Matsukiyococokara & Co. · TSE:3088
Matsukiyococokara & — FY2022 Earnings Presentation
49 slides from Matsukiyococokara &'s earnings presentation, May 19, 2023
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2023
Financial Results for the Fiscal Year Ended March 31, 2023 Copyright 2023 May 19, 2023 MatsukiyoCocokara & Co. All rights Reserved. MatsukiyoCocokara & Co.
Slide 2: Table of Contents
Table of Contents Management Summery for FY2022 and Management Policies for FY2023 P.3 P.6 Financial Results for FY2022 and Financial Forecasts for FY2023 P.7 P.21 Financial Results for FY2022 ・ FY2022 Financial Summary (YoY) ・Segment Results (YoY) ・Net Sales by Product ・Balance Sheet ・Statement of
Slide 3: Management Summary for FY2022 / Management Policies for FY2023
Management Summery for FY2022 Management Policies for FY2023 Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 3
Slide 4: Management Summary for FY2022
Management Summery for FY2022 Results Net sales 130.3 YoY, Operating profit 151.6 YoY, Operating profit margin 6.5 +0.9pt YoY Increase Good weather conditions led to strong sales of seasonal products, and demand for pollen products also increased. In addition, inbound demand gradually recovered due
Slide 5: Management Policies for FY2023
Management Policies for FY2023 Positioning for FY2023 Key Strategies FY2023) Japan Strategies ❚Further integration and Provision of values that correspond to the life accelerating strategy stages of customers Pursuit of convenience Further integrate the membership base, – deeper ties with customers
Slide 6: Realizing the Group Philosophy
Realizing the Group Philosophy We aim to enhance corporate value and realize the Group's philosophy by linking and promoting initiatives for sustainable management with our key strategies. Management Philosophy Creating and innovating lifestyles Group Management Targets for the Fiscal Year Ending Ma
Slide 7: Financial Results for FY2022 / Financial Forecasts for FY2023
Financial Results for FY2022 Financial Forecasts for FY2023 Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 7
Slide 8: FY2022 Financial Summary (Full Year)
Financial Results for FY2022 FY2022 Financial Summary (Full Year) (Millions of yen) MKG 1Q 2Q 3Q 4Q MKG 1Q 2Q 3Q 4Q CFG 3Q 4Q CFG 1Q 2Q 3Q 4Q FY2021 FY2022 Change Change (amount) (%) % to net % to net sales sales Net sales 729,969 ― 951,247 ― 221,277 30.3% Gross profit 239,979 32.9% 329,320 34.6% 89
Slide 9: FY2022 Financial Summary (Full Year) Reference
Financial Results for FY2022 FY2022 Financial Summary (Full Year) Combined and compared with Cocokara fine Inc.'s results for the six months ended Reference September 31, 2021. (Millions of yen) MKG 1Q 2Q 3Q 4Q MKG 1Q 2Q 3Q 4Q CFG 1Q 2Q 3Q 4Q CFG 1Q 2Q 3Q 4Q FY2022 Change Change FY2021 (amount) (%)
Slide 10: FY2022 Financial Summary (Second Half)
Financial Results for FY2022 FY2022 Financial Summary (Second Half) (Millions of yen) MKG 3Q 4Q MKG 3Q 4Q CFG 3Q 4Q CFG 3Q 4Q 2H FY2021 2H FY2022 Change Change (Oct 2021- Mar 2022) (Oct 2022- Mar 2023) (amount) (%) % to net % to net sales sales Net sales 452,965 ― 486,172 ― 33,206 7.3% Gross profit
Slide 11: Segment Results (Full Year)
Financial Results for FY2022 Segment Results (Full Year) (Millions of yen) MKG 1Q 2Q 3Q 4Q MKG 1Q 2Q 3Q 4Q Change Change CFG 3Q 4Q CFG 1Q 2Q 3Q 4Q (amount) (%) FY2021 FY2022 Matsumotokiyo Net sales 540,062 572,535 32,473 6.0% shi Group Segment profit Profitable Profitable (loss) 35,854 6.6% 41,797 7
Slide 12: Segment Results (Full Year) Reference
Financial Results for FY2022 Segment Results (Full Year) Excluding amortization of goodwill and trademark associated with the management integration Reference with cocokara fine Inc. (Millions of yen) MKG 1Q 2Q 3Q 4Q MKG 1Q 2Q 3Q 4Q Change Change CFG 3Q 4Q CFG 1Q 2Q 3Q 4Q (amount) (%) FY2021 FY2022
Slide 13: Segment Results (Second Half)
