Yamada Holding Co., Ltd. · TSE:9831
Yamada — H1 FY2022 Earnings Presentation
37 slides from Yamada's earnings presentation, Nov 4, 2021
Slide 1: Information for Investors April 2021-September 2021 & YAMADA HLDGS 2025 Mid-term business plan
【1】Information for investors April 2021- September 2021 ＆ 【2】YAMADA HLDGS 2025 Mid-term business plan Nov. 4, 2021 Information for Investors April 2021- September 2021 & YAMADA HLDGS 2025 Mid-term business plan 1
Slide 2: Information for Investors April 2021-September 2021
【1】Information for Investors April 2021- September 2021 2 Information for Investors April 2021- September 2021
Slide 3: Major topics in FY2022
Major topics in FY2022 ■First Quarter（April 2021-Jun 2021） March 31, 2021 ︓ Endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) March 31, 2021 ︓ In line with the growth of the housing business, acquired shares of SANKYU Corporation for the purpose of
Slide 4: 2022 Interim Result [Consolidated accounting]
2022 Interim Result [Consolidated accounting] First-half 2022 Interim 2022 Interim results forecasts 2021 Interim %sales %sales Plan ratio %sales Y/Y Revenue recognition Revenue recognition results ( million yen / %) criteria impact criteria impact Net sales 800,399 100.0 830,000 100.0 96.4 860,296
Slide 5: 2022 First Quarter & Second Quarter [Consolidated accounting]
2022 First Quarter ＆ Second Quarter [Consolidated accounting] First Quarter[April-June] Second Quarter[July-September] 2022 Results 2022 Results %sales 2021 Results %sales Y/Y %sales 2021 Results %sales Y/Y Revenue recognition Revenue recognition ( million yen / %) criteria impact criteria impact Ne
Slide 6: 2022 First-half net sales by segment
2022 First-half net sales by segment [Consolidated accounting] (million yen / %) About Aggregation Segment 2022 Interim result % sales Y/Y 2021 Interim result % sales % Sales /Rate of change classification Television 61,210 7.2 87.3 70,081 8.1 ▲ 0.9 *1 Video,DVD 14,523 1.7 83.3 17,445 2.0 ▲ 0.3 Heal
Slide 7: YAMADA HLDGS 2025 Mid-term business plan
【2】YAMADA HLDGS 2025 Mid-term business plan YAMADA HLDGS 2025 Mid-term business plan 7
Slide 8: Consumer Electronics market in Japan and USA
Consumer Electronics market in Japan and USA Japan USA ・Buy only Electronics, ・Washing machines, air conditioners, and furniture not the set with something else are mainly sold in combination with housing Sales ・Selling consumer electronics as audio devices and TV, ・Selling consumer electronics is m
Slide 9: Review of Previous 3 Years
Review of Previous 3 Years 1,752.5 Net sales Ordinary profit ROA/ROE ROE 8.1% (billion yen) (billion yen) 98.8 4.0％ 1,611.5 1,600.5 46.0 36.8 2.5％ ROA 4.3％ 2.1％ 1.2％ YAMADA HLDGS 2025 Mid-term business plan 9
Slide 10: Review of Previous 3 Years
Review of Previous 3 Years Sales Strategy ●Complete the business foundation by ●DX strategy, including introduction of electronic price tag structural changes for The “Total-Living” shop to all stores Governance ●Expansion of stores & E-commerce ●Transition to a holding company, ●Expand sales of SPA
Slide 11: Changes in the market environment
Changes in the market environment Global environmental • Worsening environmental problems • Increased awareness of sustainability changes • Advancement of information society • Change in demand caused by declining birthrate and aging population Current situation of • Transformation of social structu
Slide 12: Aim to expansion of home appliances by "Total-Living"
“Total-Living”-Expand home appliance through a links each segment Aim to expansion of home appliances by “Total-Living” Environment Home Furniture ・ Household Finance goods Housing appliance Renovations Home Interior Digital Apps Create new customer experiences TV Flyer Stores WEB advertising throug
Slide 13: About mid-long term business plan: net sales 2 trillion yen
