Valor Holdings Co., Ltd. · TSE:9956
Valor — FY2024 Earnings Presentation
27 slides from Valor's earnings presentation, May 17, 2024
Slide 1: FY2024 Financial Presentation
FY 202４ Financial Presentation May 1７, 202４ ＜Cautionary Statement Regarding This Document＞ Forward-looking statements are based on the information available to Valor and its consolidated subsidiaries when preparing this presentation. Various factors in the future may cause our actual results to be m
Slide 2: Message from President
Message from President Developing an Outstanding Presence as a Destination Company Approximately seven years ago, we began experimenting with a new store model, adapting quickly to environmental changes such as population decline and the COVID-19 pandemic. The core of this transformation has been th
Slide 3: Key Points
Key Points ➢ Summary of FY2023 Financial Results ・ Operating revenues reached a record high for 29 consecutive FYs. ・ Profits increased to the second-highest level in history. The increase in personnel expenses due to wage increases was covered by an increase in gross profit by the top line of our m
Slide 4: Contents
Contents Ⅰ．Summary of FY2024 Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group New Medium-Term Three-Year Business Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 4
Slide 5: FY2024 Consolidated Business Results
FY2024 Consolidated Business Results ➢ Operating revenues achieved a record high （29 consecutive FYs） ➢ SM and DgS drove sales and profits, resulting in increased revenue and profit. ➢ A significant increase in net income growth rate achieved through the strengthening of investment management (Reduc
Slide 6: Factors of Increase/Decrease in Operating Income
Factors of Increase/Decrease in Operating Income ➢ Gross operating profit increased by ¥14.4 billion, with the improvement in the gross profit margin (26.6% → 26.7%) ➢ Utility costs decreased by approx. ¥1.6 billion, while labor costs increased by ¥6.3 billion due to wage increases. (Yen in millions
Slide 7: Quarterly Results
Quarterly Results ➢ In Q3, despite the high performance in the previous year, we secured increased profits and set a new record for operating profit (¥7.2 billion). Results YoY (Yen in millions） H1 Q3 Q4 計 H1 Q3 Q4 計 Operating 399,140 211,434 197,220 807,795 +6.5% +5.8% +6.4% +6.3% revenues Net sale
Slide 8: Operating Results by Segment
Operating Results by Segment ※ For details, see p.19 - ➢ Supermarket Business: Increased profits due to the strong performance of existing stores (+5.6%) and the success of new stores in Osaka and Aichi Prefectures. ➢ Drugstore Business: Increased revenue and profits driven by the remodeling of 30 s
Slide 9: Changes in Management Indicators
Changes in Management Indicators ➢ Profitability, efficiency, and safety have all improved. ➢ We aim to achieve an ROE of 8% and an ROIC of 5.5% (greater than the cost of capital) to further improve profitability. FY22 FY23 FY24 Results Results Results ROA 5.9％ 5.6％ 5.9% ROR 3.3％ 3.0% 3.2% Total Ass
Slide 10: Impact of Investments in the Credit Card Business
Impact of Investments in the Credit Card Business ➢ Started accepting applications for the “Lu Vit Credit Card' in April 2023 ➢ 180,000 applications as of the end of FY24 ➢ Planning to invest approx. ¥3.2 billion over 5 years (including the portion to be implemented in FY24). ➢ Expected impacts: 1)
Slide 11: Contents
Contents Ⅰ．Summary of FY2024 Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group New Medium-Term Three-Year Business Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 11
Slide 12: FY2025 Forecast
FY2025 Forecast ➢ Supermarket Business: Accelerate store openings in the Kansai region, implement the new pricing policy “Low Price Guarantee,” and open urban fresh food supermarkets. ➢ Drugstore Business: Accelerate store openings in metropolitan areas (Nagoya and Kansai), and strengthen food offer
Slide 13: Number of Stores and Capital Investment Plan
Number of Stores and Capital Investment Plan ➢ Plan to invest in new store openings and renovations, including stores acquired from Toho Store Co., Ltd. ➢ Plan to start operations at the Hirakata Logistics Center in October 2024. FY23 FY24 FY25 （Number of stores） FY end FY end Open Closed FY end Sup
Slide 14: Cash Flow
