AOKI Holdings, Inc. · TSE:8214
AOKI — H1 FY3/2011 Earnings Presentation
54 slides from AOKI's earnings presentation, Nov 18, 2010
Slide 1: Performance Briefing for the First Half of FY Ending March 31, 2011
Performance Briefing for the First Half of the Fiscal Year Ending March 31, 2011 November 18, 2010 AOKI Holdings Inc.
Slide 2: Contents
Contents AOKI Group's Business Portfolio Management 3 Anniversaire and Bridal Business Performance and Forecast 27 Management 4-5 28 Current Status of Business Portfolio Industry Trends and Position within Industry First Half of FY3/11 Review of Operations 6 First Half of FY3/11 Review of Operations
Slide 3: AOKI Holdings' Business Portfolio Management
AOKI Holdings' Business Portfolio Management
Slide 4: Business Portfolio Comprised of Three Businesses
Business Portfolio Comprised of Three Businesses Anniversaire and Bridal Fashion Business Business Entertainment Business "Pleasure of dressing well" Choreographing special events where Offering entertainment and relaxation The AOKI Group's founding business. Suits are customers are in the spotlight
Slide 5: FY3/11 First-half Financial Highlights
FY3/11 First-half Financial Highlights First-half Sales First-half Operating Profit The Fashion Business returned to profitability New store openings contributed to greater sales in the Entertainment Business (Millions of yen) (Millions of yen) 2,000 70,000 894 894 60,000 57,908 58,603 1,500 50,000
Slide 6: First Half of FY3/11 Review of Operations
First Half of FY3/11 Review of Operations
Slide 7: Consolidated Profit and Loss
Consolidated Profit and Loss (Millions of yen) Account/Period 1H FY3/10 1H FY3/11 Change YoY % Major components Increase in existing-store sales at AOKI Sales 57,908 58,603 694 101.2 and ORIHICA, and contributions from new stores in the Entertainment Business Gross profit 25,639 26,231 592 Gross pro
Slide 8: FY3/11 First-half Financial Highlights
FY3/11 First-half Financial Highlights Slight increase in sales, and large increase in profits, on strong existing-store sales in Fashion Business (億円)million yen) (Hundred Sales (Hundred million yen) Operating profit 700 25 579 577 586 21 600 20 49 58 60 14 4 108 122 121 500 58 64 61 8 15 3 4 12 7
Slide 9: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment [Sales by business segment] (Millions of yen) Business segment 1H FY3/10 1H FY3/11 Change YoY % Major components Total 57,908 58,603 694 101.2 Fashion 35,832 35,466 -366 99.0 Decrease in sales due to the closure of M/X stores Anniversaire and Bridal 11,
Slide 10: Major Changes in Consolidated Balance Sheets
Major Changes in Consolidated Balance Sheets (Millions of yen) Account/Period 1H FY3/11 FY3/10 Change Major components Current assets 42,449 43,424 -975 Decrease in accounts receivable-trade, etc. Cash in hand and in banks 18,146 16,997 1,148 Increase in long-term debt, etc. Inventories 16,411 15,68
Slide 11: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) Account/Period 1H FY3/10 1H FY3/11 Change Major components Decrease in income taxes paid of ¥2,751 million Cash flows from Decrease in accounts payable-trade of ¥2,174 -4,625 3,242 7,867 million operating activities Asset retirement obligations
Slide 12: Number of Stores Opened/Closed
Number of Stores Opened/Closed (Millions of yen excluding number of stores) 1H FY3/10 1H FY3/11 Segment Stores/facilities Number of Number of Opened Closed Opened Closed Stores Stores AOKI 424 14 3 428 1 4 Fashion ORIHICA 49 4 - 57 8 3 ANNIVERSAIRE, Anniversaire and Bridal WEDDING VILLAGE, 12 - - 12
Slide 13: FY3/11 Full-year Sales and Earnings Forecasts
FY3/11 Full-year Sales and Earnings Forecasts
Slide 14: Consolidated Forecast
Consolidated Forecast (Millions of yen) FY3/11 Account/Period FY3/10 Change YoY % Major components (forecast) M/X store closings generally offset by new Sales 131,124 130,300 -824 99.4 store openings Gross profit 60,637 60,450 -187 Gross profit margin 99.7 0.4pt improvement at AOKI and ORIHICA 46.2%
Slide 15: Forecast for Sales and Operating Profit by Business Segment
