United Arrows Ltd. · TSE:7606
United Arrows — Q3 FY2009 Earnings Presentation
33 slides from United Arrows's earnings presentation, February 2009
Slide 1: Fiscal Year Ending March 2009 Third Quarter Earnings Announcement
Fiscal Year Ending March 2009 Third Quarter Earnings Announcement UNITED ARROWS LTD. www.united-arrows.co.jp 1
Slide 2: Contents
Contents Summary of 3Q results P3~P9 Additional information on business results P10~P14 Overview of business results and progress of important tasks, etc. P15~P21 In this material, a fractional sum less than one million yen is rounded down and percentage is calculated from raw data. Cautionary state
Slide 3: Summary of 3Q Results
Summary of 3Q Results 1. P/L Overview (9 months aggregate, consolidated/non-consolidated) Consolidated results (YoY (YoY): ): Sales 112.1%, Ordinary Profit 84.6%, Quarterly Net Income 47.1% 47.1% Non- Non-consolidated results (YoY (YoY): ): Sales 112.4%, 112.4%, Ordinary Profit 95.4 95.4%, %, Quarte
Slide 4: For reference: P/L Overview (3 months aggregate)
For reference: P/L Overview (3 months aggregate, consolidated/non-consolidated) Consolidated results (YoY (YoY): ): Sales 106.6%, 106.6%, Ordinary Profit 97.8%, Quarterly Net Income 93.2% 93.2% Non- Non-consolidated results (YoY (YoY): ): Sales 106.7%, 106.7%, Ordinary Profit 106.5%, 106.5%, Quarter
Slide 5: Sales Overview (consolidated/non-consolidated, 9 months aggregate)
2. Sales Overview (consolidated/non-consolidated, 9 months aggregate) Non-consolidated sales ¥57,655 million (112.4% YoY, 97.9% vs sales) Business Unit Total ¥49,978 million (109.0% YoY, 97.0% vs sales) Aggregate same store sales 96.0% YoY (¥million) FYE March 2009 3Q <cf> YoY +/- vs Forecast +/- Re
Slide 6: B/S Overview (end of 3Q)
3. B/S Overview (end of 3Q, consolidated/non-consolidated) Consolidated Net Assets: ¥49,808 million (107.2 (107.2% % YoY), YoY), Non- Non-consolidated Assets: ¥48,758 million (106.7 (106.7%) %) Major increases/decreases in the consolidated B/S (YoY (YoY)) Current Assets: Increase in inventory due to
Slide 7: C/F Overview (consolidated)
4. C/F Overview (consolidated) • Cash flows from operating activities: improvement in sub total ¥0.9 billion by minimizing increase in inventory, etc. • Cash flows from investment activities: Purchase of tangible non-current assets: ¥3.1 billion, etc. (There were proceeds from sale of noncurrent ass
Slide 8: Store Openings/Closings
5. Store Openings/Closings Minimal change compared to 2Q forecast Number of new stores by retail business (Non-consolidated) Beginning New stores (est) End of term Number of stores at term end (est (est): ): of term Close (est) Full term1H 2H UA LTD. 140 stores (excluding 15 outlet stores) Total 127
Slide 9: Details of store openings/transfer/extension for FYE March 2009
Details of store openings/transfer/extension for FYE March 2009 (confirmed projects only) Form Biz Business unit Outline Timing Store name Name of facility Space (m²) Opening day UA New UA new Apr SHIBUYA KOENDORI PARKWAY SQUARE 2 total space 320.1 20-Apr-08 new Apr SAPPORO Sapporo Parco total space
Slide 10: Additional Information of Business Results
Additional Information of Business Results 1. Trend of Inventory Assets (Non-consolidated) 2. Trend of Gross Margin (Non-consolidated) 3. Details of SGA Expenses (Non-consolidated) 4. Progress of New Subsidiaries 10
Slide 11: Trend of Inventory Assets (Non-consolidated)