Cash Flow ➢ FCF continued to increase from the previous fiscal year due to the increase in operating CF. ➢ The new medium-term business strategy targets a cumulative operating CF of ¥120 billion over three years. （Yen in millions） Cash Flow ●Operating CF：¥38.449 B. ・Income before income taxes increa
Slide 15: Shareholder Return (Dividend Forecast for FY25)
Shareholder Return (Dividend Forecast for FY25） ➢ An annual dividend of ¥65, consisting of an interim dividend of ¥28 and a year-end dividend of ¥37 (an increase of ¥7 YoY), marking 14 consecutive years of dividend increases. ➢ Revised shareholder return policy to strengthen returns from three persp
Slide 16: Contents
Contents Ⅰ．Summary of FY2024 Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group New Medium-Term Three-Year Business Strategy ※ Ⅳ．(Reference) Segment Overview ※Please refer to the announcement of the “Valor Group New Medium-Term Three-Year Business Strategy” disclosed on May 14, 2024. ©2024 Valor Hold
Slide 17: Contents
Contents Ⅰ．Summary of FY2024 Financial Results Ⅱ．FY2025 Forecast Ⅲ．Valor Group New Medium-Term Three-Year Business Strategy Ⅳ．(Reference) Segment Overview ©2024 Valor Holdings Co.,Ltd. 17
Slide 18: [Ref.] Business Strategy by Segment
[Ref.] Business Strategy by Segment ➢ Expenses are expected to increase due to higher utility and labor costs. ➢ Gross profit margin improved due to increased turnover from enhanced fresh produce and a higher PB (Private Brand) composition ratio. ➢ Normalization of campaign costs is anticipated for
Slide 19: [Ref.] Supermarket business
[Ref.] Supermarket business ➢ Achieved record-high profit surpassing the third quarter of 2021 during the COVID-19 pandemic. ➢ Valor Co., Ltd: Same-store sales +5.6% (customer count +0.7%) YoY ➢ Started the current period with positive same-store sales due to an increase in customer count from the n
Slide 20: [Ref.] Drugstore business
[Ref.] Drugstore business ➢ Achieved record-high profit surpassing the third quarter of 2021 during the COVID-19 pandemic. ➢ Chubu Yakuhin Co., Ltd: Same-store sales +5.1% (customer count +1.0%) YoY ➢ Increase in customer count due to competitively priced food and daily necessities, mainly PB produc
Slide 21: [Ref.] Home improvement center business
[Ref.] Home improvement center business ➢ Profit increased by approx. ¥400 million, compared to FY20, before the COVID-19 pandemic. ➢ Profit increased by ¥170 million YoY in 4Q alone. ➢ Home Center Ant Co., Ltd., which operates five home improvement centers in Aichi Prefecture, has become a subsidia
Slide 22: [Ref.] Sports club business
[Ref.] Sports club business ➢ Profit decreased by approx. ¥1.3 billion, compared to FY20, before the COVID- 19 pandemic. ➢ Junior schools were established as part of a member acquisition strategy, and new swimming schools were opened. A new membership category for those under 24 years old was introd
Slide 23: [Ref.] Distribution-related business
[Ref.] Distribution-related business ➢ Profit increased by approx. ¥900 million, compared to FY20, before the COVID- 19 pandemic. ➢ Increase in logistics volume, packaging materials, and consumables handling due to revenue growth in the supermarket business and the drugstore business. (Yen in 100 Di
Slide 24: [Ref.] Breakdown of Impairment Loss
[Ref.] Breakdown of Impairment Loss ➢ In accordance with the "Accounting Standard for Impairment of Fixed Assets," Valor Holdings and its group recognized signs of impairment in some of its fixed assets, such as stores, due to a decline in profitability, etc. As a result, we examined the possibility
Slide 25: [Ref.] Sustainability KPI (to 2050)
[Ref.] Sustainability KPI（to 2050） FY24 FY27 FY30 FY50 Standard Sustainability Final year of current strategic plans Reference Vision 2030 （FY20 results*) (FY20 rate) (FY21 rate) Realizing a CO2 emissions at own sites CO2 emissions at own sites Total greenhouse Total greenhouse decarbonized society
Slide 26: Disclaimer
Disclaimer • This material is provided for informational purposes only and is not intended as a solicitation to take any action. This material (including performance plans) has been prepared by Valor Holdings based on reliable information currently available, but it contains risks and uncertainties.
Slide 27: https://valorholdings.co.jp/
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