Slide 1: Financial Results for the Fiscal Year Ended March 31, 2024
Financial Results for the Fiscal Year Ended March 31, 2024 Copyright 2024 May 17, 2024 MatsukiyoCocokara & Co. All rights Reserved. MatsukiyoCocokara & Co.
Slide 2: Management Summary for FY2023 / Management Policies for FY2024
Management Summery for FY2023 Management Policies for FY2024 Copyright 2024 MatsukiyoCocokara & Co. All rights Reserved. 1
Slide 3: Management Summary for FY2023
Management Summery for FY2023 Results Net sales 107.5％ YoY, Operating profit 121.6％, Operating profit margin 7.4％（+0.9pt YoY） With COVID-19 shifting to category 5 infectious diseases, people flow to urban areas and inbound demand gradually recovered. Increase Favorable weather conditions led to stro
Slide 4: Management Policies for FY2024
Management Policies for FY2024 Positioning for FY2024 Key Strategies （FY2024) 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 5: 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 6: Financial Results and Financial Forecasts
Financial Results and Financial Forecasts Copyright 2024 MatsukiyoCocokara & Co. All rights Reserved. 5
Slide 7: Financial Summary (Full Year)
Financial Results for FY2023 Financial Summary (Full Year) Steady implementation of key strategies and realization of management integration synergies led to increases in both sales and profit Operating profit margin improved 0.9pt to 7.4% from 6.5% in YoY due to appropriate cost control (Millio
Slide 8: Segment Results (Full Year)
Financial Results for FY2023 Segment Results (Full Year) Matsumotokiyoshi Group business achieved a significant increase in sales and double-digit profit growth; Cocokarafine Group business achieved an increase in sales and double-digit profit growth Cocokarafine Group business continues to impr
Slide 9: Segment Results (Full Year)
Financial Results for FY2023 Segment Results (Full Year) Excluding amortization of goodwill and trademark rights totaling 7,237 million yen Reference associated with the management integration with cocokarafine Inc. (Millions of yen) FY2022 FY2023 Change Change Profitable Profitable (amount) (%) (%)
Slide 10: Segment Profit Margin Trends
Financial Results for FY2023 Segment Profit Margin Trends Steady progress in management integration synergies and significant improvement in profit margin Management MKG Segment profit integration margin （％） （ Oct 1, 2021 ） 8.2 8.0 7.3 6.8 7.5 6.4 6.3 MKHD Matsumotokiyoshi 7.1 Retail Operating mar
Slide 11: Net Sales by Product
Financial Results for FY2023 Net Sales by Product Significant increase in our focused health and beauty category Minimize the reactionary decline in COVID-19 related products with high gross profit margins by steadily implementing key strategies (Millions of yen) Net sales Gross profit margin(％)
Slide 12: Balance Sheet
Financial Results for FY2023 Balance Sheet Equity ratio increased slightly from the end of the previous fiscal year (70.1% ⇒ 71.0%) Liabilities for retirement benefit decreased due to revision of retirement benefit plan at some group companies (Millions of yen) End of March, 2023 End of March, 2
Slide 13: Statement of Cash Flows
Financial Results for FY2023 Statement of Cash Flows Approximately 41 billion yen of free cash flow was generated (Millions of yen) End of March, 2023 End of March, 2024 Change Cash flows from operating activities 64,061 63,506 (554) Cash flows from investing activities (19,669) (22,760) (3,090) C
Slide 14: Store Openings, Closings, and Renovations in Japan
Financial Results for FY2023 Store Openings, Closings, and Renovations in Japan Focus on careful store openings in light of rising rents, construction costs, and supplies costs Promoted scrap-and-build to respond to changes in store history, sales floor space, and market area (Unit: No. of store
Slide 15: FY2024 Financial Forecasts
Financial Forecasts for FY2024 FY2024 Financial Forecasts (Millions of yen) First Half 1H FY2023 1H FY2024 Change Change % to net sales % to net sales (amount) (%) Net sales 507,766 515,000 7,233 1.4 Gross profit 173,826 34.2 178,000 34.6 4,173 2.4 SG & A 136,272 26.8 140,000 27.2 3,727 2.7 Operatin
Slide 16: Store openings, closings, and renovations plan in Japan
Financial Forecasts for FY2024 Store openings, closings, and renovations plan in Japan Focus on careful store openings in light of rising rents, construction costs, and supplies costs Promoted scrap-and-build to respond to changes in store history, sales floor space, and market area (Unit: No. o
Slide 17: Shareholder Return
Financial Forecasts for FY2024 Shareholder Return Targets set for DOE (dividend on equity) of at least 3% and dividend payout ratio of at least 30%. We have introduced a progressive dividend policy, whereby dividends are maintained or increased. We will flexibly implement share buyback, 円 35 t