Financial Results for FY2022 Segment Results (Second Half ) (Millions of yen) MKG 3Q 4Q MKG 3Q 4Q CFG 3Q 4Q CFG 3Q 4Q Change Change 2H FY2021 2H FY2022 (amount) (%) (Oct 2021 - Mar 2022) (Oct 2022 - Mar 2023) Matsumotokiyo Net sales 269,007 296,259 27,252 10.1% shi Group Segment profit Profitable Pr
Slide 14: Segment Results (Second Half) Reference
Financial Results for FY2022 Segment Results (Second Half ) Excluding amortization of goodwill and trademark associated with the management integration Reference with cocokara fine Inc. (Millions of yen) MKG 3Q 4Q MKG 3Q 4Q CFG 3Q 4Q CFG 3Q 4Q Change Change 2H FY2021 2H FY2022 (amount) (%) (Oct 2021
Slide 15: Net Sales by Product
Financial Results for FY2022 Net Sales by Product (Millions of yen) Net sales Gross profit margin (Apr 2022 - Mar 2023) YoY change YoY change Difference for (amount) (%) YOY (point) Medical and pharmaceutical products 334,348 94,589 39.5% 43.2% +0.8pt Dispensing 154,250 52,212 51.2% 40.1% +0.0pt Cos
Slide 16: Balance Sheet
Financial Results for FY2022 Balance Sheet (Millions of yen) End of March, 2022 End of March, 2023 Change Current assets 298,215 329,808 31,593 Cash and deposits 74,519 95,224 20,705 Merchandise 131,104 135,937 4,832 Non-current assets 354,308 358,323 4,014 Property, plant and equipment 107,126 109,
Slide 17: Statement of Cash Flows
Financial Results for FY2022 Statement of Cash Flows (Millions of yen) End of March, 2022 End of March, 2023 Change Cash flows from operating activities 39,812 64,061 24,249 Cash flows from investing activities (15,485) (19,669) (4,183) Cash flows from financing activities (20,337) (23,734) (3,397)
Slide 18: Store openings, closings, and renovations in Japan
Financial Results for FY2022 Store openings, closings, and renovations in Japan (Unit: No. of stores) Number of stores Openings Closings Renovations Number of stores as of March 31, 2022 in 12 months in 12 months in 12 months as of March 31, 2023 Matsumotokiyoshi Group 1,808 79 24 34 1,863 Dispensin
Slide 19: FY2023 Financial Forecasts
Financial Forecasts for FY2023 FY2023 Financial Forecasts (Millions of yen) Full Year FY2022(a) FY2023(f) Change Change % to net % to net (amount) (%) sales sales Net sales 951,247 ― 980,000 ― 28,752 3.0% Gross profit 329,320 34.6% 342,000 34.9% 12,679 3.9% SG & A 267,043 28.1% 277,500 28.3% 10,456
Slide 20: Store openings, closings, and renovations plan in Japan
Financial Forecasts for FY2023 Store openings, closings, and renovations plan in Japan (Unit: No. of stores) Number of stores as Openings Closings Renovations Number of stores as of March 31, 2023 of March 31, 2024 Matsumotokiyoshi Group 1,863 95 35 50 1,923 Cocokara fine Group 1,546 45 25 30 1,566
Slide 21: Dividends plan
Financial Forecasts for FY2023 Dividends plan Annual dividend per share (yen) 85 90 Fiscal year- 70 70 70 end 45 45 35 35 30 35円 35 35 30円 Second quarter-end 35 35 35 40 45 FY2019 FY2020 FY2021 FY2022 FY2023 (f) Note 1. The year-end dividend for fiscal year ended March 31, 2023 will be the dividend
Slide 22: Initiatives for Sustainable Management
Initiatives for Sustainable Management Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 22
Slide 23: Key Influencing Stakeholders
Background Key Influencing Stakeholders ❚Investors and ❚Customers ❚Business Partners Shareholders Market Cap. Customer contacts Merchandise procurement 1 trillion yen 130 million 1 trillion yen No. of stores No. of employees CO2 emissions 3,400 42,000 180,000 tons ❚Community ❚Employees ❚Earth's Envi
Slide 24: Management Assumptions and Materiality (Key Issues)
Management Assumptions and Materiality (Key Issues) ＜Goals＞ Exists as a corporate group that is rewarding to work for and grows with our employees ＜Goals＞ Employee Maintain and improve Growth management efficiency, transparency, and corporate morale, and exist as a corporate group that continues to
Slide 25: Employee Growth
