Village Vanguard Co., Ltd. · TSE:2769
Village Vanguard — Q2 FY05/12 Earnings Presentation
41 slides from Village Vanguard's earnings presentation, 2012
Slide 1: Q2 FY05/11 Results Presentation
Cover VV Q2 FY05/11 Results Presentation
Slide 2: Note
Note: 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 e
Slide 3: Income Statement (Consolidated)
Income Statement (Consolidated) Income Statement FY05/10 FY05/11 FY05/12 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Sales 8,630 8,273 10,290 9,456 9,359 9,125 11,397 9,926 10,158 10,005 12,430 11,078 SG&A 2,799 2,879 3,069 3,117 3,120 3,265 3,401 3,429 3,460 3,593 3,734 3,803 Labor
Slide 4: BS (Consolidated)
BS (Consolidated) Balance Sheet FY05/10 FY05/11 FY05/12(Result and Estimate) (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Cash & Deposit 2,685 2,957 3,503 4,037 3,045 3,378 3,582 3,972 2,586 2,865 4,412 5,142 Inventories 15,003 15,928 15,315 15,466 16,182 17,044 16,726 16,950 17,827 1
Slide 5: CF (Consolidated)
CF (Consolidated) Cash Flow Statement FY05/10 FY05/11 FY05/12 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Operating Cash Flow -292 -146 298 1,647 -730 -347 -111 1,143 -1,053 -773 13 1,632 Change in Inventories -872 -1,796 -1,183 -1,335 -644 -1,506 -1,191 -1,415 -881 -2,228 -1,483 -1,
Slide 6: Parent Company Village Vanguard Corporation
Parent Company Village Vanguard Corporation © Village Vanguard corporation, All rights reserved. P.5
Slide 7: What We Do
What We Do Stand-alone Shopping Center ■Village Vanguard ■Diner Our concept is “A bookstore where you can play.” By bringing together various An old-school hamburger shop products such as books, variety goods, and CDs, our stores have a unique feel. modeled after an American diner. ■QK ■new style “E
Slide 8: Examples of Our Merchandising Approach (1)
Examples of Our Merchandising Approach (1) Merchandise themed around ―365-days of Camera We offer merchandise by creating a unique retail living‖ space aimed at entertaining the customer Camera Lover other than Camera Toy Camera“HOLGA” ・Camera-shaped Shoulder bag Very popular among For example, merc
Slide 9: Examples of Our Merchandising Approach (2)
Examples of Our Merchandising Approach (2) © Village Vanguard corporation, All rights reserved. P.8
Slide 10: Examples of Our Merchandising Approach (3)
Examples of Our Merchandising Approach(3) © Village Vanguard corporation, All rights reserved. P.9
Slide 11: How Do We Sell?
How Do We Sell? We delegate both purchasing and sales decisions to the store level Marketing Store Pursue customer needs in each store Manager has absolute Purchasing discretion ■ Reflect customer needs directly ■ Unique challenge to discover new needs Head Office Proposition Authority ■ POP, zone c
Slide 12: Hiring Strategy
Hiring Strategy Hiring Strategy Full Time Customer Temp Staff Employee ■ Hiring people who really understand the company ■ Even temporary staff are allowed to make purchasing decisions ■ Long-term practical on-the-job training © Village Vanguard corporation, All rights reserved. P.11
Slide 13: Sourcing Team
Sourcing Team Role Functions The team assumes the role of in-house wholesaler, proposing products to stores (1) Reducing costs by taking advantage of economies of scale through marketing activities. (2) Creating competition to promote a "product refining" effect Manufacturer and External Equals Sour
Slide 14: Store Openings (Parent)
Store Openings (Parent) Store data as of end-Nov 2011 380 stores nationwide * Figures in parentheses indicate the number of FC stores. Tohoku * Figures that show an increase or decrease over Q4 are in red. 358 Directly Managed (DM) DM 22 309 VV format Hokkaido Break 36 New style format DM 16 Aomori
