Slide 1: Corporate Presentation (Fiscal Year Ended March 31, 2019)
CORPORATE PRESENTATION (Fiscal Year Ended March 31, 2019) ▲ ▲ Cosmetics mail order BELLUNA Net - Apparel stores Main catalog A mail order website 「BELLUNA」 「OZIO」 BELLUNA Friday, May 24, 2019 0
Slide 2: Table of Contents
Table of Contents 1.Financial Highlights P.2 2. Review of the Third Business Plan P.12 3.Management Policies and Initiatives P.16 1
Slide 3: 1. Financial Highlights
1. Financial Highlights 1. Financial overview 2. Financial summary 3. Profitability by segment 4. Analysis of increases and decreases in sales 5. Analysis of increases and decreases in operating income 6. Balance sheet 7. Statement of cash flows 8. Plan for FY March 2020 2
Slide 4: 1-1. Financial overview
1-1. Financial overview The results of net sales, ordinary income, and net income were generally in line with the forecast. Net sales increased 9.9% year on year. Operating income decreased 7.7% year on year. Ordinary income increased 15.6% year on year, to 15.31 billion yen, thanks to the con
Slide 5: 1-2. Financial summary
1-2. Financial summary Net sales: Up 9.9% year on year. Operating income: Increased in the three segments including Specialty Mail Order, Finance and Other but decreased in the remaining four segments. Ordinary income and net income exceeded those in the previous year due to exchange rate-related ga
Slide 6: 1-3. Profitability by segment
1-3. Profitability by segment Net sales : Increased in all segments excluding the General Mail Order segment. Operating income: Operating income increased in Specialty Mail Order and two other segments. It decreased in General Mail Order and three other segments. ・ Operating income decreased in the
Slide 7: 1-4. Analysis of increases and decreases in sales
1-4. Analysis of increases and decreases in sales Sales in the Retail Store Sales segment increased chiefly based on the consolidation of Sagami Group Holdings Co., Ltd. Sales growth in the Specialty Mail Order segment was driven by Ozio Co., Ltd., an operator of the cosmetics business and the mail
Slide 8: 1-5. Analysis of increases and decreases in operating income
1-5. Analysis of increases and decreases in operating income Income continued to rise in the Specialty Mail Order segment, mainly due to improvements in the profitability of the mail order sales business for nurses, as well as sales added by Ozio Co., Ltd., an operator in the cosmetics business. Mea
Slide 9: 1-6. Balance sheet
1-6. Balance sheet Current assets rose, mainly reflecting increases in operating loans and merchandise and finished goods. Non-current assets increased, led particularly by growth in tangible fixed assets. Liabilities rose, chiefly due to an increase in interest-bearing liabilities. Unit: Billion Ye
Slide 10: 1-7. Statement of cash flows
1-7. Statement of cash flows Cash flow from investing activities was negative, primarily due to the purchase of property, plant and equipment, and the purchase of shares of subsidiaries. Cash flow from financing activities increased long- and short-term loans, and overall cash decreased by 3.29 bill
Slide 11: 1-8. Plan for FY March 2020
1-8. Plan for FY March 2020 Net sales, ordinary income, and net income reached a record high in the last two fiscal years. The fiscal year ending March 2020 is the first year in the Fourth Business Plan. We will aim for the steady achievement of 185 billion yen in net sales, and 14 billion yen in op
Slide 12: 1-8. Plan for FY March 2020 (Budgets by Segment)
1-8. Plan for FY March 2020 While sales and income will decrease in the General Mail Order segment due to a rise in the cost of paper, both sales and income are expected to increase in other segments based on growth led by the Specialty Mail Order segment, which continues to grow, and the Property s
Slide 13: 2. Review of the Third Business Plan
2. Review of the Third Business Plan 12
Slide 14: Third Business Plan: goals and performance
2. Review of the Third Business Plan Third Business Plan （FY March 2017～FY March 2019） Final year goal Performance ■Net sales 160.0 billion yen 177.7 billion yen (average annual growth of 6.9%) (average annual growth of 10.5%) ■Operating income 16.0 billion yen 12.0 billion yen (average annual growt
