Slide 1: Corporate Presentation (Fiscal Year Ended March 31, 2018)
CORPORATE PRESENTATION (Fiscal Year Ended March 31, 2018) 基幹カタログ「ベルーナ」 ▲ ▲ Cosmetics mail order BELLUNA Net - Main catalog Apparel stores 「OZIO」 A mail order website BELLUNA 「BELLUNA」 Friday, May 25, 2018
Slide 2: Contents
Contents 1.Financial Highlights P.2 2.Management Policies and Initiatives P.12 1
Slide 3: 1. Financial Highlights
1. Financial Highlights 1. Financial overview 2. Financial summary 3. Profitability by segment 4. Analysis of increases and decreases in sales 5. Analysis of increases and decreases in operating income 6. Balance sheet 7. Statement of cash flows 8. Plan for FY March 2019 2
Slide 4: 1-1. Financial overview
1-1. Financial overview Net sales, operating income and net income reached the forecasts. Net sales increased 10.7% year on year. Operating income increased 19.5% year on year, particularly thanks to the Retail Store Sales Business. Ordinary income increased 8.7% only, due to exchange rate-rel
Slide 5: 1-2. Financial summary
1-2. Financial summary Net sales:10.7% up year on year to surpass the plan Operating income:19.5% up year on year to reach the plan While ordinary income was below the forecast due to exchange rate-related losses, net income exceeded the forecast. Unit: Billion Yen FY March 2017 FY March 2018 FY Mar
Slide 6: 1-3. Profitability by segment
1-3. Profitability by segment Net sales: Sales increased in all segments. Operating income: Operating income increased in Retail Store Sales and three other segments. It decreased in General Mail Order and two other segments. • Increased profitability of existing apparel stores contributed to growth
Slide 7: 1-4. Analysis of increases and decreases in sales
1-4. Analysis of increases and decreases in sales In the Specialty Mail Order segment, sales in the gourmet and wine business and cosmetics business remained strong and helped significantly increase profit. Sales in the General Mail Order segment grew thanks to a rise in sales through catalogs targe
Slide 8: 1-5. Analysis of increases and decreases in operating income
1-5. Analysis of increases and decreases in operating income Operating income grew substantially thanks largely to the sale of real estate and the opening and increased occupancy of the Kyoto hotel in the Property segment, together with higher profitability mainly at apparel stores in the Retail Sto
Slide 9: 1-6. Balance sheet
1-6. Balance sheet Assets rose, mainly reflecting increases in cash and deposits, operating loans, merchandise and tangible fixed assets. Whereas, liabilities rose, partially due to increased interest bearing liabilities. Unit: Billion Yen As of March As of March Change 31,2017 31,2018 Current liabi
Slide 10: 1-7. Statement of cash flows
1-7. Statement of cash flows Cash flow from investing activities was negative largely due to the acquisition of tangible fixed assets, which was offset by an increase in operating cash flow and financing cash flow, mainly as a result of the bond issuance proceeds. FY March FY March 2018 Unit: Billio
Slide 11: 1-8. Plan for FY March 2019
1-8. Plan for FY March 2019 Net sales continues to be above the target and operating income is expected to reach the target. The aim for the fiscal year ending March 2019 is to increase net sales by 11.3% year on year, or to 180 billion yen, as well as operating income by 15.3%, or to 15 billion yen
Slide 12: 1-8. Plan for FY March 2019 (budgets by segment)
1-8. Plan for FY March 2019 Net sales will continue to increase with a focus on the four main businesses. Profit growth will be led by segments such as the Specialty Mail Order business, which implemented the active acquisition of new customers, restructuring of unprofitable media and other measures
Slide 13: 2. Management Policies and Initiatives
2. Management Policies and Initiatives 1. General Mail Order Business 2. Specialty Mail Order Business 3. Retail Store Sales 4. Property 5. Development of New Businesses 6. Returns to shareholders 12
Slide 14: 2. Management Policy ~ External Environment
2. Management Policy ~ External Environment Our business plans respond to changes in the external environment (changes in the consumption environment and growth of the Internet). External environment Internal environment ・ Intensifying market competition • Maturity of portfolio management ・ Lingerin
Slide 15: 2. Management Policy
2. Management Policy The fiscal year ending March 2019 is the final fiscal year of our 3rd Business Plan. To reach the targets for the fiscal year ending March 2019 and towards the 4th Business Plan: • We achieved record-high net sales Change in net sales 3rd Business 4th Business and operating inco
Slide 16: 2. Management Policy – Strengthen four businesses
2. Management Policy – Strengthen four businesses Expansion of four main businesses General Specialty mail order mail order 1. Expand the general mail order business Retail store Property sales in a stable manner. 2. Expand the specialty mail order business. 3. Expand the retail store sales business