Slide 15: VV – Results (Parent)
VV – Results (Parent) © Village Vanguard corporation, All rights reserved. P.14
Slide 16: Parent Income Statement
Parent Income Statement FY05/11 Forecast was upwardly revised at end-1H FY05/11. Q3 and Q4 FY05/11 Versus Plan figures reflect performance vs. revised budgets. Parent Income Statement FY05/10 FY05/11 FY05/12 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Est. Q4 Est. Sales 8,271 7,827 9,888 9,008 8,
Slide 17: Sales by Category
Sales by Category Sales by Category FY05/10 FY05/11 FY05/12 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SPICE (Parent) 6,193 5,926 7,785 6,904 6,780 6,461 8,609 7,177 7,361 14,360 (Internal Sourcing Team) 1,578 1,565 2,297 1,904 1,752 1,770 2,713 2,088 2,217 79 (Other) 4,614 4,361 5,489 5,000
Slide 18: OP analysis
OP analysis （単位：百万円） (In millions of yen) 1,450 Decrease in OP at existing stores −45 million yen -79 1,350 ▲53 251 ▲256 1,250 -45 -173 380 -71 1,150 Decrease in OP due to higher HQ costs Decrease in OP from closed or special stores ▲257 ▲53 −79 million yen Main reasons for higher costs: 1,050 ・Dist
Slide 19: Store Openings
Store Openings FY05/ FY05 FY05 FY05/12(Plan and Actual) 09 / 10 /11 Actual Actual Actual Q1 Q2 Q3 Q4 Full Year Full Full Initial Initial Initial Revised Initial Revised Initial Revised Full Year Actual Actual Year Year Plan Plan Plan Plan Plan Plan Plan Plan Opening 59 34 46 11 10 5 8 1 6 8 10 25 34
Slide 20: Comparable Store Sales Year on Year
Comparable Store Sales Year on Year Comparable store sales （％） 既存店売上昨対 YoY Introduction of Dedicated Area Manager system +14% (from March 2010) led to the loss of core store managers 114 ―Strong sellers at appealing spots from flagship stores. However, pre-Tohoku quake in the sales ranking order‖ cu
Slide 21: Stand-Alone Store Focused Initiatives
Theme 1 Stand-Alone Store Focused Initiatives YoY trends in number of customers purchasing goods over the last year 4.0 % Concerns exist that the 104% 2.0% 102% 0.0 100% -2.0% 98% customer appeal of stores -4.0% 96% -6.0% is weakening. 94% -8.0% 92% Customer numbers negative YoY for four consecutive
Slide 22: Increased Cost-to-sales ratio for the sourcing teams
Theme 2 Increased Cost-to-sales ratio for the sourcing teams Change in Cost-to-sales ratio of sourcing teams over past four FY Three types of products handled Sourcing teams Domestic suppliers Cost-to-sales ratio 3. Imported goods Overseas suppliers VV storage Store for the sourcing teams has been C
Slide 23: Inventory Control
Theme 3 Inventory Control Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY05/10 FY05/10 FY05/10 FY05/11 FY05/11 FY05/11 FY05/11 FY05/12 FY05/12 (Million Yen) Cash Flow From Operations -173 380 1,756 -718 -523 -214 1,042 -950 -1,061 ■Net Income Before Tax 1,320 2,498 3,256 502 1,015 2,371 3,065 672 1098 ■Net Increase (
Slide 24: Company Profile Titicaca
Company Profile Titicaca © Village Vanguard corporation, All rights reserved. P.23
Slide 25: Outside Titicaca Stores
Outside Titicaca Stores Lake Town You Me Town Shibuya store store store (Shibuya, Tokyo) (Koshigara , Saitama) (Beppu, Oita) Early days Now Started as a folk art shop, with signs and store fixtures Warm, natural store interior, Image of a Mexican resort hand-made by staff, in order emphasizing color
Slide 26: New Titicaca Stores
