Matsukiyococokara & Co. · TSE:3088

Matsukiyococokara & — FY2021 Earnings Presentation

41 slides from Matsukiyococokara &'s earnings presentation, May 18, 2022

  1. Slide 1: Financial Results for the Fiscal Year Ended March 31, 2022

    Financial Results for the Fiscal Year Ended March 31, 2022 Copyright 2022 May 18, 2022 MatsukiyoCocokara & Co. All rights Reserved. MatsukiyoCocokara & Co.

  2. Slide 2: Table of Contents

    Table of Contents Management Summery for FY2021 and Management Policies for FY2022 P.3 ～ P.5 Financial Results for FY2021 and Financial Forecasts for FY2022 P.6 ～ P.18 Financial Results for FY2021 ・ FY2021 Financial Summary (YoY) ・Segment Results (YoY) ・Net Sales by Product ・Balance Sheet ・Statement

  3. Slide 3: Management Summary for FY2021 / Management Policies for FY2022

    Management Summery for FY2021 Management Policies for FY2022 Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 3

  4. Slide 4: Management Summary for FY2021

    Management Summery for FY2021 Increase Sales increased due to a recovery in the number of customers and the consolidation of the Cocokara fine Group in sales from the second half of FY2021, although there was a reactionary decline from the special demand for the new coronavirus last year. Increase P

  5. Slide 5: Management Policies for FY2022

    Management Policies for FY2022 Positioning for FY2022 Key Strategies （FY2022) Japan Strategies ❚Provide social value Provision of values that correspond to the life stages of customers We will provide social value by considering the Pursuit of convenience health of our customers, local communities,

  6. Slide 6: Financial Results for FY2021 / Financial Forecasts for FY2022

    Financial Results for FY2021 Financial Forecasts for FY2022 Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 6

  7. Slide 7: FY2021 Financial Summary (YoY)

    Financial Results for FY2021 FY2021 Financial Summary (YoY)  Record-high net sales and gross profit, operating profit, ordinary profit, and profit attributable to owners of the parent for the fiscal year ending March 31, 2022  Gross profit margin increased 1.5 percentage points to 32.9% from 31.4%

  8. Slide 8: FY2021 Financial Summary (YoY) - Reference, Cocokara fine combined

    Financial Results for FY2021 FY2021 Financial Summary (YoY) Cocokara fine Inc. results are combined on a full-year (12-month) basis. Reference Cocokara fine Inc.'s full-year results for the fiscal year ended March 31, 2021 and 1H results for the fiscal year ended March 31, 2022 are combined. (Millio

  9. Slide 9: FY2021 Financial Summary (YoY) - Second Half Comparison

    Financial Results for FY2021 FY2021 Financial Summary (YoY) Reference Second Half Comparison  Significant increase in sales and profit due to management integration (Millions of yen) 2H FY2020 2H FY2021 (October 2020 - March 2021) (October 2021 - March 2022) Change Change (amount) (%) % to net % to

  10. Slide 10: Segment Results (YoY)

    Financial Results for FY2021 Segment Results (YoY) (Millions of yen) Change Change FY2020 FY2021 (amount) (%) Matsumotokiyoshi Net sales 537,609 540,062 2,452 0.5% Group Segment profit (loss) 31,838 36,169 4,330 13.6% Cocokara fine Net sales ― 182,624 182,624 ― Segment profit Group (loss) ― 5,312 5,

  11. Slide 11: Segment Results (YoY) - Excluding Amortization

    Financial Results for FY2021 Segment Results (YoY) Excluding amortization of goodwill of 3,144 million yen and amortization of trademark rights of Reference 473 million yen associated with the management integration with cocokara fine Inc. (Millions of yen) Change Change FY2020 FY2021 (amount) (%) M

  12. Slide 12: Net Sales by Product

    Financial Results for FY2021 Net Sales by Product (Millions of yen) Gross profit margin Net sales (%) YoY change YoY change Difference for (amount) (%) YOY（point） Medical and pharmaceutical products 239,758 82,584 52.5% 42.5% +0.2pt Dispensing 102,037 51,111 100.4% 40.1% +1.1pt Cosmetics 234,467 47,

