Create Sd Holdings Co., Ltd. · TSE:3148
Create Sd — 1H FY2018 Earnings Presentation
18 slides from Create Sd's earnings presentation, Jan 12, 2018
Slide 1: FY2018 (6/17-5/18) Interim Results Explanatory Meeting
FY2018 (6/17-5/18) Interim Results Explanatory Meeting January 12, 2018 The earnings forecasts appearing in this material are based on the business environment at the present time, and there is the possibility that actual earnings may differ from forecasts for various reasons. Furthermore, only inqu
Slide 2: 1H FY2018 Consolidated Results and Second Half Efforts
1H FY 2018 Consolidated Results 1. Profit and Loss Statement (Consolidated) 2. Balance Sheet (Consolidated) 3. Statement of Cash Flows (Consolidated) 4. New Store Openings 5. Renovation of Existing Stores 6. Performance Highlights 7. Profit and Loss Statement (Create SD) FY 2018 Efforts in the secon
Slide 3: 1H FY 2018 Consolidated Results
1H FY 2018 Consolidated Results 3
Slide 4: 1. Profit and Loss Statement (Consolidated)
1. Profit and Loss Statement (Consolidated) 1H FY2017 1H FY2018 (consolidated) (consolidated) YoY % of Share Share (million yen) (million yen) change projection (%) (%) (%) (%) Net sales 121,549 100.0 130,967 100.0 107.7 98.4 Gross profit 33,421 27.5 35,384 27.0 105.9 97.3 SG&A expenses 26,327 21.7
Slide 5: 2. Balance Sheet (Consolidated)
2. Balance Sheet (Consolidated) May 31, 2017 November 30, 2017 Main causes Change of changes (consolidated) (consolidated) ■Total assets Total assets 110,480 113,427 +2,946 ・ Increase of 1,549 million yen in merchandise ・ Increase of 1,644 million yen in Current assets 67,798 68,346 +548 fixed asset
Slide 6: 3. Statement of Cash Flows (Consolidated)
3. Statement of Cash Flows (Consolidated) November November 30, 2016 30, 2017 Change Main factors in change (consolidated) (consolidated) ■Cash flow from operating activities 5,216 3,739 -1,476 Cash flow from ・Net income before tax: 6,280 million yen operating activities ・Depreciation expenses: 1,51
Slide 7: 4. New Store Openings / 5. Renovation of Existing Stores
4. New Store Openings ■OTC: 19 store openings , Prescription drug stores: 16 store openings (In-store pharmacies: 11 store openings; dedicated prescription drug stores: 5 store openings) Store closure - OTC: Contract expiration 1 store Dedicated prescription drug stores:Improve management efficiency
Slide 8: 6. Performance Highlights
6. Performance Highlights Net Sales ■ 107.8% vs. previous year, 98.4% vs. plan Implemented measures to increase customers in light of the future competitive environment ･Launched new coupon-based sales promotion ･Implemented EDLP for additional frequently purchased food and everyday household items
Slide 9: 6. Performance Highlights
6. Performance Highlights Gross Profit Ratio ■ Gross profit ratio 27.2%, -0.5% vs. previous year, -0.3% vs. plan Factors behind the decline ･Lower gross margin ratio due to the increase in new stores ･Impact of lower gross margin ratio for new stores as a result of enhanced pricing strategies ･Slugg
Slide 10: 6. Performance Highlights (Prescription Department)
6. Performance Highlights(Prescription Department) New Store Openings ■ Opened 16 stores ･Opened new stores to build a coordinated local health care system, such as pharmacies that are in line with the government policy separating dispensing and prescribing functions, pharmacies designed to attract
Slide 11: 7. Profit and Loss Statement (Create SD)
7. Profit and Loss Statement (Create SD) 1H FY2017 1H FY2018 YoY % of Share Share (million yen) (million yen) change projection (%) (%) (%) (%) Net sales 120,616 100.0 129,988 100.0 107.8 98.4 Gross profit 33,399 27.7 35,340 27.2 105.8 97.3 SG&A expenses 26,662 22.1 29,658 22.8 111.2 100.9 Operating
Slide 12: FY 2018 Efforts in the second half
FY 2018 Efforts in the second half 12
Slide 13: 1. New Store Openings
1. New Store Openings Store Opening Plan ■ OTC stores: To be opened at 31 locations in H2, 50 for the year, reaching the target ■ Pharmacies: To be opened at 14 locations in H2, 30 for the year, 5 more than the target Opening various types of stores at various locations ■ Suburban Launch stores join
Slide 14: 2. Renovation of Existing Stores
2. Renovation of Existing Stores H2 Renovation Plan ■ Focus on renovations aimed at enhancing food products as well as those aimed at enhancing health & beauty (non-food) products 17 stores in H1 11 stores in H2 ･Focus on food: 12 stores ･Focus on food: 2 stores ･Focus on non-food: 2 stores ･Focus o
Slide 15: 4. Net Sales/Gross Profit
4. Net Sales/Gross Profit Net Sales Continue to implement measures to increase customers with an eye to enhancing the top line ■ Continue EDLP and review product lines ■ Conduct new sales promotion and review tools (coupons, online flyers) ■ Boost top-line growth by opening more stores (31 locations
Slide 16: 5. Improving Productivity
5. Improving Productivity Enhancing Logistics ■ Enhance distribution network in our areas of dominance with an eye to opening more locations Open a new dry center ⇒ Investing over 5 billion yen Improving Store Operation ■ Refine classification of delivered goods to enhance shelf stocking efficiency
Slide 17: 6. Building Local Health Care System and Health Support Function
6. Building Local Health Care System and Health Support Function Creating a Coordinated Local Health Care System ■ Open new stores to attract the kind of medical institutions local residents need ■ Open new drugstores with a function to provide health support services Addition of Health Support Func
Slide 18: 7. FYE 5/2018 Forecasts (Consolidated)
7. FYE 5/2018 Forecasts (Consolidated) FYE 5/2017 FYE 5/2018 (consolidated (consolidated projection) results) Share Share (million yen) (million yen) YoY Change (%) (%) (%) Net sales 247,341 100.0 271,200 100.0 109.6 Gross profit 68,149 27.6 74,700 27.5 109.6 SG&A expenses 53,707 21.7 59,300 21.9 11