Ryohin Keikaku Co., Ltd. · TSE:7453
Ryohin Keikaku — Investor Presentation (April 2005)
32 slides from Ryohin Keikaku's investor presentation, April 2005
Slide 1: Ryohin Keikaku Co., Ltd. Investor Presentation April 2005
RYOHIN KEIKAKU CO.,LTD. Investor Presentation April, 2005
Slide 2: Forward-looking statements
These pr esentation mater ials contain for war d-looking statements that ar e based on management’s estimates, assumptions and pr ojections as of Apr il 16, 2005. Some factor s, which include, but ar e not limited to, the r isks and uncer tainties associated with the wor ldwide economy, competitive
Slide 3: Agenda
1. Business Results in FY2004 3 2. Basic Business Policy for FY2005 13 (1) Medium -Ter m Policy (2) Business Policy for FY2005 3. Estimates for FY2005 and Medium-Ter m Business Plan 25 4. “iF Gold Selection 2005” awar ded 27 2
Slide 4: Business Results in FY2004
Business Results in FY2004 1. Sales incr eased for the consecutive str aight year and pr ofits incr eased for the thir d consecutive year . 2. Sales at existing stor es wer e mor e favor able than the pr eviou s year . 3. Sales of household goods r ecover ed. 4. Over seas oper ations expanded and th
Slide 5: Consolidated Financial Summary
Business Results in FY2004 Consolidated Financial Summar y Sales increased for the second consecutive year and pr ofits incr eased for the thir d consecutive year. Net Ordinary Net % Sales Profit Income FY2000 FY2001 FY2002 FY2003 FY2004 Share YOY Share YOY Share YOY Share YOY Share YOY mil. % % mil
Slide 6: Consolidated Financial Summary: Ratios
Business Results in FY2004 Consolidated Financial Summar y ¥ Shareholder’s Equity per Share Ordinary Profit Ratio ¥ % FY2000 FY2001 FY2002 FY2003 FY2004 Ordinary Profit Ratio 10.1 4.8 6.2 7.6 9.3 Return on Equity 14.5 0.0 6.1 12.1 15.1 Return on Assets 10.6 0.0 4.6 8.9 11.0 Shareholders' Equity Rati
Slide 7: Sales at existing stores more favorable than previous year
Business Results in FY2004 Sales at existing stor es wer e mor e favor able than the pr evious year . 6
Slide 8: Sales of household goods recovered
Business Results in FY2004 Sales of household goods r ecover ed. on-Year Change in Sales of Household Goods at Existing Dir ectly Managed Stor es Year -on- % 7
Slide 9: Overseas operations expanded and earnings structure improved
Business Results in FY2004 Over seas oper ations expanded and the ear nings str uctur e was impr oved. Results of subsidiar ies and affiliates (Over seas) (Feb.-Jan.) (Feb.-Jan.) - I(Jan.-Dec.) - (Dec.-Dec.) U.K., Ireland, Sweden France Hong Kong Italy - (Dec.-Dec - (Jan.-Dec.) Over all Over seas Op
Slide 10: Openings in FY2004
Business Results in FY2004 Openings in FY2004 MUJ I MILANO Italy MUJ I BREEZE CENTRE Taiwan MUJ I STOCKHOLM Sweden 9
Slide 11: Wide scale opening of new stores
Business Results in FY2004 Wide scale opening of new stor es. 1. New Stor e Openings in FY2004 New Store Openings Change in Sales at New Stores Number of Fiscal Number of Ratio to Stores Store Space Sales Directly Managed Stores 21 stores 14,181 Year Stores (million yen) Total Sales Licensed Stores
Slide 12: Inventory control was improved
Business Results in FY2004 Inventor y contr ol was impr oved. Inventor y Level Sales Change in Inventor ies: Par ent-Only 100 3,502 4,635 7,671 6,898 10,114 10,932 9,433 7,727 6,240 7,379 86.3 81.9 118.3 80.8 *The figures in parenthesis show year-on-year changes in total inventories. 11
Slide 13: Product quality was improved
Business Results in FY2004 Pr oduct quality was impr oved. Year -on -Year Change in Number s of complaints fr om ustomer s % 130 117 113 Incr ease 106 100 91 89 Decr ease 69 67 66 82 58 59 55 56 39 53 35 1st Half of FY03 2st Half of FY03 1st Half of FY04 2st Half of FY04 12
Slide 14: Basic Business Policy for FY2005
Basic Business Policy for FY2005 1.Medium -Ter m Policy (1) To evolve the br and (2) To evolve the management str uctur e Business Policy for FY2005 To make household goods mor e advanced and to r ecover sales of appar el To make mar keting oper ations mor e advanced To establish a low-cost oper ati
Slide 15: Medium-Term Policy: To evolve the brand
Basic Business Policy for FY2005 Medium -Ter m Policy To evolve the br and Good pr ice with r eason We develop the meaning in line with social change over time. Simple, Functionality, Economic Efficiency, Natur e-Or iented, Business Use, Individuality, Distr essed, Unit, Natur al WORLD MUJ I FOUND M
Slide 16: The Future and MUJI
2003 Horizon Uyuni Bolivia The Futur e and MUJ I To r eplace “ Must be this” by “This is good” - MUJI does not aim to develop products based on strong preferences from consumers. Consumers buying MUJI products do not have to feel that this “Must be this” .”MUJI aims to give consumers reasonable sati