About mid-long term business plan We will aim for growth without changing our management focus on profit as we build our base through the results of our measures. March 2030 ①Expansion of sales floor Promote store strategy by area Net sales 2.5 ②Expansion of store network and E-commerce ③Maximize
Slide 14: Mid-term business plan - Profit & Loss plan
Mid-term business plan - Profit & Loss plan - (million yen / ％) FY2019 2020 2021 2022 2023 2024 2025 Net sales 1,600,583 1,611,538 1,752,506 1,686,000 1,760,000 1,870,000 2,000,000 Y/Y 1.7 0.7 8.7 ▲ 3.8 4.4 6.3 7.0 Operating profit 27,864 38,326 92,078 90,000 95,000 107,000 123,000 Y/Y ▲ 28.1 37.5 1
Slide 15: ROA ROE goal index
Goal index (％) FY2021 FY2025 ROA 4.3 5.0 ROE 8.1 10.5 Ordinary rate of return 5.6 6.5 Net sales Y/Y 8.7 Every term +5%〜7% ROA ＝ Return on asset ROE ＝ Return on equity YAMADA HLDGS 2025 Mid-term business plan 15
Slide 16: Transition of target index
Transition of target index 12.0 ROA ROE Ordinary rate of return Net sales Y/Y 10.5 10.0 10.1 10.2 10.0 8.1 8.7 8.0 7.0 6.3 5.6 5.8 5.8 6.0 5.2 6.5 6.1 4.7 4.0 5.0 4.0 4.4 4.8 3.0 4.7 2.5 2.9 4.3 2.0 2.6 1.7 2.3 2.1 0.7 0.7 1.2 0.0 FY2018 FY2019 FY2020 FY2021 FY2022(E) FY2023(E) FY2024(E) FY2025(E) ▲
Slide 17: Net sales growth
Net sales growth (trillion yen) ①Expansion of sales floor ＋145 billion yen Growth after 3 years ②Expansion of store network and E-commerce ＋ 50 billion yen 2.0 ③Growth of each segment and subsidiaries ＋314 billion yen ＋119 billion yen 1.87 ① ＋18.6p 1.76 March 2025 ② 1.75 50 years since 1.68 establis
Slide 18: Growth of profit
Growth profit (million yen / %) Growth after 3 years 6.5 ＋ 33 billion yen 1,400 6.1 1,300 6.5 +0.7% Sales growth 1,200 ＋20 billion yen 5.8 5.8 1,140 5.9 Profit ratio improvement ＋13 billion yen 989 1,020 1,000 970 5.3 5.6 800 4.7 600 4.1 461 369 400 3.5 2.9 2.3 200 2.9 0 2.3 FY2019 2020 2021 2022 20
Slide 19: Profit ratio improvement
Growth of profit Profit ratio ＝ + 0.7P improvement FY2022 2023 2024 2025 ・Optimize prices by discounts and points＝Manage net gross profit ・Expand SPA line【Net sales 12.6%→20%, Profit 20%→40%】* ・Increase Reuse product 【Improve capacity 70 thou→300 thou】 ・New products, increasing unit price, value add
Slide 20: Expansion of sales floor
① Expansion of sales floor YAMADA HLDGS 2025 Mid-term business plan 20
Slide 21: Expansion of sales floor = Growth of consumer electronics
Expansion of sales floor = Growth of consumer electronics ■New stores＋New concepts＋Restructuring of store network → Growing strategy through expansion of sales floor ・Under the “Total-Living” concept strategy, we have been developing store that meet the needs of various customers by integrating our
Slide 22: Promote development of stores by area & Our store network
Promote development of stores by area & Our store network LABI 1 LIFE SELECT TeccLand Urban, total living products and M Suburban home appliance L services with a focus on home specialty store. appliance. The largest selection of products in the region Trade Urban Type LABI area Kaden Sumairu Kan Su
Slide 23: New concept store LIFE SELECT
New concept store 「LIFE SELECT」 ・Largest product lineups in the region. ■New concept store ”LIFE SELECT” Happiness in Total-Living! ・Floor space︓10,000㎡〜13,000㎡ Home appliance ・Annual sales︓3〜5 billion yen, Operating profit margin10％ or higher Furniture, Home interiors to at least 10% of sales. ・Sto
Slide 24: FY2025 sales floor 1.16 times bigger
Expansion of sales floor = Growth of consumer electronics FY2025 Effect of growing strategy Net sales ＋145 billion yen (80 billion yen) (㎡) sales floor 3,185,000 Gross profit ＋ 15.7 billion yen 1.16 times bigger 3,033,000 2,889,000 （comparison with FY2022） 2,745,000 2,613,000 2,602,000 2,630,000 2,6
Slide 25: Expansion of store network and E-commerce; Maximize scale of each segment
②Expansion of store network and E-commerce ③Maximize scale, sales, and profits of each segment and subsidiaries YAMADA HLDGS 2025 Mid-term business plan 25
