Slide 1: FYE 5/2017 (6/16-5/17) Results Explanatory Meeting
FYE 5/2017 (6/16-5/17) Results Explanatory Meeting July 14, 2017 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 i
Slide 2: FYE 5/2017 (6/16-5/17) Results Explanatory Meeting
FYE 5/2017 (6/16-5/17) Results Explanatory Meeting ■ FYE 5/2017 Consolidated Results 1. FYE 5/2017 Consolidated Profit and Loss Statement 2. FYE 5/2017 BS (Consolidated) 3. FYE 5/2017 CF (Consolidated) 4. Changes in ROE 5. Changes in dividends ■Result of a main business company 1. FYE 5/2017 Profit
Slide 3: FYE 5/2017 Consolidated Results
FYE 5/2017 Consolidated Results (06/2016 – 05/2017) 3
Slide 4: 1. FYE 5/2017 Consolidated Profit and Loss Statement
1. FYE 5/2017 Consolidated Profit and Loss Statement FYE 5/2016 FYE 5/2017 (consolidated) (consolidated) YoY % of Share Share change adjustment in (million yen) (million yen) projection (%) (%) (%) (%) Net sales 231,892 100.0 247,341 100.0 106.7 99.9 Gross profit 63,423 27.4 68,149 27.6 107.5 100.6
Slide 5: 2. FYE 5/2017 BS (Consolidated)
2. FYE 5/2017 BS (Consolidated) (Millions of yen) Main Mainfactors factorsininchange change End of FYE End of FYE Total assets 5/2016 5/2017 Change Total assets •Increase of 4,682 million yen in (Consolidated) (Consolidated) •Increase of 4,682 million yen in cash, bank deposits and accounts cash, ba
Slide 6: 3. FYE 5/2017 CF (Consolidated)
3. FYE 5/2017 CF (Consolidated) (Millions of yen) Main Maincomponents components FYE 5/2016 FYE 5/2017 Change • Net income before tax: (Consolidated) (Consolidated) • Net income before tax: 14,513 million yen 14,513 million yen • Depreciation expenses: • Depreciation expenses: 2,955 million yen 11,8
Slide 7: 4. Changes in ROE
4. Changes in ROE Intend IntendROE ROEMore MoreThan Than15% 15% Changes in ROE · operating profit margin operating ROE（%） profit margin （%） 2 0 .0 1 2 .0 15.6% 18.6% 14.1% 17.5% 1 5 .0 9 .0 14.4% ROE 13.5% 1 0 .0 6 .0 6.0% 5.8% 5.4% 5.5% 5.0% 4.6% 5 .0 3 .0 operating profit margin 0 .0 0 .0 FYE 5/20
Slide 8: 5. Changes in dividends
5. Changes in dividends FYE FYE5/2017 5/2017Actual Actual Dividend Dividend payoutratio: payout ratio:19.4% 19.4% Stable, Stable,continuous continuousdividend dividendgrowth growth Dividend Dividend on equity ratio:3.4% on equity ratio: 3.4% Changes in dividends per share [Yen] Shares were split in
Slide 9: Results of a main business company
Results of a main business company 9
Slide 10: 1. FYE 5/2017 Profit and Loss Statement (Create SD)
1. FYE 5/2017 Profit and Loss Statement (Create SD) FYE 5/2016 FYE 5/2017 YoY % of Share Share adjustment in (million yen) (million yen) change projection (%) (%) (%) (%) Net sales 230,145 100.0 245,466 100.0 106.7 99.9 Gross profit 63,458 27.6 68,107 27.7 107.3 100.6 SG&A expenses 50,136 21.8 54,43
Slide 11: 2. Store openings
2. Store openings OTC: OTC:Record Recordhigh highof of43 43store storeopenings openings Total number of Prescription stores at year-end Prescriptiondrug drugstores: stores:1818store storeopenings openings (In-store (In-storepharmacies: pharmacies:16 16store storeopenings; openings;dedicated dedicate
Slide 12: 3. Addition of merchandise lineups and functions in line with customer needs
3. Addition of merchandise lineups and functions in line with customer needs Active Activeenhancement enhancementof ofconvenience convenienceand andexpertise expertisein inline linewith withregional regional customer customerneeds needs Expansion Expansionof Addition Additionof ofhealth merchandise
Slide 13: 4. Net sales
4. Net sales YOY: YOY:106.7%; 106.7%;Compared Comparedwith withplan: plan:99.9% 99.9% Net Netsales salesof ofexisting existingstores storeswere wereon onpar parwith withthe theplan plan and and101.1% 101.1%year-on-year. year-on-year. OTC: OTC: Solid Solidand and100.7% 100.7%year-on-year year-on-year
Slide 14: 5. Segmental sales
5. Segmental sales Traction Tractionexpertise expertiseof ofthe thepharmacy pharmacybusiness businessand andthe theconvenience convenienceof ofgrocery grocery FYE 5/2016 FYE 5/2017 Sales Share Sales Share YoY change (million yen) (%) (million yen) (%) (%) Medical and health products 54,195 23.5 58,1
Slide 15: 6. Prescription Department
6. Prescription Department Sales: Sales:110.3% 110.3%YOY, YOY,96.2% 96.2%compared comparedwith withplan plan FYE 5/2017 Actual New store openings: 18 stores Composi- <Millions of yen> tion ratio YOY Store openings aiming to build (%) (%) regional medical cooperation (e.g., store openings linked with
