Slide 1: FY2025 1H Presentation
Presentation FY2025 1H (July 1, 2024 - December 31, 2024) Revolutionize "real commerce" around the globe with technology and practical savvy. TRIAL Holdings, Inc. February 13, 2025
Slide 2: Contents
Contents １ FY2025 1H Financial Results ２ Appendix (Key Strategies / Capital Policy & Shareholder Returns / IR Activities / Company Overview)
Slide 3: FY2025 1H Financial Results
TIRIAL HLDGS FY2025 1H Financial Results
Slide 4: FY2025 1H Summary
FY2025 1H Summary FY2025 1H 3 1H sales were up 11.1% YoY contributed by SSS growth of 3.9% and aggressive 20 new store openings. GP also achieved 1H FinancialResults 1H Financial Results double-digit growth, up by 11.9% YoY while GPM improved by 0.1pts. OP declined 16.1% YoY due to the rise in SG&A
Slide 5: Earnings Summary for 1H FY2025
Earnings Summary for 1H FY2025 FY2025 1H 4 1H results were affected by higher-than-expected high temperature. SSS in Oct. were slow, Nov. and Dec. were close to recover. Sales fell short by 0.6pts vs plan, but recorded double-digit growth of 11.1% YoY. Difficult pricing for seasonal items and fresh
Slide 6: Earnings Summary for Q2 FY2025 (Three Months)
Earnings Summary for Q2 FY2025 (Three Months) FY2025 1H 5 From October 1, 2024 1H FinancialResults 1H Financial Results to December 31, 2024 (3 months) Q2 FY2024 Q2 FY2025 Financial Summary Financial Summary (Millions of yen) Actual Share Actual Share YoY YoY(%) Results by Business Segment Achieving
Slide 7: 1H Results by Business Segment
1H Results by Business Segment FY2025 1H 6 Distribution and Retail Business: Sales rose 11.0% YoY, driven by 20 new stores and by 3.9% SSS YoY. Segment profit was down 1H FinancialResults 1H Financial Results 15.8% YoY due to upfront costs for aggressive store openings and increased labor and electr
Slide 8: Q2 Results by Business Segment (Three Months)
Q2 Results by Business Segment (Three Months) FY2025 1H 7 1H FinancialResults 1H Financial Results From October 1, 2024 to December 31, 2024 (3 months) Financial Summary Q2 FY2024 Q2 FY2025 Results by Business Segment Segment (Millions of yen) Actual Share Actual Share YoY YoY(%) Achieving Our Visio
Slide 9: Growth Journey to Achieve Vision
Growth Journey to Achieve Vision FY2025 1H 8 Eliminate inefficiency in the Distribution and Retail industry by “Store Expansion”, “Retail Tech” and “Partnership” aiming for 1H FinancialResults 1H Financial Results sustainable development and growth not only for our group but also society as a whole.
Slide 10: Trend in Same Store Sales
Trend in Same Store Sales FY2025 1H 9 Same Store Sales Growth Enhancing “food” focusing on fresh products to be the region‘s No.1 daily necessities store. 1H FinancialResults 1H Financial Results October: SSS grew 0.8% YoY despite the record-breaking summer heat and one less holiday. Plan Full Year
Slide 11: Enhancement of 'Food'
Enhancement of ‘Food’ FY2025 1H 10 Ready Meals offered at TRIAL are developed by “Meijiya” chefs. 1H FinancialResults 1H Financial Results New menu creation and improvements to existing menus are carried out in the "Test Kitchen." Financial Summary Turning Craftsmanship Recipes into Flavors at the S
Slide 12: Store Renovation
Store Renovation FY2025 1H 11 Store optimization centering on “food” and store renovations focused on retail technology, such as the installation of Skip Cart. 1H FinancialResults 1H Financial Results In Q2, 7 Super Center, 1 smart, and 2 Small Format stores were renovated. Progress is on track with
Slide 13: New Store Opening / Closure
New Store Opening / Closure FY2025 1H 12 In Q2, TRIAL actively opened new stores with 1 Mega Center, 7 Super Center, 2 smart and 1 Small Format stores. 11 stores were 1H FinancialResults 1H Financial Results added from Q1, and the total store count is 338 as of 1H FY25. SuC is now counted over 200.
