Nitori Holdings Co. Ltd. · TSE:9843

Nitori — FY2016 Earnings Presentation

47 slides from Nitori's earnings presentation, Mar 28, 2017

  1. Slide 1: Financial Results Presentation for the Fiscal Year 2016

    Nitori Holdings Co., Ltd. Financial Results Presentation for the Fiscal Year 2016 March 28 , 2017 【DISCLAIMER】 IN-HOUSE TRANSLATION TSE1st.&Sapporo Code : 9843

  2. Slide 2: Achieved Growth in sales and profit for 30 consecutive fiscal years

    Achieved Growth both in sales and profit for 30 consecutive fiscal years FY1987 FY2016 Net Sales(Billions of Yen) Number Results 16 Stores 471 Stores of Stores Compare to FY1987 29-Fold Ordinary Income(Billions of Yen) 512.9 Results 10.3 B yen 512.9 B yen Net Sales Compare to FY1987 50-Fold 458 1 45

  3. Slide 3: Trend of Number of Stores, Customers

    Trend of Number of Stores, Customers 471Stores Number of Stores Number of Customers(Millions) 471 1 Store → 100 Stores 36 Years 420 100 Stores → 200 Stores 6 Years 374 70 07 70.07 200 Stores → 300 Stores 3 Years 331 300 Stores → 400 Stores 3 Years 300 60 0 60.50 400 Stores → 500 Stores 2 Years 268 5

  4. Slide 4: Overview of Consolidated Financial Results

    Overview of Consolidated Financial Results （Billions of Yen） FY2016 FY2015 FY2016 Change Actual Actual Plan （to sales） （to sales） （YOY） （to plan） Net sales 512 9 512.9 － 458 1 458.1 － 54.8 54 8 112.0％ 500.0 500 0 102.6％ Gross profit 278.2 278 2 54.2% 243 243.5 5 53.2% 34.7 34 7 114.3％ 263.0 263 0 10

  5. Slide 5: Consolidated Balance Sheets

    Consolidated Balance Sheets （Billions of Yen） 20 Feb. 20 Feb. Major factors Change 2017 2016 on changes Forward exchange contracts Current assets 170.1 129.9 40.2 assets +6.8 (Cash and deposits) 70.5 42.3 28.2 Merchandise M h di and d (Inventory) 48.9 45.4 3.5 finished goods +3.4 Non-Current assets

  6. Slide 6: Consolidated Cash Flows

    Consolidated Cash Flows （Billions of Yen） Major factors FY2016 FY2015 Change on changes ・Income before income taxes +87.8 Operating activities 77.9 57.3 20.6 ・Depreciation and amortization +12.3 ・Income taxes paid (29.3) ・Purchase of property,plant and Investing activities (42.0) (35.8) (6.2) equipm

  7. Slide 7: Consolidated Financial indicators

    Consolidated Financial indicators Equity ratio 80.7% ROE 79.5% 16 6% 16.6% 14 9% 14.9% 14.7% 76.4% 2015.2 2016.2 2017.2 2015.2 2016.2 2017.2 EPS PER ¥541 22 7 22.7 20.2 19.4 ¥425 ¥376 2015.2 2016.2 2017.2 2015.2 2016.2 2017.2 Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 7

  8. Slide 8: Comparable stores in YOY

    Comparable stores in YOY Sales ※ １０５．５％ ※Sales = Sales based on orders No. of Customers １０５ ５％ １０５．５％ Average Spend per Customer １００．０％ （Furniture:１０５．５％ Home fashion:１０１．１％） Sales ratio by merchandise categories Category FY2016 FY2015 F nit e Furniture ３８ ９％ ３８．９％ ４０ ２％ ４０．２％ Home fashion ６０．８％ ５９．

  9. Slide 9: Trend in YOY changes in comparable stores

    Trend in YOY changes in comparable stores （％） 【Sales , YOY】 ※Sales = Sales based on orders 115 110 105.5 104.4 103.2 105 101.6 100.1 100 95 90 【No. of Customers・Average Spent per Customer , YOY】 （％） No. of Customers Average spent per customer 115 110 104.5 103.6 105.5 105 102.5 102 0 102.0 100.0 100