1. Trend of Inventory Assets (Non-consolidated) • 103.1% YoY (3Q end) inventory level continues to be under control • Inventory at the end of March 2009 will be around 100% to 110% YoY Change in Inventory Assets (product inventory + stored goods) (million yen) FYE March FYE March FYE March FYE March
Slide 12: Trend of Gross Margin (Non-consolidated)
2. Trend of Gross Margin (Non-consolidated) Gross margin up to 3Q (9 months aggregate): 52.8% (-0.6 points YoY) Gross margin during 3Q (3 months aggregate): 56.1% (+0.5 points YoY) Short of forecast, but marginal improvement from previous year Decline in gross margin of business units have minimized
Slide 13: Details of SGA Expenses (Non-consolidated)
3. Details of SGA Expenses (Non-consolidated) SGA to sales up to 3Q (9 months aggregate): 45.0% (+0.9 points YoY) SGA to sales during 3Q (3 months aggregate): 40.2% (+0.5 points YoY) difference between previous 9 months aggregate are as follows: Details of SGA expenses up to 3Q (non-consolidated) (M
Slide 14: Progress of New Subsidiaries
4. Progress of New Subsidiaries Subsidiary COEN FRANQUEENSENSE Brand Name Photo of store Business Results Sales are weaker than forecasts for both subsidiaries, but loss is within forecasts due (9 months to less store openings for PERENNIAL UA and cost reduction aggregate) Number of stores as of Jan
Slide 15: Overview of Business Results and Progress of Important Tasks
Overview of Business Results and Progress of Important Tasks, etc. 1. Overview of Business Results (9 months aggregate) 2. Progress of Important Tasks 15
Slide 16: Business Results up to 3Q
1. Business Results up to 3Q 1) Summary Historical non-consolidated sales and same store sales Summary of 3Q results for FYE March 2009 Results (¥Bn) YoY Total Sales Same Store Sales Consolidated 120.0% Total Sales 59.7 112.1% 120.1% Non-consoldiated 117.0% 118.0% Total Sales 57.6 112.4% 114.6% 113.
Slide 17: Major progresses and tasks by 3Q
2) Major progresses and tasks by 3Q Major progresses Inventory: under control Cost control: improvement in cost reduction 3Q Results (3 months aggregate): Increase in earnings and profit during 3Q (UA alone) Major tasks Business Unit Sales: short of forecast Gross profit and gross margin: short of f
Slide 18: Progress of Important Tasks
2. Progress of Important Tasks 1) Fundamentally improve earning structure Raise corporate value in the mid to long-term 2) Reach annual targets Achieve profit goals 18
Slide 19: Progress in measures to fundamentally improve earning structure
1) Progress in measures to fundamentally improve earning structure Slim down head office and replace staff to stores Decide main measures for next term to centralize and merge organizations organizations and functions within the head office Reallocate 16 experienced staff (approx. 5% of business hea
Slide 20: Progress in measures to reach annual targets
2) Progress in measures to reach annual targets Continue to strengthen sales by OJT and prepare system so store staff can concentrate on serving customers Visualize sales performance by new indicators (ex. number of purchasing purchasing customers per staff) and promote one- one-on- on-one OJT Proce
Slide 21: Future tasks for New Subsidiaries
For reference: Future tasks for New Subsidiaries COEN Review merchandise (target customers, size, price) and increase appealing items Review store décor and VMD and improve store atmosphere Choose 5 stores to strengthen sales Strengthen sales promotion according to character of each place PERENNIAL
Slide 22: UNITED ARROWS LTD.