  13. Slide 13: Balance Sheet

    Financial Results for FY2021 Balance Sheet (Millions of yen) End of March, 2021 End of March, 2022 Change Current assets 175,696 304,387 128,691 Cash and deposits 38,517 74,519 36,001 Merchandise 85,788 137,277 51,489 Non-current assets 193,240 352,347 159,107 Property, plant and equipment 72,789 10

  14. Slide 14: Statement of Cash Flows

    Financial Results for FY2021 Statement of Cash Flows (Millions of yen) End of March, 2021 End of March, 2022 Change Net cash provided by (used in) operating activities 25,875 39,812 13,936 Cash flows from investing activities (6,311) (15,485) (9,173) Net cash provided by (used in) financing activiti

  15. Slide 15: Store openings, closings, and renovations in Japan

    Financial Results for Store openings, closings, and renovations in Japan FY2021 (Unit: No. of stores) Number of stores as Openings Closings Number of stores as Openings Closings Number of stores as of March 31, 2021 in 1 H in 1 H of Sep 30, 2021 in 2 H in 2 H of March 31, 2022 Matsumotokiyoshi Group

  16. Slide 16: FY2022 Financial Forecasts

    Financial Forecasts for FY2022 FY2022 Financial Forecasts (Millions of yen) FY2021(a) FY2022(f) Change Change Full Year % to net % to net (amount) (%) sales sales Net sales 729,969 ― 950,000 ― 220,030 30.1% Gross profit 240,295 32.9% 320,000 33.7% 79,704 33.2% SG & A 198,887 27.2% 267,000 28.1% 68,1

  17. Slide 17: Store openings, closings, and renovations plan in Japan

    Financial Forecasts for FY2022 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, 2022 of March 31, 2023 Matsumotokiyoshi Group 1,808 100 30 50 1,878 Cocokara fine Group 1,517 50 20 30 1,547

  18. Slide 18: Dividends plan

    Financial Forecasts for FY2022 Dividends plan  Plans to increase dividend (commemorative dividend) Plan to pay a commemorative dividend of 5 yen at the end of the second quarter and 5 yen at the end of the fiscal year to mark the first anniversary of the management integration and the 90th annivers

  19. Slide 19: Progress of Management Integration Synergies

    Progress of Management Integration Synergies Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 19

  20. Slide 20: Progress of Management Integration Synergies

    Progress of Management Integration Synergies October 2020 Unification of shelf allocation Merchandising Integration Gross profit improvement NB(National October 2021 Unification of wholesalers Brand) Increase synergies by increasing sales force October 2020 Unify product lineups PB(Private October 2

  21. Slide 21: Key Strategic Themes

    Key Strategic Themes Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 21

  22. Slide 22: Operating profit margin for FY2021

    Operating profit margin for FY2021 Matsumotokiyoshi Group Cocokara fine Group Retail business Retail business Operating profit margin 7.0 ％ Operating profit margin 4.2 ％ ＋1.0pt YoY change ＋1.2pt YoY change First half YoY Second half YoY First half YoY Second half YoY ＋0.8pt ＋1.3pt ＋0.4pt ＋2.1pt Copy

  23. Slide 23: Overall picture of strategic steps

    Overall picture of strategic steps Japan Strategy “Provision of values that correspond to the life stages of customers” Pursuit of convenience – deeper ties with customers Platform Development Pursuit of uniqueness – renewal of experience and service provisions Pursuit of specialization – evolution

  24. Slide 24: Number of Customer Contact Points

    Number of Customer Contacts Points Overseas SNS LINE Digital contacts Real contacts Total number of contacts Point card members 46 million 114.6 million APP Apps +146% YoY +149％ YoY MKG 88.2 million+107%YoY MKG 32.6 million +106%YoY CFG 26.4 million CFG 13.4million Digital members 13.9 million +195％

  25. Slide 25: Sales via Web and Smartphone

    Sales via Web and Smartphone FY2021 ¥247billion ＋112 billion yen Ratio of targeting MKG +37 billion yen measures 26.2％ ※Percentage of MKG only MKG promotion costs CFG ＋75 billion yen 15% decrease in FY2020 6 periods +35 billion yen ¥135 billion +28 billion yen FY2019 Ratio of targeting ¥100 billion

