Kusuri No Aoki Holdings Co.,ltd. · TSE:3549
Kusuri No Aoki Holdings Co.,ltd — FY2024 Earnings Presentation
46 slides from Kusuri No Aoki Holdings Co.,ltd's earnings presentation, Jul 10, 2024
Slide 1: Financial Results Briefing for the Fiscal Year Ended May 2024
Financial Results Briefing for the Fiscal Year Ended May 2024 KUSURI NO AOKI HOLDINGS CO., LTD. (TSE Prime Section Code 3549) July 10, 2024 Hironori Aoki
Slide 2: Summary of Financial Results and Earnings Forecast; Medium-term Plan Progress
Summary of Financial Results for 1 the Fiscal Year Ended May 2024 and Earnings Forecast for the Fiscal Year Ending May 2025 2 Progress Status of the Third Medium-term Management Plan (for five years) Copyright2024 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 2
Slide 3: Summary of Financial Results and Earnings Forecast
Summary of Financial Results for 1 the Fiscal Year Ended May 2024 and Earnings Forecast for the Fiscal Year Ending May 2025 Summary of Financial Results for the 1 Fiscal Year Ended May 2024 Earnings Forecast for the Fiscal Year 2 Ending May 2025 Copyright2024 KUSURI NO AOKI HOLDINGS CO.LTD. All Righ
Slide 4: Store Opening/Closing Results
Store Opening/Closing Results No. of Full-year store opening and closing results No. of stores as FY May 2024 stores as at end of at end of FY May Hoku- Opening making FY May shinetsu Tohoku Kanto Tokai Kansai shikoku subsidiaries Closing 2023 Total 2024 [1] Drugstores 896 18 3 10 4 10 - 45 - 5 936
Slide 5: Year-on-Year Change in Sales by the Month
Year-on-Year Change in Sales by the Month All stores for current year Existing stores for current year Year-on-year change in existing stores (full-term) All stores for previous year Existing stores for previous year All stores: 115.5% 125.0% Existing stores: 109.8% 120.6% 120.0% 117.9% 117.8% 116.9
Slide 6: Year-on-Year Change in Number of Customers and Unit Price per Customer
Year-on-Year Change in the Number of Customers and Unit Price per Customer by the Month The number of customers for current year Average spending per customer for current year Year-on-year change in existing stores The number of customers for previous year Average spending per customer for previous
Slide 7: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement FY May 2023 FY May 2024 Full-year results Revised full-year plan Full-year results Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio YoY change vs. Plan Sales 378,874 100.0% 435,000 100.0% 436,875 100.0% 115.3% 100.4% Gross profit 106,107
Slide 8: Reference: Consolidated P&L (Excluding Stock-based Compensation Expense)
Reference: Consolidated Profit and Loss Statement (Excluding Stock-based Compensation Expense) FY May 2023 FY May 2024 Revised full-year plan Full-year results (excluding stock-based Full-year results (excluding stock-based compensation expense) compensation expense) vs. Revised Million yen Sales ra
Slide 9: Results by Area
Results by Area FY May 2023 FY May 2024 Full-year results Full-year results Ratio of Ratio of Composition Number Composition YoY Number Million yen ratio stores with Million yen ratio stores with of stores dispensaries change of stores dispensaries Hokushinetsu 178,733 47.2% 356 67.9% 199,343 45.6%
Slide 10: Results by Product Division
Results by Product Division FY May 2023 FY May 2024 Full-year results Full-year results Composition Composition Composition Million yen Million yen YoY change ratio ratio difference Health 41,021 10.8% 42,140 9.6% -1.2% 102.7% Beauty 51,710 13.6% 56,187 12.9% -0.7% 108.7% Daily commodities 73,542 19
Slide 11: Results of SGA Expenses
Results of SGA Expenses FY May 2023 FY May 2024 Full-year plan Revised full-year plan Full-year plan vs. Revised Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio YoY change Plan Labor cost 37,263 9.8% 47,010 10.8% 46,328 10.6% 124.3% 98.5% Sales promotion 2,875 0.8% 2,892 0.7%
Slide 12: Reference: Results of SGA Expenses (Excluding Stock-based Compensation)