¥ UNITED ARROWS LTD. B UNITED ARROWS LTD. 22
Slide 23: 3Q Earnings Announcement Appendix
FYE March 2009 3Q Earnings Announcement Appendix 1. Term end B/S (consolidated/non- (consolidated/non-consolidated 2. Full term P/L results & forecasts (consolidated/non- (consolidated/non-consolidated) 3. Quarterly P/L (consolidated/non- (consolidated/non-consolidated) 4. Full term SGA expenses res
Slide 24: Term end B/S (consolidated/non-consolidated)
1. Term end B/S (consolidated/non-consolidated) Consolidated B/S (million yen) FYE March 2006 FYE March 2007 FYE March 2008 Results composition Results composition +/- YoY Results composition +/- YoY Total Assets 35,334 100.0% 38,132 100.0% 2,797 107.9% 43,362 100.0% 5,229 113.7% Current Assets 23,3
Slide 25: Full term P/L results & forecasts
2. Full term P/L results & forecasts (consolidated/non-consolidated) Consolidated P/L (million yen) FYE March 2007 FYE March 2008 FYE March 2009 (est) +/- YoY +/- YoY results results forecast vs Sales vs Sales YoY vs Sales YoY Total Sales 60,959 100.0% 72,221 100.0% 11,262 118.5% 83,028 100.0% 10,80
Slide 26: Quarterly P/L (consolidated)
3.1 Quarterly P/L (consolidated) FYE March 2009 1Q 2Q 3Q 4Q (Apr to Jun) (Jul to Sep) (Oct to Dec) (Jan to Mar) Results vs Sales YoY Results vs Sales YoY Results vs Sales YoY Results vs Sales YoY Net Sales 18,698 100.0% 114.3% 17,971 100.0% 117.4% 23,081 100.0% 106.6% Gross profit 10,170 54.4% 112.8
Slide 27: Quarterly P/L (non-consolidated)
3-2. Quarterly P/L (non-consolidated) FYE March 2009 1Q 2Q 3Q 4Q (Apr to Jun) (Jul to Sep) (Oct to Dec) (Jan to Mar) Results vs Sales YoY Results vs Sales YoY Results vs Sales YoY Results vs Sales YoY Net Sales 17,954 100.0% 114.6% 17,437 100.0% 118.0% 22,264 100.0% 106.7% Gross profit 9,769 54.4% 1
Slide 28: Full term SGA expenses (non-consolidated)
4. Full term SGA expenses (non-consolidated) (million yen) FYE March 2007 FYE March 2008 FYE March 2009 (est) vs Sales vs Sales YoY vs Sales YoY Results Results +/- YoY Forecast +/- YoY 41.9% 44.1% 124.7% 45.3% 117.2% Total SGA Expenses 24,603 30,686 6,082 35,958 5,272 1.6% 1.7% 125.4% 1.8% 117.8% A
Slide 29: Full term sales results & forecasts
5. Full term sales results & forecasts (consolidated/non-consolidated) (Mn yen) FYE March 2007 FYE March 2008 FYE March 2009 (est) +/- YoY +/- YoY results results forecast YoY YoY Consolidated Total Sales 60,959 72,221 11,262 118.5% 83,028 10,806 115.0% Non-consolidated Total Sales 58,666 69,560 10,
Slide 30: Quarterly Sales (consolidated/non-consolidated)
6. Quarterly Sales (consolidated/non-consolidated) (million yen) FYE March 2009 1Q 2Q 3Q 4Q (Apr to Jun) (Jul to Sep) (Oct to Dec) (Jan to Mar) Results +/- YoY YoY Results +/- YoY YoY Results +/- YoY YoY Results +/- YoY YoY Consolidated Total Sales 18,698 2,343 114.3% 17,971 2,665 117.4% 23,081 1,42
Slide 31: Same store sales by business (non-consolidated, YoY)
7. Same store sales by business (non-consolidated, YoY) UA FYE Mar 2009 (by month) 1Q 2Q 3Q Apr May Jun Jul Aug Sep Oct Nov Dec Same store sales 88.5% 100.2% 95.0% 88.1% 93.1% 84.1% 101.6% 101.2% 98.1% 96.6% 98.0% 91.2% Sales by category at existing stores Men's 88.2% 97.7% 91.7% 86.8% 93.3% 84.7% 1
Slide 32: CH, SBU and UA Labs same store sales
CH FYE Mar 2009 (by month) 1Q 2Q 3Q Apr May Jun Jul Aug Sep Oct Nov Dec Same store sales 104.1% 94.5% 89.4% 110.4% 107.6% 97.4% 89.6% 97.9% 96.9% 79.0% 97.7% 91.2% Number of customers 91.9% 89.6% 84.0% 97.7% 93.7% 86.9% 89.4% 96.5% 82.2% 86.8% 86.8% 81.1% Ave. customer spending 113.2% 105.6% 106.4%
Slide 33: Full term store openings/CAPEX results and forecasts
8. Full term store openings/CAPEX results and forecasts (non-consolidated) FYE March FYE March FYE March 2007 2008 2009 (est) Number of store openings, employees, etc. (/term end stores) Number of store openings 32 34 20 / 140 UA 10 9 11 / 44 GLR 6 9 1 / 37 CH 0 2 0 / 5 S.B.U. & UA Labs 16 14 8 / 54