Belluna Co., Ltd. · TSE:9997
Belluna — H1 FY March 2020 Earnings Presentation
33 slides from Belluna's earnings presentation, Nov 20, 2019
Slide 1: Corporate Presentation
CORPORATE PRESENTATION (1st Half ended September 30, 2019 for FY March 2020) Main catalog BELLUNA BELLUNA Net A mail Apparel stores「BELLUNA」 Cosmetics mail order order website 「OZIO」 Wednesday, November 20, 0 2019
Slide 2: Contents
Contents 1.Financial Highlights P.2 2.Topics P.12 3.Management Policies and Initiatives P.14 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 Net sales and operating income were below plans despite a year-on-year increase. Ordinary income and net income fell short of those in the previous fiscal year and the plans primarily due to the impact of foreign exchange. Net sales increased 8.9% year on year. Operating
Slide 5: 1-2. Financial Summary
1-2. Financial Summary Net sales: Up 8.9% year on year Operating income: Below the plan, but increased year on year Ordinary income: Ordinary income and net income fell short of those in the previous fiscal year and the plans, primarily due to exchange-related losses. Unit: Billion Yen FY March 2019
Slide 6: 1-3. Profitability by segment
1-3. Profitability by segment Net sales: Increased in all segments excluding the General Mail Order Operating income: Operating income increased in Specialty Mail Order and three other segments. It decreased in General Mail Order and two other segments. • The Specialty Mail Order segment led growth
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 thanks to the consolidation of Sagami Group Holdings Co., Ltd. In the hotel business, the hotels that opened in the previous fiscal year contributed to sales growth. Factors for change in net
Slide 8: 1-5. Analysis of increases and decreases in operating income
1-5. Analysis of increases and decreases in operating income The Specialty Mail Order segment achieved an increase in income mainly thanks to the effect of higher sales in the cosmetics and wine businesses. Operating income in the General Mail Order segment declined largely due to an increase in the
Slide 9: 1-6. Balance sheet
1-6. Balance sheet Among current assets, operating loans, merchandise, and other items increased. Non-current assets increased, which was led particularly by growth in tangible fixed assets. Liabilities rose, chiefly due to an increase in interest-bearing liabilities. Unit：Billion Yen As of March As
Slide 10: 1-7. Statement of cash flows
1-7. Statement of cash flows Cash flow from operating activities decreased due to a decrease in profit before income taxes and cash flow from investing activities decreased chiefly due to purchase of tangible fixed assets. Overall, cash decreased by 3.06 billion yen as a result of an increase in lon
Slide 11: 1-8. Plan for FY March 2020
1-8. Plan for FY March 2020 While net sales is growing mostly in line with the plan, operating income is below the planned level. We will make up for the delay in the second half of the fiscal year. Unit：Billion Yen FY March 2018 FY March 2019 FY March 2020 Consolidated Plan Actual Plan Actual Plan
Slide 12: 1-8. Plan for FY March 2020 - Budgets by Segment
1-8.Plan for FY March 2020 While Specialty Mail Order and Solution continue to lead the financial performance, we will take measures for each of the segments falling behind plans with an aim to catch up with the plans. Budgets by Segment Unit：Billion Yen FY March 2020 Elimination General Specialty R
Slide 13: 2. Topics
2. Topics 1. Acquisition of ICnet Co., Ltd. 12
Slide 14: 1. Acquisition of ICnet Co., Ltd.
