Village Vanguard Co., Ltd. · TSE:2769
Village Vanguard — Q1 FY05/10 Earnings Presentation
45 slides from Village Vanguard's earnings presentation, October 2009
Slide 1: Q1 FY05/10 Results Presentation Materials
表紙ＶＶ Q1 FY05/10 Results Presentation Materials © Village Vanguard corporation, All rights reserved.
Slide 2: Notes
Notes Any current plans, forecasts, strategy projections, expressions of confidence and other statements made by us in these materials, are premised on the information that was available at the moment of the initial publication and on models that depend on uncertain factors that could impact future
Slide 3: Table of Contents
Table of Contents Village Vanguard Corporation Titicaca Co., Ltd. 3)Problems and Solutions Portal P.25 1) Corporate Overview Portal P.30 1) Corporate Overview Portal P.3 ■ Theme 1 Developing ■ Corporate Overview P.31 ■ Corporate Overview P.4 Merchandising Capabilities ■ Stores from Outside P.26 P.32
Slide 4: VV Corporate Overview
VV Corporate Overview © Village Vanguard corporation, All rights reserved. P.3
Slide 5: Corporate Overview
Corporate Overview Name Village Vanguard Corporation Business Retail concept mixing books, SPICE (variety goods), and new media (CDs, DVDs) under the motto “Bookstore where you can have fun” Main Office 12-1 Kamikamoda Nagakuteaza Nagakute-cho Aichi-gun Aichi Tel 0561-63-3031 Representative Director
Slide 6: Our Principles
Our Principles 【 Raison D’etre 】 Our name is Village Vanguard and we are offering our customers a creative space that never existed before. Our customers will probably always demand from us to develop this unique space with power and grace. We cannot stand still. A lot is expected from us. 【 Code of
Slide 7: Business Introduction
Business Introduction ↑Standalone Store ← Shopping Mall Store ■Village Vanguard ■Diner Based on concept “Bookstore where you can have fun”. Combination of books, variety Hamburger shop modeled after an goods, CDs and other products are presented from an original point of view. American diner. ■new s
Slide 8: Product Development 1
Product Development 1 We offer our merchandise by creating original spaces in various locations inside a store, entertaining customers. ■ “Liquor” Themed Corner. © Village Vanguard corporation, All rights reserved. P.7
Slide 9: Product Development 2
Product Development 2 © Village Vanguard corporation, All rights reserved. P.8
Slide 10: Product Selection
Product Selection We choose merchandise store by store, looking at our customers. Most popular items also differ from store to store. Shinjuku Lumine Fukuoka Daimyo ★Sign＝’Store Manager Recommends’ Store America-Mura Store Store Rest of Japan 1) Lover’s Diary 1)Dying in the Gutter Deluxe 1) Go Go!!
Slide 11: Sales Strategy
Sales Strategy Purchasing and sales authority is delegated to a store level 【Marketing】 Explore customer needs at individual store level 【Purchasing】 ■ Direct reflection of customer needs Store managers determine each ■ Attempt to uncover new customer needs store execution independently 【Merchandisi
Slide 12: Personnel Strategy
Personnel Strategy 人材戦略 Customer Part-Time Staff Full-Time Employees Secure staff with deep understanding of the company Give part-time staff purchasing authority Perform long term on-the-job training (OJT) © Village Vanguard corporation, All rights reserved. P.11
Slide 13: Store Openings (Parent)
Store Openings(Parent) *Numbers in brackets are FC stores Total 321 Tohoku Area Hokkaido Area DM 21 DM 293 DM 18 FC 3 VV 247 FC 2 Aomori 5 new style 26 Hokkaido Akita QK 10 20（2） 20（ Iwate 4 Diner 10 5 Yamagata FC 28 Miyagi Hokuriku Area 2（2） 6（1） Chugoku/Shikoku Area DM 10 Niigata Fukushima 5 DM 37
Slide 14: Financial Results Parent (VV)
Financial Results Parent (VV) © Village Vanguard corporation, All rights reserved. P.13
Slide 15: Income Statement
Income Statement (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Forecast) (Actual) (Forecast) (Forecast) Sales 6,118 12,047 19,761 26,859 7,096 14,240 23,678 32,075 8,271 15,980 25,950 35,879 As % of Forecas
Slide 16: Balance Sheet
Balance Sheet (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Forecast) (Actual) (Forecast) (Forecast) Current Assets 12,972 14,725 14,604 15,310 15,839 17,742 18,323 18,895 19,461 20,098 20,004 21,156 As % o
Slide 17: Cash Flow
Cash Flow (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q1 Q4 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Forecast) (Actual) (Forecast) (Forecast) Cash Flow from Operating -586 459 328 1,076 -393 -565 -1,694 -669 -197 157 576 1,237 Activities Changes in In
Slide 18: Results Trend
Results Trend (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Forecast) (Actual) (Forecast) (Forecast) Sales 6,118 12,047 19,761 26,859 7,096 14,240 23,678 32,075 8,271 15,980 25,950 35,879 As % of Sales 100.
