Matsukiyococokara & Co. · TSE:3088

Matsukiyococokara & — H1 FY2023 Earnings Presentation

51 slides from Matsukiyococokara &'s earnings presentation, Nov 17, 2023

Slide 1: Financial Results for the Six Months Ended September 30, 2023
Financial Results for the Six Months Ended September 30, 2023 Copyright 2023 November 17, 2023 MatsukiyoCocokara & Co. All rights Reserved. MatsukiyoCocokara & Co.
Slide 2: Table of Contents
Table of Contents Management summery for First Half ……………. P.3 ～ 6 Management policies for Second Half Financial Results and Financial Forecasts ……………. P.6 ～ 19 Initiatives for Sustainable Management ……………. P.20 ～25 Wellness Strategy ……………. P.26 ～ 29 Drugstore Business Strategy ……………. P.30 ～ 39 Appe
Slide 3: Management Summary for First Half / Management Policies for Second Half
Management Summary for First Half Management Policies for Second Half Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 3
Slide 4: Management Summary for the First Half of FY2023
Management Summery for the First Half of FY2023 Results Net sales 109.2％ YoY, Operating profit 132.6％ YoY, Operating profit margin 7.4％（+1.3pt YoY） With COVID-19 shifting to category 5 infectious diseases, people flow to urban areas and inbound demand Increase gradually recovered. in sales The summe
Slide 5: Management Policies for the Second Half of FY2023
Management Policies for the Second Half of 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
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 the future “Normal” and innovating lifestyles Group Management Targets for the F
Slide 8: Financial Summary (YoY)
Financial Results for 1H FY2023 Financial Summary (YoY)  First half results showed an increase in both sales and profits due to the steady implementation of key strategies and the realization of management integration synergies as planned.  Operating income margin improved 1.3 pt. YoY to 7.4% due
Slide 9: Financial Summary (YoY)
Financial Results for 1H FY2023 Financial Summary (YoY)  9.2% increase in sales due to strong sales of pharmaceuticals, cosmetics, and PB products, reflecting the expansion of people flow in urban and downtown areas and the summer heat wave  Operating profit increased 32.6% thanks to thorough KPI
Slide 10: Segment Results (YoY)
Financial Results for 1H FY2023 Segment Results (YoY)  Matsumotokiyoshi Group achieved a significant increase in sales and double-digit profit growth  Cocokara fine Group achieved higher sales and double-digit profit growth, and worked to further improve profitability by fostering loyal customers.
Slide 11: Segment Results (YoY)
Financial Results for 1H FY2023 Segment Results (YoY) Excluding amortization of goodwill and trademark rights totaling 3,618 million yen associated Reference with the management integration with cocokara fine Inc. (Millions of yen) Six Months Ended Six Months Ended Change Change September 30, 2022 S
Slide 12: Segment Profit Margin Trends
Financial Results for 1H FY2023 Segment Profit Margin Trends  Steady progress in management integration synergies and significant improvement in profit margin  Segment profit margin in 1H FY2023 : Matsumotokiyoshi Group 7.9% Cocokara fine Group 7.6% Management integration MKG （％）（ Oct 1, 2021 ） S
Slide 13: Net Sales by Product
Financial Results for 1H FY2023 Net Sales by Product  Significant increase in our focused health and beauty categories  Minimize negative impact of COVID-19 related products with high gross profit margin by steadily promoting key strategies (Millions of yen) Net sales Gross profit margin (Apr - Se
Slide 14: Net Sales by Product
Financial Results for 1H FY2023 Net Sales by Product  The total sales composition of OTC medicines, dispensing, and cosmetics increased by 1.8 pt YoY to 70.6%. Net sales by product Sales summary (Billions of yen) OTC medicines（+16.2% YoY） 98 In OTC medicines, there was a rebound from the special OT
Slide 15: Balance Sheet
Financial Results for 1H FY2023 Balance Sheet  Equity ratio increased slightly from 70.1% to 70.5% from the end of the fiscal year ended March 31, 2023  Liabilities for retirement benefits decreased due to revision of retirement benefit plans at some group companies (Millions of yen) End of March,
Slide 16: Statement of Cash Flows
Financial Results for 1H FY2023 Statement of Cash Flows  Cash and deposits increased due to strong operating performance  Considering effective use of cash and deposits for future growth investments and shareholder returns (Millions of yen) Six Months Ended Six Months Ended September 30, 2022 Sept
Slide 17: Store Openings, Closings, and Renovations in Japan
Financial Results for 1H FY2023 Store Openings, Closings, and Renovations in Japan  Actual results for the first half of FY2023 Promoting area dominance through a new store opening strategy (Unit: No. of stores) Number of stores Openings Closings Renovations Number of stores as of March 31, 2023 in
Slide 18: FY2023 Financial Forecasts
Financial Forecasts for FY2023 FY2023 Financial Forecasts  The consolidated financial forecasts announced on May 12, 2023 was revised on November 14, 2023. (Millions of yen) FY2023 FY2023 Full Year Previous forecasts Revised forecasts （May 12, 2023） (November 14, 2023) Change Change % to net % to n
Slide 19: Stock Split and Dividends Plan
Financial Forecasts for FY2023 Stock Split and Dividends Plan 【Stock split】  3-for-1 stock split with the effective date of October 1, 2023 【Dividends plan】  Fiscal year ending March 31, 2024 (FY2023)  50 yen per share at the end of the second quarter  The year-end dividend per share is expected
Slide 21: Sustainable Management
Sustainable Management  Identifying materiality by considering business opportunities and risks, global risks, and social issues in order to realize our ideal state.  The Board of Directors, the Sustainability Committee, and executive divisions work in tandem to resolve materiality issues. Realiza
Slide 22: Relationship between Materiality and Improvement of Corporate Value