Slide 26: The concept of growth investment based on resources
The concept of growth investment based on resources Maximize scale, sales, and profits of each segment and subsidiaries Resources and Infrastructure Effect of growth investment Net sales ＝＋169 billion yen Network of YAMADA DENKI stores Environment LABI:Urban large scale store・LIFE SELECT Kaden Sum
Slide 27: Expansion of store network and E-commerce
② Expansion of store network and E-commerce YAMADA HLDGS 2025 Mid-term business plan 27
Slide 28: Expansion of store network & E-commerce
Expansion of store network & E-commerce ⇒Growth of consumer electronics Speciality of our stores & E-commerce Goals for FY2025 ●Have a variety of information media ・Store ・Online store ・TV & Radio shopping ・Apps ・Digital advertisement（SNS/Email/Push notification） FY2022 ・Paper advertisement(Newspape
Slide 29: Maximize scale, sales, and profits of each segment and subsidiaries
③Maximize scale, sales, and profits of each segment and subsidiaries YAMADA HLDGS 2025 Mid-term business plan 29
Slide 30: Renovation business growth
Renovation business ⇒ Growth of consumer electronics Basic policy and speciality of our renovation Goals for FY2025 ●Not an home appliance retailer that also does renovation, but a specialty business FY2022 ●Proposing mainly water-related products in combination with home appliances Net sales 60 bil
Slide 31: Growth strategy for Housing segment
Growth strategy for Housing segment Speciality of our Housing business Goals for FY2025 ●A variety of brand homes to meet wide range of needs FY2022 Offers 8,000 (No. of new custom-built houses) ●”Housetec“ original housing products with history and technology Net sales 280 billion yen Operating pro
Slide 32: Maximize the scale, sales, and profits of the environment segment
Maximize the scale, sales, and profits of the environment segment Number of reused products produced 350,000 300,000 250,000 Operation is scheduled to start in 2022 200,000 150,000 100,000 50,000 0 Expansion of reuse factory 2020年 2023年 Goals for FY2025 Operation is scheduled to start in 2022 FY2022
Slide 33: Maximize scale, sales, and profits of the financial segment
Maximize scale, sales, and profits of the financial segment ・The six financial companies in the group were integrated and qualified Housing Renovations Goals for FY2025 as agents of “Yamada NEOBANK” to establish a comprehensive financial business structure. Total coordinationInsurance Guarantees of
Slide 34: Three-year cash flow plan
Three-year cash flow plan To Invest free cash generated by growth in each segment ・Opening new stores, expansion and renovation of existing stores ・An aggressive investment in M&A getting immediate profits and DX strategy → Flexible allocation to additional shareholder returns Investment in ・Expansi
Slide 35: Transition and forecast of ROIC & WACC
Transition and forecast of ROIC&WACC ROIC ＝ Return on invested capital (million yen / %) 1,400 WACC = Weight average cost of investment 10.50% 10.00% Operating profit(Before tax) ＲＯＩＣ ＷＡＣＣ 9.30% 1,230 1,200 7.90% 8.40% 8.50% ・Profit-focused management 1,070 7.36% 7.00% ・Shift to business growth 1,00
Slide 36: Shareholder returns
Shareholder returns Basic policy ■ Provide continuous and stable dividends ■ We will make a comprehensive judgment on investment for growth and financial conditions, and returning profits at an appropriate level according to the situation 30.00 90.00 Dividends per share Basic earnings per share 80.0
Slide 37: Attention
【Attention】 The outlooks and business plans contained in this document are based on assumptions and judgments made by ourself based on information available at the time this document was prepared. The accuracy and security of the information is not totally guaranteed or promised. These are subject t