H2o Retailing Corporation · TSE:8242
H2o Retailing — FY2020 Earnings Presentation
21 slides from H2o Retailing's earnings presentation, Jun 1, 2020
Slide 1: FY2020 Presentation Materials
FY2020 Presentation Materials H2O RETAILING CORPORATION 0
Slide 2: Agenda
Ⅰ Results of FY2020 Ⅱ Impact of COVID-19 outbreak Ⅲ Business Plan GP10 Stage Ⅱ Phase 2 1
Slide 3: Results of FY2020
Ⅰ. Results of FY2020 １．Consolidated Financial Results ２．Results by segment ３．Department store business ４．Supermarket business ５．Extraordinary losses 2
Slide 4: Consolidated Financial Results
Ⅰ－1 Consolidated Financial Results ▶Sales decrease due to the tax hike, warm winter and COVID-19 outbreak ▶recorded extraordinary losses including impairment losses on stores of ¥14.1 billion and business restructuring expenses on Izumiya of ¥3.8 billion Amount YOY Versus forecast （billions of yen）
Slide 5: Consolidated Financial Results - Factors affecting OP
Ⅰ－1 Consolidated Financial Results ーFactors affecting OP (billions of yen) Decrease in gross profit (10.2) Decrease in SG&A +0.9 -5.5 Dpt. Sales decrease Advertising Tax hike/ warm winter -2.0 expenses and Depreciation other -2.7 increase SC Personnel Decrease COVID-19 Dpt. H2O Izumiya Gross profit
Slide 6: Results by segment
Ⅰ－２ Results by segment Sales Operating Profit （billions of yen） Amount YOY Amount YOY Department 473.2 (21.3) 95.7％ 11.4 (6.4) store Supermarket 354.1 (13.4) 96.3％ (2.5) (2.0) Shopping 8.7 (0.0) 99.9% 4.1 (0.1) Center 61.2 +5.2 109.4％ 2.9 (2.1) Other Acquisition of asnas and H2O: dividends Hankyu Fr
Slide 7: Department store business
Ⅰ－３ Department store business ▶Sales decrease due to the tax hike, warm winter and COVID-19 outbreak ▶Deteriorated gross margin owing to sluggish sales of A/W apparel Hankyu Hanshin department store＋Kobe・Takatsuki （H2O Asset Management） （billions of yen） Amount YOY Net Sales 470.3 (21.4) 95.6% Gross
Slide 8: Department store business
Ⅰ－３ Department store business ▶External factors lowered operating profit Oct.- Jan.： downturn in consumer sentiment after the consumption tax hike and warm winter Sales ¥-11.5bn, OP ¥-2.0bn Feb. Mar.：COVID-19 outbreak ＊shortened opening hours, Immigration restrictions Sales ¥-22.0bn, OP ¥-3.8bn Inbo
Slide 9: Supermarket Business
Ⅰ－４ Supermarket Business ▶Overall：OP ¥-2.5bn, YOY difference ¥-2.0bn ▶Izumiya：OP YOY difference Apparel/Home products¥-1.0bn, Grocery¥-0.9bn ▶Hankyu Oasis：decrease in sales, increase in gross profit margin due to the review of pricing policy ▶Impact of COVID-19： Izumiya（Grocery） Feb. 102％ Mar. 104%
Slide 10: Supermarket Business - Izumiya
Ⅰ－４ Supermarket BusinessーIzumiya ▶ Grocery contributed to profit ・Sales and profit growth through the (accounts for 70% of sales) integrated operation with Hankyu Oasis ▶Apparel/Home products ・Introduction of tenants（Decrease the damaged profit direct operation area of non-food section) (occupies 70
Slide 11: Extraordinary losses
Ⅰ－５ Extraordinary losses ▶Early retirement bonus, valuation loss on goods (Izumiya) ▶Impairment loss on fixed assets of stores opened within past 5 years (Hankyu Oasis and Izumiya) ▶Impairment loss on fixed asset of Hankyu Men’s Tokyo (Hankyu Hanshin department stores) Amount Contents (billions of y
Slide 12: Impact of COVID-19 outbreak
Ⅱ. Impact of COVID-19 outbreak １．Current situation and forecast of FY2021 ２．Action taken amid COVID-19 impact ３．Financial Plan 11
Slide 13: Forecast of FY2021
Ⅱ－１ Forecast of FY2021 Current situation under COVID-19 pandemic ■April 7,2020 The declaration of the state of emergency Closure of stores/shortened opening hours in response to an administrative request 【Department stores】 closed（Food halls of some stores are open） 【Izumiya/Hankyu Oasis】 Shortening
Slide 14: Actions taken amid COVID-19 impact
Ⅱ－２ Actions taken amid COVID-19 impact Basic Philosophy : To remain indispensable to the local communities through our activities of providing a model of lifestyle to local residents The fundamental policies to deal with COVID-19 pandemic １．Continue to operate an essential business to maintain socia
Slide 15: Financial Plan
Ⅱ－３ Financial Plan ■Cash and cash equivalents：¥26.0bn（as of March 2020） ■take all possible measures to continue business - secure liquidity on hand to prepare for prolonged COVID-19 pandemic in case ①Expand working capital borrowing limit by increasing commitment line （¥60.0bn ⇒ ¥90.0bn）※including e
Slide 16: Business Plan GP10 Stage II Phase 2
Ⅲ. Business Plan GP10 Stage Ⅱ Phase 2 １．Progress ２．New group vision and point of view owing to the changing in the times ３．GP10-Ⅱ Phase２ Updates 15
Slide 17: Progress of GP10-II Phase 2
Ⅲ－１ Progress of GP10-Ⅱ Phase２ Key measures Contents Progress/Assessment Rebuilding Hanshin Umeda main store ○ As scheduled Ⅰ Strengthen Stores in Urban New start of Kobe Hankyu and Takatsuki areas Hankyu ○ As scheduled Redevelopment of Senri Hankyu and SELCY ○ On-going Izumiya restructuring ○ As sch
Slide 18: New perspective through group vision and the changing times
Ⅲ－２ New perspective through group vision and the changing in the times （Group vision） To be a customer’s lifestyle partner to enrich their hearts through offering "fun, happy and tasty" experiences. ～contributing to the future of the local community, children and our planet～ （Directions） ①Establish
Slide 19: GP10-II Phase 2 Updates
Ⅲ－３ GP10-Ⅱ Phase２ Updates Key measures Challenges Actions New type of department store: Rebuilding Hanshin Umeda main store contents/goods and customers store▶applying OMO model are connected across both stores and online Ⅰ Strengthen Stores in Urban Remodeling Kobe Hankyu/Takatsuki will implement i
Slide 20: Fun, happy and tasty slogan
We put up a slogan "fun, happy and tasty“ as a city landmark and lifeline. We strive to create new value through close customer relations. 19
Slide 21: Disclaimer
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