Relationship between Materiality and Improvement of Corporate Value  The relationship between the five materialities identified and the improvement of corporate value is organized as follows The relationship between measures to resolve materiality and expansion of corporate value is organized by th
Slide 24: Human Resources Strategy
Human Resources Strategy  In order to achieve the Group Vision and Group Management Objectives, the Company regards the organization and human resources strategy as a key management theme and discloses measures and initiatives to maximize the value of human capital. Key Strategies Group Human Resou
Slide 25: Climate Change Response
Climate Change Response  Disclosure of current status and enhanced information disclosure, which had been an issue in addressing climate change, in the integrated report. We will formulate a roadmap and various specific measures to achieve these goals. Enhancement of Current Status Future Responses
Slide 27: Sales size of dispensing and number of dispensing pharmacies
Sales size of the dispensing and the number of dispensing pharmacies Matsumotokiyoshi Group Dispensing sales (Billions of yen) Cocokara fine Group 1,600 143 154 121 1,400 104 114 99 78 1,200 97 1,000 89 64 70 58 800 600 54 400 200 44 45 49 51 54 56 0 FY2019 FY2018 FY2019 FY2020 FY2021 FY2022 1H FY20
Slide 28: Pursuit of specialization in the dispensing business
Pursuit of specialization in the dispensing business Pursuit of specialization -evolution of total care Health Support Functions Medical Facilities Oncology facilities Clinic Pharmacy Clinic Community Cooperation Specialty Medical Health support pharmacies Pharmacy Cooperative Pharmacies Home Visits
Slide 29: Contributing to Wellness by Utilizing Our Strengths
Contributing to Wellness by Utilizing Our Strengths Aiming to Realize a Well-Being Society ask a question in a casual manner Contributing to wellness in the age of 100 years of life consult an expert improve my immune system maintain beautiful skin E-commerce Drugstores Drugstores with dispensing Di
Slide 31: Operating profit margin for the First Half of FY2023
Operating profit margin for the First Half of FY2023 Cocokara fine Group Matsumotokiyoshi Group Retail business Retail business Operating profit margin 7.9 ％ Operating profit margin 7.5 ％＋1.0pt YoY change ＋0.8pt YoY change Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 31
Slide 32: Operations-related management integration progress
Operations-related management integration progress End of Mar. 2023 End of Mar. 2024 1H 2H Implementation of App Unification of Store Integration of E-commerce common sales shelf allocation operations customer base integration integration DX promotion Basic Integration New Value Creation Integrate r
Slide 33: Platform for a common customer experience
Platform for a common customer experience Healthcare Beauty 店舗 Stores App/Web Delivery Marketing DMP Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 33
Slide 34: Improving the Value of Real Stores
Improving the Value of Real Stores Improving the Value of Real Stores Promote rebranding to increase corporate value ＦＬＡＧＳＨＩＰＳＴＯＲＥ HARAJUKU IKEBUKURO HONG KONG SHIBUYA Jan 2018 Nov 2019 Oct 2021 Sep 2023 Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 34
Slide 35: Integration of APP/WEB
Integration of APP/WEB Integration of APP/EC WEB SITE MK EC WEB SITE MK APP CF EC WEB SITE CF APP Increase customer LTV ☞More intuitive UIUX ☞Enables more flexible execution of measures ☞Linkage with new functions such as digital services Copyright 2023 MatsukiyoCocokara & Co. All rights Reserved. 3
Slide 36: Number of Customer Contact Points and Sales Growth through Digital
Number of Customer Contacts Points and Sales Growth through Digital Sales Enforcement Number of Customer Contacts Points and Sales Growth through Digital Sales Enforcement Digital and app membership sales as a percentage of total sales DIGITAL MBERSHIP Digital membership is tied to APP & WEB action
Slide 37: Delivery Services
Delivery Services Sales per customer by store, e-commerce, and "Q" delivery usage In-house Quick Delivery Service "MatsukiyoCocokara Q" 250％ 226％ 100％ 50% population coverage as of March 2024 65% population coverage target as of March 2025 Store Store Store + + E-commerce E-commerce + "Q” delivery C
Slide 38: Beauty Services
Beauty Services Full-scale operations to begin in the first half of the fiscal year ending March 31, 2025  Beauty contents with the largest number of products handled  Online cosmetics ledger with the largest number of customers  Daily management and coaching function for improvement B Makeup + B
Slide 41: 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 42: 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 43: 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 44: 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 45: Net Sales by Product
Net Sales by Product Medical and pharmaceutical products Cosmetics (Billions of yen) (Billions of yen) Matsumotokiyoshi Group Cocokara fine Group 176 165 177 153 149 159 146 135 57 138 137 80 57 62 67 76 45 45 54 58 119 108 90 76 81 82 95 93 92 92 1H FY2019 1H FY2020 1H FY2021 1H FY2022 1H FY2023 1H
Slide 46: Dispensing
Dispensing Dispensing sales Dispensing pharmacy stores (Billions of yen) (Stores) Matsumotokiyoshi Group Matsumotokiyoshi Group Cocokara fine Group Cocokara fine Group 951 78 827 899 74 67 654 55 56 601 507 524 469 41 47 49 327 31 32 299 27 28 302 327 358 392 427 24 24 26 1H FY2019 1H FY2020 1H FY20
Slide 47: Stores by Area
Stores by Area MatsukiyoCocokara & Co. Group total 3,431 stores in Japan (As of Sep. 30, 2023) Hokkaido Tohoku 130 ❚ Matsumotokiyoshi Group ：1,878 MKG 93 CFG 37 ❚ Cocokara fine Group ：1,553 Koshinetsu Hokuriku 244 Chugoku MKG 179 Shikoku 219 CFG 65 MKG 71 CFG 148 Kyushu Kanto 1,471 Okinawa 308 MKG 1
Slide 48: 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 12.6 ％ 1,958 SKU Total 141 million （As of Sep 30, 2023）（As of Sep 30, 2023） Total (Unit: millions) 141 Membership card 50 LINE account membership 28 Application DL membershi
Slide 49: 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 50: 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 51: 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