  10. Slide 10: Quarterly trend in QOQ changes in comparable stores

    Quarterly trend in QOQ changes in comparable stores （％） FY２０１３ FY２０１４ FY２０１５ FY２０１６ 120 115 112.2 110 108 8 108.8 109 1 109.1 106.5 107.5 106.7 105.2 106.0 105.5 105.4 105 100.1 100.5 100 98 7 98.7 97.8 95 97.0 94.3 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales Q1 2013 Q2 2013 Q3 2013 Q4

  11. Slide 11: Consolidated Sales

    Consolidated Sales 【Net sales】 Amount YOY Net sales （Billions of Yen） Store sales ¥470.5 bil. 111.0% E-commerce ¥22.6 bil. 133.1% 512.9（＋12.0%） B to B & ¥8.3 bil. 99.4% Renovation Sales 458.1 Rent income ¥6.2 bil. 139.8% Others ¥5.1 bil. 116.0% Total ¥512.9 bil. 112.0% Sales comp. by region ※Sales b

  12. Slide 12: Gross profit, SG&A expenses

    Gross profit ・ SG&A expenses 【Average Exchange Rate】 Change Gross profit （Billions of Yen） ¥６.４２/$ Gross profit margin ¥１０８ １２/$ Weak ¥１０８.１２/$ W k yen 【Gross profit margin】 278.2 （＋14.3%） FX impact (2．0)ｐｔ (2 0) ｔ 243.5 COGS 54.2% (＋1.0pt) 53.2% reduction ＋3．0ｐｔ Ratio to 【SG&A】 Amount YOY sales l C

  13. Slide 13: New Stores (FY2016)

    New Stores (FY2016) NITORI 33 Stores Hokkaido 1 Ibaraki 2 Saitama 1 Tokyo 11 Chiba 1 Kanagawa 1 Niigata 1 Aichi 2 Shiga 2 Osaka 4 Hyogo 1 Nara 2 Ok Okayama 1 Ko hi Kochi 1 K Kagawa 1 Fukuoka 1 DECO HOME 15 Stores Miyagi 1 Gunma 1 Saitama 3 Tokyo 5 Kanagawa 1 Osaka 2 Hyogo 1 Fukuoka 1 Taiwan 3 Stores

  14. Slide 14: No. of stores as of Feb. 20, 2017

    No. of stores as of Feb. 20, 2017 No. of No. of No. of Prefecture stores Prefecture stores Prefecture stores ４７１ Hokkaido H kk id Hokkaido 20 (+1) 20 (+1) ( 1) Yamanashi I hik Ishikawa 3 5 Shimane Hi Hiroshima hi 2 12 Stores Aomori 6 Toyama 4 Yamaguchi 5 Akita 4 Fukui 2 Kagawa 4 (+1) Iwate 3 Hokurik

  15. Slide 15: Major indicators of management efficiency (1)

    Major indicators of management efficiency（1） Sco Num un pe ber Indicator it Target 2017.2 2016.2 2015.2 2014.2 2013.2 1 Return on assets ％ Over 15％ ○ 19.4 18.3 18.7 20.9 22.6 Ti 2 Total asset turnover me s Over 2 × 1.14 1.12 1.15 1.28 1.27 Group Ordinary O di income i 3 margin ％ Over 10％ ○ 17.1 16.4

  16. Slide 16: Major indicators of management efficiency (2)

    Major indicators of management efficiency (2) Sco Num un pe ber Indicator it Target 2017.2 2016.2 2015.2 2014.2 2013.2 12 Sales per tsubo K Over ¥950K ○ 981 938 915 9 5 903 882 88 Ti 13 Stock turnover me Over 9 × 5.5 5.4 5.5 6.0 6.0 Sale of furniture and home furnishing s Operating assets Ti 14 turn