Forecast for Sales and Operating Profit by Business Segment [Sales by business segment] (Millions of yen) Business segment FY3/10 FY3/11 (forecast) Change YoY % Total 131,124 130,300 -824 99.4 Fashion 85,910 82,500 -3,410 96.0 Anniversaire and Bridal 22,794 22,820 25 100.1 Entertainment (Total) 22,4
Slide 16: Outlook for Store Openings/Closings
Outlook for Store Openings/Closings (Millions of yen excluding number of stores) FY3/10 FY3/11 (forecast) Business segment Stores/facilities Number of Number of To be To be Opened Closed Stores Stores opened closed AOKI 431 23 5 431 4 4 Fashion ORIHICA 52 10 3 69 20 3 Anniversaire and Bridal ANNIVER
Slide 17: Fashion Business
Fashion Business First-half of FY3/11 Performance and Full-year Forecast
Slide 18: Fashion Business-First Half of FY3/11 Review of Operations
Fashion Business-First Half of FY3/11 Review of Operations Sales declined slightly as the closure of M/X stores last year outweighed the increase in existing-store sales, but profits rose sharply due to an improvement in the gross profit margin Sales Operating profit Sales down 1.0% YoY ( Sales: M
Slide 19: Fashion Business: Existing-store Sales, Customer Volume and Sales per Customer
Fashion Business-First Half of FY3/11 Review of Operations Fashion Business: Existing-store Sales, Customer Volume and Sales per Customer Existing-store sales firm due to increase in customers and stable sales per customer Strong Strong sales sales of Heat Heat wave wave spurred spurred strong stron
Slide 20: AOKI: First-half Initiatives and Performance
Fashion Business-First Half of FY3/11 Review of Operations AOKI: First-half Initiatives and Performance Existing-store sales increased thanks to development of functional core products, marketing strategy benefits, and strong sales of Cool Biz products spurred by the heat wave Initiatives Perfor
Slide 21: ORIHICA: First-half Initiatives and Performance
Fashion Business-First Half of FY3/11 Review of Operations ORIHICA: First-half Initiatives and Performance Existing-store sales increased due to efforts to refine the product lineup including Cool Biz, and the size of the business expanded due to accelerated openings of new stores Initiatives Pe
Slide 22: AOKI: Second Half of FY3/11 Initiatives-1
Fashion Business: FY3/11 Full-year Forecast AOKI: Second Half of FY3/11 Initiatives-1 We will continue to thoroughly revitalize existing stores through the coordination of product line-up, sales promotions, visual merchandising, and marketing planning centered on core products Merchandise: strengt
Slide 23: AOKI: Second Half of FY3/11 Initiatives-2
Fashion Business: FY3/11 Full-year Forecast AOKI: Second Half of FY3/11 Initiatives-2 We will continue to thoroughly revitalize existing stores through the coordination of product line-up, sales promotions, visual merchandising, and marketing planning centered on core products Store environment: c
Slide 24: ORIHICA: Second Half of FY3/11 Initiatives
Fashion Business: FY3/11 Full-year Forecast ORIHICA: Second Half of FY3/11 Initiatives Continue to aggressively open new stores while refining prototype stores Store development: Continue to aggressively open new stores z Together with 12 stores for 2H, our plan is to open a total of 20 stores in
Slide 25: FY3/11 Earnings Forecast
Fashion Business: FY3/11 Full-year Forecast FY3/11 Earnings Forecast We forecast a decline in sales and increase in profits due to the net impact of an increase in existing-store sales in 1H and the closure of M/X stores last year (Sales: Millions of yen) (Operating profit: Millions of yen) 100,000
Slide 26: ORIHICA: Toward further growth through aggressive store openings
Fashion Business ORIHICA: Toward further growth through aggressive store openings We aim to achieve a triple-digit network of stores within three years of turning profitable Number of Stores <Brand Concept> Key to the new lifestyle – create and provide new value 120 z"Business and business-to-casual
Slide 27: Anniversaire and Bridal Business
Anniversaire and Bridal Business FY3/11 First-half Performance and Full-year Forecast RAVIS Inc., which operated the ANNIVERSAIRE and bridal business, changed its name to ANNIVERSAIRE INC. effective October 1, 2010.
