Create Sd Holdings Co., Ltd. · TSE:3148
Create Sd — H1 FYE May 2020 Earnings Presentation
26 slides from Create Sd's earnings presentation, Jan 17, 2020
Slide 1: Financial Results for Q2 of FYE May 2020
Financial Results for Q2 of FYE May 2020 (June 1, 2019 to November 30, 2019) January 17, 2020 The earnings forecasts in this document are based on the business environment as of the time of writing. Actual results may differ from projections due to a variety of factors. Note also that inquiries shou
Slide 2: Agenda: SDGs Initiatives, H1 Results, H2 Initiatives
SDGｓ Initiatives 1. Environmentally Conscious Corporate Activities 2. Sustainable Management and Store Opening Strategy 3. Contribution to the Community Consolidated Results for H1 of FYE May 2020 1. Statement of Income 2. Balance Sheet 3. New Store Openings 4. Renovation of Existing Stores 5. Perfo
Slide 3: SDGs Initiatives
SDGｓ Initiatives 3
Slide 4: SDGs Initiatives: Environmentally Conscious Activities and Sustainable Management
SDGｓ Initiatives 1. Environmentally Conscious Corporate Activities ■Ongoing acquisition of ISO 14001 certification => Ongoing acquisition of ISO 14001 certification at all stores since 2001 ・Reduction of waste (Eco-cap Campaign, cardboard recycling) ・Efficient use of resources (reduction of plastic
Slide 5: SDGs Initiatives: Contribution to the Community
SDGｓ Initiatives 3. Contribution to the Community ■Signing of disaster agreements with municipalities => Provision of supplies (products) during times of disaster As of January 2020 Signed with 17 cities, 8 towns, 1 village, and 2 neighborhood associations ■Promotion of healthy lifestyles and welfar
Slide 6: Consolidated Results for H1 of FYE May 2020
Consolidated Results for H1 of FYE May 2020 6
Slide 7: Consolidated Statement of Income for H1 of FYE May 2020
1. Consolidated Statement of Income for H1 of FYE May 2020 FYE May 2019 FYE May 2020 H1 Results H1 Results YoY Vs plan Share Share (Millions of yen) (%) (Millions of yen) (%) change (%) (%) Net sales 140,728 100.0 153,305 100.0 108.9 101.2 Gross profit 38,661 27.5 42,027 27.4 108.7 101.5 SG&A expens
Slide 8: Consolidated Balance Sheet for H1 of FYE May 2020
2. Consolidated Balance Sheet for H1 of FYE May 2020 (Millions of yen) May 31, 2019 Nov. 30, 2019 Change Total assets 133,315 138,322 +5,006 Current assets 75,763 78,502 +2,739 Non-current assets 57,551 59,819 +2,267 Total liabilities 56,426 57,620 +1,193 Current liabilities 50,718 51,656 +937 Non-c
Slide 9: New Store Openings
3. New Store Openings ■OTC: 15 stores / Prescription drug stores: 5 stores Kanagawa Tokyo Shizuoka Chiba Other Total FYE May 2020 OTC 9 1 1 3 1 15 No. of store In-store pharmacies 2 0 0 2 1 5 openings Store closures: 1 OTC store ・Continued to deepen dominant store openings (to improve management eff
Slide 10: New Store Openings: Cremo; Renovation of Existing Stores
3. New Store Openings ■Cremo openings: 2 stores Chiba: Across Plaza Ichihara Sarashina Store Shizuoka: Hamamatsu Plaza Frespo Store 4. Renovation of Existing Stores ■Renovations: 21 stores ・OTC: 17 stores ・Prescription drug stores: 4 stores => (1) Improvement of health & beauty product => Expansion
Slide 11: Performance Highlights: Net sales
5. Performance Highlights Net sales ■Up 8.9% YoY (up 2.4% at existing stores) ・ Sales of seasonal products slumped in June and July due to poor weather and low temperatures ・ Measures to address special demand ahead of tax hike were successful in significantly increasing sales in September, and the
Slide 12: Performance Highlights: Net sales by category
5. Performance Highlights Net sales ・Prescriptions up 20.8% compared to previous year and medical and health product share up 0.5 pts FYE May 2019 FYE May 2020 H1 Results H1 Results Net sales Net sales Share (%) Share (%) YoY change (%) (millions of yen) (millions of yen) Medical and health products
Slide 13: Performance Highlights: Gross profit margin and SG&A ratio
5. Performance Highlights Gross profit margin ■Gross profit margin: 27.6% Down 0.1 pts YoY ・Cost of food products such as milk products and ice cream went up in early spring ・Sales of seasonal products slumped SG&A ratio ■SG&A ratio: 23.29% Up 0.10 pts YoY ・Personnel expense ratio: 12.14% Up 0.12 pt
Slide 14: Performance Highlights: Dispensing department