Slide 14: Store Opening Strategy by Region
Store Opening Strategy by Region FY2025 1H 13 Total MEGA Super smart Small Center Center Format Q2 FY2025 1H FinancialResults 1H Financial Results 338 stores 27 stores 200 stores 65 stores 46 stores Super Financial Summary Shiogama (Miyagi) 129 Center Results by Business Segment Oct smart Itoshima O
Slide 15: Introduction of The New Store
Introduction of The New Store FY2025 1H 14 Opened on November 27, 2024 1H FinancialResults 1H Financial Results Super Center Hamamatsu Wakabayashi (Shizuoka) Financial Summary The first Smart Store in Shizuoka Pref. Results by Business Segment The Smart Store incorporates IoT and AI technologies dev
Slide 16: Environmentally Friendly Store (ZEB Store)
Environmentally Friendly Store (ZEB Store) FY2025 1H 15 Opened on February 11, 2025 Our 1st environmentally MEGA Center Arao (Kumamoto) 1H FinancialResults 1H Financial Results friendly “ZEB” *1 store Financial Summary The store achieved a 91% reduction in primary energy consumption under BELS (Buil
Slide 17: Sales by Product Category (Six Months)
Sales by Product Category (Six Months) FY2025 1H 16 Sales of "Fresh (four types of fresh products)," a key driver for customer traffic and profitability, rose by 17.3% YoY, boosted 1H FinancialResults 1H Financial Results revenue in the retail distribution business. Sales of “ready meals," with high
Slide 18: Sales by Product Category (Three Months)
Sales by Product Category (Three Months) FY2025 1H 17 1H FinancialResults 1H Financial Results From October 1, 2024 Financial Summary to December 31, 2024 (3 months) Q2 FY2024 Q2 FY2025 Results by Business Segment (Millions of yen) Actual Share Actual Share YoY YoY(%) Achieving Our Vision Existing S
Slide 19: PB Product Development Initiatives
PB Product Development Initiatives FY2025 1H 18 Based on customer understanding through data utilization, we are driving the development of private brand (PB) 1H FinancialResults 1H Financial Results products that provide value to our customers. The share of PB steadily grew to 17.6% to the sales. 9
Slide 20: TRIAL PB Catalog
TRIAL PB Catalog FY2025 1H 19 Develop valuable products for our customers as a local daily necessity store. 1H FinancialResults 1H Financial Results Financial Summary Daily Necessity Grocery Daily Fresh Results by Business Segment Items Achieving Our Vision Existing Stores / Renovation Store Opening
Slide 21: Breakdown of SG&A expenses (Six Months)
Breakdown of SG&A expenses (Six Months) FY2025 1H 20 Sales grew by 11.1% compared to the 1H FY24, while SG&A expenses rose 17.1%. SG&A-to-sales ratio went up by 0.9pts due to 1H FinancialResults 1H Financial Results upfront store opening costs, as well as the increase in wage for part-timers and tem
Slide 22: Breakdown of SG&A expenses (Three Months)
Breakdown of SG&A expenses (Three Months) FY2025 1H 21 1H FinancialResults 1H Financial Results From October 1, 2024 to December 31, 2024 (3 months) Q2 FY2024 Q2 FY2025 Financial Summary Results by Business Segment (Millions of yen) Actual Share Actual Share YoY YoY(%) Achieving Our Vision Sales Exi
Slide 23: Upfront Costs for New Store Openings
Upfront Costs for New Store Openings FY2025 1H 22 Accelerated store openings in Q2 FY25, with a total of 11 new stores : 1 MEGA Center, 7 Super Center, 2 smart and 1 Small 1H FinancialResults 1H Financial Results Format. Upfront costs for new stores including 5 openings in Jan. and Feb., expenses in
Slide 24: Factors in Labor Cost increase (Three Months)
Factors in Labor Cost increase (Three Months) FY2025 1H 23 The rise in labor costs compared to Q2 FY2024 is due to accelerated store openings, leading to an increase in the number of 1H FinancialResults 1H Financial Results stores. The main driver was higher hourly wages for part-timers and temporar
Slide 25: Monthly Utility Costs Plan vs Actual
Monthly Utility Costs Plan vs Actual FY2025 1H 24 Rise in electricity cost, which is the majority of the expenses increased utilities cost (+650M yen from the 2Q FY24 / +31.9% YoY). Increase in electricity costs for new stores and electricity unit prices at existing stores were the main factor to in
Slide 26: Customer Loyalty Program
Customer Loyalty Program FY2025 1H 25 Since its launch in October 2022, we have been enhancing the functionality of the mobile payment app “SU-PAY” to acquire new 1H FinancialResults 1H Financial Results members and expand loyal customer base. Card and app members were 11.37M combined as of Dec. 202