Reference: Results of SGA Expenses (Excluding Stock-based Compensation Expense) FY May 2023 FY May 2024 Revised full-year plan Full-year results (excluding stock-based Full-year plan (excluding stock-based compensation expense) compensation expense) vs. Revised Million yen Sales ratio Million yen Sa
Slide 13: Balance Sheet
Balance Sheet As of May 20, 2023 As of May 20, 2024 Composition Composition Change from Increase/ Million yen Million yen ratio ratio May 20, 2023 Decrease Cash and deposits 42,870 15.6% 49,125 16.2% 114.6% 6,254 Inventory assets 45,498 16.6% 47,792 15.7% 105.0% 2,294 Current assets 113,740 41.5% 12
Slide 14: Cash Flow Statement
Cash Flow Statement (Million yen) Increase/ FY May 2023 FY May 2024 Decrease Cash flows from operating activities 31,249 26,864 -4,385 Cash flows from investing activities -22,260 -21,104 1,156 Cash flows from financing activities 7,533 344 -7,189 Cash and cash equivalents at the 42,870 48,974 6,104
Slide 15: Earnings Forecast for the Fiscal Year Ending May 2025
1 Summary of Financial Results for the Fiscal Year Ended May 2024 and Earnings Forecast for the Fiscal Year Ending May 2025 １ Summary of Financial Results for the Fiscal Year Ended May 2024 ２ Earnings Forecast for the Fiscal Year Ending May 2025 Copyright2024 KUSURI NO AOKI HOLDINGS CO.LTD. All Righ
Slide 16: Store Opening/Closing Plan
Store Opening/Closing Plan No. of Store opening and closing plan FY May 2025 No. of stores as stores at at end of Hoku- Opening making end of FY FY May shinetsu Tohoku Kanto Tokai Kansai shikoku Total subsidiaries Closing May 2025 2024 [1] Drugstores 936 19 6 11 21 6 7 70 - - 1006 [2] Attached dispe
Slide 17: Capital Investment Plan
Capital Investment Plan FY May 2024 FY May 2025 Full-year results (Million yen） Full-year plan (Million yen) Lease Lease Acquisition Total Acquisition Total YoY change assets assets Store investment 11,189 1,154 12,343 18,972 2,295 21,267 172.3% (New opening) Store investment 1,961 - 1,961 1,526 - 1
Slide 18: Full-Year Earnings Forecast
Full-Year Earnings Forecast FY May 2024 FY May 2025 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Sales 436,875 100.0% 485,000 100.0% 111.0% Gross profit 118,090 27.0% 128,786 26.6% 109.1% SGA expenses 99,521 22.8% 103,679 21.4% 104.2% Operating income 1
Slide 19: Reference: Full-Year Earnings Forecast (Excluding Stock-based Compensation)
Reference: Full-Year Earnings Forecast (Excluding Stock-based Compensation Expense) FY May 2024 FY May 2025 Revised full-year results (excluding Full-year plan stock-based compensation expense) (excluding stock-based compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Sa
Slide 20: Full-Year Earnings Forecast (1H/2H)
Full-Year Earnings Forecast (1H/2H) FY 2025 Full-year plan 1H plan 2H plan Million yen Sales ratio YoY change Million yen Sales ratio YoY change Sales 240,000 100.0% 111.3% 245,000 100.0% 110.7% Gross profit 63,971 26.7% 108.7% 64,815 26.5% 109.4% SGA expenses 51,864 21.6% 99.7% 51,815 21.1% 109.1%
Slide 21: Reference: Full-Year Earnings Forecast (1H/2H) Excluding Stock-based Compensation
Reference: Full-Year Earnings Forecast (1H/2H) (Excluding Stock-based Compensation Expense) FY May 2025 Full-year plan (Excluding Stock-based Compensation Expense) 1H plan (excluding stock-based 2H plan (excluding stock-based compensation expense) compensation expense) Million yen Sales ratio YoY ch
Slide 22: Plan by Area
Plan by Area FY May 2024 FY May 2025 Full-year results Full-year plan Ratio of Ratio of Composition Number of Composition Number of Million yen stores with Million yen YoY change stores with ratio stores ratio stores dispensaries dispensaries Hokushinetsu 199,343 45.6% 373 68.9% 210,650 43.4% 105.7%
Slide 23: Plan by Product Division