  26. Slide 26: Private Brands

    Private Brands Private Brand FY2021 PB product sales 149 ％ YoY PB product sales composition ratio 11.8 ％ +1.0pt YoY MKG12.5% +0.5pt YoY CFG 10.5% +2.2pt YoY Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 26

  27. Slide 27: Media Business

    Media Business NB Advertising Services Business FY2021 Number of transactions 107% YoY Sales 114% YoY Operating profit margin 64% YoY Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 27

  28. Slide 28: Future Development Direction: Real x Digital platform

    Future Development Direction “Real x Digital" platform Customer Delivery Customer Contacts 110million Matsumotokiyoshi Group Cocokara fine Group Web・Apps Stores No. of stores 3,300 DX/OMO Wide range of data Marketing Infrastructure Customer Integrated Database /Products Merchandise procurement 1tril

  29. Slide 29: Appendix

    Appendix Copyright 2022 MatsukiyoCocokara & Co. All rights Reserved. 29

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: Toward the Realization of a Sustainable Society

    Toward the Realization of a Sustainable Society The Group will contribute to the achievement of the SDGs and create corporate value by addressing human, environmental, social, and governance challenges and practicing sustainable management. ＜Goals＞ Exists as a corporate group that is rewarding to wo

  35. Slide 35: Net Sales by Product

    Net Sales by Product Medical and pharmaceutical products Cosmetics Matsumotokiyoshi Group (Billions of yen) Matsumotokiyoshi Group (Billions of yen) Cocokara fine Group Cocokara fine Group 4,000 305.9 310.0 4,000 321.9 335.7 331.9 283.5 3,500 290.5 298.6 281.6 3,500 280.7 3,000 3,000 104.5 108.0 105

  36. Slide 36: Dispensing

    Dispensing Dispensing Dispensing pharmacy (Billions of yen) (Stores) Matsumotokiyoshi Group Matsumotokiyoshi Group Cocokara fine Group 143.6 Cocokara fine Group 856 1,000 1,400 114.1 121.1 900 762 99.1 104.4 626 1,200 800 1,000 89.0 700 542 581 484 70.1 600 64.2 419 58.7 800 54.7 314 500 600 400 271

  37. Slide 37: Stores by Area

    Stores by Area MatsukiyoCocokara & Co. Group total 3,325 stores in Japan （As of Mar. 31, 2022） Hokkaido Tohoku 131 ❚ Matsumotokiyoshi Group ： 1,808 MKG 94 CFG 37 ❚ Cocokara fine Group ：1,517 Koshinetsu Hokuriku 240 Chugoku MKG 176 Shikoku 213 CFG 64 MKG 66 CFG 147 Kyushu Kanto 1414 Okinawa 301 MKG 9

  38. Slide 38: Customer Contact Points, and PB Product Sales

    Customer Contact Points, and PB Product Sales PB product sales Customer contact points MatsukiyoCocokara & Co. MatsukiyoCocokara & Co. Sales composition ratio of PB products 11.8 ％ 1,851 SKU Total 107.59 million （As of Mar. 31, 2022） （As of Mar. 31, 2022） マツキヨ×ココカラ共同開発第一号プライベートブランド商品 敏感肌向けスキンケアシリーズ「

  39. Slide 39: 5 years full-year results

    5 years full-years results Operating profit and operating profit Net sales and No. of stores Gross profit and gross profit margin (%) margin (%) 10,00 0 3,325 3,500 40.0 800 32.9％ 7.5 32.7 6.3 6.4 32.1 6.0 700 9,000 3,000 3,000 30.3 31.2 35.0 600 5.7 5.7％ 6.5 (Billions of yen) (Stores) 240.2 8,000 3

  40. Slide 40: Goodwill and Trademarks related to Management Integration

    Goodwill and Trademarks related to Management Integration Goodwill and trademarks related to management integration with cocokara fine Inc. Acquisition cost ¥255,031 million Amount of major acquisition-related ¥208 million expenses Amount of goodwill and trademarks ¥137,509 million Goodwill ¥119,500

  41. Slide 41: 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

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