Slide 27: Skip Cart
Skip Cart FY2025 1H 26 Complete payment through self-scan and payment gate passage. Providing a new shopping experience such as reducing 1H FinancialResults 1H Financial Results cashier workload and implementing one-to-one marketing in physical stores utilizing coupons and recommendations. Financial
Slide 28: Better Customer Experience by Skip Cart
Better Customer Experience by Skip Cart FY2025 1H 27 We have optimized the number of carts per store. To test Skip Cart impact, other retailers installed the carts to see if it improves 1H FinancialResults 1H Financial Results the customer experience and reduces labor cost at checkout. Financial Sum
Slide 29: Skip Cart to Other Retailers
Skip Cart to Other Retailers FY2025 1H 28 Expansion of Skip Cart Beyond TRIAL Group 1H FinancialResults 1H Financial Results Financial Summary Retail AI installed Skip Cart® into external retail companies in October 2024, through alliances with ELERA ®, global retail platform provided by Toshiba Tec
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet FY2025 1H 29 “Inventory,” “Property, plant and equipment,” and “Account payable” increased due to aggressive store openings, renovations and the year-end sale. “Cash and deposits” and “Account payable” were higher than usual as both the end of Jun. and Dec. 2024 fell on 1H
Slide 31: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement FY2025 1H 30 The drop in operating cashflow was mainly due to the difference in the impact of holidays of financial institutions in 1H 1H FinancialResults 1H Financial Results FY24 and 1H FY25 (Impact on account payable due to settlement of account payable conducted
Slide 32: FY2025 Consolidated Forecast
FY2025 Consolidated Forecast FY2025 1H 31 No revision of the consolidated forecast announced on August 13, 2024. 1H FinancialResults 1H Financial Results FY2025 Financial Summary FY2024 Full year Forecast Results by Business Segment (Millions of yen) Actual Share Plan Share YoY YoY(%) Achieving Our
Slide 33: FY2025 Revision of Consolidated Forecast
FY2025 Revision of Consolidated Forecast FY2025 1H 32 Expecting to add 8 new stores to the initial plan by taking advantage of opportunities for sustainable growth in the future. To concentrate 1H FinancialResults 1H Financial Results management resources on new store openings, renovation is pending
Slide 34: Appendix
TIRIAL HLDGS Appendix
Slide 35: FY2025 Key Strategies
FY2025 Key Strategies FY2025 1H 34 1H Financial Results Strengthening ⚫ Providing wide selection of products with a particular strength in “food” at EDLP. Satisfying customers as local 1 Existing Stores Financial Summary “Daily Necessity Store”. Results by Business Segment Focus on food products and
Slide 36: FY2025 Key Strategies (Distribution and Retail Business)
FY2025 Key Strategies (Distribution and Retail Business) FY2025 1H 35 Trying to be No.1 everyday store in the commercial area aiming at both topline and OP growth. 1H Financial Results Distribution and Retail Business Financial Summary ⚫ New Store Openings：35 stores (Plan) Results by Business Segmen
Slide 37: FY2025 Key Strategies (Retail AI Business)
FY2025 Key Strategies (Retail AI Business) FY2025 1H 36 Support sustainable growth of core business through various measures based on data analysis. 1H Financial Results Distribution and Retail Business Financial Summary Accumulating customer ID data and in-store traffic data Results by Business Seg
Slide 38: Capital Policy / Shareholder Returns
Capital Policy / Shareholder Returns FY2025 1H 37 1H Financial Results 1 Prioritizing investment in growth while distributing minimum dividends stably and continuously as a growing company. Financial Summary Results by Business Segment FY 2023 FY 2024 FY 2025 Achieving Our Vision (Actual) (Actual) (
Slide 39: Disclosure / IR Policy
Disclosure / IR Policy FY2025 1H 38 We aim to do prompt, accurate, and fair disclosure and constructive dialogue with shareholders 1H Financial Results and investors. Financial Summary ⚫ IR Calendar Results by Business Segment Achieving Our Vision Our fiscal year ends on June 30. We plan to hold qua
Slide 40: Investor Relations Website for Shareholders and Investors