Plan by Product Division FY May 2024 FY May 2025 Full-year results Full-year plan Composition Composition Composition Million yen Million yen YoY change ratio ratio difference Health 42,140 9.6% 44,353 9.1% -0.5% 105.3% Beauty 56,187 12.9% 59,340 12.2% -0.7% 105.6% Daily commodities 80,977 18.5% 86,
Slide 24: SGA Plan
SGA Plan FY May 2024 FY May 2025 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 46,328 10.6% 46,250 9.5% 99.8% Sales promotion cost 2,788 0.6% 3,128 0.6% 112.2% Real estate cost 29,533 6.8% 32,452 6.7% 109.9% Other expenses 20,870 4.8% 21,850 4
Slide 25: Reference: SGA Plan (Excluding Stock-based Compensation Expense)
Reference: SGA Plan (Excluding Stock-based Compensation Expense) FY May 2024 FY May 2025 Revised full-year results (excluding Full-year plan stock-based compensation expense) (excluding stock-based compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 39,518 9.0
Slide 26: Progress Status of the Third Medium-term Management Plan
2 Progress Status of the Third Medium-term Management Plan (for five years) 1 Overview Results of efforts Made for three Years and 2 Outlook for the Second Half Copyright2023 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 26
Slide 27: Vision2026: Make Life More Convenient, Smile All the Times
Vision2026 Make Life More Convenient, Smile All the Times あなたの町で、「便利な暮らし」と「笑顔につながる健康」を Aiming to become a drugstore that supports “convenient life” 支えるドラッグストアを目指して and “health that makes you smile” in your town Copyright2023 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 27
Slide 28: Three Priority Measures to Fulfill Vision 2026
Strategy: Three Priority Measures to Fulfill Vision 2026 1 Transformation to Food & Drug 2 Parallel establishment rate 70% 3 Shift toward the dominant strategy Copyright2023 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 28
Slide 29: Numerical Target: Sales of ¥500 billion for FY May 2026
Numerical Target Sales for FY May 2026 ¥500 billion (¥100 Million) 1st 2nd 3rd 5000 4850 4368 3788 3283 3001 3058 2508 2212 1887 1616 1349 1144 931 761 647 539 * Effective from the beginning of the fiscal year ended May 2022, the Company adopted the “Accounting Standard for Revenue Recognition”. Cop
Slide 30: Progress Status of the Third Medium-term Management Plan
2 Progress Status of the Third Medium-term Management Plan (for five years) 1 Overview Results of efforts Made for three Years and 2 Outlook for the Second Half Copyright2023 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 30
Slide 31: Format Renewal (2020 Model)
Format Renewal (2020 Model) - Starting from October 2020, the 400-tsubo-format has been added as a next-generation format. 450-tsubo-format concessionary NEW (From 2014) 400 tsubo (From 2020) ► Large-size store ► Store opening rate: 10% 300 tsubo ► Suburb, countryside (From 2010) ► Medium-size store
Slide 32: Strong Point of 400-tsubo-format
Strong Point of 400-tsubo-format - Offering fresh food has enabled our customers to enjoy one-stop shopping. - Covering the drugstore market as well as the dispensing and supermarket markets (markets exceeding 30 trillion yen) - Standardized format that allows for multiple store expansion Copyright2
Slide 33: Fresh Food Roll-out in Existing Stores
Fresh Food Roll-out in Existing Stores - Fresh food know-how acquired through the development of the 400-tsubo-format has been applied to the 300-tsubo-format - Renovation of 500 stores with a 300-tsubo format was completed over the two-year period from FY2023 to FY2024 - Plan to renovate 200 stores
Slide 34: Percentage of Produce and Meat Sections Introduced
Percentage of Produce and Meat Sections Introduced - Renovate 300-tsubo format and introduce produce and meat sections. - By the end of FY May2025, make all stores, except small-format stores, food and drug stores. 約 Ratio of stores with produce and meat sections to total number of stores 100% 90% 8
Slide 35: Toward Our Food & Drug Achievement Goals
