Edion Corporation · TSE:2730
Edion — Q3 FY03/24 Earnings Presentation
26 slides from Edion's earnings presentation, Feb 2, 2024
Slide 1: EDION Corporation Analyst Meeting Q3 FY03/24
EDION Corporation Analyst Meeting Q3 FY03/24 February 2, 2024 © EDION Corporation
Slide 2: Agenda of the Day
Agenda of the Day 1. Q3 FY03/24 Results 2. FY03/24 Earnings Forecast and Key Topics © EDION Corporation 1
Slide 3: 1. Q3 FY03/24 Results
1. Q3 FY03/24 Results 2. FY03/24 Earnings Forecast and Key Topics © EDION Corporation 2
Slide 4: Review
Review YoY comparisons for all stores (orders received at POS) General Comments Fiscal year ending March 2024 3rd quarter cumulative total YoY 99.7%（Vs. 2021 101.2%） Amid rising resource prices, a weak yen, and growing concerns about the global situation, in May 2023, the status of Covid-19 under th
Slide 5: Consolidated Statements of Income
Consolidated Statements of Income Consolidated results for the third quarter are as follows 3Q FY03/23 3Q FY03/24 Million yen, % % of 3Q % of 3Q % of Sales Results % of Sales Results YoY Change FY03/22 FY03/23 Net Sales 538,554 101.8 537,608 99.8 △945 Gross Profit 29.55 159,119 101.3 29.18 156,849 9
Slide 6: 3Q Earnings
3Q Earnings Despite special factors, our sales remained robust Due to the effects of the Consum COVID-19 lockdown in Net Sales (JPY bn.) Shanghai, China, it is ption undeniable that there is a tax hike shortage of products, and 6,000 stay-at-home demand interest in air conditioners 80% JPY537.6bn in
Slide 7: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 3Q FY03/24; includes orders (orders received at POS) （％） 120 TVs 98.5 90.5 91.7 88.7 94.1 92.3 88.2 87.7 92.3 100 95.3 92.9 YoY 91.9 % 80 85.9 81.6 79.4 82.7 （ Vs. 2021 81.7） 71.2 79.1 60 68.9 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. . Maintained a
Slide 8: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 3Q FY03/24; includes orders (orders received at POS) （％） 109.2 110.0 109.0 106.5 110 Refrigerators 104.4 99.5 102.1 97.3 94.1 100 104.2 98.3 96.6 107.3 98.2 96.8 YoY 98.6 % 90 92.4 93.2 94.2 （ Vs. 2021 103.1） 80 Apr. May Jun. Jul. Aug. Sep. Oct. Nov.
Slide 9: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 3Q FY03/24; includes orders (orders received at POS) （％） （％） PCs 100 93.3 94.1 88.5 89.1 88.4 87.3 78.5 84.7 82.1 89.3 80 YoY 82.9 % 84.9 82.0 84.8 68.5 78.4 78.8 78.9 78.3 （ Vs. 2021 84.1） 60 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. . The rush to
Slide 10: Sales by Product (Monthly disclosure basis)
Sales by Product (Monthly disclosure basis) % of 3Q FY03/24; includes orders (orders received at POS) （％） 141.2 Mobile Phones 140 (by units sold) 117.0 114.7 138.2 120 108.0 105.6 110.0 107.7 106.6 100.6 YoY 109.1 % 114.0 100 （ Vs. 2021 111.1） 108.3 104.7 106.9 103.3 100.3 97.2 96.9 80 Apr. May Jun.
