Tsuruha Holdings, Inc. · TSE:3391
Tsuruha — Q3 FY5/21 Earnings Presentation
30 slides from Tsuruha's earnings presentation, Mar 16, 2021
Slide 1: Financial Results Presentation for 3Q FY5/21
Listed on the First Section of the Tokyo Stock Exchange under securities code 3391 TSURUHA HOLDINGS INC. Financial Results Presentation for 3Q FY5/21 (May 16, 2020 to May 15, 2021) March 16, 2021 The Company’s plans, earnings forecasts, and strategies appearing in this presentation are based on the
Slide 2: Index
Index I. Summary of Earnings Results for 3Q FY5/21 ････ 2 II. Initiatives and Policies for FY5/21 ････ 18 *The following abbreviations are used in this presentation: TGN: Tsuruha Group Drug & Pharmacy Nishinihon Inc. B&D: B&D Co.,Ltd. Eleven and Drug Eleven: JR Kyushu Drug Eleven Co., Ltd. TGMD: Tsu
Slide 3: Summary of Earnings Results for 3Q FY5/21
Summary of Earnings Results for 3Q FY5/21 Copyright TSURUHA HOLDINGS INC. TSURUHA HOLDINGS INC. Q3 FY5/21 2
Slide 4: Financial Highlights
Financial Highlights Maintained growth in both revenue and profit 3Q of FY5/21 YTD *Includes 6 months of results for Drug Eleven (June 1 to November 30) Net sales Operating income JPY 683.9 billion (+9.3YoY) JPY 39.7 billion (+8.7 YoY) ・Demand related to COVID-19 is ending. Demand is also below the
Slide 5: Consolidated Performance (Nine-month Period)
Consolidated Performance (Nine-month Period) FY5/20 Consolidated Excluding Drug Eleven Results Share FY5/21 Share YoY FY5/21 Share YoY Net sales 625,608 100.0 683,914 100.0 109.3 658,879 100.0 105.3 Gross profit 180,713 28.9 198,032 29.0 109.6 191,022 29.0 105.7 SG&A expenses 144,185 23.0 158,322 23
Slide 6: Consolidated Performance (Quarterly Results)
Consolidated Performance (Quarterly Results) 1Q 2Q 3Q Results Share YoY Results Share YoY Results Share YoY Net sales 224,623 100.0 107.6 228,869 100.0 110.2 230,421 100.0 110.2 Gross profit 65,076 29.0 108.8 66,556 29.1 111.3 66,399 28.8 108.7 SG&A expenses 49,913 22.2 105.8 53,720 23.5 110.4 54,68
Slide 7: Consolidated Performance (Quarterly Results) *Excludes Drug Eleven
Consolidated Performance (Quarterly Results) *Excludes Drug Eleven 1Q 2Q 3Q Results Share YoY Results Share YoY Results Share YoY Net sales 224,623 100.0 107.6 215,923 100.0 104.0 218,333 100.0 104.4 Gross profit 65,076 29.0 108.8 62,995 29.2 105.4 62,951 28.8 103.0 SG&A expenses 49,913 22.2 105.8 5
Slide 8: Year-on-Year Change in Net Sales (Stores Open 13 Months or More)
Year-on-Year Change in Net Sales (Stores Open for 13 Months or More) *Excludes Drug Eleven Nine-month Period +3.0% FY 5/2020 1Q +5.2% 2Q +1.7% 3Q +2.1% FY 5/2021 14.5 14.4 9.8 7.3 4.8 5.3 5.3 5.8 7.1 3.6 3.6 4.1 3.7 2.3 1.2 2.2 1.6 -0.3 -4.5 -4.6 -7.5 Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar
Slide 9: Sales Data Analysis (Stores Open 13 Months or More)
Sales Data Analysis (Stores Open for 13 Months or More) *Excludes Drug Eleven Number of Customers Nine months YTD -1.0％ / 3Q -5.2％ Unit Price of Products Nine months YTD -1.6％ / 3Q -1.6％ FY 5/2020 FY 5/2020 23.6 5.6 FY 5/2021 FY 5/2021 3.9 3.7 3.2 10.3 2.4 8.3 1.5 1.8 4.6 6.5 1.1 0.8 2.6 0.3 0.5 0.6
Slide 10: Reference: Unit Price of Products and Number of Items Purchased
Reference: Unit Price of Products and Number of Items Purchased (excluding Plastic Bags) Unit Price of Products (excluding the impact of plastic bags) Began charging for plastic bags in July 2020 FY 5/2020 5.6 • When plastic bags are purchased by customers, /their FY 5/2021 3.9 3.7 3.2 1.5 sales are