  17. Slide 17: Topics FY2016

    Topics p FY2016

  18. Slide 18: Seasonal Coordination Series

    Seasonal Coordination Series zThe latest trend of the seasonal coordination series zCreate a sensation via SNS and expand customer base Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 18

  19. Slide 19: Product Development

    Nクール・Nウォーム Product Development ふところは寒いが、 ・Improve the products quality and expand p categories go of o products p o range g ・Build a stable product supply chain system Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 19

  20. Slide 20: Product Development

    Nクール・Nウォーム Product Development ・More variations by increasing ・Launching “Luxury” series g the choice of fabric and design and Hard-touch types yp make customer bases wider Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 20

  21. Slide 21: Product Development: Wall shelf Porte

    Product Development Wall shelf “Porte” zIncrease the storing capacity by connecting each shelf zResolve an issue about store shortage in living room zPresent wide variety of style in limited store space zExtremely lower price Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 21

  22. Slide 22: Merchandise Branding Strategy

    Merchandise Branding Strategy Launched on Sept. 2016 Fun-and-easy-to-coordinate colors for everyone at a lower price Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 22

  23. Slide 23: Corporate Branding

    Corporate Branding Awarded “Nippon Store Award 2016” Points of Evaluation Rank Adding color to the daily life 1st Interior suggestions for daily life 2nd Stores and St d facilities f iliti are laid l id outt for f easy shopping 2nd Products are placed in a way that customers can compare among 3 rd v

  24. Slide 24: Omni-channel

    オムニチャネル Omni-channel Pick-up service in stores On-line catalogs Started on Sept. 2016 Introduce merchandise in small-sized NITORI stores Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 24

  25. Slide 25: NITORI MALL HIRAKATA (Osaka)

    NITORI MALL HIRAKATA(Osaka) Everything you want for your house is Our largest-scale available in this mall Opened on April 20, 2016 Site area：approx. 58,000 ㎡ Commerce area：approx. 40,000 ㎡ Parking capacity：approx. 1,800 cars Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 25

  26. Slide 26: B to B business Sales

    B to B business Sales Combining our specialties in product development and total coordination solution, we expand our service to various kind of industries Theater Healthcare provider Hotel Multi purpose room Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 26

  27. Slide 27: Logistics

    Logistics Enlarge logistics business Automated warehouse robots(AutoStore) zAutomatic warehouse system that has zLogistics network of carrying between 3 times more storage capacity and 4 two people covering 98% area in Japan times faster picking compared to enable to delivery large products that nor

  28. Slide 28: Product Safety Awards

    The FY2016 10th Best Contributors to Product Safety Awards Awarded with “The METI Minister Award” for the first time 【Past Award】 Director-general for commerce, Distribution and Industrial Safety 2014 Policy (Manufacturing and import sector) Director general for commerce, Director-general Distributi

  29. Slide 29: Opening Stores at Central Tokyo

    Opening港南台・中⽬⿊ Stores at Central Tokyo Shinjuku Takashimaya Times Square Store Nakameguro Store Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 29

  30. Slide 30: Opening Stores in Small Population Areas

    Opening Stores in Small Population Areas AEON Nayoro Store (Hokkaido) Seiyu Nagahama Rakuichi Store（Shiga） Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 30

  31. Slide 31: Opening Stores in China

    中国新店 Opening Stores in China Nanjing 1st Shanghai 2nd Hangzhou 2nd Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 31

  32. Slide 32: Opening Stores in Taiwan

    Opening Stores in Taiwan Taipei 〜1st urban shop model in Taiwan〜 Kaohsiung 4th Kaohsiung 5th Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 32

  33. Slide 33: DECO HOME Achieved 50 stores

    DECO HOME Development of original Achieved 50 stores DECO HOME merchandise Number of stores changes 51 39 29 17 8 3 4 '11.2 '12.2 '13.2 '14.2 '15.2 '16.2 '17.2 Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 33

