Nitori Holdings Co. Ltd. · TSE:9843
Nitori — Q1 FY2017 Earnings Presentation
33 slides from Nitori's earnings presentation, Jun 28, 2017
Slide 1: Financial Results Presentation for the First Quarter of FY2017
Nitori Holdings Co., Ltd. Financial Results Presentation for the First Q Quarter of FY2017 28 June 2017 【DISCLAIMER】 IN-HOUSE TRANSLATION TSE1st.&Sapporo Code : 9843
Slide 2: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results （Billions of Yen） Q1 FY2017 Q1 FY2016 Change 21 Feb-20 F b 20 May M 2017 21 Feb-20 F b 20 May M 2016 (to sales) (to sales) (YOY) N t sales Net l 147 5 147.5 － 137 0 137.0 － 10.5 10 5 107.6％ 107 6％ Gross profit 78.6 78 6 53.3% 53 3% 74.6 74 6 54.4% 54 4% 4.0
Slide 3: Consolidated Balance Sheets
Consolidated Balance Sheets （Billions of Yen） 20 May 20 Feb Major factors Change 2017 2017 on changes Current assets 175.2 170.1 5.1 Suspense payments +11.6 (Cash and deposits) 63.6 70.5 (6.9) (Inventory) 47.6 48.9 (1.3) Non-Current assets 328.4 317.6 10.8 (Property plant and equipment) (Property, 2
Slide 4: Consolidated Financial indicators 【Q1】
Consolidated Financial indicators 【Q1】 Equity ratio 80.7% ROE 5.1% 4.8% 78.5% 3.8% 75.5% 2015.5 2016.5 2017.5 2015.5 2016.5 2017.5 BPS EPS ¥171 ¥3 637 ¥3,637 ¥153 ¥3,070 ¥2 900 ¥2,900 ¥107 2015.5 2016.5 2017.5 2015.5 2016.5 2017.5 Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 4
Slide 5: Comparable stores YOY 【Q1】
Comparable stores in YOY 【Q1】 Sales※ ９９．０％ （ All stores １０７．７％ ） ※Sales = Sales based on orders No of Customers No. ９９．９％ ９９ ９％ （ All stores １１２．８％ ） Average g Spend p per Customer ９９ １％ ９９．１％ （ All stores ９５ ５％ ） ９５．５％ One day y ((Sunday) y) less than Q Q1 FY2016 because of the leap year Copyright
Slide 6: Trend in YOY changes in comparable stores 【Q1】
Trend in YOY changes in comparable stores 【Q1】 （％） 【Sales , YOY】 ※Sales = Sales based on orders 115 112.2 110 107 5 107.5 105 100.1 99 0 99.0 100 94.3 95 90 【No. of Customers・Average Spend per Customer , YOY】 （％） No. of Customers Average spent per customer 115 110 108.3 107.1 105 102.9 103 5 103.5 9
Slide 7: Quarterly trend in QOQ changes in comparable store sales
Quarterly trend in QOQ changes in comparable store sales FY （％） FY２０１４ FY２０１５ FY２０１６ ２０１７ 120 115 112.2 108 8 108.8 109 1 109.1 110 107.5 106.7 105.4 105.2 105 100 5 100.5 99.0 100 97.0 98 7 98.7 94 3 94.3 95 97.8 90 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 2014.1Q 2014.2Q 2014.3Q 2014.4Q 2015.1
Slide 8: Consolidated Sales
Consolidated Sales 【Net sales】 Amount YOY Net sales （Billions of Yen） Store sales ¥134.0 bil. 106.3% E-commerce ¥7.5 bil. 125.0% 147.5 （＋7.6%） B to B ¥1.1 bil. 103.8% 137.0 Renovation Sales ¥1 4 bil. ¥1.4 bil 102.8 102 8% Rent income ¥1.7 bil. 128.4% Others ¥1.6 bil. 150.7% Total ¥147.5 bil. 107.6%
Slide 9: Gross profit ・ SG&A expenses
Gross profit ・ SG&A expenses 【Average Exchange Rate】 Gross profit （Billions of Yen） Gross profit margin ¥１０8.２１/$ 【Gross profit margin】 78.6 （＋5.5%） ¥5.52/$ 74.6 FX Weak yen (1.7)pt impact Inventory (0.8)pt 54.4% 53.3% (-1.1pt) COGS reduction d i +1.4pt 14 t Ratio to 【SG&A】 Amount YOY sales Change P
Slide 10: New Stores & Closing Stores (Q1 FY2017)
New Stores & Closing Stores (Q1 FY2017) Nitori New Store (Kanagawa) Open 12 Close ４ ２４ Stores Open Aomori 1 Saitama 1 Open ６ Tokyo y 3 Close ２ Kanagawa 2 Gifu 1 Saitama 2 Osaka 1 Tokyo 1 Hyogo 1 Shizuoka 1 Saga 1 Osaka 1 Kagoshima 1 Hyogo 1 DECOHOME New Store (Osaka) 【Close】 Kanagawa 1 【Expansion】 T