New Titicaca Stores Shizuoka PARCO store Iiasu Tsukuba store You Me Town Beppu store Opened October 1, 2011 Opened November 25, 2011 Opened October 27, 2011 102 sq/m 132 sq/m 132 sq/m Minami-suna Sunamo store Mirai Nagasaki COCOWALK ZOZO TOWN Opened November 23, 2011 Opened November 12 , 2011 Opened
Slide 27: Inside the Store
Inside the Store © Village Vanguard corporation, All rights reserved. P.26
Slide 28: Store Openings
Store Openings Store data as of end-November 2011 73 Stores Nationwide (68) * Figures in parentheses indicate the number of FC stores. Tohoku * Figures that increased or decreased from end- August 2011 are in red. 71 DM stores (66) DM 4 2 FC stores (2) Figures in parentheses indicate the number of s
Slide 29: Titicaca - Results
Titicaca - Results Income Statement: Met budget. Q2 FY05/12 sales 3.0% above plan, Q2 FY05/12 recurring profit 64.7% above plan. Q3 and Q4 FY05/11 vs. Plan figures reflect performance vs. revised budgets. Titicaca Income Statement FY05/10 FY05/11 FY05/12 (Million Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 30: Titicaca - Results
Titicaca - Results Sales vs. Plan: Targets Sales: +3.0% against Q2 plan (+56 million yen) Achieved Existing stores: +0.6% (+8 million yen) Wholesale and FC sales: +25.1% (+18 million yen) New stores: +5.1% (+27 million yen) SG&A Costs Within -0.2% against Q2 plan (-2 million yen) Budget vs. Plan Maj
Slide 31: Results
Results Comparable stores 1H +11.6% YoY sales 50% Achieving positive YoY 150% sales for 40% 140% 46 consecutive months (Feb. 2008-Nov. 2011) 30% 130% +23.8% +20.6% +15.4% 120% 20% +13.6% 110% 10% +11.7% +5.1% +6.2% +8.8% 100% 0 Comparable store sales for +4.5% -10% 90% those stores unaffected by Mar
Slide 32: Growth strategies
Growth strategies Introduction of Dedicated Area Managers (AM) who are not tied to any one store Acting Area Managers (past) Dedicated Area Managers Charged with managing a single store but also responsible (introduced since Q1 FY05/12 onwards) for area management Dedicated management for the areas
Slide 33: Village Vanguard (Hong Kong) Limited
Village Vanguard (Hong Kong) Limited © Village Vanguard corporation, All rights reserved. P.32
Slide 34: Inside the Store (VVHK)
Inside the Store （VVHK） Could you be my friend? Bail… HKD930 © Village Vanguard corporation, All rights reserved. P.33
Slide 35: Village Vanguard Hong Kong - Results
Village Vanguard Hong Kong - Results FY05/11(Actual) FY05/12(Actual and Plan) Store Locations (Million Yen) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Est. Est. Sales 36 59 90 118 30 52 103 132 1 Dragon Center Store (Closed Oct 2011) 2 Versus Plan(Million) ▲15 ▲4 ▲0 +2 ▲2 ▲10 - - Megabox Store YoY (Million) - - - - ▲6
Slide 36: Village Vanguard Webbed Limited
Village Vanguard Webbed Limited (Consolidated from FY05/11 Q4) © Village Vanguard corporation, All rights reserved. P.35
Slide 37: Results and Sales YoY
Results and Sales YoY (Thousand Yen) ■Sales YoY (*Based on value of customers’ orders) FY05/12（Result and Plan 160.0% PL Q1 Q2 Q3 Q4 （Result） （Result） （Plan） （Plan） Market on new 140.0% website Sales 20,720 43,125 141,050 195,165 136.5% Vs. Plan (%) 75.9 62.6 - - 119.0% （Changes） （▲6,578） （▲25,721)
Slide 38: Concept and future strategy for the new site
Concept and future strategy for the new site To stimulate activities within the website, enhance product variety by creating a website where customers can freely participate. Selling VV goods + goods offered by users Selling VV goods User A User B VV VV User C Customer Customer Users able to sell Fi
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Slide 41: ED VCE VaNGUARD
ED VCE VaNGUARD