Trial Holdings.inc. · TSE:141A
Trial Holdings.inc — Q1 FY2025 Earnings Presentation
43 slides from Trial Holdings.inc's earnings presentation, Nov 13, 2024
Slide 1: Presentation FY2025 Q1
Presentation FY2025 Q1 (July 1, 2024 - September 30, 2024) Revolutionize "real commerce" around the globe with technology and practical savvy. TRIAL Holdings, Inc. November 13, 2024
Slide 2: Contents
Contents 1 FY2025 Q1 Financial Results Appendix 2 (Key Strategies / Capital Policy & Shareholder Returns / IR Activities / Company Overview)
Slide 3: FY2025 Q1 Financial Results
TIRIAL HLDGS FY2025 Q1 Financial Results
Slide 4: FY2025 Q1 Summary
FY2025 Q1 Summary FY2025 Q1 3 Actively expanded TRIAL store network, added 9 new stores in Q1. SSS went up by 4.4% YoY, while sales grew by 10.5%. GPM was up 0.3pts from Q1 FY24, and GP achieved double-digit growth which was up by 12.0%. FY2025 FY2025 Financial FinancialResults Results Although SG&A
Slide 5: Earnings Summary for Q1 FY2025
Earnings Summary for Q1 FY2025 FY2025 Q1 4 Sales and GP achieved double-digit growth, while OP marked double-digit decrease as planned for Q1 FY25. FY2025 FY2025 Financial FinancialResults Results 1Q progress to 1H guidance was below 50%. Q2 numbers are forecasted higher than Q1. Q1 results beat the
Slide 6: Q1 Results by Business Segment
Q1 Results by Business Segment FY2025 Q1 5 Distribution and Retail Business: Sales rose 10.4% YoY, driven by 9 new stores (2 MEGA Centers, 6 Super Centers, 1 Small Format) and SSS increased by 4.4%. Segment profit fell 10.9% due to upfront costs from active store FY2025 FY2025 Financial FinancialRes
Slide 7: Growth Journey to Achieve Vision
Growth Journey to Achieve Vision FY2025 Q1 6 Eliminate inefficiency in the Distribution and Retail industry by “Store Expansion”, “Retail Tech” and “Partnership” FY2025 FY2025 Financial FinancialResults Results aiming for sustainable development and growth not only for our group but also society as
Slide 8: Trend in Same Store Sales
Trend in Same Store Sales FY2025 Q1 7 Same Store Sales Growth TRIAL strengthened “food” focusing on fresh food to become the region‘s No.1 FY2025 FY2025 Financial FinancialResults Results Plan Full Year ：104.1% daily necessities store. 8 renovated stores drove customer traffic. Financial Summary Act
Slide 9: Product Development to Be Chosen by Customers
Product Development to Be Chosen by Customers FY2025 Q1 8 “Tasty and Affordable” bento and ready meals got awarded. FY2025 FY2025 Financial FinancialResults Results Pursuing better store to be chosen by customers with better “FOOD” . Product renewal will start Financial Summary from Kyushu stores. R
Slide 10: Store Renovation
Store Renovation FY2025 Q1 9 Store optimization centering on “food” and store renovations focused on retail technology, such as the FY2025 FY2025 Financial FinancialResults Results installation of Skip Cart. In Q1, 6 Super Centers, 1 smart store, and 1 Small Format store were renovated. Progress is
Slide 11: New Store Opening / Closure
New Store Opening / Closure FY2025 Q1 10 In Q1, TRIAL actively opened new stores with 2 Mega Centers, 6 Super Centers, and 1 Small Format store. 9 stores were added, and the total store count is 327 as of Q1 FY25. Progress is on track with the full-year store opening plan. FY2025 FY2025 Financial Fi
Slide 12: Store Opening Strategy by Region
Store Opening Strategy by Region FY2025 Q1 11 Total MEGA Super smart Small Center Center Format Q1 FY2025 FY2025 FY2025 Financial FinancialResults Results 327 stores 26 stores 193 stores 63 stores 45 stores First store in Hokuriku Financial Summary Super Center Toyama My Plaza (Toyama) Results by Bu
Slide 13: Introduction of The New Store
Introduction of The New Store FY2025 Q1 12 Opened on October 23, 2024 Super Center Nonoichi (Ishikawa) FY2025 FY2025 Financial FinancialResults Results Financial Summary The first Smart Store* in Ishikawa Pref. Results by Business Segment *The Smart Store incorporates IoT and AI technologies develop
Slide 14: Sales by Product Category
Sales by Product Category FY2025 Q1 13 Sales of "Fresh (four types of fresh products)," a key driver for customer traffic and profitability, rose by 17.2% from the previous quarter, boosted revenue in the retail distribution business. Sales of “ready meals," with higher margins, increased by 23.5%,
Slide 15: (Ref.) Category Adjustment
(Ref.) Category Adjustment FY2025 Q1 14 Starting Q1 FY25, there was changes in product category. Some products in “Grocery” and “Daily” were re-categorized as FY2025 FY2025 Financial FinancialResults Results “Fresh” and some products in “Hardware” were re-categorized as “Other”. The following is a r
