Slide 1: FY2015 (6/14-5/15) Results Explanatory Meeting
FY2015 (6/14-5/15) Results Explanatory Meeting July 17, 2015 The earnings forecasts appearing in this material are based on the business environment at the present time, and there is the possibility that actual earnings may differ from forecasts for various reasons. Furthermore, only inquiries in Ja
Slide 2: Agenda
FY2015 (6/14-5/15) Results Explanatory Meeting ■FY2015 Consolidated Results 1. Profit and Loss Statement 2. Balance Sheet 3. Statement of Cash Flows 4. ROE and Dividend ■Results for Each Business Company 1. Profit and Loss Statement 2. New Store Openings 3. Sales by Segment 4. Sales 5. Gross Profit
Slide 3: FY2015 Consolidated Results
FY2015 Consolidated Results (06/2014 – 05/2015) 3
Slide 4: FY2015 Consolidated Profit and Loss Statement
1. FY2015 Consolidated Profit and Loss Statement FY2014 FY2015 (consolidated) (consolidated) YoY % of Share Share change projection (million yen) (million yen) (%) (%) (%) (%) Net sales 197,483 100.0 213,918 100.0 108.3 98.9 Gross profit 52,004 26.3 57,516 26.9 110.6 99.8 SG&A expenses 42,997 21.8 4
Slide 5: FY2015 Consolidated Balance Sheet
2. FY2015 Consolidated Balance Sheet (million yen) Main causes of changes May 31, 2014 May 31, 2015 Change (consolidated) (consolidated) Total assets ・ Cash equivalent and accounts Total assets 81,140 88,767 +7,626 receivable +1,900 million yen ・ Merchandise +1,664 million yen ・ Opening new stores,
Slide 6: FY2015 Consolidated Statement of Cash Flows
3. FY2015 Consolidated Statement of Cash Flows (million yen) Major breakdown FY2014 FY2015 Change (consolidated) (consolidated) Cash flow from ・ Net profit before taxes 10,537 million yen operating 7,249 11,811 +4,561 ・ Depreciation 3,139 million yen activities ・ Corporate taxes paid -3,566 million
Slide 7: ROE and Dividend
4. ROE and Dividend Stable Stableand andSustainable Sustainable Intend IntendROE ROEMore MoreThan Than15% 15% Increase Increase inDividend in Dividend Change in ROE Change in dividend per stock 【％】 【yen】 25 80 65yen 20 58yen 15.6％ 60 54yen 14.8％ 14.4％ 50yen 15 45yen 35yen 30yen 14.1％ 40 34yen 13.5％
Slide 8: Results for Each Business Company
Results for Each Business Company 8
Slide 9: FY2015 Profit and Loss Statement (Create SD)
1. FY2015 Profit and Loss Statement (Create SD) FY2014 FY2015 YoY % of Share Share (million yen) (million yen) change projection (%) (%) (%) (%) Net sales 195,841 100.0 212,274 100.0 108.4 98.9 Gross profit 51,908 26.5 57,476 27.1 110.7 99.8 SG&A expenses 43,406 22.2 47,358 22.3 109.1 98.7 Operating
Slide 10: New Store Openings
2. New Store Openings Create SD 34 new OTC stores and 26 ethical pharmacies were opened (of which 5 was dedicated prescription drug store) New store openings by area Kanagawa Tokyo Shizuoka Chiba Aichi Other Total New stores OTC 13 6 5 4 5 1 34 opened in FY2015 in-store pharmacies 15 4 0 0 1 1 21 De
Slide 11: Sales by Segment
Create SD 3. Sales by Segment FY2014 FY2015 YoY YoY Sales Share change Sales Share change (million yen) (%) (%) (million yen) (%) (%) Medical and health products 44,629 22.8 108.4 49,309 23.2 110.5 (O T C) 34,170 17.5 103.7 35,522 16.7 104.0 (Prescription) 10,458 5.3 127.1 13,787 6.5 131.8 Cosmetics
Slide 12: Sales
Create SD 4. Sales YoY YoY+8.4％ +8.4％ vs. vs. Budget Budget -1.1％ -1.1％ Existing Existingstores stores+0.1％ +0.1％ YoY YoY ・Maintained8% ・Maintained 8%increase increasethrough throughstore storeopenings openingsduring duringprevious previous term termfor forthe thetop topline line ・Planwas ・Plan wasn
Slide 13: Sales: Expansion of the dispensing pharmacy
Create SD 4. Sales Expansion of the dispensing pharmacy Sustained Sustainedstrong strongperformance performanceforfordispensary dispensarysales salesthat thathave havebeen been promoting promotingimprovement improvementin inspecialty specialtywithout withoutbeing beingaffected affectedby bythe the t
Slide 14: Gross profit margin