  34. Slide 34: CSR

    CSR ・NITORI Ladies Golf Tournament ・Sponsored low-Carbon Tournament ・NITORI Ladies Running Team ・Introducing EV Charge Station ・NITORI NITORI Otaru Ot A t Base Art B ・Donation to tree-planting in Hokkaido Environ- Culture ment R i Region Ed Education ti ・NITORI Culture Foundation ・Donate to Yubari-c

  35. Slide 35: CSR: NITORI Otaru Art Base

    CSR NITORI Otaru Art Base Donate disaster area in Kumamoto Earthquake A Approx. 50 million illi yen Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 35

  36. Slide 36: Work-life balance and diversity initiatives

    Create work-life balances Progress diversity environment ・”A ”A half day off system” spread to whole employees ・Introducing “work at home system” ・Introducing “supporting child-care cost during weekend” k d” ・Expanding system about caring for employeeʼs parents p Stability of the work forces ・Introd

  37. Slide 37: Major Initiatives for FY2017

    Major j Initiatives for FY 2017

  38. Slide 38: Business Challenges by FY2022

    Business Challenges by FY2022 1.Rebuild company organization to sustain global chain store system 2. Enhance employees skill and their knowledge 3 Reorganize global supply 3. supply-chain chain system 4. Providing a comfortable lifestyle via our merchandise, stores and services 5.Enhance our store s

  39. Slide 39: Existing store renovation

    Existing store renovation Venus Fort Store(Tokyo) Oita Wasada Store(Oita) Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 39

  40. Slide 40: Merchandise Branding Strategy

    Merchandise Branding Strategy Qty Valuable price Appeal coordination bland Quality bland ・Expand customer base Competitive ・Increase customersʼ visit bland frequency ・Increase numbers of Price purchasing items per customer Launch in Autumn, 2017 Copyright 2017 Nitori Holdings All Rights Reserved ■不許

  41. Slide 41: Tobu-Ikebukuro Store

    Opening 3 Stores at Central Tokyo on 15 March, 2017 Tobu-Ikebukuro Store Approx. 3,800 ㎡ Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 41

  42. Slide 42: Marronnier Gate Ginza Store

    Opening 3 Stores at Central Tokyo on 15 March, 2017 Approx. 3,000 ㎡ Marronnier Gate Ginza Store (Expansion) Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 42

  43. Slide 43: Atre Meguro Store

    Opening 3 Stores at Central Tokyo on 15 March, 2017 Atre Meguro Store Approx. 2,300 ㎡ Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 43

  44. Slide 44: Store roll-out plan in FY2017

    Store roll-out plan in FY 2017 Store Total Taiwan USA China End of FY2016 ３７７ ５１ ２７ ５ １１ ４７１ FY2017 Net increase ＋３０ ＋１５ ＋５ ＋１ ＋１０ ＋６１ End of FY2017 ４０７ ６６ ３２ ６ ２１ ５３２ China USA ＋１０ ＋１ Japan Taiwan ＋４５ ＋5 Copyright 2017 Nitori Holdings All Rights Reserved ■不許複製印刷配布 44

  45. Slide 45: Plan in FY2017

    Plan in FY 2017 （Billions of Yen） FY 2017 FY2016 Change Plan Actual (to sales) (to sales) (to actual) Net sales 568.0 － 512.9 － 55.1 110.7% Gross profit 309.0 54.4% 278.2 54.2% 30.8 111.0% SG&A expenses 210.0 37.0% 192.5 37.5% 17.5 109.1% Operating income 99.0 17.4% 85.7 16.7% 13.3 115.4% Ordinary i

  46. Slide 46: Distribution of Profits to Shareholders

    Distribution of Profits to Shareholders ・Shareholders dividends increase for consecutive 13 fiscal years ・Commemorative dividend for consecutive 30 fiscal sca years yea s growth g o t in Sales Sa es & Profit o t 【FY2016】 ¥92 ¥82 Annual dividend：82 Yen / share（prev.FY+17Yen） 2 Half-year Half year div

  47. Slide 47: 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

Nitori Holdings — FY2016 Earnings Presentation on 6ix