MatsukiyoCocokara & — H1 FY2023 Earnings Presentation on 6ix

Matsukiyococokara & — H1 FY2023 Earnings Presentation

Slide 1: Financial Results for the Six Months Ended September 30, 2023

Slide 2: Table of Contents

Slide 3: Management Summary for First Half / Management Policies for Second Half

Slide 4: Management Summary for the First Half of FY2023

Slide 5: Management Policies for the Second Half of FY2023

Slide 6: Realizing the Group Philosophy

Slide 7: Financial Results and Financial Forecasts

Slide 8: Financial Summary (YoY)

Slide 9: Financial Summary (YoY)

Slide 10: Segment Results (YoY)

Slide 11: Segment Results (YoY)

Slide 12: Segment Profit Margin Trends

Slide 13: Net Sales by Product

Slide 14: Net Sales by Product

Slide 15: Balance Sheet

Slide 16: Statement of Cash Flows

Slide 17: Store Openings, Closings, and Renovations in Japan

Slide 18: FY2023 Financial Forecasts

Slide 19: Stock Split and Dividends Plan

Slide 20: Initiatives for Sustainable Management

Slide 21: Sustainable Management

Slide 22: Relationship between Materiality and Improvement of Corporate Value

Slide 23: Progress on Materiality KPIs

Slide 24: Human Resources Strategy

Slide 25: Climate Change Response

Slide 26: Wellness Strategy

Slide 27: Sales size of dispensing and number of dispensing pharmacies

Slide 28: Pursuit of specialization in the dispensing business

Slide 29: Contributing to Wellness by Utilizing Our Strengths

Slide 30: Drugstore Business Strategy

Slide 31: Operating profit margin for the First Half of FY2023

Slide 32: Operations-related management integration progress

Slide 33: Platform for a common customer experience

Slide 34: Improving the Value of Real Stores

Slide 35: Integration of APP/WEB

Slide 36: Number of Customer Contact Points and Sales Growth through Digital

Slide 37: Delivery Services

Slide 38: Beauty Services

Slide 39: Private Brands

Slide 40: Appendix

Slide 41: Corporate profile

Slide 42: History of the Management Integration

Slide 43: Philosophy, Vision, and Management Targets

Slide 44: Organizational Structure of the Group

Slide 45: Net Sales by Product

Slide 46: Dispensing

Slide 47: Stores by Area

Slide 48: Customer Contact Points, and PB Product Sales

Slide 49: Five years full-years results

Slide 50: Progress of Management Integration Synergies

Slide 51: Cautionary Statement