Create SD 5. Gross profit margin Gross Grossprofit profitmargin margin27.1％ 27.1％ YoY YoYchange change+0.6pt +0.6pt vs. vs. Budget Budget change change+0.3pt +0.3pt ・Recoilfollowing ・Recoil followingexceptional exceptionaldemand demandprior priorto totax taxincrease increasein inthe the1st 1st half
Slide 15: Gross profit margin: Promoting EDLP
Create SD 5. Gross profit margin Promoting Everyday Low Price (EDLP) Restrained Restrainedreduction reductionin ingross grossprofit profitrate ratewhile whileadvertising advertisinglow lowprices prices for forsmall smalltrade tradearea areaby byadopting adoptingEDLP EDLPper peritem itemrather rather
Slide 16: Prescription Section
6. Prescription Section Create SD FY2015 Existing stores comparisons YoY Sales year-on-year +18.3% Share change Prescription year-on-year +12.6% (million yen) (%) (%) Sales in prescription operations and the number of Net sales 13,787 100.0 131.8 prescriptions issued Bar graph: Sales Line graph: Num
Slide 17: SG&A Expenses
7. SG&A Expenses Create SD Expense Expenserate rate22.3％ 22.3％ YoY YoYchange change+0.1pt +0.1pt vs. vs. budget budget -0.1pt -0.1pt Minimized Minimizedany anyincrease increaseininsales, sales,general, general,and andadministrative administrativeexpenses expenses for forvarious variousfactors factor
Slide 18: Care Business
Welllife 8. Care Business SALON DAY Fee-charging Fee-chargingNursing NursingHome Homebusiness business ・Improvedoccupancy ・Improved occupancyraterateby byreinforcing reinforcingsales sales ⇒Occupancyrate ⇒Occupancy rate75.0％ 75.0％FY2015（YoY FY2015（YoYchange change+11.4pt） +11.4pt） ・Environmentalimpr
Slide 19: Growth Strategy
Growth Strategy HOLDINGS
Slide 20: Growth Strategy – Create SD: Opening New Stores
1. Growth Strategy – Create SD Opening OpeningNew New Stores Stores 40 40new new drugstores drugstores ・Openingof ・Opening ofstores storesin inKanto Kanto(mainly (mainlyin inKanagawa Kanagawaprefecture prefecture))and and Tokai Tokairegions regions ・Developmentof ・Development ofbusiness businesscate
Slide 21: Growth Strategy – Create SD: Renovation of existing stores
1. Growth Strategy – Create SD Renovation of existing stores Activation Activationof of existing existingstores ⇒35 stores⇒ 35stores stores ・Continuingon ・Continuing onexpansion expansionof ofthe thedispensing dispensingpharmacy, pharmacy,department department revamped revampedto tomatch matchthe th
Slide 22: Growth Strategy – Create SD: Profit Creation
1. Growth Strategy – Create SD Profit ProfitCreation Creation ・Continuouslypromote ・Continuously promoteaffordability affordabilitythrough throughEDLP EDLPininsmall smalltrade trade areas, areas,and andensure ensureprofit profitthrough throughaamixture mixtureofofgross grossprofit profitrates ratesb
Slide 23: Growth Strategy – Create SD: Low Costs and Productivity
1. Growth Strategy – Create SD Measures Measuresfor for Low Low Costs Costsand andImproved ImprovedProductivity Productivity Improve Improveefficiency efficiencyof of overall overallsupply supplychain chainthrough through automated automatedordering ordering ・Improvelogistics ・Improve logisticseffic
Slide 24: Care Business
2. Care Business Fee-charging Fee-chargingNursing NursingHome Homebusiness business Provide Providesafe safeand andcomfortable comfortableliving livingenvironment, environment, and andincrease increasethe thenumber numberofofresidents residents ・Providewell-establishment ・Provide well-establishmentm
Slide 25: Medium-term Vision
3. Medium-term Vision Promotion of a business model for small trade areas/frequently visited by providing a variety of services and pleasure of shopping in addition to reinforcing specialty and convenience with due consideration for the rapid aging of society Specialty Medium-term Aim Health & Beaut
Slide 26: FY2016 Forecasts (Consolidated)
4. FY2016 Forecasts (Consolidated) ROE 14.4％ FY2015 FY2016 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 213,918 100.0 227,300 100.0 106.3 Gross profit 57,516 26.9 61,000 26.8 106.1 SG&A expenses 46,787 21.9 49,860 21.9 106.