Slide 19: Comparable Store Sales
Comparable Store Sales （％） Preliminary Sept ‘09 Figure -4.7% Negative numbers for 8 consecutive months since Feb 2009 © Village Vanguard corporation, All rights reserved. P.18
Slide 20: Comparable Store Sales by Format (1)
Comparable Store Sales by Format (1) ■ Village Vanguard Comparable Store Sales YoY ■ new style/QK Comparable Store Sales YoY Total Company Village Vanguard ■ Sales by Format (Total Company/Village Vanguard/new style/QK） (Million Yen) FY05/08 FY05/09 FY05/10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total
Slide 21: Comparable Store Sales by Format (2)
Comparable Store Sales by Format (2) ■ Online “Comp Sales” YoY ■ Diner Comparable Store sales YoY June ‘06 June ‘07 June ‘08 June ‘09 ■ Sales by Format (Online / Diner) (Million Yen) FY05/08 FY05/09 FY05/10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Online 11 27 57 92 32 71 132 181 53 YoY (%) -68.4 -59.4 -
Slide 22: Sales by Product Genre
Sales by Product Genre (Million Yen) FY05/08 FY05/09 FY05/10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SPICE 4,304 8,381 13,927 18,938 5,109 10,352 17,454 23,764 6.193 As % of Total 70.3 69.5 70.5 70.5 72.0 72.7 73.7 74.1 74.9 Of which HQ sourcing 733 1,578 2,788 3,898 1,180 2,512 4,516 6,254 1,578 Team A
Slide 23: Sales by Store Age
Sales by Store Age Total Store Total Sales Store by Store Sales AgeAge by Store (YoY(YoY Change) Change) >5 Years >5Years 4-5 Years 4-5Years 3-4 Years 3-4Years 2-3 Years 2-3Years 1-2 Years 1-2Years Store Age >5 Years 4-5 Years 3-4 Years 2-3 Years 1-2 Years <1 Year Number of 93 34 41 30 33 62 Stores
Slide 24: Operating Profit Analysis
Operating Profit Analysis (Million Yen) Decrease in Operating Profit due to Lower Increase in Operating Profit due to Other Sales (Sales to Franchisees etc.) Contribution of New Stores (Stores -8 Million Yen 900 Opened for Less than 12 Months) 213 Million Yen △8 △90 800 213 Decrease in Operating Pro
Slide 25: Store Opening Plan
Store Opening Plan FY05/08 FY05/09 FY05/10 Actual Actual Results Results Actual Results and Forecasts Q1 Q2 Q1 Q3 Q4 FY FY FY Actual Fore Forecast Forecast Forecast Forecast cast Openings 27 59 11 8 5(7) 1(5) 6(13) 20(33) Village Vanguard 22 42 9 8 5(6) 1(4) 6(12) 20(30) new style 3 8 1 0 0 0 0 0 QK
Slide 26: Problems and Solutions
Problems and Solutions © Village Vanguard corporation, All rights reserved. P.25
Slide 27: Theme 1 Developing Merchandising Capabilities
Theme 1 Developing Merchandising Capabilities Problems We were not developing merchandising capabilities needed to identify emerging customer needs ■ HQ Sourcing Team’s Goods Shipped from the Logistics Center Excessive reliance on similar “Ratio of Sales Amount of Top 1,000 Items” and “Number of Ite
Slide 28: Theme 2 Scrapping of "Playing Manager" System
Theme 2 Scrapping of “Playing Manager” System Rebuilding the Management Infrastructure to Enable Expansion to 500 Stores Now “Playing Management” GM (Own Store + Approx. 5 Other Stores) ■Ability to lead and convince is swayed by manager’s own store performance BM ■ Number and quality of managers fal
Slide 29: Theme 3 Inventory Control
Theme 3 Inventory Control (Million Yen) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY05/08 FY05/08 FY05/08 FY05/09 FY05/09 FY05/09 FY05/09 FY05/10 Cash Flow from Operating Activities 459 328 1,076 -393 -565 -1,694 -669 -197 ■ Net Income Before Tax 1,276 2,373 2,917 744 1,116 2,276 3,149 821 ■ Change in Inventories -1,
Slide 30: Titicaca Co., Ltd.
