H2O Retailing Corporation · TSE:8242

H2O Retailing — Q3 FY2025 Earnings Presentation

23 slides from H2O Retailing's earnings presentation, Feb 5, 2025

  1. Slide 1: Financial Results for the 3Q of the Fiscal Year Ending Mar. 2025

    Financial Results for the 3Q of the Fiscal Year Ending Mar. 2025 H2O RETAILING CORPORATION Feb. 5, 2025

  2. Slide 2: Digest

    Digest Point ◼ Consolidated results achieved record highs for gross sales, operating profit, ordinary profit, and profit, driven by the strong performance in Department Store Business. ◼ In Department Store Business, gross sales and operating profit continued to increase due to steady domestic sales

  3. Slide 3: Topics

    Topics Note • Figures in 100 million JPY in this documents are rounded to the nearest 100 million JPY. 1 Results for 1-3Q of FY2025 P. 5 • Gross Sales in this document are reclassified on the standard before the application of "Accounting Standard for Revenue Recognition". • Due to the review of hea

  4. Slide 4: Results for 1-3Q of FY2025

    Topics 1 Results for 1-3Q of FY2025 P. 5 2 Forecast for FY2025 P. 14 3 Appendix P. 17 Copyright © H2O Retailing Corp. All Rights Reserved. 4

  5. Slide 5: Consolidated Results

    Consolidated Results ◼ Gross sales, operating profit, ordinary profit, and profit all reached record highs, driven by Department Store Business. ◼ Operating profit increased in all segments, making steady progress toward achieving full-year forecast. (100 million JPY) 1-3Q (Apr. – Dec.) 3Q (Oct. – D

  6. Slide 6: Results by Segment - Gross Sales and Operating Profit

    Results by Segment - Gross Sales and Operating Profit (100 million JPY) (100 million JPY) 1-3Q 3Q Consolidated FY2024 FY2025 YoY change FY2024 FY2025 YoY change Gross sales Department Stores 4,247 4,816 +13.4% 1,655 1,766 +6.7% FY2025 1-3Q 8,740 Supermarket 3,236 3,242 +0.2% 1,127 1,130 +0.3% Shoppi

  7. Slide 7: Results by Segment - Factors of Increase / Decrease in operating profit (YoY)

    Results by Segment - Factors of Increase / Decrease in operating profit (YoY) (100 million JPY) FY2024 FY2025 1-3Q +67 1-3Q 222 289 Other +22 Consolidation adjustment ▲45 Supermarket Shopping Center Department Stores +3 +8 • H2O+29 +80 (Dividends from subsidiaries +51) • Ningbo +2 • Sales increase +

  8. Slide 8: Results by Segment - Department Store Business (1/3)

    Results by Segment - Department Store Business (1/3) ◼ Domestic sales remained steady (+3% YoY) and inbound sales grew strong (+90% YoY) continuously. Significant increases in gross sales and operating profit. ◼ Despite an increase in sales-related expenses, SG&A were within forecast. (100 million J

  9. Slide 9: Results by Segment - Department Store Business (2/3)

    Results by Segment - Department Store Business (2/3) ◼ Domestic sales remained steady (*3Q real basis +3.4% YoY), despite the impact of temperature*1 and the impact of the Hanshin Tigers sale*2 in the previous year. ◼ Domestic sales growth is expected to slow in 4Q due to the impact of remodeling an

  10. Slide 10: Results by Segment - Department Store Business (3/3)

    Results by Segment - Department Store Business (3/3) ◼ Inbound sales recovered month by month toward the end of the year after the strong yen impact in 2Q, and exceeded the full-year results of the previous year in the cumulative 3Q. ◼ Despite an increase in store closed days in Jan., sales per day

  11. Slide 11: Results by Segment - Supermarket Business

    Results by Segment - Supermarket Business ◼ In supermarket, the unit price per item increased moderately, while the number of items purchased stabilized. The number of customers remained steady, and existing store sales exceeded the previous year. By location, suburban stores with intense price comp

  12. Slide 12: Results by Segment - Shopping Center Business

    Results by Segment - Shopping Center Business ◼ Oi Development, which operates a business hotel (Ours Inn Hankyu), led the segment with an increase in sales and operating profit. Ours Inn Hankyu has maintained an occupancy rate of over 95% since the 3Q of the previous year, and the unit price per ro