Slide 11: No. of stores as of May 2017
No. of stores as of 20 May 2017 No. of No. of No. of Prefecture Prefecture Prefecture ４８８ stores stores stores Hokkaido 20 (±0) Yamanashi 3 Shimane 2 H kk id Hokkaido 20 (±0) I hik Ishikawa 5 Hi Hiroshima hi 12 Stores Aomori 6 (±0) Toyama 4 Yamaguchi 5 (+１７) Akita 4 Fukui 2 Kagawa 4 Iwate 3 Hokuriku
Slide 12: Major indicators of management efficiency (1)
Major indicators of management efficiency（1） Sco Num un pe ber Indicator it Target 2017.5 2016.5 2015.5 2014.5 2013.5 1 Return on assets ％ Over 3.75％ ○ 5.2 6.5 5.2 6.8 6.4 Ti 2 Total asset turnover me s Over 0.5 × 0.30 0.32 0.29 0.36 0.35 Ordinary O di income i ○ 17.6 Group 3 margin ％ Over 10％ 20.2
Slide 13: Major indicators of management efficiency (2)
Major indicators of management efficiency (2) Sco Num un pe ber Indicator it Target 2017.5 2016.5 2015.5 2014.5 2013.5 12 Sales per tsubo K Over ¥950K ○ 1,071 1,081 ,08 1,004 ,00 1,051 ,05 967 96 Ti 13 Stock turnover me Over 9 × 6.2 6.6 6.5 7.5 7.4 Sale of furniture and home furnishing s Operating a
Slide 14: TOPICS
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Slide 15: Product Development: Big hit series N-Cool
Product Development Big hit series N-Cool now on sale zMore colors and g variations design zKeep cool longer zLower price than last year zVariety expansion Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 15
Slide 16: Product Development: Scandinavian-taste dining set Stain
Product Development Scandinavian-taste dinning set “Stain” Stain series “Alnus” Alnus zComfortable space with z8 table sizes and 4 seat vintage-taste furniture and cover colors sea motif zHand-washable seat cover Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 16
Slide 17: Outdoor Item Catalog
Product Development Outdoor Item Catalog Distributed 200k copies to stores zPresent many usage example, not easy to do in stores zIntroduce merchandise in small-size and urban-type Nitori stores Dutch Oven” z“Dutch Oven at lower price Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 17
Slide 18: Seasonal Coordination Series
Seasonal Coordination Series Summer theme Trend theme zCoordinate with N N-cool cool series zImprove effectiveness of advertisement by linking the images of the goods on TVCM and that in the real stores zIncrease sales than the last year Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 1
Slide 19: NITORI BUSINESS (B to B)
NITORI BUSINESS（B to B） Hokkaido Country Club Hakodate-Onuma Price Village clubhouse Furano Prince Village Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 19
Slide 20: E-Commerce: Rich Selection
E-Commerce Rich Selection z156 sizes with 10 colors, fit to high and wide windows zEasier to purchase than custom made curtains zGood sales of custom sized furniture, you may customize by 1cm Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 20
Slide 21: E-Commerce: Renewal product images on Nitori-net
E-Commerce Renewal product i images on Nitori-net Nit i t zMake new photo studio, studio be used on 2 sides at y y the same time in Kyusyu distribution center zProvide pictures of products, which make you image usage scene zPlan to renewal images off various i product d t categories Copyright 2017 N
Slide 22: Make “Nitori Fun” WEB Survey
