Valor Holdings Co., Ltd. · TSE:9956
Valor — H1 FY2025 Earnings Presentation
34 slides from Valor's earnings presentation, Nov 13, 2024
Slide 1: FY2025 2Q (Interim Period) Financial Presentation
FY202５ ２Q (Interim Period) Financial Presentation November 1３ｔｈ , 202４ ＜Cautionary Statement Regarding This Document＞ Forward-looking statements are based on the information available to Valor and its consolidated subsidiaries when preparing this presentation. Various factors in the future may cause
Slide 2: Message from President
Message from President *a company that is chosen by society Towards the next growth stage as a destination company* We would like to extend our heartfelt gratitude for your continued support. In the first half of 2024, we observed an increase in inbound demand and a recovery in domestic consumption
Slide 3: Contents
Contents Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group’s Growth Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 3
Slide 4: Key Points of Financial Presentation
Key Points of Financial Presentation Summary of FY2025 2Q (Interim) Financial Results ・ Operating revenues reached a record high as last year. ・ Operating revenue increased, driven by growth in same-store sales. In the supermarket business, same-store sales of Valor Co., Ltd. grew by 5.2% YoY. In th
Slide 5: Contents
Contents Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group’s Growth Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 5
Slide 6: Summary of FY2025 2Q Financial Results and FY2025 Forecast
Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Management Director Akira Shinohana ©2024 Valor Holdings Co.,Ltd. 6
Slide 7: FY2025 2Q (Interim Period) Results
FY2025 2Q (Interim Period)Results ➢ Operating revenues reached a record high as last year. ➢ Fourth-highest operating income and ordinary income in history; second-highest net income in history. (Yen in millions, except for EPS） FY22 2Q FY23 2Q FY24 2Q FY25 2Q * Vs. Results Results Results Plan Resu
Slide 8: Factors of Increase/Decrease in Operating Income
Factors of Increase/Decrease in Operating Income ➢ Gross operating income increased ¥6.4 billion. ➢ Profit decreased due to an increase in personnel and facility costs associated with growth investments. (Yen in millions） Increase in selling 64 costs Increase Increase in in labor gross 6 costs opera
Slide 9: Operating Results by Segment
Operating Results by Segment ➢ Supermarket Business: Strong same-store performance due to DS (Destination Store) renovations ➢ Drugstore Business: Revenue increased due to store expansion and the impact of renovations that strengthened fresh food offerings. ➢ Home Improvement Center Business: Revenu
Slide 10: Management Indicators
Management Indicators ➢ The net D/E ratio remains low, reflecting continued sound debt management. ➢ ROA, ROE, and ROIC declined compared to the previous fiscal year, indicating a decrease in profitability. Addressing profitability remains a challenge. FY23 2Q FY24 2Q FY25 2Q Results Results Results
Slide 11: Cash Flows
Cash Flows ➢ Operating cash flow exceeded investing cash flow, resulting in positive free cash flow. ➢ Maintaining a sound financial foundation with ¥ million allocated for share buybacks. （Yen in millions) 6 CF breakdown ●Operating CF：¥19,861M 6 The amount of change in accounts receivable decreased
Slide 12: Contents
Contents Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group’s Growth Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 12
Slide 13: FY2025 Forecast
FY2025 Forecast ➢ Continuous revenue and profit growth in the supermarket business, growth in same-store sales and improvement in gross profit margins in the drugstore and home improvement center businesses, and expansion of profitability in the credit card business ➢ The supermarket business is dri
Slide 14: Number of Stores and Capital Investment Plan
Number of Stores and Capital Investment Plan ➢ Valor Co., Ltd. to renovate and reopen its flagship Tajimi store (Gifu) on November 29. ➢ The Kansai Distribution Center (Hirakata City, Osaka) began operations in October. FY24 FY25 2Q FY25 Plan （Number of stores） FY end Open Closed FY end Open Closed
Slide 15: Shareholder Return (Dividend Forecast for FY25)
Shareholder Return (Dividend Forecast for FY25） ➢ Planning to pay an annual dividend of ¥6 (interim dividend: ¥ ; year-end dividend: ¥ ）. ➢ Shareholder Return Policy 1) Increase the dividend payout ratio from 25% to a target of 30%. 2) Implement progressive dividends. 3) Set a minimum DOE (Dividend
Slide 16: Contents
Contents Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group’s Growth Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 16
Slide 17: Valor Group's Growth Strategy
Ⅲ．Valor Group’s Growth Strategy President Takayuki Koike ©2024 Valor Holdings Co.,Ltd. 17
Slide 18: Progress of the Kansai ¥50B sales initiative
Progress of the Kansai ¥50B sales initiative ➢ Sales in the Kansai area have been steadily growing. In the first half of Y the group achieved total sales of ¥ 6 million across stores with ¥ 6 million generated by the supermarket group alone from 22 stores. Kansai Area Sales Kansai Area Sales Group T