Slide 17: MUJI on a Global Scale
2003 Horizon Mongolia MUJ I on a Global Scale Wor ld MUJ I - MUJI products to be designed by talents representing nationalities and cultures from all over the world, and this heralds new era for MUJI product development. It is time for MUJI to open its ideas to the world. Ultimate designs - In addit
Slide 18: MUJI House
2004 House Cameroon MUJ I House Suggestion on how to dwell - MUJI believes that one way for a person to enjoy well-being is to find how to dwell in accordance with his/her livelihood. Editing - A clear concept to aim to achieve ultimate simplicity is intrinsic to MUJI products. They are not simply a
Slide 19: Tea-Ceremony House and MUJI
2005 Tea-Ceremony House Kyoto Tea-Cer emony House and MUJ I Roots of MUJ I pr oducts - A tea-ceremony house, , which represents value and an aesthetic sense in simplicity. is the root of MUJI’s concept. MUJI aims to develop products by using appropriate materials and techniques with flexibility to e
Slide 20: To evolve the management structure
Basic Business Policy for FY2005 To evolve the management str uctur e Sales Oper ations: Automatic Replenishment, Search for best seller s , Ideas developed at stor e level (“Tenka-ippin” and “Ippin-nyukon”), Sales contests, Family sales, Str ong-minded mar keting development plans Management Method
Slide 21: Make household goods more advanced
Basic Business Policy for FY2005 Business Policy for FY2005 To make household goods mor e advanced and to r ecover sales of ap par el To incr ease the capacity for development of household goods (1) To enr ich pr oduct planning meetings (2) To enr ich the Wor ld MUJ I Pr oject (3) To expand the Foun
Slide 22: Recover sales of apparel and strengthen food business
Basic Business Policy for FY2005 To r ecover sales of appar el and to str engthen the food business % Year -on -Year Change in Sales at Existing Dir ectly Managed Stor es (1) To r ecover sales of appar el i. New environment and marketing method through introduction of new store fixtures ii. Reconstr
Slide 23: To make sales operations more advanced
Basic Business Policy for FY2005 To make sales oper ations mor e advanced To incr ease the capacity for pr oduct sales (1) Innovation in sales techniques i. “PROFIT”, Sear ch for best seller s , “Tenka-ippin”, “Ippin-nyukon” ii. Acquisition of new sales methods = Sales contests, Family sales, Stor e
Slide 24: To establish a low-cost operating system
Basic Business Policy for FY2005 To establish a low-cost oper ating system Plan to achieve a r atio of mar keting and Ratio of Mar keting and administr ative costs to total sales of 30% Administr ative Costs to Total Sales, Results in 2004 and Achievement Tar gets (1) To incr ease the degr ee of acc
Slide 25: To expand overseas operations
Basic Business Policy for FY2005 To expand over seas oper ations (1) Change in the Number of Over seas Stor es Number of Stor es (Forecast) (2) Stor e Opening Plans for Each Countr y in FY2005 (Number of Stor es , m¥) Stor e Opening Plans End of FY2005 Sales Estimates Note: MUJ I-T is accounted for
Slide 26: Prerequisite figures and Estimates for FY2005
Estimates for FY2005 and Medium-Ter m Business Plan Pr er equisite figur es and Estimates for FY2005 Percentage of Growth in Sales at Existing Stores Sto r e Op en ing Plan s Fu ll-Year 1st Half 2n d Half Directly Manag ed Sto res Directly L icen sed Sto r es Managed Stores To tal Licensed Stores St
Slide 27: Challenging record profits
Estimates for FY2005 and Medium-Ter m Business Plan Challenging r ecor d pr ofits Medium -ter m business plan: Shifting fr om the r ecover y per iod to the gr owth per iod Sales at Existing Stor es: 102% , Total Sales: 107% , Sales Gr owth in Or dinar y Pr ofit: 20% Pr ofit 100 million yen 100 milli
Slide 28: "iF Gold Selection 2005" awarded
“iF Gold Selection 2005” awar ded In the iF design award 2005 (product category), five gold prizes were awarded to MUJI. In the iF design award, prizes are awarded for excellent designs. The iF design award is run by International Forum Design GmbH, a design center established in 1953 by Deutsche Me
Slide 29: "iF Gold Selection 2005": MUJI Awards
“iF Gold Selection 2005” : MUJ I Awar ds Telephone Shr edder 28
Slide 30: "iF Gold Selection 2005": MUJI Awards
“iF Gold Selection 2005” : MUJ I Awar ds Rack DVD Player ( Made by Squar e tube of paper ) 29
Slide 31: "iF Gold Selection 2005": MUJI Awards
“iF Gold Selection 2005” : MUJ I Awar ds CD Radio 30
Slide 32: "iF Selection 2005": MUJI Awards
“iF Selection 2005” : MUJ I Awar ds PET Refillable Bottles Washing boar d Tablewar e of white por celain Speaker 31