Slide 18: Initiatives to Enhance Corporate Value
Initiatives to Enhance Corporate Value Copyright 2024 MatsukiyoCocokara & Co. All rights Reserved. 17
Slide 19: Initiatives for Enhancing Corporate Value
Initiatives for Enhancing Corporate Value We understand “sustainable management” and “management with awareness of cost of capital and stock price” to be synonymous, and promote management to realize our group vision for sustainable enhancement of corporate value. Sustainable Management Initiatives
Slide 20: Current Assessment; Historical Corporate Value
Current Assessment; Historical Corporate Value Our corporate value (PBR) declined at the time of the merger, but currently stands at around 2x Market valuation: Changes in PBR MatsumotokiyoshiHD MatsukiyoCocokara 2.5 2.32 (times) 2.05 2.03 1.9 1.84 1.81 1.76 2 1.45 1.52 1.32 8 1.5 1 ●PBR 0.5 0 FY2
Slide 21: Current Assessment; ROE Spread, ROIC Spread
Current Assessment; ROE Spread, ROIC Spread We have positioned the continuous maximization of the ROE spread and ROIC spread as an issue. We expect the spread to be around 5.5% to 6.7% for FY2023. ROE ＞ Cost of shareholders' equity Issues Continuous maximization ROIC ＞ WACC ROE spread ROIC sprea
Slide 22: Initiatives to Reduce Cost of Capital
Initiatives to Reduce Cost of Capital Focused on changing the shareholder return policy, reducing strategic shareholdings, and enhancing IR/SR activities to reduce the cost of capital Change in shareholder return policy Reduction of strategic shareholdings Net asset ratio Current 5.5％ as of end Ma
Slide 23: Initiatives to Improve Growth Rate
Initiatives to Improve Growth Rate Focus on improving the value of non-financial capital and enhancing climate change response as part of efforts to increase growth rate Maximize the value of non-financial capital Enhancement of efforts to respond to climate change Received MSCI ESG rating of AA C
Slide 24: Cash Allocation to Improve Corporate Value
Cash Allocation to Improve Corporate Value In order to maximize overall returns to shareholders, we actively invest not only in income gains but also in businesses that increase profitability and earning power leading to capital gains ＜Reinvestment for sustainable growth＞ Profit growth (improved b
Slide 25: Key Strategic Themes
Key Strategic Themes Copyright 2024 MatsukiyoCocokara & Co. All rights Reserved. 24
Slide 26: Operating profit margin for FY2023
Operating profit margin for FY2023 Matsumotokiyoshi Group's operating profit margin improved significantly due to an improvement in tax-free sales. Cocokarafine Group's operating profit margin continued to improve as a result of management integration synergies. Matsumotokiyoshi Group Cocokarafi
Slide 27: Operations-related management integration progress
Operations-related management integration progress The integration of store operations and the e-commerce application has led to a significant improvement in the operating profit margin. End of Mar. 2023 End of Mar. 2024 Implementation of Unification of Store sales Integration of E-commerce App co
Slide 28: What We Focus On
What We Focus On We generate high returns for our customers and stakeholders by increasing sales, generating profits, and controlling expenses. Retail Business for FY2003 Operating profit margin We will leverage sales to generate profits and return to stakeholders. 7.9% Retail Business for FY2003
Slide 29: Private Brands
Private Brands The composition of sales of private brands integrated into “matsukiyo” has been increasing. We will continue to develop PB products that “create the common sense of the future and change people's lives. FY2023 PB product sales 111.3 % YoY PB product sales composition ratio 13.0 %
Slide 30: Maximize customer LTV
Maximize customer LTV Our goal is to provide customers with a “free purchasing experience” by utilizing digital Free and seamless use of e-commerce, drug stores and dispensing pharmacies Maximize LTV 「Drug」 「Dispensing」 Promote mutual use Increase in LTV Increase in LTV Use DX Quick delivery Use o
Slide 31: Customer Contact Points and Sales Growth through Digital Sales Enforcement
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 32: Benefits of Increasing Digital Contacts
Benefits of Increasing Digital Contacts Digital members have significantly more opportunities to offer promotions than Card Members, resulting in higher sales. ROI improves significantly because promotional costs are greatly reduced. Digital vs. print media Increasing digital membership is direc
Slide 33: Integration of APP/WEB