Investor Relations Website for Shareholders and Investors FY2025 1H 39 ⚫ Financial Briefing documents 1H Financial Results Presentation materials for the financial results briefing for analysts and institutional investors as well as speech scripts Financial Summary and the Q&A summary will be availa
Slide 41: Award
Award FY2025 1H 40 1H Financial Results Financial Summary Results by Business Segment Achieving Our Vision Existing Stores / Renovation Store Opening / Closure In the “2024 Comprehensive Ranking of Listed Company Websites,” Sales by Product Category TRIAL received “With Grade AAA Corporate Website”
Slide 42: About Us
About Us FY2025 1H 41 1H Financial Results Holding Company Financial Summary TRIAL Holdings, Inc. Results by Business Segment Established September 2015 Board of Directors Representative Director and Chairman Hisao Nagata Achieving Our Vision Representative Director and President Koichi Kameda Exist
Slide 43: Philosophy
Philosophy FY2025 1H 42 1H Financial Results Financial Summary Enrich every aspect of people’s lives Results by Business Segment through all we do. Achieving Our Vision Existing Stores / Renovation Store Opening / Closure Sales by Product Category PB Product Breakdown SG&A Revolutionize "real commer
Slide 44: History started with IT Retail
History started with IT FY2025 1H 43 Retail Evolution of Real Stores and Expansion of Store Networks 1st TRIAL Store 1st Super Center Acceleration of Opening Stores at Furnished Properties / Nationwide Expansion Acquired CowBoy Co., Ltd., a Food-focused Supermarket Acquired Meijiya, Inc. a ready mea
Slide 45: Integrate real store operations and retail tech R&D
Integrate real store operations and retail tech R&D FY2025 1H 44 1H Financial Results Distribution and Retail Business Retail AI Business Financial Summary Results by Business Segment The power to distribute goods with our highly The ability to fully leverage data and IoT efficient network of stores
Slide 46: Strong Track Record of Continuous Sales Growth
Strong Track Record of Continuous Sales Growth FY2025 1H 45 Accomplished sales growth for 24 consecutive fiscal years *1 through flexible strategies adapting to market changes. 1H Financial Results 24 800 350 Financial Summary (JPY Bn) (Stores) Results by Business Segment 300 Consecutive Achieving O
Slide 47: Nation-wide network with multiple formats
Nation-wide network with multiple formats FY2025 1H 46 Mainly open profitable Super centers, leveraging our ability to analyze trade areas through the use of data. 1H Financial Results Total Store count : 343 (As of February 13, 2025) Financial Summary Results by Business Segment Super Center (SuC)
Slide 48: Store Locations (As of February 13, 2025)
Store Locations (As of February 13, 2025) FY2025 1H 47 1H Financial Results 343 ● MEGA 28 Financial Summary stores ● SuC 202 Nationwide Results by Business Segment ● smart 66 Sapporo Achieving Our Vision in 36 prefectures ● small 47 Existing Stores / Renovation Store Opening / Closure Sales by Produ
Slide 49: EDLP Business Model
EDLP Business Model FY2025 1H 48 TRIAL offers variety of assortment at competitive price. 1H Financial Results Food including just-made ready meals are key items as localized daily necessities stores. Financial Summary Every Day Low Price for customers to live better. Results by Business Segment Ach
Slide 50: Retail Tech Supports Distribution and Retail Business
Retail Tech Supports Distribution and Retail Business FY2025 1H 49 Create the next generation shopping experience by deeply understanding our customers through real stores and data utilization. 1H Financial Results Financial Summary e3-SMART MD-Link Retail Map Results by Business Segment Low-cost, h
Slide 51: Overview of TRIAL GO (small format)
Overview of TRIAL GO (small format) FY2025 1H 50 As a satellite store of Super center, realized high quality service at low operation cost by combining our 1H Financial Results strength in retail and technology. Financial Summary Results by Business Segment Feature 1 - Satellite Store Feature 2 - Au
Slide 52: Contact
⚫ Contact TRIAL Holdings, Inc. IR Division TEL：+81-3-6435-6308 / e-mail：ir@trial-holdings.inc ⚫ Next Financial Results (Scheduled)：Q3 for FY2025 ・May 14, 2025 - Financial Results Announcement (Results Summary Disclosure) ・May 15, 2025 - Financial Results Briefing (For Analysts and Institutional Inve