Make “Nitori Fun” WEB Survey zCarry out survey by QR code d on the th receipt. zSystem to collect customersʼ custo e s voices o ces that arenʼt able to do from POS data. z Collect over 1,500 customersʼ voices in one month after introduction. introduction Copyright 2017 Nitori Holdings All Rights Res
Slide 23: Opening Stores at Central Tokyo on 15th March 2017
Opening 3 Stores at Central Tokyo on 15th March 2017 Tobu-Ikebukuro Store Approx. 180k customers visit to 3 stores from 15 th March to 19 th. Marronnier Gate Ginza Store Atre At Meguro M Store St (Expansion) Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 23
Slide 24: Nitori EXPRESS: New Store Format of Home Fashion
Nitori EXPRESS Nitori EXPRESS Sapporo Esta Store New Store Format of Home Fashion zProvide same service of Nitori(Home Furishing Format) to customers in i small-size ll i store zTransfer customers to nearby large size Nitori store and Nitori-net large-size Nitori net with each other by taking advant
Slide 25: Opening Store at Central Tokyo: Shibuya Koen-Dori Store
Opening Store at Central Tokyo Shibuya Koen-Dori Store Opened 30 th June Our largest largest-scale scale at y Central Toktyo zSales floor：approx. 5,000㎡ z1~5 floor：Home Fashion 6~9 floor：Furniture z5 minutes minutesʼ walk from Shibuya station Our largest-scale largest scale multileveled store with r
Slide 26: Opening Stores in Taiwan
Opening Stores in Taiwan Taoyuan 2nd Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 26
Slide 27: Opening Stores in China
Opening Stores in China Wuhan 4th Wuhan 5th Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 27
Slide 28: Alliance with Katitas Co., Ltd.
Alliance with Katitas Co., Ltd. Alliance with a pioneer in the used homes remodeling industry Name of the company Katitas Co., Ltd. D t off foundation Date f d ti 1stt September S t b 1978 Representative Mr. Katsutoshi Arai director Capital stock ¥3,778 million Remodeling of used homes and real esta
Slide 29: Example of remodeling homes
Alliance with Katitas Co., Ltd. Example of remodeling homes Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 29
Slide 30: Alliance with Katitas Co., Ltd.
Alliance with Katitas Co., Ltd. Furniture・kitchen Over 4,000 buildings systems etc per year Original products Sales result Sales channel Sales channel 443 Stores 108 business sites For coordination proposal Streamlined service and construction work Research・Purchasing Personnel training 〜Renovation
Slide 31: Store roll-out plan in FY 2017
Store roll-out plan in FY 2017 Store Total Taiwan USA China End of Q1 ３８８ ５５ ２７ ５ １３ ４８８ Q2~Q4 Net ＋１９ ＋１１ ＋５ ＋１ ＋８ ＋４４ increase End of FY2017 ４０７ ６６ ３２ ６ ２１ ５３２ Chi China USA ＋8 ＋1 Taiwan Japan ＋55 ＋30 Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 31
Slide 32: Plan in FY 2017
Plan in FY 2017 No change of plan （Billions of Yen） 1H FY2017 Plan FY2017 Plan (to sales) (YOY) (to sales) (YOY) Net sales 282 0 282.0 ー 110 7% 110.7% 568 0 568.0 － 110 7% 110.7% Gross profit 151.0 53.5% 108.2% 309.0 54.4% 111.0% SG&A expenses 102.5 36.3% 113.4% 210.0 37.0% 109.1% Operating income 4
Slide 33: Disclaimer
【DISCLAIMER】 Th forecasts The f andd projected j d operating i results l contained i d iin this hi report are b based d on iinformation f i available at the time of preparation, and thus involve inherent risks and uncertainties. Accordingly, readers are cautioned that actual results may differ mater