Co-creation of social value with stakeholders Employee Growth We exist as a corporate group that is satisfying to work for and grows with our employees. Sense of Participation Promotion of Employee Engagement women's activities in Management To maximize job satisfaction, Employee incentives using tr
Slide 26: Considering the Health of the Earth
Co-creation of social value with stakeholders Considering the Health of the Earth Aim to achieve virtually zero CO2 emissions per store in FY2050 and 100% environmentally friendly PB products, thereby contributing to an ethical society. Shift to environmentally Reduce CO2 emissions per Enhance discl
Slide 27: Considering the health and beauty of our customers
Co-creation of social value with stakeholders Considering the health and beauty of our customers Considering Medical Care that Supports Community Life Aiming for group sales of 1.5 trillion yen and an operating profit margin of 7.0%, we will become an indispensable presence in the field of " health
Slide 28: Enhance Governance and Compliance
Co-creation of social value with stakeholders Enhance Governance and Compliance Maintain and improve management efficiency, transparency, and corporate morale, and continue to exist as a trusted corporate group. MatsumatsukiyoCococala Ratio of Independent CSR Audit WAY Outside Directors Conducted su
Slide 29: Key Strategic Themes
Key Strategic Themes Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 29
Slide 30: Operating profit margin for FY2022
Operating profit margin for FY2022 Matsumotokiyoshi Group Cocokara fine Group Retail business Retail business Operating profit margin 7.3 Operating profit margin 6.9 0.5pt YoY change 2.8pt YoY change First half YoY Second half YoY First half YoY Second half YoY 0.6pt 0.3pt 3.6pt 2.1pt Copyright 2023
Slide 31: Operations-related management integration progress
Operations-related management integration progress End of Mar. 2023 FY 2023 End of Mar. 2024 Unification of Implementation Store Integration of E-commerce App of common sales DX shelf allocation operations customer base integration integration promotion Basic Integration New Value Creation Integrate
Slide 32: Future Development Direction
Future Development Direction Customer Merchandise procurement 1 trillion yen Digital marketing Retail Delivery media Stores Customer WEB・APP・EC Drug Dispensing pharm contacts 130 million No. of stores DX/OMO 3,400 Marketing Infrastructure Wide range of data Integrated Database Customer/Products Busi
Slide 33: Integration of membership base
Integration of membership base Current Integration of membership Future base in 1 H of FY2023 Membership Types Integration of Granting membership Granting membership membership points in both groups points in both groups data × Customer Convenience Mutual use of membership Mutual use of membership p
Slide 34: Number of Customer Contacts Points and Sales Growth through Digital Sales
Number of Customer Contacts Points and Sales Growth through Digital Sales Enforcement Number of customer contacts points Sales from digital sales and growth rate promotions (Billions of yen) 301 Total number of 116％ YoY 130 million contacts CFG 247 102 CFG (Ref.) 75 Number of card 107％ YoY 49 millio
Slide 35: Sales Growth through Retail Media
Sales Growth through Retail Media Sales from retail media Advertising sales increased by 13 times 1,600 cases in total Start of Matsukiyo Ads Start of owned media sales FY2016 FY2019 FY2021 FY2022 Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 35
Slide 36: Private Brands
Private Brands Private Brand Sales FY2022 PB product sales 111 YoY PB product sales composition ratio 12.7 +0.9pt YoY MKG 13.1% +0.6pt YoY CFG 11.8% +1.3pt YoY Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 36
Slide 37: In-house Quick Delivery Service "MatsukiyoCocokara Q"
Delivery Services In-house Quick Delivery Service "MatsukiyoCocokara Q" Delivery Time Minimum 4 to 22 hours for delivery Delivery Area 45% population coverage Population coverage of 65% planned as of March 2024 Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 37
