Slide 1: Financial Results for FYE May 2023
Financial Results for FYE May 2023 July 13, 2023 The earnings forecasts in this document are based on the business environment as of the time of writing. Actual results may differ from projections due to a variety of factors. Note also that inquiries should be submitted in Japanese. Inquiries: Hiron
Slide 2: FYE May 2023 Results / FYE May 2024 Plan / Sustainability Management
FYE May 2023 Results 1. Consolidated Statement of Income 2. Consolidated Balance Sheet 3. Consolidated Statements of Cash Flows 4. Store Openings/Closings (Non-Consolidated) 5. Performance Highlights (Non-Consolidated) FYE May 2024 Plan 1. New Store Openings and Renovation of Existing Stores 2. Sale
Slide 3: FYE May 2023 Results
<= CREATESD I HOLDINGS 3
Slide 4: 1. Consolidated Statement of Income for FYE May 2023
1. Consolidated Statement of Income for FYE May 2023 Net sales outperform both plans and those of the previous year, securing increased sales and profits within SG&A expenses plan FYE May 2022 Results FYE May 2023 Results YoY Vs (Millions of yen) Share (Millions of yen) Share change plan (%) (%) (%)
Slide 5: 2. Consolidated Balance Sheet for FYE May 2023
2. Consolidated Balance Sheet for FYE May 2023 May 31, 2022 May 31, 2023 (Millions of yen) Total assets Total assets 176,910 194,941 ■ Current assets +1,516 Decrease in cash and deposits -4,541 +18,030 Increase in accounts receivable +2,154 Total Current liabilities Increase in merchandise +2,881 To
Slide 6: 3. Consolidated Cash Flows for FYE May 2023
3. Consolidated Cash Flows for FYE May 2023 ■ Consolidated Statements of Cash Flows FYE May 2022 FYE May 2023 (Millions of yen) (Millions of yen) Change Net cash provided by operating activities 16,101 18,985 2,884 Net cash used in investing activities (10,808) (20,491) –9,683 Net cash used in finan
Slide 7: 4. Store Openings/Closings (Non-Consolidated)
4. Store Openings/Closings (Non-Consolidated) ■ Store openings/closings and renovations Store closings: 3 drug stores (3 after completion of contract), 1 dedicated prescription drug store (after completion of contract) No. of store openings in Kanagawa Tokyo Shizuoka Chiba Aichi Other Annual FYE May
Slide 8: 5. Performance Highlights (Non-Consolidated)
5. Performance Highlights (Non-Consolidated) ■ YoY net sales comparison at existing stores (cumulative): 104.6% (H1: 103.6%, H2:105.5%) └ OTC: 103.7% Prescriptions: 111.7% (%) FYE May 2023 15 FYE May 2022 9.7 10 5.8 6.4 6.8 5.6 5.1 4.1 3.8 5 2.7 3.2 1.2 0.8 4.0 0 1.7 -0.4 0.8 0.6 0.2 -0.1 -0.4 -0.8
Slide 9: 5. Performance Highlights: Net sales by segment
5. Performance Highlights (Non-Consolidated) ■ Net sales by segment FYE May 2022 FYE May 2023 Results Results YoY Net sales Share Net sales Share change (millions of yen) (%) (millions of yen) (%) Medical and health (%) Medical and products health products 94,159 27.4 104,590 27.8 111.1 ・ Increased
Slide 10: 5. Performance Highlights: Gross profit margin / SG&A ratio
5. Performance Highlights (Non-Consolidated) ■ Gross profit margin / SG&A ratio Gross profit margin: 27.2% Down 0.3 pts YoY –0.4 pts vs target Suppression factors: ・ EDLP strategy ・ Lower demand due to reactionary drop in facial masks and sterilization-related products Boosting factors: ・ Increase i
Slide 11: 5. Performance Highlights: Prescription drug store department
5. Performance Highlights (Non-Consolidated) ■ Prescription drug store department YoY FYE May FYE May 2023 change 2022 Results Results (%) Sales at all stores (millions of yen) 36,808 43,479 118.1 Prescriptions and sales remained firm No. of prescriptions (thousands) 3,817 4,605 120.6 ・ Promotion of
Slide 12: FYE May 2024 Plan
FYE May 2024 Plan 13
Slide 13: 1. New Store Openings and Renovation of Existing Stores
1. New Store Openings and Renovation of Existing Stores Increased market share in areas with in-store pharmacies brings greater competitiveness for individual stores No. of stores No. of stores ■New store openings as of May 31, as of May 31, 2023 2024 Drug stores: 50 stores (Previous year: 34 stores
Slide 14: 2. Sales Measures (Drug Store Department)
2. Sales Measures (Drug Store Department) Respond to changes in consumer behavior and growing need for households to save money post-COVID ■ Strengthen sales centered on health and beauty products ・ Respond to increased demand post-COVID with OTC medicines, makeup cosmetics, seasonal products, etc.
Slide 15: 2. Sales Measures (Prescription Drug Store Department)
2. Sales Measures (Prescription Drug Store Department) Strengthen community-based family pharmacy functions while seeking greater dominance in prescription drug stores April 2022: Impact of medical service fee revision We expect a drop in sales and profits of approximately 1 billion yen/year with re
Slide 16: 3. Capital Investment and Dividends
3. Capital Investment and Dividends ■Trend in capital investment Plans to continue aggressive capital investment … New stores and renovations, land purchases, distribution centers, system investments, etc. ⇒ In FYE May 2024, in addition to opening 50 stores, increasing the number of large-scale stor
Slide 17: 3. Capital Investment and Dividends: Dividends per share
3. Capital Investment and Dividends ■ Dividends per share Continuous dividend increase over past 12 years 52 …Stable and continuous dividend increase +2 ⇒ For FYE May 2023, dividend increased by 6 yen, up 2 yen from initial plan Stock split in December 2015 Dividend before FY May 2016 retroactively
Slide 18: 4. FYE May 2024 Full Year Plan (Consolidated)
4. FYE May 2024 Full Year Plan (Consolidated) FYE May 2023 FYE May 2024 Plan Results Full-year YoY Difference (Millions of yen) Share (Millions of yen) Share change (Millions of (%) (%) (%) yen) Net sales 380,963 100.0 404,100 100.0 106.1 +23,137 Gross profit 102,987 27.0 109,640 27.1 106.5 +6,653 S
Slide 19: 5. Progress on Medium-term Management Plan
5. Progress on Medium-term Management Plan FYE May FYE May 2025 FYE May 2025 FYE May 2024 Plan Medium-term 2023 Results Initial Plan Revised Plan Management YoY Plan (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) change (%) Net sales 380,963 404,100 106.1 Net sales 420,000 4
Slide 20: 5. Progress on Medium-term Management Plan
5. Progress on Medium-term Management Plan (Billions of yen) 520.0 500 5,000 FYE May 2025 FYE May 2028 Medium-term Revised Plan Revised Plan 450 Management Plan 4,500 430.0 (Millions of yen) (Millions of yen) 404.1 400 4,000 Net sales 430,000 520,000 371.3 350 3,500 350.7 Ordinary profit margin 5.0%
Slide 21: Sustainability Management
Sustainability Management ■ Excerpts from material issues Material Issues Group Direction Example Initiatives ・ Reduction of greenhouse gas emissions ・ Acquisition and maintenance of ISO 14001 Business activities with certification at all stores the global environment in ・ Improved resource and ener