Slide 28: Share of Guesthouse Weddings Rising Every Year
Anniversaire and Bridal Business—Industry Trends Share of Guesthouse Weddings Rising Every Year Market size Approximately ¥2 trillion Value of wedding and reception market: 719,822 marriages annually multiply ¥2 trillion nationwide average sales per couple of ¥ 3.26 million Wedding-related market: 2
Slide 29: We Operate Three Brands Mainly in Large Cities
Anniversaire and Bridal Business: Features and Position within Industry We Operate Three Brands Mainly in Large Cities Manage 12 facilities and 32 halls An integrated facility whose theme is Operated over comparatively large grounds Possible to open this facility in "anniversary" Includes
Slide 30: Anniversaire and Bridal Business-First Half Review of Operations
Anniversaire and Bridal Business-First Half of FY3/11 Review of Operations Sales declined slightly, and profits fell, due to a decline in the number of couples married resulting from fewer holidays, and the emergence of expenses to prepare for the opening of a new facility Operating profit Sales /Op
Slide 31: Analytic Indices
Anniversaire and Bridal Business-First Half of FY3/11 Review of Operations Analytic Indices 1H FY3/10 1H FY3/11 Change YoY % No. of facilities at period- end 12 12 ±0 100.0% No. of wedding/reception halls at period-end 32 32 ±0 100.0% No. of couples married 2,724 2,637 -87 96.8% Capacity utilization
Slide 32: FY3/11 Full-year Forecast
Anniversaire and Bridal Business: FY3/11 Full-year Forecast FY3/11 Full-year Forecast We forecast a slight increase in sales, but a decline in profits, due to an increase in expenses for the opening of a new facility in spring 2011 Strategy going forward FY3/11 Plan We will uniformly apply the "A
Slide 33: Towards Growth Strategy 1. Change the company and facility name
Anniversaire and Bridal Business—Further Evolution Towards Growth Strategy 1. Change the company and facility name Company name changed in October 2010 RAVIS INC. ANNIVERSAIRE INC. Facility name will change in January 2011 WEDDING VILLAGE ANNIVERSAIRE PARTIRE GEIHINKAN Origin of new company name and
Slide 34: Towards Growth Strategy 2. Introduced original products
Anniversaire and Bridal Business—Further Evolution Towards Growth Strategy 2. Introduced original products Launched "Wedding Gift Collection" sales in November 2010 Purpose ◆ Improve profit margins by offering original products ◆ Provide high value-added products in the "ANNIVERSAIRE" brand ◆ Enhan
Slide 35: Towards Growth Strategy 3. Opening a New Model Facility
Anniversaire and Bridal Business—Further Evolution Towards Growth Strategy 3. Opening a New Model Facility Spring 2011 grand opening of "ANNIVERSAIRE TOYOSU" Features ◆ Ideally located just a 5-minute train ride from Ginza, and a 3-minute walk from Toyosu Station ◆ Follows the wedding style of ANNI
Slide 36: Entertainment Business
Entertainment Business FY3/11 First-half Performance and Full-year Forecast We subdivided the entertainment business into two segments from FY3/11: the karaoke facility operations segment and the café complex operations segment
Slide 37: Top-tier Industry Position, and Large Growth Potential
Entertainment Business—Facility Chain, and Industry Position Top-tier Industry Position, and Large Growth Potential Number of facilities 251 268 facilities 217 Karaoke 121 123 206 (as of Nov. 18, 2010) 181 Café complex 143 133 Akita Fitness 22 Yamagata Niigata Gunma Iwate Tochigi Miyagi Nagano Toyam
Slide 38: Facility Features: Facilities Based on a Clear Concept (1)
Entertainment Business—Facility Types Facility Features: Facilities Based on a Clear Concept (1) Relaxing space for tomorrow's dynamism COTE D'AZUR, a karaoke and party facility that draws inspiration from the "paradise-on-earth" coastal region of the same name in southern France, provides a refresh
Slide 39: Facility Features: Facilities Based on a Clear Concept (2)
Entertainment Business—Facility Types Facility Features: Facilities Based on a Clear Concept (2) Extreme relaxation close at hand Café complex "KAIKATSU CLUB," which draws inspiration from the Asian resort island of Bali, is a "relaxation convenience store." We provide "convenient" relaxation space
Slide 40: Entertainment Business-First Half of FY3/11 Review of Operations
Entertainment Business—First Half of FY3/11 Review of Operations Increase in sales due to new facility openings, but slight decline in profits from rise in facility-opening expenses Sales Operating profit/ (Millions of yen) (Millions of yen) Operating margin (overall) 1H FY3/11 Financial Highlights
Slide 41: Karaoke Facility Operation Business-First Half Review