Slide 15: Review of the Third Business Plan
2. Review of the Third Business Plan During the period of the Third Business Plan (FY ended March 2017 – FY ended March 2019), net sales and ROE reached the initial targets one year ahead of the plan despite the operating income falling short of the target in FY ended March 2019. 180 16 14.0% ≪ROE≫
Slide 16: Expansion of four main businesses: Achievement
2. Review of the Third Business Plan Expansion of four main businesses Achievement We worked aggressively to strengthen internet-based sales, which resulted in growth in Expand the general mail order both net sales and profit despite changes in the external environment not initially expected busines
Slide 17: 3. Management Policies and Initiatives
3. Management Policies and Initiatives 1. General Mail Order Business 2. Specialty Mail Order Business 3. Retail Store Sales 4. Property Business 5. Fourth Business Plan 6. Returns to shareholders 16
Slide 18: Management Policy: External Environment
3. Management Policy ~ External Environment Our business plans respond to changes in the external environment (changes in the consumption environment and growth of the Internet). External environment Internal environment ・ An increase in the tendency towards a deflationary mindset • Growth of specia
Slide 19: Fourth Business Plan: Final year goal
3. Management Policy ~Fourth Business Plan Fourth Business Plan （FY March 2020～FY March 2022） Final year goal ■Net sales 220.0 billion yen (average annual growth of 7.4%) ■Operating income 20.0 billion yen (average annual growth of 18.5%) ■ROE At least 10％ is maintained. 18
Slide 20: Fourth Business Plan: Changes in Net Sales
3. Management Policy ～Fourth Business Plan Under the Fourth Business Plan, we will aim for upward revisions while steadily reaching targets. Changes in Net Sales (Unit: Billion yen) 1. Achieved record high net Third Business Plan Fourth Business Plan sales and profit under the Third Business Plan 22
Slide 21: Strengthen four businesses
3. Management Policy – Strengthen four businesses Expansion of four main businesses General Specialty mail order mail order 1. Expand the general mail order business Retail store Property sales in a stable manner. 2. Expand the specialty mail order business. 3. Expand the retail store sales business
Slide 22: 3-1. General Mail Order Business
3-1. General Mail Order Business （1）Condition of the General Mail Order business Although the price hikes in home delivery services, postage and shipping, and paper are causing the business results to remain flat in the fiscal year under review, we will take on the challenge of growing in the new ex
Slide 23: Increase catalog-based sales
3-1. General Mail Order Business Increase catalog-based sales Aim for 100 billion yen in General Mail Order under the Fourth and Fifth Business Plans 1. Aim for a recovery in the traditional paper catalog 2. Offer products to consumers in their 20s to 70s 3. Strengthen the men’s fashion and innerwea
Slide 24: Strengthen operations via the Internet
3-1. General Mail Order Business Strengthen operations via the Internet Create a wining pattern specialized in products for middle-aged women and young people 1. Belluna’s website (targeting middle-aged women) (1) Introduce online- exclusive products and increase standard products (2) Improve online
Slide 25: Opening of Ryu Ryu Mall
3-1. General Mail Order Business Opening of Ryu Ryu Mall, an online fashion mall targeting young people Opening date: June 17, 2019 Concept: (1) Target consumers in their 20s and 30s (2) Offers a wide range of sizes (3) Selection and promotion taking advantage of our experience of in-house product d
Slide 26: Synergy among catalogs, Internet, and in-store operations
3-1. General Mail Order Business Synergy among catalogs, Internet, and in-store operations 1. Efficiency is improved reciprocally (among catalogs, Internet and in-store operations) through synergy. （1）Improved responses in mail ordering. （2）Improved CVR in online operations. Catalogs （3）Increase ret
Slide 27: 3-2. Specialty Mail Order Business