Slide 38: Appendix
Appendix Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 38
Slide 39: Corporate profile
Corporate profile Trade name MatsukiyoCocokara ＆ Co． Address 1-8-2 Yushima, Bunkyo-ku, Tokyo Main business Group-wide strategy formulation, strategy implementation support and management and administration Chairman, Representative Director Namio Matsumoto President, Representative Director Kiyoo Mat
Slide 40: History of the Management Integration
History of the Management Integration Oct. 1, 2021 1932 1954 MatsukiyoCocokara ＆ Co． Founded Matsumoto Pharmacy From private enterprise to as a privately-run enterprise incorporated body 2007 1937 Established Matsumotokiyoshi Holdings Co., Ltd. Established Segami Pharmacy 2008 Established Cocokara f
Slide 41: Philosophy, Vision, and Management Targets
Philosophy, Vision, and Management Targets Group Management Targets for the Fiscal Year Ending March 31, 2026 The Group aims to achieve the following sales and profits in order to become Asia's No.1 drugstore and establish a leading position in the health and beauty fields. Group net sales 1.5 trill
Slide 42: Organizational Structure of the Group
Organizational Structure of the Group Organizational structure of the group Main business activities of MatsukiyoCocokara & Co. Holding company Group-wide strategy formulation, strategy implementation support and management and MatsukiyoCocokara & Co. administration Main business activities of M
Slide 43: Net Sales by Product
Net Sales by Product Medical and pharmaceutical products Cosmetics (Billions of yen) Matsumotokiyoshi Group Matsumotokiyoshi Group (Billions of yen) 400 Cocokara fine Group 334 400 Cocokara fine Group 297 335 331 350 298 305 307 350 300 281 300 280 279 108 106 250 122 126 143 157 250 89 107 122 97 2
Slide 44: Dispensing
Dispensing Dispensing Dispensing pharmacy (Billions of yen) (Stores) Matsumotokiyoshi Group Matsumotokiyoshi Group Cocokara fine Group 154 Cocokara fine Group 924 856 1,000 160 143 900 140 121 762 114 800 120 104 98 700 581 626 484 516 89 600 419 100 64 70 500 314 59 292 80 400 60 300 408 40 50 51 5
Slide 45: Stores by Area
Stores by Area MatsukiyoCocokara & Co. Group total 3,409 stores in Japan (As of Mar. 31, 2023) Hokkaido Tohoku 130 ❚ Matsumotokiyoshi Group ：1,863 MKG 93 CFG 37 ❚ Cocokara fine Group ：1,546 Koshinetsu Hokuriku 245 Chugoku MKG 180 Shikoku 216 CFG 65 MKG 66 CFG 147 Kyushu Kanto 1,468 Okinawa 305 MKG 1
Slide 46: Customer Contact Points, and PB Product Sales
Customer Contact Points, and PB Product Sales PB product sales Customer contact points Sales composition ratio of PB products 12.7 1,817 SKU Total 132 million （As of Mar. 31, 2023） （As of Mar. 31, 2023） Million MK Group CF Group Total 132 101 31 Membership card 49 35 13 LINE account 27 23 3 Applicat
Slide 47: Five years full-years results
Five years full-years results Operating profit and Net sales and No. of stores Gross profit and gross profit margin (%) operating profit margin (%) 1,200 (Stores) 3,325 3,409 450 40.0 100 営業利益率 34.6％ 6.3 6.4 6.5％ 7.5 32.7 32.9 90 1,100 (Billions of yen) 400 32.1 31.2 5.7 35.0 1,000 951 3,000 80 5.6
Slide 48: Progress of Management Integration Synergies
Progress of Management Integration Synergies FY2020 FY2021 FY2022 FY2023 FY2024 Gross profit improvement Unification of Unification of Merchandising Integration NB(National shelf allocation wholesalers Brand) Increase synergies by increasing sales force Unify product Shift to joint PB(Private lineup
Slide 49: Cautionary Statement
Cautionary Statement This document contains future outlooks such as plans, forecasts, strategies, and others which are not historical fact and these are made by the management’s judgement based on the obtainable information at the time of the disclosure. Actual results may significantly differ from