  13. Slide 13: Forecast for FY2025

    Topics 1 Results for 1-3Q of FY2025 P. 5 2 Forecast for FY2025 P. 14 3 Appendix P. 17 Copyright © H2O Retailing Corp. All Rights Reserved. 13

  14. Slide 14: Consolidated Forecast for FY2025

    Consolidated Forecast for FY2025 ◼ Consolidated gross sales and segments forecast are slightly revised Operating profit in Department Store is expected to decrease in 4Q period due to the impact of remodeling. ・ Impact of Hanshin Umeda Main Store and Kawanishi Hankyu remodeling ◼ Operating profit, o

  15. Slide 15: Forecast for FY2025 - by Segment

    Forecast for FY2025 - by Segment (100 million JPY) (100 million JPY) FY2024 FY2025 FY2025 1-4Q 1-4Q forecast 1-4Q forecast FY2024 FY2025 Consolidated Actual Announced on Announced on 4Q 4Q Gross sales Nov. 6 Feb. 5 Actual forecast (a) (b) (c) (c/a) (c-b) (d) (e) (e/d) Department Stores 5,771 6,285 6

  16. Slide 16: Appendix

    Topics 1 Results for 1-3Q of FY2025 P. 5 2 Forecast for FY2025 P. 14 3 Appendix P. 17 Copyright © H2O Retailing Corp. All Rights Reserved. 16

  17. Slide 17: Consolidated Results trends

    Consolidated Results trends (100 million JPY) FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY YoY YoY Gross sales 2,447 2,605 2,965 2,722 2,764 +13.0% 2,821 +8.3% 3,155 +6.4% Net sales 1,548 1,637 1,769 1,619 1,619 +4.6% 1,694 +3.4% 1,836 +3.8% Operating profit 48 51 123 40 93 +45 57 +6 139 +16 Ordinary prof

  18. Slide 18: Results by Segment trends

    Results by Segment trends (100 million JPY) FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY YoY YoY Department Stores 1,235 1,356 1,655 1,525 1,554 +25.8% 1,496 +10.3% 1,766 +6.7% Supermarket 1,031 1,078 1,127 1,020 1,034 +0.3% 1,078 ▲0.0% 1,130 +0.3% Shopping Center 81 77 86 77 82 +1.8% 78 +0.5% 87 +1.2% Ot

  19. Slide 19: Department Store - Results for 1-3Q of FY2025

    Department Store - Results for 1-3Q of FY2025 (100 million JPY) FY2024 FY2025 FY2024 FY2025 FY2024 FY2025 1Q 1Q 2Q 2Q 3Q 3Q YoY YoY YoY Gross sales 1,235 1,554 +25.8% 1,356 1,496 +10.3% 1,655 1,766 +6.7% Net sales 383 457 +19.6% 431 463 +7.4% 514 542 +5.4% Gross profit 274 338 +64 297 327 +30 365 39

  20. Slide 20: Non-consolidated Results - Hankyu Hanshin Department Store Inc.

    Non-consolidated Results - Hankyu Hanshin Department Store Inc. (before the application of “Accounting Standard for Revenue Recognition”) (million JPY) FY2024 FY2025 FY 2024 FY2025 FY 2024 FY2025 FY 2024 FY2025 1Q 1Q 2Q 2Q 3Q 3Q 1-3Q 1-3Q YoY YoY YoY YoY Gross sales 122,734 154,535 +25.9% 134,745 14

  21. Slide 21: Non-operating income / expenses and Extraordinary income / losses

    Non-operating income / expenses and Extraordinary income / losses (100 million JPY) FY2024 FY2025 YoY Major items 1-3Q 1-3Q amount Operating profit 222 289 +67 • Increase in dividends received +5 • Increase in share of profit of entities accounted for using equity method +1 Non-operating 17 11 ▲7 •

  22. Slide 22: Capital Investment and Depreciation

    Capital Investment and Depreciation Capital Investment (100 million JPY) FY2024 FY2025 FY2025 1-3Q 1-3Q Major items 1-4Q Actual Actual Forecast Department Stores 65 31 Hankyu Main Store renovation 53 Supermarket 49 47 Store investment of supermarkets 85 Shopping Center 15 13 Renovation of SC stores

  23. Slide 23: Cautionary Statement

    Cautionary Statement The information contained in this material reflects judgments made by H2O RETAILING CORPORATION at the time of preparing this material, and no guarantees are provided concerning the accuracy of the information. The information is also subject to change without prior notice. The

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