5. Performance Highlights Dispensing department ・Number of prescriptions trending favorably, up 16.1% while net sales up 20.8% ・Some time has passed since NHI medical fee/drug price revisions in April 2018, and gross margin has recovered FYE May 2019 FYE May 2020 YoY H1 Results H1 Results Change Sal
Slide 15: Dispensing department: Premiums for Local Support and Generics
5. Performance Highlights Dispensing department ■Premiums for Local Support Nov. 30, 2018 Nov. 30, 2019 System ・No. of stores with premiums: 67 stores (up 10 from previous year) 35 pts 0 pts 35 pts 0 pts ■Premiums for Generics Dispensing System ・Premium III: 85% or more: 44 stores (up 23 from previo
Slide 16: Dispensing department: Human resources development and equipment
5. Performance Highlights Dispensing department ■Human resources development and improvement of environment (1) Expansion of dispensing (2) Construction of home training center service training center ・ Increase in number of trainees ・Utilize as base for on-the-job training ・ Address relaxation of r
Slide 17: Topics: New In-house Distribution Center in Chigasaki
6. Topics New construction of in-house distribution center (DC) in Chigasaki City, Kanagawa (operational since September 2019) ■ Land and building owned, operations outsourced to distribution company ・Serves approx. 130 stores in southwestern Kanagawa => Improved delivery efficiency ・Improve food pr
Slide 18: Statement of Income for H1 of FYE May 2020 (Create SD)
7. Statement of Income for H1 of FYE May 2020 (Create SD) FYE May 2019 FYE May 2020 H1 Results H1 Results Share Share YoY change Vs plan (Millions of yen) (Millions of yen) (%) (%) (%) (%) Net sales 139,725 100.0 152,227 100.0 108.9 101.2 Gross profit 38,658 27.7 41,968 27.6 108.6 101.4 SG&A expense
Slide 19: Initiatives in H2 of FYE May 2020
Initiatives in H2 of FYE May 2020 19
Slide 20: New Store Openings
1. New Store Openings ■OTC H2 forecast: 20 stores OTC 599 ・Continue pursuit of dominance in existing areas In-store pharmacies 173 without relaxing store opening criteria May 31, 2019 Rate of in-store pharmacies 28.9% No. of Stores ・Store openings in collaboration with other business Dedicated presc
Slide 21: Revitalization of Existing Stores
2. Revitalization of Existing Stores ■Renovation—H2 forecast: 20 stores (Full-year forecast: 41 stores, 6 more than plan) ・Improve lineups at old types of stores => Change retail space allocations and lineups to those for new stores Retail space allocations that are suitable for locations and in lin
Slide 22: Digital Sales Measures: Osaifu Hippo
3. Digital Sales Measures ■Promote use of Osaifu Hippo Nov. 30, 2019 Target for May 2020 ・Osaifu Hippo transaction ratio 13.3％ 20.0％ Nov. 30, 2019 Target for May 2020 ・Monthly users 380,000 460,000 (1) Acquisition of new users Breakdown of transactions (as of Nov. 30, 2019) => Provision of first tim
Slide 23: Digital Sales Measures: Official Smartphone App
3. Digital Sales Measures ■Utilization of official smartphone app ・ No. of downloads as of Nov. 30, 2019: 620,000 (achieved initial target of 460,000 downloads) ・ Released linking function with Osaifu Hippo at end of H1 =>Charges and payment can be made via smartphone app (1) Implement promotional c
Slide 24: Productivity Improvement
4. Productivity Improvement ■Tool-based operational improvement ・Establishment of product expiration date management system operations => Introduced at all stores in July 2019, continuing to monitor operations at all stores ・Improvement of means of communication between stores => Introduce mobile de
Slide 25: Prescription Drug Store Initiatives
5. Prescription Drug Store Initiatives ■Human resources development ・Utilization of new training center, change of home service training curriculum => Carry out model-based vital sign training and sterilization-related home service training ・Review of medical assistant training => Carry out picking
Slide 26: Targets for Consolidated Performance for FYE May 2020
6. Targets for Consolidated Performance for FYE May 2020 Full-year plan has not been revised FYE May 2019 FYE May 2020 (Results) (Targets) Share Share YoY change (Millions of yen) (Millions of yen) (%) (%) (%) Net sales 286,299 100.0 307,600 100.0 107.4 Gross profit 78,953 27.6 85,050 27.6 107.7 SG&
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