Integration of APP/WEB With the integration of app and e-commerce in FY2022, the MatsukiyoCocokara app and e-commerce have become easier and more comfortable for customers to use. Integration of APP/EC WEB SITE MK APP MK EC WEB SITE CF EC WEB SITE CF APP ☞More intuitive UIUX ☞Enables more flexible
Slide 34: Beauty Services: MatsukiyoCocokara B
Beauty Services: MatsutsukiyoCococara B We have released “MatsukiyoCococara B,” a digital service for beauty. This service aims to promote the use of e-commerce by easily reproducing the “I want to try it out and consult with you” experience on a smartphone. A digital service to enjoy beauty any
Slide 35: Quick Delivery Service: MatsukiyoCocokara Q
Quick Delivery Service : MatsukiyoCocokara Q MatsukiyoCocokara Q, a quick delivery service that utilizes our store network. Store staff members deliver store inventory, enabling delivery in as little as four hours. Quick delivery service using the store network as a delivery base Sales per custo
Slide 36: Direction of the Dispensing Business
Direction of the Dispensing Business The environment surrounding the dispensing business is changing dramatically. We are committed to enhancing customer satisfaction by providing smooth service to our customers. Changes in the environment surrounding dispensing pharmacies Electronic prescriptio
Slide 37: Platform providing free purchasing
Platform providing free purchasing We will promote free purchasing activities with “Drugstores, Dispensing and e-commerce” by utilizing digital technology. We will build a platform that can also be utilized for marketing by our business partners. Providing free purchasing Healthcare Stores 店舗 Be
Slide 38: Appendix
Appendix Copyright 2024 MatsukiyoCocokara & Co. All rights Reserved. 37
Slide 39: Corporate profile
Corporate profile Trade name MatsukiyoCocokara ＆ Co． Address 1-8-2 Yushima, Bunkyo-ku, Tokyo Group-wide strategy formulation, strategy implementation support Main business and management and administration President, Representative Director Kiyoo Matsumoto Vice President, Representative Director Ats
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 Matsumotokiyoshi Group (Billions of yen) Matsumotokiyoshi Group (Billions of yen) Cocokarafine Group Cocokarafine Group 361 305 281 307 334 331 297 331 280 279 164 105 113 125 157 107 122 143 89 97 197 226 191 217 180 159 164 177 182
Slide 44: Dispensing
Dispensing Dispensing sales Dispensing pharmacy stores Matsumotokiyoshi Group (Billions of yen) Matsumotokiyoshi Group (stores) Cocokarafine Group Cocokarafine Group 143 154 159 924 971 856 114 121 762 97 100 626 516 533 89 484 70 419 64 314 51 54 56 59 312 343 372 408 438 49 FY2019 FY2020 FY2021 FY
Slide 45: Stores by Area in Japan
Stores by Area in Japan MatsukiyoCocokara & Co. Group total 3,464 Stores in Japan (As of Mar. 31, 2024) Hokkaido Tohoku 130 ❚ Matsumotokiyoshi Group ：1,904 MKG 93 CFG 37 ❚ Cocokara fine Group ：1,560 Koshinetsu Hokuriku 245 Chugoku MKG 181 Shikoku 219 CFG 64 MKG 72 CFG 147 Kyushu Kanto 1,498 Okinawa
Slide 46: Customer Contact Points, and PB Product Sales
Customer Contact Points, and PB Product Sales PB product sales Customer contact points 13.0 ％ 2,046 SKU 147 millon Sales composition ratio of PB products Total （As of Mar. 31, 2024） （As of Mar. 31, 2024） （Unit : million） Total 147 Membership card 51 LINE account 28 Application DL 43 ❚ Matsumotokiyos
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 (%) 3,464店舗 400 0 500 40 120 7.4％ 130 0 (Billions of yen) 3325 3409 34.6 34.6％ 6.5 7.5 32.69 32.9 6.4 32.07 450 5.7 35 100 5.6 6.5 110 0 1,022 300 0 400 354
Slide 48: Quarterly Consolidated Financial Results
Financial Results for FY2023 Quarterly Consolidated Financial Results FY2022 FY2023 （Millions of yen/%） 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net sales 227,209 237,865 249,201 236,971 951,247 248,222 259,544 262,566 252,197 1,022,531 Gross profit 76,674 82,959 86,550 83,136 329,320 84,199 89,6
Slide 49: Quarterly Segment Results
Financial Results for FY2023 Quarterly Segment Results FY2022 FY2023 （Millions of yen/％） 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Sales 134,802 141,473 151,124 145,134 572,535 152,810 159,867 162,999 157,439 633,117 Matsumoto- kiyoshi Segment profit 8,909 9,891 12,940 10,055 41,797 11,783 12,937
Slide 50: Quarterly Net Sales and Gross Profit by Product
Financial Results for FY2023 Quarterly Net Sales and Gross Profit by Product FY2022 FY2023 (Millions of yen/％) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Sales 76,177 83,068 87,365 87,736 334,348 85,192 91,340 93,264 92,095 361,892 Medical and pharmaceuti Segment profit 30,988 36,963 37,433 39,062
Slide 51: 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 52: 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