Slide 16: PB Product Development Initiatives
PB Product Development Initiatives FY2025 Q1 15 Based on customer understanding through data utilization, we have been driving the development of private FY2025 FY2025 Financial FinancialResults Results brand (PB) products that provide value to our customers. The share of PB went up to 17.1% to the
Slide 17: Breakdown of SG&A expenses
Breakdown of SG&A expenses FY2025 Q1 16 Sales grew by 10.5% compared to the Q1 FY24, while SG&A expenses rose 16.1%. SG&A-to-sales ratio went by FY2025 FY2025 Financial FinancialResults Results 0.9pts due to upfront store opening costs and higher electricity costs. Financial Summary From July 1, 202
Slide 18: Factors for Rise in Utilities Costs
Factors for Rise in Utilities Costs FY2025 Q1 17 The increase in utilities expenses (+720 million yen from the 1Q FY24 / +28.5% YoY) is due to the rise in electricity costs, which FY2025 FY2025 Financial FinancialResults Results account for the majority of the expenses. In addition to the increase i
Slide 19: Upfront Costs for New Store Openings
Upfront Costs for New Store Openings FY2025 Q1 18 Active store openings in Q1 FY25, with a total of 9 stores opened : 2 MEGA Center, 6 Super Center and 1 Small Format. FY2025 FY2025 Financial FinancialResults Results Upfront costs for opening new stores, expenses include “Items and equipment," “Labo
Slide 20: Skip Cart
Skip Cart FY2025 Q1 19 Complete payment through self-scan and payment gate passage. Providing a new shopping experience such FY2025 FY2025 Financial FinancialResults Results as reducing cashier workload and implementing one-to-one marketing in physical stores utilizing coupons and recommendations. F
Slide 21: Better Customer Experience by Skip Cart
Better Customer Experience by Skip Cart FY2025 Q1 20 We have optimized the number of carts per store. To test Skip Cart impact, other retailers installed the carts to see FY2025 FY2025 Financial FinancialResults Results if it improves the customer experience and reduces labor cost at checkout. Finan
Slide 22: Addressing Logistics Issues through Partnerships
Addressing Logistics Issues through Partnerships FY2025 Q1 21 ⚫ Join “Logistics study group” , cross-company working group for distribution issue. FY2025 FY2025 Financial FinancialResults Results August 2022 May 2023 September 2024 Financial Summary Kyushu Logistics Hokkaido Logistics Tohoku Mirai L
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet FY2025 Q1 22 The significant decrease in Cash, Deposits, and Payable was due to the previous period’s last day fell on a holiday for financial FY2025 FY2025 Financial FinancialResults Results institutions, and settlement of accounts payable and other accounts was conducted
Slide 24: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement FY2025 Q1 23 The drop in operating cashflow happened because the last day of the Q1 FY2024(September 30, 2024) and FY2024(June 30, FY2025 FY2025 Financial FinancialResults Results 2024) fell on a holiday for financial institutions, and settlement of accounts payable
Slide 25: FY2025 Consolidated Forecast
FY2025 Consolidated Forecast FY2025 Q1 24 No revision of the consolidated forecast announced on August 13, 2024. FY2025 FY2025 Financial FinancialResults Results Financial Summary FY2025 FY2025 FY2025 Results by Business Segment 1H Forecast 2H Forecast Full year Forecast Achieving Our Vision (Millio
Slide 26: Appendix
TIRIAL HLDGS Appendix
Slide 27: FY2025 Key Strategies
FY2025 Key Strategies FY2025 Q1 26 FY2025 Financial Results Strengthening ⚫ Providing wide selection of products with a particular strength in “food” at EDLP. Satisfying customers as local 1 Financial Summary Existing Stores “Daily Necessity Store”. Results by Business Segment Focus on food products
Slide 28: FY2025 Key Strategies (Distribution and Retail Business)
FY2025 Key Strategies (Distribution and Retail Business) 27 FY2025 Q1 Trying to be No.1 everyday store in the commercial area aiming at both topline and OP growth. FY2025 Financial Results Distribution and Retail Business Financial Summary ⚫ New Store Openings：27stores (Plan) Results by Business Seg
Slide 29: FY2025 Key Strategies (Retail AI Business)
FY2025 Key Strategies (Retail AI Business) FY2025 Q1 28 Support sustainable growth of core business through various measures based on data analysis. FY2025 Financial Results Distribution and Retail Business Financial Summary Accumulating customer ID data and in-store traffic data Results by Business
Slide 30: Capital Policy / Shareholder Returns
