United Arrows Ltd. · TSE:7606
United Arrows — Q3 FY2023 Earnings Presentation
35 slides from United Arrows's earnings presentation, Feb 6, 2023
Slide 1: For the Third Quarter of Fiscal Year Ending March 2023
For the Third Quarter of Fiscal Year Ending March 2023 2023.02.06 UNITED ARROWS LTD.
Slide 2: | 01 Overview of FY23 3Q Business Results | 02 Message from Yoshinori Matsuzaki,
P04 – P26 | 01 Overview of FY23 3Q Business Results P27 – P32 | 02 Message from Yoshinori Matsuzaki, Representative Director, President and CEO P33 – P35 | 03 Reference Materials
Slide 3: Cautionary Statement
Cautionary Statement Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks and uncertainties. Actual earnings may diffe
Slide 4: Overview of FY23 3Q Business Results
01 Overview of FY23 3Q Business Results PAGE | 4
Slide 5: Summary
01 Overview of FY23 3Q Business Results Due to sales reaching the planned level, improvement of gross margin and curtailment Summary of SGA expenses, respective income, including operating income exceeded planned levels, leading to an upward revision of the full-year profit forecast Sales Gross marg
Slide 6: Non-consolidated sales by channel and business
01 Overview of FY23 3Q Business Results Non-consolidated sales By Channel vs. FY2020/9M vs. FY2022/9M Business unit ¥72,980 million 88.2%*2 109.6%, - 0.6pt (82.3% vs. sales) Retail ¥49,901 million 78.8%, - 8.0pt 113.6%, +1.6pt (56.3% vs. sales) Online ¥21,783 million 105.7%, +3.6pt 100.4%, - 2.5pt (
Slide 7: BS, Opening and Closing of Stores
01 Overview of FY23 3Q Business Results BS Opening and Closing of Stores Balance of short- and Inventory 9M Results Full-year forecast long-term loans payable ¥23,416 million Opened 6 and Closed 7 Opened 6 and Closed 20 ¥5,380 million vs. FY2022 9M-End 100.2% No. of stores as of period-end 296 No. o
Slide 8: Consolidated PL
01 Overview of FY23 3Q Business Results Consolidated PL (Millions of yen) Change/pt vs. same period Change/pt FY2020 9M FY2022 9M FY2023 9M YoY change difference 3 years ago difference Sales 119,093 86,904 96,093 (23,000) 80.7% 9,188 110.6% Excluding the impact of the change in consolidation structu
Slide 9: Consolidated PL 3Q (3 months)
01 Overview of FY23 3Q Business Results Consolidated PL 3Q (3 months) (Millions of yen) Change/pt vs. same period Change/pt FY2020 3Q FY2022 3Q FY2023 3Q difference 3 years ago difference YoY change Sales 44,516 36,467 38,640 (5,876) 86.8% 2,172 106.0% Excluding the impact of the change - - - - 95.0
Slide 10: Consolidated Gross Margin
01 Overview of FY23 3Q Business Results Consolidated Gross Margin vs. same period FY2023 9M 3 years ago YoY change pt difference pt difference Consolidated 52.7% 0.1pt 1.6pt Excluding the impact of the change 53.0% 0.4pt - in revenue recognition standards UNITED ARROWS LTD. 52.4% 0.3pt 1.6pt Excludi
Slide 11: Consolidated Gross Margin 3Q (3 months)
01 Overview of FY23 3Q Business Results Consolidated Gross Margin 3Q (3 months) vs. same period FY2023 3Q 3 years ago YoY change pt difference pt difference Consolidated 53.8% -0.4pt 0.0pt Excluding the impact of the change 54.1% -0.1pt - in revenue recognition standards UNITED ARROWS LTD. 53.9% -0.