Karaoke Facility Operation Business—First Half of FY3/11 Review of Operations Increase in sales due to new facility openings, but decline in profits due to lower existing-facility sales and an increase in facility-opening expenses (Millions of yen) 1H FY3/11 Financial Highlights 1H FY3/11 Sales 6,11
Slide 42: Karaoke Facility Operation Business-FY3/11 Full-year Forecast
Karaoke Facility Operation Business—FY3/11 Full-year Forecast FY3/11 Full-year Forecast We forecast an increase in sales due to 16 new facility openings, but a decline in profits due to lower existing-facility sales and an increase in facility-opening expenses Sales up 4.8% YoY New facility openin
Slide 43: Café Complex Operations Business-First Half Review
Café Complex Operations Business—First Half of FY3/11 Review of Operations Despite an increase in facility-opening expenses, sales and profits rose due to new facility openings and greater sales at existing facilities (Millions of yen) 1H FY3/11 Financial Highlights 1H FY3/11 YoY % % to sales Sales
Slide 44: Café Complex Operations Business-FY3/11 Full-year Forecast
Café Complex Operations Business—FY3/11 Full-year Forecast FY3/11 Full-year Forecast We forecast an increase in sales and profits due to new facility openings and plans to increase sales at existing facilities Sales up 19.6% YoY New facility openings: 9 for 1H, 12 for 2H, 21 for full year Remodel
Slide 45: Supplementary Documents
Supplementary Documents Notes on page 46, 48 : 1. Earnings per share: Net income divided by average number of common shares outstanding (excluding treasury stock). 2. All amounts are rounded down to million yen. 3. The combined operating profit for each segment and total operating profit do not matc
Slide 46: First Half of FY3/11 Consolidated Business Results
First Half of FY3/11 Consolidated Business Results (Millions of yen excluding %) 1H FY3/10 1H FY3/11 1H FY3/11 % % % YoY change YoY % Results Plan Results Sales 57,908 100.0 57,700 100.0 58,603 100.0 694 101.2 Fashion 35,832 100.0 34,300 100.0 35,466 100.0 -366 99.0 Anniversaire/Bridal 11,263 100.0
Slide 47: First Half of FY3/11 SG&A Expenses
First Half of FY3/11 SG&A Expenses (Millions of yen excluding %) 1H FY3/10 Results 1H FY3/11 Results Anniversaire Café Anniversaire Café Total Fashion Karaoke Total Fashion Karaoke / Bridal complex / Bridal complex YoY % YoY % YoY % YoY % YoY % Advertising 3, 208 2,478 588 69 46 3,371 105.1 2,604 10
Slide 48: FY3/11 Consolidated Forecast
FY3/11 Consolidated Forecast (Millions of yen) FY3/10 FY3/11 % % YoY change YoY % Results Plan Sales 131,124 100.0 130,300 100.0 -824 99.4 Fashion 85,910 100.0 82,500 100.0 -3,410 96.0 Anniversaire/Bridal 22,794 100.0 22,820 100.0 25 100.1 Karaoke 12,437 100.0 13,040 100.0 602 104.8 Café Complex 9,9
Slide 49: FY3/11 SG&A Expenses
FY3/11 SG&A Expenses (Millions of yen excluding %) FY3/10 Results FY3/11 Plan Anniversaire/ Café Anniversaire/ Café Total Fashion Karaoke Total Fashion Karaoke Bridal complex Bridal complex YoY % YoY % YoY % YoY % YoY % Advertising 8,004 6,407 1,046 170 90 8,480 105.9 6,700 104.6 1,230 117.6 253 148
Slide 50: Reference: First Half of FY3/11 Fashion Business Performance
Reference: First Half of FY3/11 Fashion Business Performance (1) Change in existing-store sales (%) Apr. May Jun. Jul. Aug. Sep. First half Second half Full year FY3/11 0.3 3.0 0.2 3.9 6.4 3.4 2.2 FY3/10 -9.6 -4.8 -13.3 -12.5 -5.7 -4.6 -8.8 -3.2 -5.6 (2) Change in number of customers and sales per c
Slide 51: Sales by category; Average total sales area
(4) Sales by category (Millions of yen) 1H FY3/10 1H FY3/11 % % YoY change YoY % Results Results Heavy clothing 16,616 46.4 17,150 48.4 533 103.2 Medium clothing 3,810 10.6 3,813 10.8 3 100.1 Light clothing 14,475 40.4 13,530 38.1 -944 93.5 Other 930 2.6 971 2.7 41 104.4 Total 35,832 100.0 35,466 10
Slide 52: Store network by prefecture
(6) Store network by prefecture (Number of stores) FY3/10 1H FY3/11 No. of stores at period-end No. of stores opened No. of stores closed No. of stores at period-end AOKI ORIHICA M/X Total AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total Hokkaido 15 15 15 15 Iwate 2 2 2 2 Miyagi 6 3 9 6 3 9
Slide 53: Reference: FY3/11 Fashion Business Outlook
Reference: FY3/11 Fashion Business Outlook (1) Change in existing-store sales (%) First half Second half Full year FY3/11 (plan) 2.2 -1.9 -0.2 FY3/10 -8.8 -3.2 -5.6 (2) Change in number of customers and sales per customer at existing stores (%) First half Second half Full year Customers FY3/11 (plan
Slide 54: Sales plan by category
(3) Sales plan by category (Millions of yen) FY3/10 FY3/11 % % YoY change YoY % Results Plan Heavy clothing 42,301 49.2 41,830 50.7 -471 98.9 Medium clothing 6,701 7.8 6,500 7.9 -201 97.0 Light clothing 34,801 40.5 32,070 38.9 -2,731 92.2 Other 2,105 2.5 2,100 2.5 -5 99.7 Total 85,910 100.0 82,500 1