Slide 16: 7. Gross profit ratio
7. Gross profit ratio Gross Grossprofit profitratio: ratio:27.7% 27.7%YOY: YOY:+0.1pt +0.1pt Compared Comparedwith withplan: plan:+0.2pt +0.2pt •• Sales Salesofofseasonal seasonalmerchandise merchandiseyielding yieldingaahigh highgross grossprofit profitratio ratio were werepoor poorbut butunderpinn
Slide 17: 8. Selling and administrative expense ratio
8. Selling and administrative expense ratio Selling Sellingand andadministrative administrativeexpense expenseratio: ratio:22.2% 22.2%YOY: YOY: +0.4pt +0.4pt Compared Comparedwith withplan: plan:+0.3pt +0.3pt Personnel expenses YOY: +0.5pt • Addition of health support functions, and streamlining o
Slide 18: 9. Activities to enhance productivity
9. Activities to enhance productivity Improvement Improvementof ofstore storeoperations operations •• System Systemestablishment establishmentfor forperishables, perishables,and andreduction reductionofoflosses lossesand andworkload workloadat at stores that have expanded the selling spaces for peri
Slide 19: Growth Strategies
CREATE SD HOLDINGS Growth Strategies 19
Slide 20: 1. Store openings
1. Store openings OTC: OTC:50 stores 50stores Upward Upwardrevision revisionof ofmid-term mid-termplan plan(45 (45stores) stores) ・・ Strengthened Strengtheneddominance dominancethrough throughstore storeopenings openingsmainly mainlyin inKanto Kantoand and Tokai Tokaiareas areas(especially (especi
Slide 21: 1. Store openings
1. Store openings Changes Changesin inthe thenumber numberof ofOTC OTCstore storeopenings openings Upward revision of [Stores] mid-term plan Scaled-down Scaled-downbusiness businessregions regionsand and diversified diversifiedformats formatshave havecreated createdmore more 60 room for store openin
Slide 22: 2. Opening of new types of stores
2. Opening of new types of stores Cremo Cremo Create more Create++more New Newformat formatbased basedon onthe theconcept conceptof ofmaking making “Create” “Create”more moreenjoyable, enjoyable,which whichconsists consistsof of“healthcare “healthcareproducts” products” (core (coredrug drugstore s
Slide 23: 2. Opening of new types of stores
2. Opening of new types of stores Store Storeconcept conceptof of“Cremo” “Cremo” Come Comeand enjoy andenjoy Creation Creationof ofan anextraordinary extraordinaryatmosphere atmospherethat thatisisenjoyable enjoyable enough enoughtotomake makecustomers customersforget forgettime, time,unlike unli
Slide 24: 3. Policies for store openings/merchandise lineups
3. Policies for store openings/merchandise lineups Expansion Expansionofofmerchandise merchandiselineups lineupsin inline linewith withregional regionalneeds needs and andstore storelocations locations •• Stores Storesemphasizing emphasizingperishables perishablesand andother otherfoods foodshave ha
Slide 25: 4. Personnel cultivation
4. Personnel cultivation Strengthened Strengthenedhuman humanresources resourcesin inline linewith withthe the accelerated acceleratedopening openingof ofstores. stores. Hired Hired500 500persons personsthis thisyear, year,including including400 400new newgraduates. graduates. Helped Helpedpartners
Slide 26: 5. Activities to enhance productivity
5. Activities to enhance productivity Establishment Establishmentof oflogistics logisticssystem system Optimization Optimizationof ofdelivery deliveryoperations operationsthrough throughthe theestablishment establishmentof ofaanew newlogistics logistics center centerin inline linewith withstore stor
Slide 27: 6. Activities at prescription pharmacies
6. Activities at prescription pharmacies Meeting Meetingmore moreprescription prescriptiondemand demand •• Created Createdaaregional regionalmedical medicalcooperation cooperationsystem systembybyattracting attractingmedical medicalinstitutions institutions and promoting the division of labor. and p
Slide 28: 7. Nursing care business
7. Nursing care business Fee-based Fee-basednursing nursinghome homebusiness business •• Improved Improvedoccupancy occupancyrates ratesby bystrengthening strengtheningmarketing marketingability. ability. Aim Aimto toachieve achieveaa 80% 80%occupancy occupancyrate. rate. •• Reduced Reducedcosts c
Slide 29: 8. FYE 5/2018 Forecasts (Consolidated)
8. FYE 5/2018 Forecasts (Consolidated) FYE 5/2017 FYE 5/2018 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 247,341 100.0 271,200 100.0 109.6 Gross profit 68,149 27.6 74,700 27.5 109.6 SG&A expenses 53,707 21.7 59,300 21.9 11