Slide 17: 2-1. General Mail Order Business
2-1. General Mail Order Business Situation Profit decreased in the fiscal year ended March 2018 due to a aaaaaaaaaaaturmoil in the home delivery industry. Past efforts: 1. Improve product appeal. 2. Strengthen operations via the Internet. 3. Create synergy between catalog, Internet, and in-store ope
Slide 18: 2-1. General Mail Order Business: increase catalog-based sales
2-1. General Mail Order Business Increase catalog-based sales 1. Increase standard products 2. Increase the Ryuryu product line targeting people a in their 20s and 30s 3. Strengthen the Ranan product line targeting aaa aa people in their 40s 4. Improve shopping mall and online sales 17
Slide 19: 2-1. General Mail Order Business: strengthen operations via the Internet
2-1. General Mail Order Business Strengthen operations via the Internet 1. Introduce online-exclusive products 2. Continue to increase standard products 3. Improve production and operation 4. Raise the level of customer service (1) Introduce Rakuten Pay (2) Introduce discounts on bulk purchases 18
Slide 20: 2-1. Online-exclusive products ratio in net sales
2-1. General Mail Order Business Strengthen operations via the Internet. Component ratio of online-exclusive products in net sales The FY March 2018 target is 12.0%, while the FY March 2018 result is 14.0%. Aim for business growth primarily by increasing the amount of standard products during the FY
Slide 21: 2-1. Synergy among catalogs, Internet, and in-store operations
2-1. General Mail Order Business Synergy among catalogs, Internet, and in-store operations 1. Efficiency is improved reciprocally (among catalogs, Internet and in-store operations) through synergy. （1）Improved responses in mail ordering. （2）Improved CVR in online operations. Catalogs （3）Increase ret
Slide 22: 2-2. Specialty Mail Order Business
2-2. Specialty Mail Order Business Successful new product development and customer acquisition strategy for online sales in the fiscal year ended March 2018 resulted in a significant increase in sales. In the fiscal year ending March 2019, we will work to maximize customer LTV while aggressively att
Slide 23: 2-2. Specialty Mail Order Business: Ozio
2-2. Specialty Mail Order Business：Ozio Products such as eggshell membrane cosmetics led growth. Cross-border e-commerce in Taiwan also achieved a monthly surplus. We will aim for major growth in the next fiscal year. ≪Ozio Net Sales・Operating Income≫ ≪Net sales from Taiwan Ozio≫ ■Net Sales ■Operati
Slide 24: 2-3. Retail Store Sales: Kimono and Japanese-style goods
2-3. Retail Store Sales: Stores selling kimono and Japanese-style goods Both net sales and profit exceeded targets in the fiscal year ended March 2018. We will aim for a net increase of 13 stores in the fiscal year ending March 2019 and net sales of 10 billion yen. Additionally, we decided to procee
Slide 25: 2-3. Retail Store Sales: Apparel stores
2-3. Retail Store Sales: Apparel stores In the fiscal year ended March 2018, net sales at existing stores increased 31.8% and improved cost structure and others. As a result, both net sales and profit exceeded the targets. In the fiscal year ending March 2019, we will increase stores and maintain th
Slide 26: 2-4. Property (Hotels in Japan)
2-4. Property（Hotels in Japan） A hotel in Kyoto opened in the fiscal year ended March 2018 for a total of three hotels. We plan to open a hotel in Karuizawa in the fiscal year ending March 2019. The existing hotels are currently on track. Growth in both net sales and profit are expected to continue.
Slide 27: 2-4. Property (Hotels in Japan)
2-4. Property（Hotels in Japan） In addition to the domestic hotel in Karuizawa, we plan to open overseas hotels in Sri Lanka and the Maldives. Le Grand Karuizawa Hotel and Resort (planned to open in July 2018) 26
Slide 28: 2-5. Development of New Businesses
2-5. Development of New Businesses 1. Development of an online shopping mall （1）New customer development （2）System improvement （3）Marketing capabilities 2. Horizontal development of nursing business Business development using databases （1）Recruiting agent service for nurses 3. Overseas development o
Slide 29: 2-6. Returns to shareholders
2-6. Returns to shareholders We plan to increase the dividend by 2.5 yen. ＜ Annual dividends ＞ FY March FY March FY March FY March 2016 2017 2018 2019(Plan) EPS (yen) 36.45 59.68 99.41 107.99 Dividend (yen) 12.5 12.5 12.5 15.0 <Shareholder incentive program> ［Details］ 100 shares or more 500 shares o
Slide 30: Summary
≪Summary ≫ The fiscal year ending March 2019 is the final year of our 3rd Business Plan. In addition to reaching the targets for the fiscal year, we will establish business platform for the 4th Business Plan. 29
Slide 31: Note
Note <Important notice> This material is prepared for the purpose of publicly disclosing information concerning the financial results of the fiscal year ending March 31, 2018. Nothing in this document shall be considered to be an offer to sell or a solicitation of an offer to buy securities issued b