1. Acquisition of ICnet Co., Ltd. On September 6, acquired all shares of ICnet Co., Ltd., an operator of an online store for branded imports, to make it a subsidiary. Purpose To raise the growth potential and profitability of the Campany name：ICnet Co., Ltd. General Mail Order segment by sharing k
Slide 15: 3. Management Policies and Initiatives
3. Management Policies and Initiatives 1. General Mail Order Business 2. Specialty Mail Order Business 3. Retail Store Sales Business 4. Property Business 5. Returns to shareholders 14
Slide 16: 3. 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 Internet users). External environment Internal environment ・ Growth of specialty mail- ・ An increase in the order tendency towards a ・ E
Slide 17: 3. Management Policy ~Fourth Business Plan
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. 16
Slide 18: 3. Management Policy – Strengthen four businesses
3. Management Policy – Strengthen four businesses Expansion of four main businesses General Specialty mail order mail order Retail store Property sales 1. Revival of the General Mail Order segment 2. Expand the specialty mail order business 3. Expand the retail store sales business and improve its p
Slide 19: 3-1. General Mail Order Business
3-1. General Mail Order Business （1）Situation of the general mail order business In the summer season, net sales were significantly affected by a shortage of catalog papers that reduced catalog delivery. We are actively working to maintain financial performance and reach the next growth stage despit
Slide 20: 3-1. General Mail Order Business: Revival of catalog sales
3-1. General Mail Order Business Revival of catalog sales It is considered a mature segment in the Fourth Business Plan and will continue at the scale of 75 to 80 billion yen 1. Aim for a recovery in the traditional paper catalog 2. Offer products to consumers in their 20s to 70s 3. Strengthen the m
Slide 21: 3-1. General Mail Order Business: Strengthen operations via the Internet
3-1. General Mail Order Business Strengthen operations via the Internet < Belluna’s website (targeting middle-aged women) > Started to grow again the 2019 Summer season (1) Enhance product features exclusively targeting middle-aged women ・Online-exclusive products ・Collections of body-shape covering
Slide 22: 3-1. General Mail Order Business: RyuRyu Mall
3-1. General Mail Order Business Strengthen operations via the Internet < RyuRyu Mall (targeting young consumers) > ・Opened on June 17, 2019 ・Currently at the trial and errors stage Get on a growth path in the second half of the fiscal year Net Sales 0.5 ■FY 2018 (Unit: Billion Yen) ■FY 2019 0.4 0.3
Slide 23: 3-2. Specialty Mail Order Business
3-2. Specialty Mail Order Business Operating income exceeded both the plan and the amount in the previous fiscal year and its growth is steady. Hoping for further growth of Ozio Co., Ltd., operating a cosmetics mail-order business, and the wine segment Particularly the mail-order cosmetics segment i
Slide 24: 3-2. Specialty Mail Order Business: Top Sales in Specialty Mail Order
3-2. Specialty Mail Order Business ： Top Sales in Specialty Mail Order Industry At Ozio Co.,Ltd., selling mail-order cosmetics, the serum including eggshell membrane, “Beauty Opener,” achieved the highest net sales for two consecutive years. (provided by Tokyo Shoko Research, Ltd. ) Beauty Cleansing
Slide 25: 3-2. Specialty Mail Order Business: Mail-order wine
3-2. Specialty Mail Order Business ： Top Sales in Specialty Mail Order Industry Ranked first in sales of mail-order wine for 10 consecutive years. Online sales are strong and leading growth ≪ Ranking of domestic sales of (Unit: Billion Yen) Number of bottles sold: mail-order wine ≫ 0 1 2 3 4 5 appro
Slide 26: 3-3. Retail Store Sales Business: BANKAN Wamonoya
3-3. Retail Store Sales Business: Stores selling kimono and Japanese-style goods (BANKAN Wamonoya Co., Ltd.） As a result of store openings and closures, the number of existing stores was 83 at the end of Sep. 2019. Both sales and profit increased in the first half, and we will aim to recover the del
Slide 27: 3-3. Retail Store Sales Business: Sagami GHD
3-3. Retail Store Sales Business: Stores selling kimono and Japanese-style goods (Sagami GHD） We reformed the organizational structure ＜Sagami Co., Ltd.＞ and are implementing an awareness reform. New stores open in November to introduce the Bankan method. ■Net Sales (Unit: Billion Yen) ■ Operating i
Slide 28: 3-3. Retail Store Sales Business: Sagami's 1st new concept store opened
3-3. Retail Store Sales Business: Stores selling kimono and Japanese-style goods (Sagami GHD） ＜Sagami: Tokadai Store＞ Sagami’s 1st new concept store opened. The Bankan-style store with the trade name, “sagami” Planning to open three stores before the end of the fiscal year under Store: Mega Don Quij
Slide 29: 3-4. Property Business
3-4. Property Business The difference from the plan in the Property Business is caused primarily by a delay in the progress of the resort hotel segment. Actively use leverage to revive the business at an early stage. ■Net Sales ■ Operating income (Unit: Billion Yen) (Unit: Billion Yen) 20.0 4.0 18.0
Slide 30: 3-4. Property Business: Hotels
3-4. Property Business：Hotels There are challenges in increasing profit from resort hotels. Use direct leverage to turn a profit at an early stage. 【Business Plan（Hotels）】 ■ Operating income ■Net Sales (Unit: Billion Yen) (Unit: Billion Yen) 2.0 10.0 1.8 1.6 8.0 1.4 1.2 6.0 1.0 10.29 8.60 0.8 4.0 1.
Slide 31: 3-5. Returns to shareholders
3-5. Returns to shareholders We will raise dividends again for the fiscal year under review by 1.0 yen to provide an increase in shareholder returns in two consecutive years. ＜ Annual dividends ＞ FY March FY March FY March FY March 2017 2018 2019 2020(Plan) EPS (yen) 59.68 99.41 106.39 108.52 Divide
Slide 32: Summary
≪Summary≫ The fiscal year ending March 2020 is the first year in the Fourth Business Plan. We will focus on increasing profitability to reach the profit target for the final fiscal year. 31
Slide 33: Note
Note <Important notice> This material is prepared for the purpose of publicly disclosing information concerning the financial results of the 1st Half ended September 30, 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