Toward Our Food & Drug Achievement Goals - Introduce delicatessen sections into 300 tsubo and 400 tsubo operations in FY May 2025 - All stores, aside from small-format stores, will have delicatessen sections by the end of FY May2025 At the end of FY May 2025 Ratio of stores with delicatessen section
Slide 36: Low-cost Operation: Transition from High-Low to EDLP
Low-cost Operation - Review store man-hours (shift initiative from headquarters to store operations department) to lower labor cost ratio - Reduce man-hours required for sales floor changes by shifting to EDLP and strengthening regular item sales floors Sales promotion measures Transition from High-
Slide 37: Accelerating Opening of Dispensing Pharmacies
Accelerating Opening of Dispensing Pharmacies - Aim to achieve ratio of stores with dispensaries of 70% by fiscal May 2026. - 70 stores are planned to be opened in fiscal May 2025. Ratio of stores with dispensaries at 63.5% 66.0% the end of fiscal May 2024: 66.0% 58.7% 56.2% 120 51.7% Ratio of store
Slide 38: Trends in Newly Opened Stores and Store Opening/Closing Rate
Trends in Number of Newly Opened Stores and Store Opening/Closing Rate - Acquisition of 10 SM stores through M&A (Only operating stores as of the end of the period are counted; stores temporarily closed for renovation are not included) - Openings of 70 new stores and 70 pharmacies in FY May 2025 Clo
Slide 39: New Graduate Recruitment Status
New Graduate Recruitment Status - In fiscal May 2024, 709 new graduates were hired - For fiscal May 2024, 950 persons are planned to be hired. Career positions Mynavi Popular Company Pharmacist recruitment recruitment Ranking Hokuriku area Ranked first place for 109 persons 600 persons the four stra
Slide 40: Recent M&A Status ①
Recent M&A Status➀ - The absorption merger of Mamai Co., Ltd. (September 2024), enables our first entry into the Shikoku area. - On July 4, 2024, we announced the acquisition of the business of Mūmie Co., Ltd. (scheduled for September 2024) Mamai Mūmie Company name :Mamai Co., Ltd. Company name ：Mūm
Slide 41: Recent M&A Status ②
Recent M&A Status② - On July 4, 2024, we announced the absorption merger of Kimuraya Co., Ltd. (Super Guts) scheduled for August 2024 Nakao Super Guts Company name ：Nakao Co., Ltd Head office location ：Nomi, Ishikawa Company name ：Kimuraya Co., Ltd. Sales ：286 million yen Head office location ：Ichih
Slide 42: M&A Execution
M&A Execution - Since fiscal May 2021, M&A transactions with local supermarkets have been executed. - The purpose is to strengthen fresh food merchandizing in each area and to secure well- located properties. - Total sales of 14 companies: 49.6 billion yen, total number of stores: 69 June 2020 May 2
Slide 43: Store Opening Results for FY May 2024
Store Opening Results for FY May 2024 - Number of stores opened in FY May 2024: 45 - Acquisition of 10 SM stores through M&A FY May 2024: New stores opened / No. of stores at year end by area All areas Newly Opened Year End Hokushinetsu area 18 373 Tohoku area 45 953 Kansai area 3 66 Dispensing 10 7
Slide 44: Store Opening Plan for FY May 2025
Store Opening Plan for FY May 2025 - 70 stores are planned to be opened in FY May 2025 FY May 2025: New stores opened / No. of stores at year end by area All areas To Be Newly Tohoku area Year End Opened 70 1018 Hokushinetsu area 19 392 6 72 Kansai area Dispensing 6 84 Kanto area Opened Year End Shi
Slide 45: Introduction of Solar Power Generation System
Introduction of Solar Power Generation System - Initiatives for environmental conservation and measures to address rising electricity costs - The system will be introduced to 800 stores over three years (by the end of FY May 2026). - Installed 450 as of the end of FY May 2024. 250 to be installed in
Slide 46: Forward-looking statements
Make Lifeもっと便利に、ずっと笑顔で。 More Convenient, Smile All the Times The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable and are not intended as a guarant
Kusuri No Aoki Holdings — FY2024 Earnings Presentation on 6ix