Slide 11: Sales Situation by Region and Operating Company
Sales Situation by Region and Operating Company by Region by Operating Company Share of total Q3 (nine months YTD) Q3 (nine months YTD) store sales Existing Store Sales YoY Existing Store Sales YoY FY5/21 FY5/19 FY5/20 FY5/21 FY5/19 FY5/20 FY5/21 Hokkaido 17.5 101.7 102.7 102.3 Tsuruha 101.6 102.1 1
Slide 12: Store Openings and Closures
Store Openings and Closures by Region by Operating Company FY5/21 FY5/21 End of End of FY5/20 Acquisitions, FY5/20 Acquisitions, Closures Closures Net change End of 3Q Closures Closures Net change End of 3Q etc. etc. Hokkaido 404 13 10 - +3 407 Tsuruha 1,253 51 25 - +26 1,279 Tohoku 506 21 1 - +20 5
Slide 13: Results by Product Group (Nine Months YTD)
Results by Product Group (Nine Months YTD) Net Sales Gross profit margin YoY Share YoY Pharmaceuticals 141,931 102.9 20.8 42.1 +0.8 Prescriptions 67,804 106.7 9.9 39.2 +3.0 OTC 74,126 99.7 10.8 44.8 △0.9 Cosmetics 98,406 94.2 14.4 33.2 0.0 Products Misc. daily necessities 195,314 115.4 28.6 27.1 +1.
Slide 14: Results by Product Group *Excludes Drug Eleven
Results by Product Group (Nine Months YTD) *Excludes Drug Eleven Net sales *POS basis Net Sales Gross profit margin Share of total YoY products YoY Share YoY Health foods 22,800 104.3 3.5 Pharmaceuticals 137,006 99.4 20.8 42.3 +1.0 Healthcare 42,808 135.6 6.5 products/nursing care Prescriptions 66,6
Slide 15: Dispensing Division Results
Dispensing Division Results Consolidated Results *Includes Drug Eleven Dispensing Pharmacies by Operating Company 3Q (Nine-month) 3Q of FY5/21 End of YoY End of 3Q (details) FY5/20 FY5/21 YoY Results YoY Attached Independent Dispensing remuneration 63,545 67,804 106.7 23,878 110.4 Tsuruha 275 302 26
Slide 16: Reference: Changes in Prescriptions Filled and Unit Price
Reference: Changes in Prescriptions Filled and Unit Price (Excludes Drug Eleven) 15.0% 5.0% -5.0% Number Unit price Sales -15.0% Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. No. of 0 -0.1 -0.1 -0.1 +2 +0.1 -0.1 +2 -3 +0.1 +0.1 -0.1 +0.1 +2 -0.1 weekdays The number of pre
Slide 17: PB Products Results (Nine Months YTD)
PB Products Results (Nine Months YTD) *Excludes Drug Eleven Share of sales (%) SKUs Net sales (million yen) *Product sales excluding Gross profit margin (%) dispensing Exclusive Kurashi M’s one / products / Total FY5/20 FY5/21 YoY Results YoY Results YoY Rhythm series Medis’ one Limited edition prod
Slide 18: Status of SG&A
Status of SG&A Consolidated Results *Includes Drug Eleven Excluding Drug Eleven FY5/19 FY5/20 FY5/21 FY5/21 3Q Nine-month YoY 3Q Nine-month YoY 3Q Nine-month YoY 3Q Nine-month YoY Personnel Amount 68,219 126.2 73,252 107.4 81,064 110.7 77,675 106.0 expenses Share of sales 11.6 +0.5 11.7 +0.1 11.9 +0
Slide 19: Initiatives and Policies for FY5/21
Initiatives and Policies for FY5/21 Copyright TSURUHA HOLDINGS INC. TSURUHA HOLDINGS INC. Q3 FY5/21 18
Slide 20: Looking Back on the Year of COVID-19 Epidemic
Looking Back on the Year of COVID-19 Epidemic Period Status of the Company Impact Surge in demand for masks, nationwide shortages ＋ Jan-Mar Drop in inbound tourism sales － Expanding needs for one-stop Temporary shortage of paper products due to misinformation ＋ shopping Shift to cocooning consumptio
Slide 21: Forecast of Store Openings and Closures for FY5/21