Slide 11: 3Q Gross Profit Margin and SG&A Ratio
3Q Gross Profit Margin and SG&A Ratio Gross Profit Margin SG&A-to-Sales Ratio （％） （％） 32 30 29.54 29.72 29.55 30 29.18 28 27.3 26.9 28.89 27.1 26.9 25.6 28 26 26 24 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ●Gross profit margin: 29.18% in 3Q FY03/2024, ●SG&A expenses: 3Q FY03/24.: JPY144.5bn
Slide 12: 3Q Consolidated Balance Sheet and Consolidated Statements of Cash Flows
3Q Consolidated Balance Sheet and Consolidated Statements of Cash Flows Consolidated Balance Sheet Consolidated Statements of Cash Flows （Million yen） （Million yen） End-March End-December YoY Change 2023 2023 3Q FY03/23 3Q FY03/24 Cash and cash equivalents 13,235 13,644 408 CFs from Operating 10,311
Slide 13: Acquisition of Land and Building Trust Beneficiary Rights
Acquisition of Land and Building Trust Beneficiary Rights (Increase in Fixed Assets) November 27, 2023 (JST) Namba Main Store The number of passengers per day in the NAMBA Area is Acquired Trust approximately 900,000 Beneficiary Rights Related to Land and Buildings for JPY54bn EDION Namba main (Oosa
Slide 14: Inventory Status
Inventory Status (JPY bn.) +JPY Washing 9.1bn Refrigerators PCs ELS Other Machines increase Air Conditioners TVs Approximately JPY7.1bn Increase in Major Products End-December 2022 End-December 2023 *Figures in the slide are rounded down to the nearest 100 million yen © EDION Corporation 13
Slide 15: 2. FY03/24 Earnings Forecast and Key Topics
1. Q3 FY03/24 Results 2. FY03/24 Earnings Forecast and Key Topics © EDION Corporation 14
Slide 16: Consolidated Earnings Forecast
Consolidated Earnings Forecast 3Q Cumulative Results Q4 Plan FY03/24 % of Million yen, % Results YoY Change Forecast YoY Change % of Sales Forecast FY03/23 YoY Change Net Sales 537,608 99.8 207,391 113.9 100.0 745,000 103.4 +24,415 Gross Profit 156,849 98.6 61,500 118.8 29.3 218,350 103.5 +7,473 SG&
Slide 17: Measures to Realize Management Conscious of Capital Costs and Stock Prices
Measures to Realize Management that is Conscious of Capital Costs and Stock Prices Decomposition of PBR Using CAPM based on the data, the cost of equity is estimated to be approx. 5% １ PBR ＝ ROE × RER ＝ approx. 5 % － approx. △3.7 % （ Return on Equity ） （ Price Earnings Ratio ） (Cost of equity) (Expe
Slide 18: Store Openings, Relocations, and Closings (Actual and Planned)
Store Openings, Relocations, and Closings (Actual and Planned) Relocations and End-of-Period Store (stores) New openings Closures YoY Change Renovations Count FY03/23 Results Full-year 5 3 4 +1 450 4 1H Results 4 5 (including two non-home ±0 450 electronics stores) FY03/24 3Q Results 5 1 - +5 455 Ac
Slide 19: Key Topics; Opening of First Flagship Store in Kanto
Key Topics; Opening of First Flagship Store in Kanto EDION's Largest New Store in Yokohama EDION TSUTAYA ELECTRICS EDION Namba main EDION Kyoto shijō Kawaramachi (Hiroshima Prefecture) (Oosaka Prefecture) (Kyoto Prefecture) December 15, 2023 2017 2019 2021 A Flagship Store with 6 Unique Floors EDION
Slide 20: Key Topics; EDION Yokohama-nishiguchi main
Key Topics; EDION Yokohama-nishiguchi ｍain Yokohama-nishiguchi Main Store with unprecedented entertainment value © EDION Corporation 19
Slide 21: Key Topics; EDION PB Brand Introduction (e angle)
Key Topics; EDION PB Brand Introduction (e angle) New Product Born from Customer Feedback Launched in December 2023 © EDION Corporation 20
Slide 22: Jointly Developed Product with NITORI HD
Key Topics; Jointly Developed Product with NITORI HD Results of Capital and Business Alliance: New Product Released in December 2023 X © EDION Corporation 21
Slide 23: Changes to Shareholder Benefit System
Changes to Shareholder Benefit System In order to further enhance the attractiveness of EDION's stock investment and encourage medium- to long-term stock ownership, we will change the stock benefit system for long-term shareholders according to the number of years * Long-term holding benefits have b
Slide 24: Dividends and Share Prices
Dividends and Share Prices While striving to improve capital efficiency, as Interim dividend measured through ROIC growth, we will focus on Year-end dividend maintaining a sound and stable balance sheet. Commemorative dividend 70 Payout ratio 35.1% 39.2% 37.9% 44.0% 1. Dividend Policy 33.6% 39.0% ED
Slide 25: Strengthening of Sustainability Management
Strengthening of Sustainability Management Intensification of Relevant Initiatives 1 Initiatives Targeting a Sound Material-Cycle Society In pursuit of a sound material-cycle society, we actively ensure proper disposal of home electronics products covered by the Act on Recycling of Specified Home Ap
Slide 26: Disclaimer
Disclaimer • The financial forecasts and other forward-looking statements in these materials are based on judgment made under normally foreseeable conditions, in accordance with information reasonably available to the Company as of the date these materials were produced. • The forward-looking statem