Slide 19: Strengthening Subsidiary Management
Strengthening Subsidiary Management ➢ The HD’s “SPA Promotion Department" and “Group Product Procurement Strategy Office" spearhead efforts to unify the development and sales of private brand (PB) and SPA-type products across the group. This initiative leverages economies of scale to drive cost redu
Slide 20: The Progress of SPA (Bakery)
The Progress of SPA（Bakery） ➢ Chubu Foods is responsible for manufacturing products for the group's SM stores, strengthening the supply system within the group. By enhancing collaboration between the manufacturing and retail divisions, we aim to improve competitiveness across the entire group. ➢ Thr
Slide 21: Supermarket Business
Supermarket Business ➢ Strengthening multi-format expansion in the Kansai area by enhancing the store network to meet regional needs with diverse formats such as supermarkets and specialty stores for deli items and rice balls. ➢ Promoting the development of original products in collaboration with th
Slide 22: Drugstore Business
Drugstore Business ➢ Chubu Yakuhin celebrates its 40th anniversary and, in the final year of the Medium-term Strategic Plan, aims to achieve ¥ billion in operating revenues and operate 6 stores. Efforts are focused on expanding the number of royal customers（※） （※）Royal customers: Ru Vit card members
Slide 23: Home Improvement Center Business
Home Improvement Center Business ➢ In the first half of the year, low temperatures negatively impacted sales of gardening supplies, leading to a deterioration in the gross profit margin. While the gross profit margin fell below plan in the first quarter, it improved in the second quarter due to stre
Slide 24: Pet Store Business
Pet Store Business ➢ In September 2024, Amigo, Pet Forest, and Joker were integrated into a single business. Through this integration, efforts are being made to expand private brand (PB) products, unify account management, and integrate logistics and systems. These initiatives aim to enhance technic
Slide 25: Sports Club Business
Sports Club Business ➢ By enhancing the school business, we aim to strengthen relationships with local communities and improve the profitability of the sports club business. ➢ New facilities such as “Racket Park Kanazawa Nonoichi” and “Actos Hiromi Badminton School ” provide spaces cherished by loca
Slide 26: Contents
Contents Ⅰ．Summary of FY2025 ２Q (Interim) Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group’s Growth Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 26
Slide 27: Supermarket Business
Supermarket Business ➢ The second-highest profit level in history, following the fiscal year ending September 2020 during the COVID-19 pandemic ➢ Increasing penetration of destination stores in the Kansai region. (Yen in 100 SM Segment profit millions） 120 Analyses of 1st half results 103.6 (factors
Slide 28: Drugstore Business
Drugstore Business ➢ Profit levels comparable to the first half of 2019, prior to the COVID-19 pandemic ➢ Revenue growth driven by strengthening the fresh food department, expanding and renovating stores to attract more customers, enhancing disaster preparedness, and expanding the pharmaceutical bus
Slide 29: Home Improvement Center Business
Home Improvement Center Business ➢ Compared to the first half of 2019, prior to the COVID-19 pandemic, profit decreased by approximately ¥ million. ➢ Revenue increased due to a rise in average spending per customer driven by higher unit prices per item and an increase in e-commerce sales. ➢ Gross pr
Slide 30: Pet Store Business
Pet Store Business ➢ Reported as an independent segment starting from the current interim period. ➢ Synergies following the integration are expected to improve the gross profit margin (+1.5–2%). ➢ Aiming for stores and ¥ billion in sales by . (Yen in 100 Pet Store millions） Segment profit Analyses o
Slide 31: Sports Club Business
Sports Club Business ➢ Profit decreased by approximately ¥4 million compared to the first half of prior to the COVID-19 pandemic. ➢ Enhanced specialization with the launch of swimming, tennis, and badminton schools ➢ Increased number of contracts for school swimming lessons (Yen in 100 SpC Segment p
Slide 32: Distribution-related Business
Distribution-related Business ➢ Profit increased by approximately ¥ million compared to the first half of 2019, prior to the COVID-19 pandemic. ➢ Revenue growth supported by Sagitomi Unso, which became a subsidiary (Yen in 100 Distribution millions） Segment profit Analyses of 1st half results 25 (fa
Slide 33: Disclaimer
Disclaimer • This material is provided for informational purposes only and is not intended as a solicitation to take any action. This material (including performance plans) has been prepared by Valor Holdings based on reliable information currently available, but it contains risks and uncertainties.
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