Slide 12: Consolidated SGA Expenses
01 Overview of FY23 3Q Business Results Consolidated SGA Expenses (Millions of yen) Change/pt Vs. same period Change/pt FY2020 9M FY2022 9M FY2023 9M YoY change difference 3 years ago difference Total SG&A Expenses 53,774 42,565 44,247 (9,527) 82.3% 1,681 104.0% vs. Sales 45.2% 49.0% 46.0% 0.9pt - -
Slide 13: Consolidated SGA Expenses 3Q (3 months)
01 Overview of FY23 3Q Business Results Consolidated SGA Expenses 3Q (3 months) (Millions of yen) Change/pt Vs. same period Change/pt FY2020 3Q FY2022 3Q FY2023 3Q YoY change difference 3 years ago difference Total SG&A Expenses 19,156 15,114 15,780 (3,376) 82.4% 665 104.4% vs. Sales 43.0% 41.4% 40.
Slide 14: Non-consolidated Sales by Channel
01 Overview of FY23 3Q Business Results Non-consolidated Sales by Channel (Millions of yen) Change/ Vs. same period Change/ FY2020 9M FY2022 9M FY2023 9M pt difference 3 years ago pt difference YoY change Non-consolidated sales 98,514 79,631 87,816 (10,697) 89.1% 8,184 110.3% Excluding the impact of
Slide 15: Non-consolidated Sales by Business
01 Overview of FY23 3Q Business Results Non-consolidated Sales by Business (Millions of yen) Vs. same period FY2020 9M FY2022 9M FY2023 9M Change Change YoY change 3 years ago Total Business Unit Sales 84,595 66,591 72,980 (11,615) 86.3% 6,389 109.6% Excluding the impact of the change - - - - 88.2%
Slide 16: Overview of Non-consolidated 3Q (3 months) (YoY)
01 Overview of FY23 3Q Business Results Overview of Non-consolidated 3Q (3 months) (YoY) Business unit sales YoY change Regular price sales 107.2% / Discount price sales 81.9% Composition ratio of regular price sales 90.5% October: Strong sales due to lowering temperatures November: Some demand was
Slide 17: Overview of Non-consolidated 3Q (9 months) (Compared to three years ago)
01 Overview of FY23 3Q Business Results Overview of Non-consolidated 3Q (9 months) (Compared to three years ago) Business unit sales compared to three years ago Regular price sales 99.2% 99.2% Discount price sales 49.7% +10.3pt Composition ratio of regular price sales 86.5% 49.7% 86.5% 76.2% Regular
Slide 18: Overview of Non-consolidated 3Q (3 months) (Compared to three years ago)
01 Overview of FY23 3Q Business Results Overview of Non-consolidated 3Q (3 months) (Compared to three years ago) Business unit sales compared to three years ago 105.0% 105.0% Regular price sales Discount price sales 46.2% +9.8pt Composition ratio of regular price sales 90.5% 46.2% 90.5% 80.7% Regula
Slide 19: Consolidated BS
01 Overview of FY23 3Q Business Results Consolidated BS (Millions of yen) As of As of vs. end of Change Mar. 31, 2022 Dec. 31, 2022 previous Total Assets 59,703 63,072 3,368 105.6% Composition ratio 100.0% 100.0% - - Current Assets 38,475 43,898 5,423 114.1% Composition ratio 64.4% 69.6% - Noncurren
Slide 20: Consolidated CF
01 Overview of FY23 3Q Business Results Consolidated CF (Millions of yen) FY2022 9M FY2023 9M Major components for results of 3Q FY23 Cash flows from operating activities (7) 4,432 (sub-total) Income before income taxes 6,432 Increase in trade receivables (3,615) Cash flows from operating activities
Slide 21: COEN CO., LTD. / UNITED ARROWS TAIWAN LTD.