Q1 FY05/10 Results Presentation Materials Titicaca Co., Ltd. © Village Vanguard corporation, All rights reserved. P.29
Slide 31: Corporate Overview (Titicaca)
Corporate Overview (Titicaca) © Village Vanguard corporation, All rights reserved. P.30
Slide 32: Corporate Overview (Titicaca)
Corporate Overview (Titicaca) Name Titicaca Co., Ltd. Business Import and Sales of Ethnic Clothing and Variety Goods Main Office 2-2-3 Shin Yokohama Kohoku-ku Yokohama Kanagawa Prefecture Representative Director Hitoshi Kinami Incorporated July 2005 (Established May 1977) Capital 99 Million Yen (As
Slide 33: Titicaca Stores from Outside
Titicaca Stores from Outside Example of a Standalone Store Example of a Tenant Shop Using Vacated Pre-Existing Retail Space Large Scale Shopping Centers, “Fashion Buildings”, Rail Terminal Buildings Main Store Aeon Tsuchiura (Tokyo Shibuya) (Tsuchiura, Ibaraki Prefecture) Opened in May 2009 Apparel
Slide 34: Inside Titicaca Stores
Inside Titicaca Stores © Village Vanguard corporation, All rights reserved. P.33
Slide 35: Store Openings
Store Openings Total 39 Tohoku Area DM 3 DM 36 FC 3 Iwate 1 Yamagata Miyagi Hokuriku Area 1 1 DM 2 Chugoku/Shikoku Area Gunma 1 Ibaraki Kyushu/Okinawa DM 2 Nagano Saitama Area 1 1 5 KanagawaChiba DM 1 Shiga 1 Osaka Shizuoka 5 4 FC 1 Hiroshima 2 2 1 Tokyo Fukuoka Kanto Area 9（2） 1(1) Chubu Kansai Are
Slide 36: Results (Titicaca)
Results (Titicaca) © Village Vanguard corporation, All rights reserved. P.35
Slide 37: Business Results: Income Statement
Business Results 1．Income Statement. Sales Below Planned but so are Expenses (Million Yen) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q1 Q2 Q3 Q4 Q1 Actual Q2 Forecast Q3 Forecast Q4 Forecast Sales 251 573 879 1,178 361 859 1,317 1,777 As % of Forecast 0.0 -1.6 -2.3 -3.4 -3.2 -
Slide 38: Business Results: Comparable Store Sales
Business Results 2．Comparable Store Sales (YoY) Q1(April – June)Cumulative +15.9% Each color represents a different fiscal year. Acquisition Announced Feb 2007 Introduced POS System for Some of Reinforcing Organization Apparel Items May HQ Sourcing Group、Communication Month of Acquisition 2008 Group
Slide 39: Business Results: YoY Sales Changes by Store Genre
Business Results 4. YoY Sales Changes by Store Genre. Strong Apparel Q1 (April-June) ① Apparel +44.0％ Comparable Store Sales Change YoY +4.3％ ② Accessories +4.3％ ① Why Apparel was Strong? ◇ Analyzed sales trends and strategy on a weekly basis ◇ Improved patterns to fit Japanese consumers Note: 52-we
Slide 40: Business Results: Creating United Organization
Business Results 5. Creating United Organization “Titikaka Growth Notebook” to Instill Management Principles We believe that the main driver behind achieving profitability at Titikaka was the fact that all members shared common management principles. To ensure continued unity of the team Titikaka me
Slide 41: Consolidated Results and Forecasts
Consolidated Results and Forecasts © Village Vanguard corporation, All rights reserved. P.40
Slide 42: Income Statement (Consolidated)
Income Statement (Consolidated) (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Actual Forecast Forecast Forecast Sales 6,317 12,460 20,380 27,678 7,343 14,805 24,544 33,226 8,630 16,833 27,255 37,640 As % of
Slide 43: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Actual Results and Forecasts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Actual Forecast Forecast Forecast Current Assets 13,714 15,501 15,332 15,921 16,512 18,470 19,119 19,695 20,290 21,343 21,025 22,428
Slide 44: Cash Flow (Consolidated)
Cash Flow (Consolidated) (Million Yen) FY05/09 (Actual Results) FY05/10 (Forecasts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash Flow from Operating -419 -533 -1,758 -735 -292 159 -724 1,133 Activities Changes in Inventory -412 -2,783 -2,953 -3,203 -872 -1,837 -1,757 -2,253 Other -6 2,250 1,194 2,467 579 1,996 1,03
Slide 45: Q1 FY05/10 Results Presentation Materials
裏表紙 Q1 FY05/10 Results Presentation Materials © Village Vanguard corporation, All rights reserved.