Forecast of Store Openings and Closures for FY5/21 by Region by Operating Company End of FY5/21 End of FY5/21 FY5/20 Acquisitions, FY5/20 Acquisitions, Openings Closures etc. Net change End of 3Q Openings Closures etc. Net change End of 3Q Hokkaido 404 21 11 - +10 414 Tsuruha 1,253 85 33 - +52 1,305
Slide 22: Full-Year Plan for FY5/21
Full-Year Plan for FY5/21 FY5/20 FY5/21 3Q YTD Share Share YoY Share YoY Net sales 841,036 100.0 920,000 100.0 109.4 683,914 100.0 109.3 Gross profit 244,262 29.0 267,000 29.0 109.3 198,032 29.0 109.6 SG&A expenses 199,249 23.7 218,000 23.7 109.4 158,321 23.1 109.8 Operating income 45,013 5.4 49,000
Slide 23: Promote in-store initiatives through DX
Digital Strategy Promote in-store initiatives through DX Building a foundation for 1-to-1 marketing through increased customer contacts by promoting app downloads and registration Acquire customer contacts and build Dream Coupon sales promotion infrastructure Reservation Function Point Cards • Promo
Slide 24: Create business improvement synergies using IT
Digital Strategy Create business improvement synergies using IT Integrating various systems such as e-commerce in addition to the introducing and using digital tools in store operations Application to store operations Digital cosmetic ledger • Transition of planning system • From store/manufacturer-
Slide 25: Expand PB centered on Kurashi Rhythm
Private Brand Strategy Expand PB centered on Kurashi Rhythm Promoting PB strategy centered on the original Kurashi Rhythm brand of the Tsuruha Group (billions yen) Trailing Five-Year Trends in PB Types Cultivation of the Kurashi Rhythm brand • Enhancement of product lineup End of 3Q 702SKUs • Boost
Slide 26: Reference: Overview of PB Products by Type and Future Plans
Reference: Overview of PB Products by Type and Future Plans Product Overview Future Direction • Launched in 2007 as a PB product of TSURUHA Holdings, Inc. Planning to discontinue sales of M's one • Expanded to operating companies in line with group expansion after revisions or eliminations because o
Slide 27: Other Initiatives
Other Initiatives Expand meat and fresh produce Integration of Drug Eleven operations • Contributes to increased sales and customer traffic • Synergies from procurement integration Number of stores carrying these products: 696 Improvement in gross profit margin • Continue to expand the number of sto
Slide 28: The SDGs and Our Initiatives
The SDGs and Our Initiatives Management Philosophy and the SDGs Efforts to Reduce CO2 Emissions Management We make social contributions • Energy saving lighting and air conditioning in stores Philosophy through providing a healthy Installation of LED and PV-powered equipment lifestyle and a platform
Slide 29: Mid-Term Targets
Mid-Term Targets Target for Stores: Net sales: FY5/24 3,000 JPY 1 trillion Number of stores Net sales (million yen) Pursue specialization and convenience Expand stores following the dominant area strategy Expand lineup of PB products and enhance product strengths Boost Group’s organizational
Slide 30: https://www.tsuruha-hd.co.jp/
https://www.tsuruha-hd.co.jp/ The Company’s plans, earnings forecasts, and strategies appearing in this presentation are based on the judgement of the Company’s management from information obtainable as of the date of this presentation. Please be aware that these correspond to forward-looking statem