service Business
Key Topics; Expansion of Logistics Service Business We Are Working to Enhance Our Menu of Cleaning Services Annual Growth Rate of 10% Set as Medium-Term Management Vision The first half of the fiscal year ending March 2024 was 110% compared to the previous year, as planned. We will continue to stren
Slide 18: Key Topics; Expansion of Customer's Service
Key Topics; Expansion of Customerʼs Service Unifying repair reception in October 2023 Establishing a dedicated channel will lead to more efficient store operations ➡ Reduce in-store phone response time Increase in dedicated operators Introduction of chatbot Rapid repair response © EDION Corporation
Slide 19: Key Topics; Abundant Product Range
Key Topics; Abundant Product Range Products Portable Ice Maker Rich in Variety, Play, and Awareness Dual Wield Earphones Cooler that fits in Marshall the palm Bar Fridge of your hand Travel Fan © EDION Corporation 18
Slide 20: Store Openings, Relocations, and Closings (Actual and Planned)
Store Openings, Relocations, and Closings (Actual and Planned) Relocations and End-of-Period Store (stores) New openings Closures YoY Change Renovations Count FY03/23 Results Full-year 5 3 4 +1 450 4 1H Results 4 5 (including two non- ±0 450 home electronics stores) FY03/23 Plan 2H Plan 5 1 - 5 455
Slide 21: Key Topics; Opening of First Flagship Store in Kanto
Key Topics; Opening of First Flagship Store in Kanto EDION's Largest New Store Opens in Yokohama EDION TSUTAYA ELECTRICS EDION Namba main EDION Kyoto shijō Kawaramachi (Hiroshima Prefecture) (Oosaka Prefecture) (Kyoto Prefecture) December 15, 2023 2017 2019 2021 EDION Yokohama-Nishiguchi main (Kanag
Slide 22: Key Topics; Environmentally Friendly Store Management
Key Topics; Environmentally Friendly Store Management Obtained “Nearly ZEB” Certification EDION Gifu-Masaki (Gifu Prefecture) EDION Katano-Hoshida (Oosaka Prefecture) As a building that is as close to ZEB (= zero annual primary energy consumption balance), Evaluated as capable of reducing annual pri
Slide 23: Strengthening of Sustainability Management
Strengthening of Sustainability Management Intensification of Relevant Initiatives 1 Initiatives Targeting a Sound Material-Cycle Society In pursuit of a sound material-cycle society, we actively ensure proper disposal of home electronics products covered by the Act on Recycling of Specified Home Ap
Slide 24: EDION Integrated Report 2023
EDION Integrated Report 2023 Published on official website >>> https://www.edion.co.jp/en/ir/library/integration © EDION Corporation 23
Slide 25: Dividends and Share Prices
Dividends and Share Prices While striving to improve capital efficiency, as Interim dividend measured through ROIC growth, we will focus on Year-end dividend maintaining a sound and stable balance sheet. Commemorative dividend 70 Payout ratio 35.1% 39.2% 44.0% 37.6% 1. Dividend Policy 60 33.6% 39.0%
Slide 26: Disclaimer
Disclaimer • The financial forecasts and other forward-looking statements in these materials are based on judgment made under normally foreseeable conditions, in accordance with information reasonably available to the Company as of the date these materials were produced. • The forward-looking statem