Create Sd Holdings Co., Ltd. · TSE:3148
Create Sd — 1H FY2019 Earnings Presentation
18 slides from Create Sd's earnings presentation, Jan 18, 2019
Slide 1: FY2019 (6/18-5/19) Interim Results Explanatory Meeting
FY2019 (6/18-5/19) Interim Results Explanatory Meeting January 18, 2019 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 inqu
Slide 2: 1H FY2019 Consolidated Results and Second Half Efforts
1H FY 2019 Consolidated Results 1. Profit and Loss Statement (Consolidated) 2. Balance Sheet (Consolidated) 3. New Store Openings 4. Renovation of Existing Stores 5. Performance Highlights 6. Profit and Loss Statement (Create SD) FY 2019 Efforts in the second half 1. New Store Openings 2. Renovation
Slide 3: 1H FY 2019 Consolidated Results
1H FY 2019 Consolidated Results 3
Slide 4: 1. Profit and Loss Statement (Consolidated)
1. Profit and Loss Statement (Consolidated) 1H FY2018 1H FY2019 (consolidated) (consolidated) % of Share Share YoY change (million yen) (million yen) projection (%) (%) (%) (%) Net sales 130,967 100.00 140,728 100.00 107.5 98.9 Gross profit 35,384 27.02 38,661 27.47 109.3 99.1 SG&A expenses 29,280 2
Slide 5: 2. Balance Sheet (Consolidated)
2. Balance Sheet (Consolidated) (million yen) Main causes November 30, of changes May 31, 2018 2018 Change (consolidated) (consolidated) ■Total assets ・ Increase of 584 million yen in Total assets 121,412 125,541 +4,129 accounts receivable ・ Increase of 695 million yen in merchandise Current assets
Slide 6: 3. New Store Openings / 4. Renovation of Existing Stores
3. New Store Openings OTC: 20 store openings/Prescription drug stores: 5 store openings (in-store pharmacies: 5 stores) Store closures OTC: 3 stores Contract expiration: 2 stores Improvement management efficiency: 1 store Prescription drug stores: 2 stores Contract expiration: 1 store (in-store ph
Slide 7: 5. Performance Highlights
5. Performance Highlights Net Sales 107.5% vs. previous year (98.9% vs. plan), 100.1% vs. previous year for existing stores • Reverse effect owing to discount coupon-based sales promotion in previous June • Slump in sales of seasonal products due to adverse weather including summer heatwave and wa
Slide 8: 5. Performance Highlights
5. Performance Highlights Net Sales 1H FY2018 1H FY2019 Net sales Share Net sales Share YoY change (million yen) (%) (million yen) (%) (%) Medical and health products 30,684 23.6 33,061 23.7 107.7 (O T C) 20,499 15.8 21,612 15.5 105.4 (Prescription) 10,185 7.8 11,448 8.2 112.4 Cosmetics 18,626 14.4
Slide 9: 5. Performance Highlights
5. Performance Highlights Gross Profit Ratio Gross profit ratio 27.7% +0.5% vs. previous year, +0.1% vs. plan ・Review of sales promotion measures (switch from discount coupon-based sales promotion to points-based sales promotion to maintain frequency of store visits) ・Growth in dispensing sales sh
Slide 10: 5. Performance Highlights (Dispensing Department)
5. Performance Highlights (Dispensing Department) ・Prescription drug unit prices fell due to the April NHI price revisions, but the number of prescriptions remained strong 1H FY2018 1H FY2019 Change 10,185 11,448 Sales of prescriptions in all stores （million yen) 112.4 Number of prescriptions (1,000
Slide 11: 5. Performance Highlights (Dispensing Department)
5. Performance Highlights (Dispensing Department) Premiums for Local Support System Number of stores with local support system premiums: 57 stores (+11 stores vs. previous year) • Expansion of home-care service stores: 122 stores (+26 stores vs. previous year) ⇒Expansion in home medical care site
Slide 12: 6. Profit and Loss Statement (Create SD)
6. Profit and Loss Statement (Create SD) 1H FY2018 1H FY2019 % of Share Share YoY change (million yen) (million yen) projection (%) (%) (%) (%) Net sales 129,988 100.0 139,725 100.0 107.5 98.9 Gross profit 35,340 27.2 38,658 27.7 109.4 99.1 SG&A expenses 29,658 22.8 32,400 23.2 109.2 99.0 Operating
Slide 13: FY 2019 Efforts in the second half
FY 2019 Efforts in the second half 13
Slide 14: 1. New Store Openings / 2. Renovation of Existing Stores
1. New Store Openings OTC … 2H plan: 32 stores • Deepen dominant store openings without relaxing store opening criteria and continue openings in diverse store formats • In addition to conventional suburban store openings, plan store openings with Cremo format, joint store openings with other busin
Slide 15: 3. Sales Promotions / 4. SG&A Expense Reduction
3. Sales Promotions Review sales promotion methods • Implement points-based sales promotion to increase frequency of store visits • Issue coupons that match characteristics of customer purchases Release official smartphone app: planned for March 2019 • Provide point card function, distribute poi
Slide 16: 5. Initiatives by Prescription Drug Stores
5. Initiatives by Prescription Drug Stores Establishment of Local Support System Expansion of home-care service stores 1H: 122 stores FYE plan 141 stores (+19 stores) • Expand number of service stores by strengthening home-care service system and coordinating with home-care doctors Implement h
Slide 17: 5. Initiatives by Prescription Drug Stores
5. Initiatives by Prescription Drug Stores Generics Dispensing System Generics usage rate 1H: 77.15% FYE plan: 80.00% (+2.85%) • Continue aiming to increase premiums, and maintain improvement in usage rate Premium III: 85% - 45 stores (+24 stores vs. 1H) Premium II: 80% - 61 stores (+7 stores vs
Slide 18: 6. FYE 5/2019 Forecasts (Consolidated)
6. FYE 5/2019 Forecasts (Consolidated) Full-year forecast does not change FYE 5/2018 FYE 5/2019 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 268,161 100.0 290,900 100.0 108.5 Gross profit 73,681 27.5 80,480 27.7 109.2 SG&A