3-2. Specialty Mail Order Business Increase both growth potential and profitability by improving product development capabilities and raising the percentage of online sales. Aggressively work towards overseas expansion from now on, develop new profit sources, and aim to reach targets ahead of schedu
Slide 28: 3-2. Specialty Mail Order Business: Ozio
3-2. Specialty Mail Order Business：Ozio 〈Ozio Taiwan〉 In Japan, maintain high growth potential and profitability by continuing the development and growth of hit products that become the core. Overseas, Ozio Taiwan achieved full-year profit. Following Taiwan, we will consider entering other Asian mar
Slide 29: 3-3. Retail Store Sales: BANKAN Wamonoya and Sagami Group
3-3. Retail Store Sales: Stores selling kimono and Japanese-style goods BANKANWamonoya and Sagami Group will create synergy and Fourth Business Plan Net sales 30 billion yen Fifth Business Plan Net sales 50 billion yen Profit rate 10％ aim to establish a dominant position in Japan in terms of both ne
Slide 30: 3-3. Retail Store Sales: BANKAN Wamonoya
3-3. Retail Store Sales: Stores selling kimono and Japanese-style goods (BANKANWamonoya) Under the Fourth Business Plan, we will take advantage of our pioneering ability to become the leader in the kimono industry by achieving both growth potential and profitability. ■Net Sales (Unit: Billion Yen) 1
Slide 31: 3-3. Retail Store Sales: Sagami GHD
3-3. Retail Store Sales: Stores selling kimono and Japanese-style goods(SAGAMI GHD) Efforts to recover growth potential and profitability 1. Reform awareness (way of thinking) 〈Sagami〉 (1) Sense of ownership, positive thinking, gamification, willingness to grow, and recognition of profit 2. Efforts
Slide 32: 3-3. Retail Store Sales: Apparel stores
3-3. Retail Store Sales: Apparel stores Shift to steady growth. Reduce the store-opening plan and limit the number of store openings per year to 15 to 20. Net sales and profitability at existing stores －Number of stores ■Net Sales 12.0 110 120 1 ■Operating income (Unit: Billion Yen) (Unit: Billion Y
Slide 33: 3-4. Property
3-4. Property The hotel business will lead the financial results as a growth business while the domestic rental business maintains stable revenue. ■Net Sales ■Operating income (Unit: Billion Yen) (Unit: Billion Yen) 20.0 4 18.0 3.5 16.0 3 14.0 2.5 12.0 2 10.0 18.10 15.90 3.13 1.5 8.0 2.40 10.44 1 6.
Slide 34: 3-4. Property (Hotels): openings and plan
3-4. Property（Hotels) Hotel openings in the past and future plan 〈Osaka Higashi Umeda Hotel〉 Opened hotels Number of Region Hotel Start of Operation Guest Rooms OKINAWA Hotel Hamahigashima Resort 29 May 2013 FUKUSHIMA Urabandai Lake Resort 324 Oct 2015 NAGANO Le Grand Kyu Karuizawa 43 Jul 2016 KYOTO
Slide 35: 3-4. Property (Hotels)
3-4. Property（Hotels) We have no plans to open hotels during the fiscal year under review. Four hotels are scheduled to open in FY ending March 2021 and one in FY ending March 2022. All hotels scheduled to open are lodging- specialized hotels. 〈Kyoto Granbell Hotel〉 ■Net Sales ■Operating income (Uni
Slide 36: 3-5. Fourth Business Plan (by segment)
3-5. Fourth Business Plan(by segment) Unit : billion yen Third Business Plan Fourth Business Plan FY March2017 FY March2018 FY March2019 FY March2020 FY March2021 FY March2022 Performance Performance Performance Plan Plan Plan Net sales General Mail Order 75.26 78.61 77.60 73.53 75.38 81.11 Specialt
Slide 37: 3-6. Returns to shareholders
3-6. Returns to shareholders We will increase dividends again for the fiscal year under review by 1.0 yen to provide a dividend increase in two consecutive years. FY March FY March FY March FY March 2017 2018 2019 2020(Plan) EPS (yen) 59.68 99.41 106.39 107.99 Dividend (yen) 12.5 12.5 15.0 16.0 <Sha
Slide 38: Summary
≪ Summary ≫ We will aim to achieve steadily the plan for the fiscal year under review by focusing on results so that we will achieve the targets in the Fourth Business Plan. 37
Slide 39: Note
Note <Important notice> This material is prepared for the purpose of publicly disclosing information concerning the financial results of the fiscal year ending March 31, 2019. Nothing in this document shall be considered to be an offer to sell or a solicitation of an offer to buy securities issued b