H2O Retailing Corporation · TSE:8242
H2O Retailing — Q2 FY2021 Earnings Presentation
18 slides from H2O Retailing's earnings presentation, November 2020
Slide 1: 2Q of FY2021 Presentation Materials
2Q of FY2021 Presentation Materials H2O RETAILING CORPORATION
Slide 2: Topics
Topics Ⅰ. Consolidated Financial Results Ⅱ. New business structure targeting post-Covid-19 era ~The revision of Business Plan GP10 Stage Ⅱ Phase 2~ Copyright © H2O Retailing Corp. All Rights Reserved. 2
Slide 3: I. Consolidated Financial Results
Ⅰ. Consolidated Financial Results １．Consolidated Financial Results ２．Results by segment ３．Department store business ４．Supermarket business ５．Extraordinary income/losses ６．Forecast of FY2021 Copyright © H2O Retailing Corp. All Rights Reserved. 3
Slide 4: Consolidated Financial Results
Ⅰ – 1. Consolidated Financial Results ▶ profit decrease rate slowed in 2Q due to sales recovery of department store which reopened at the end of May ▶ recorded loss related to COVID-19 of ¥5.0 billion, Impairment losses of ¥5.8 billion, etc. as extraordinary losses Amount Inc./Dec. YOY （billions of
Slide 5: Consolidated Financial Results - Factors affecting OP
Ⅰ – 1. Consolidated Financial ResultsーFactors affecting OP ▶ Mitigating the impact of a decrease in gross profit of department store by sales increase in supermarkets and reducing SG&A billions of yen 2Q/FY2020 2Q/FY2021 (10.7) 6.3 (4.4) +5.0 +2.8 +14.0 Transferred to extraordinary losses SM regardi
Slide 6: Results by segment
Ⅰ – 2. Results by segment ▶ YOY of sales started to recover due to the reopening of department stores ▶ strong sales in SM business led by heightened eating-at-home demand ▶ Amount affected by Izumiya restructuring in SM and SC business segment Sales ¥39.0 billion, OP ¥(2.4) billion Sales OP （billio
Slide 7: Department store business
Ⅰ – 3. Department store business ▶ reopened all stores at the end of May, made stores' opening hours back to normal in July, and started to hold events at two main stores at the end of Sept. ▶ reduced costs due to less promotion and the revision of each spending （cost transferred to loss related to
Slide 8: Department store business
Ⅰ – 3. Department store business ▶ After re-opening stores, the level of domestic sales has been about 20% lower than for the previous year. Inbound sales have fallen by about 90%. ▶ Sales in Sep. declined 16% for domestic customers and 86% for inbound customers from the same month of FY2019. ▶ Anti
Slide 9: Supermarket business
Ⅰ – 4. Supermarket business ▶ OP in supermarket companies significantly rose by the high demand for eating at home, and the effect of IZ restructuring. ・Izumiya：Actual OP growth excluding the effect of restructuring ¥1.2 billion OP increase led by sales increase ¥0.4 billion decrease in personnel ex
Slide 10: Extraordinary income/losses
Ⅰ – 5. Extraordinary income/losses ▶ recorded most of employment adjustment subsidies in 2Q ▶ impairment losses regarding Kobe Hankyu and Takatsuki Hankyu ・lower profitability of non-food section, tenant closings triggered by COVID-19 Amount Contents (billions of yen) (billions of yen) Extraordinary
Slide 11: Forecast of FY2021
Ⅰ – 6. Forecast of FY2021 ▶ Assumption：seesawing sales situation like July- September will continue after October affected by COVID-19（anticipating no more temporary store closures) → Dept: domestic sales will be 20% lower than those of FY2019 no expectation for inbound sales → SM: existing store sa
Slide 12: Forecast of FY2021 by segment
Ⅰ – 6. Forecast of FY2021 by segment ▶ Amount affected by Izumiya restructuring in Supermarket and Shopping Center segment Sales ¥74.4billion, OP ¥(5.2)billion ▶ Other segment：Oi development Co., Ltd expects its hotel’s occupancy rate of 20~40% Sales Operating Profit Amount YOY Amount YOY （billions
Slide 13: New business structure targeting post-COVID-19 era
Ⅱ．New business structure targeting post-COVID-19 era ~The revision of Business Plan GP10 Stage Ⅱ Phase 2~ ● composing new business structure reflecting present and future social/consumption environment which drastically changed by COVID-19 ● withdrawn Business Plan GP10 Stage Ⅱ Phase 2(FY2020-FY2022
Slide 14: Review of past results
～review of past results～ Nov. 2012 Jun. 2014 Jul. 2015 Oct. 2017 Jun. 2018 Mar. 2020～ Hankyu Umeda main store Izumiya Hanshin Umeda Kobe/Takatsuki Hanshin Umeda COVID-19 Renewal opening integration main store Acquired business Main store outbreak Reconstruction begins WingⅠopening （billions of yen）
Slide 15: Current situation and prospects
Ⅱ－１． Current situation and prospects 〈 Current challenges of H2O group 〉 ● Department store business ・the earning structure relies on the struggling apparel industry ・delays in DX ● Supermarket Business ・spending more time and cost of liquidation of asset and stores of Izumiya than initially anticip
Slide 16: Future direction and structure image of H2O group
Ⅱ－２． Future direction and structure image of H2O group Copyright © H2O Retailing Corp. All Rights Reserved. 16
Slide 17: Key points of new business plan
Ⅱ－３． Key points of new business plan (1) continuous revision of unprofitable business ① business restructuring (2) improving productivity and streamlining HR structure through BPR and Financial position (utilizing digital) improvement (3) revision of investment plans (off-line and on-line) and proce
Slide 18: The information contained in this material reflects judgments made by H2O Retailing at the
The information contained in this material reflects judgments made by H2O Retailing 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. H2O and the information providers ass