01 Overview of FY23 3Q Business Results COEN CO., LTD. Saw increase in both revenue and income • Sales: ¥7.65 billion, compared with the same period last year: 108.0%, compared with the same period 3 February - October years ago: 80.5% (vs. 3 years ago excluding the impact of changes in revenue reco
Slide 22: Opening and Closing of Stores
01 Overview of FY23 3Q Business Results Opening and Closing of Stores 9M Results Opened 6 Closed 7 No. of stores as of 9M-end 309 Full-year forecast Opened 6 Closed 20 No. of stores as of period-end 296 * 17.5% decrease from the end of March 2020 9M Results Full-year forecast No. of stores No. of st
Slide 23: UNITED ARROWS LTD. Retail Stores Opened/Closed
01 Overview of FY23 3Q Business Results UNITED ARROWS LTD. Retail Stores Opened/Closed 9M Results Full-year forecast No. of No. of No. of stores as of stores as of Opened Closed stores as of Opened Closed period-end period-end 9M-end of previous (Forecast) UNITED ARROWS LTD. Total 216 3 1 218 3 6 21
Slide 24: FY23 PL Revised Plan (vs. original plan)
01 Overview of FY23 3Q Business Results FY23 PL Revised Plan (vs. original plan) (Millions of yen) vs. original plan FY2023 FY2023 Change/vs. sales pt Original plan Revised plan difference Sales 130,000 130,000 0 100.0% (Reference) Excluding the impact of changes in consolidation structure and - - -
Slide 25: FY23 PL Revised Plan (compared to three years ago and the previous year)
01 Overview of FY23 3Q Business Results FY23 PL Revised Plan(compared to three years ago and the previous year) (Millions of yen) Compared to Compared with FY2020 FY2022 FY2023 three years ago the previous year Full Full Revised plan Change/vs. sales Change/vs. sales pt difference pt difference Sale
Slide 26: Initiatives toward 4Q and Next Fiscal Year
01 Overview of FY23 3Q Business Results Initiatives toward 4Q and Next Fiscal Year Fine-tune pricing Optimize pricing in a way that meets brand characteristics Improve the ratio of regular price sales by enhancing product appeal Enhance gross margin and in-store customer service, and appropriate inv
Slide 27: Message from Yoshinori Matsuzaki, Representative Director, President and CEO
02 Message from Yoshinori Matsuzaki Representative Director, President and CEO PAGE | 27
Slide 28: Working Toward Our New Medium-Term Management Plan
02 Message from President and CEO Working Toward Our New Medium-Term Management Plan from Current Medium-Term Management Plan PAGE | 28
Slide 29: Weather the crisis and regain our earnings power
02 Message from President and CEO Current Medium-Term Management Plan “Weather the crisis and regain our earnings power” • Drastically review the revenue structure • Regaining earnings power PAGE | 29
Slide 30: On the premise of "moving toward higher added value"
02 Message from President and CEO Toward the New Medium-Term Management Plan On the premise of "moving toward higher added value" 1. Increase contact with customers (sales) • Growth of existing stores and EC through OMO initiatives • New development and opening of stores to increase customers and su
Slide 31: On the premise of "moving toward higher added value"
02 Message from President and CEO Toward the New Medium-Term Management Plan On the premise of "moving toward higher added value" 1. Increase contact with customers (sales) • Growth of existing stores and EC through OMO initiatives • New development and opening of stores to increase customers and su
Slide 32: On the premise of "moving toward higher added value"
02 Message from President and CEO Toward the New Medium-Term Management Plan On the premise of "moving toward higher added value" 1. Increase contact with customers (sales) • Growth of existing stores and EC through OMO initiatives • New development and opening of stores to increase customers and su
Slide 33: Reference Materials
03 Reference Materials PAGE | 33
Slide 34: FY23 Group Management Policy
03 Reference Materials: FY23 Group Management Policy Measures to Revitalize existing stores Group Management focus on Policy 1. Impressive customer service Enhance sales capability 2. Creation of thrills Slogan Enhance product capability 3. Challenge for new UA Providing Through an aggressive trial-
Slide 35: FY23 Group Management Policy: Underlying strategies and measures to focus on
03 Reference Materials: FY23 Group Management Policy Revitalize existing stores Impressive customer Creation of thrills Challenge for new UA Measures to focus on service Developing supply chain management Re-enhancing corporate branding through (SCM) through product DX reorganization Improving custo