Capital Policy / Shareholder Returns FY2025 Q1 29 FY2025 Financial Results 1 Prioritizing investment in growth while distributing minimum dividends stably and continuously as a growing company. Financial Summary Results by Business Segment FY 2023 FY 2024 FY 2025 Achieving Our Vision (Actual) (Actua
Slide 31: Disclosure / IR Policy
Disclosure / IR Policy FY2025 Q1 30 We aim to do prompt, accurate, and fair disclosure and constructive dialogue with shareholders FY2025 Financial Results and investors. Financial Summary ⚫ IR Calendar Results by Business Segment Achieving Our Vision Our fiscal year ends on June 30. We plan to hold
Slide 32: Investor Relations Website for Shareholders and Investors
Investor Relations Website for Shareholders and Investors FY2025 Q1 31 ⚫ Financial Briefing documents FY2025 Financial Results Presentation materials for the financial results briefing for analysts and institutional investors as well as speech scripts Financial Summary and the Q&A summary will be av
Slide 33: IR Activities
IR Activities FY2025 Q1 32 ⚫ IR Events Since IPO FY2025 Financial Results March 21 May July August Financial Summary IR Meetings Opened Fukuoka Store IR Meetings Count Results by Business Segment the IR Page in Q3 Financial IR FY2024 Financial IPO Corporate Results Briefing Meetings Visit Tour Resul
Slide 34: About Us
About Us FY2025 Q1 33 FY2025 Financial Results Holding Company Financial Summary TRIAL Holdings, Inc. Results by Business Segment Established September 2015 Board of Directors Representative Director and Chairman Hisao Nagata Achieving Our Vision Representative Director and President Koichi Kameda E
Slide 35: Philosophy
Philosophy FY2025 Q1 34 FY2025 Financial Results Financial Summary Enrich every aspect of people’s lives Results by Business Segment through all we do. Achieving Our Vision Existing Stores / Renovation Store Opening / Closure Sales by Product Category PB Product Breakdown SG&A Revolutionize "real co
Slide 36: History started with IT Retail
History started with IT FY2025 Q1 35 Retail Evolution of Real Stores and Expansion of Store Networks 1st TRIAL Store 1st Super Center Acceleration of Opening Stores at Furnished Properties / Nationwide Expansion Acquired CowBoy Co., Ltd., a Food-focused Supermarket Started Collaboration with Supply
Slide 37: Integrate real store operations and retail tech R&D
Integrate real store operations and retail tech R&D FY2025 Q1 36 FY2025 Financial Results Distribution and Retail Business Retail AI Business Financial Summary Results by Business Segment The power to distribute goods with our highly The ability to fully leverage data and IoT efficient network of st
Slide 38: Nation-wide network with multiple formats
Nation-wide network with multiple formats FY2025 Q1 37 Mainly open profitable Super centers, leveraging our ability to analyze trade areas through the use of data. FY2025 Financial Results Total Store count : 330 (As of November 13, 2024) Financial Summary Results by Business Segment Super Center (S
Slide 39: Store Locations (As of November 13, 2024)
Store Locations (As of November 13, 2024) FY2025 Q1 38 FY2025 Financial Results 330 ● MEGA 26 Financial Summary stores ● SuC 195 Nationwide Results by Business Segment ● smart 64 July 17, 2024 1st store in Toyama Pref. Achieving Our Vision in 35 prefectures ● small 45 Super Center TRIAL Toyama My Pl
Slide 40: EDLP Business Model
EDLP Business Model FY2025 Q1 39 TRIAL offers variety of assortment at competitive price. FY2025 Financial Results Food including just-made ready meals are key items as localized daily necessities stores. Financial Summary Every Day Low Price for customers to live better. Results by Business Segment
Slide 41: Retail Tech Supports Distribution and Retail Business
Retail Tech Supports Distribution and Retail Business FY2025 Q1 40 Create the next generation shopping experience by deeply understanding our customers through real stores and data utilization. FY2025 Financial Results Financial Summary e3-SMART MD-Link Retail Map Results by Business Segment Low-cos
Slide 42: Overview of TRIAL GO (small format)
Overview of TRIAL GO (small format) FY2025 Q1 41 As a satellite store of Super center, realized high quality service at low operation cost by combining our FY2025 Financial Results strength in retail and technology. Financial Summary Results by Business Segment Feature 1 - Satellite Store Feature 2
Slide 43: Contact / Next Financial Results
⚫ Contact TRIAL Holdings, Inc. IR Division TEL：+81-3-6435-6308 / e-mail：ir@trial-holdings.inc ⚫ Next Financial Results (Scheduled)：Q2 for FY2025 ・February 13, 2025 - Financial Results Announcement (Results Summary Disclosure) ・February 14, 2025 - Financial Results Briefing (For Analysts and Institut