Nitori Holdings Co. Ltd. · TSE:9843
Nitori — FY2019 Earnings Presentation
43 slides from Nitori's earnings presentation, Apr 6, 2020
Slide 1: Financial Results Presentation for the Fiscal Year 2019
Nitori Holdings Co., Ltd. Financial Results Presentation for the Fiscal Year 2019 April 6 , 2020 TSE1st.&Sapporo Code : 9843
Slide 2: Growth in sales and profit for 33 consecutive fiscal years
achieved growth both in sales and profit for 33 consecutive fiscal years FY1987 FY2019 Net Sales(Billions of Yen) Number Results 16 Stores 607 Stores of Stores Compare to FY1987 38-Fold Ordinary Income(Billions of Yen) 642.2 Results 10.3 B yen 642.2 B yen Net Sales 608.1 Compare to FY1987 62-Fold 10
Slide 3: Number of stores, customers
Number of stores, customers ６０７Stores Number of stores Number of customers(Millions) 607 576 1 Store → 100 Stores 36 Years 523 93.92 100 Stores → 200 Stores 6 Years 88.29 200 Stores → 300 Stores 3 Years 471 82.01 300 Stores → 400 Stores 3 Years 420 70.07 400 Stores → 500 Stores 2 Years 331 373 60.50
Slide 4: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results （Billions of Yen） FY2019 FY2018 Change Actual (to sales) Actual (to sales) (YOY) Net sales 642.2 － 608.1 － 34.1 105.6％ Gross profit 35.4 55.2% 33.1 54.5% 2.2 106.9％ SG&A expenses 246.8 38.4% 230.6 37.9% 16.2 107.0％ Operating income 107.4 16.7% 100.7 16.6% 6
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets （Billions of Yen） 20 Feb. 20 Feb. Major factors Change 2020 2019 on changes Current assets 263.5 211.0 52.5 (Cash and deposits) 159.1 102.3 56.8 資 (Inventory) 65.5 62.9 2.6 産 の Non-Current assets 419.6 408.2 11.4 部 (Property, plant and equipment) 307.3 302.0 5.3 (Investme
Slide 6: Consolidated Cash Flows
Consolidated Cash Flows （Billions of Yen） Major factors FY2018 FY2017 Change on changes ・Income before income taxes +105.0 Operating activities 96.3 81.6 14.6 ・Depreciation and amortization +16.5 ・Income taxes paid (34.1) ・Purchase of property,plant and Investing activities (41.4) (30.4) (11.0) equi
Slide 7: YOY changes in comparable stores
YOY changes in comparable stores （％） 【Sales , YOY】 ※Sales = Sales based on orders 115 110 105.5 105 103.2 102.9 102.7 102.8 100 【No. of Customers・ 95 Average Spend per Customer , YOY】 （％） 115 No. of Customers Average spent per customer 110 105.5 104.8 105 102.0 101.8 101.4 100 98.2 101.2 95 100.0 10
Slide 8: Consolidated Sales
Consolidated Sales 【Net sales】 Amount YOY Net sales （Billions of Yen） Store sales(Global) ¥574.6bil. 105.2% 642.2 (105.6%） E-commerce ¥44.3bil. 114.6% 608.1 B to B & Renovation Sales ¥10.3bil. 107.8% Rent income ¥7.3bil. 100.6% Others ¥5.5bil. 86.6% Total ¥642.2bil. 105.6% Sales comp. by region Chug
Slide 9: Gross profit, SG&A expenses
Gross profit ・ SG&A expenses Ratio to 【Gross profit】 （Billions of Yen） 【SG&A】 Amount YOY sales Change 354.3 （106.9%） Personnel ¥72.0bil. 104.4% 11.2% (0.1)pt 331.4 Rents ¥37.2bil. 101.9% 5.8% (0.2)pt Delivery charge ¥27.9bil. 106.6% 4.4% 0.0pt Advertising ¥16.8bil. 101.4% 2.6% (0.1)pt Outsourcing ¥1
Slide 10: No. of stores as of 20 Feb. 2020
No. of stores as of 20 Feb. 2020 No. of No. of No. of Prefecture Prefecture Prefecture ６０７ stores stores stores Hokkaido 23 (+1) Yamanashi 3 Shimane 2 Hokkaido 23 (+1) Ishikawa 5 Hiroshima 15 (+1) Stores Aomori 6 Toyama 4 Yamaguchi 7 (+1) (+３１) Akita 5 (+1) Fukui 3 Kagawa 4 Iwate 4 Hokuriku & Koshin
Slide 11: Major indicators of management efficiency (1)
Major indicators of management efficiency（1） Sco Num pe ber Indicator unit Target 2020.2 2019.2 2018.2 2017.2 2016.2 1 Return on assets ％ Over 15％ ○ 16.8 17.6 18.3 19.4 18.3 2 Total asset turnover Times Over 2 × 0.99 1.04 1.10 1.14 1.12 Group Ordinary income 3 margin ％ Over 10％ ○ 17.1 16.9 16.6 17.1
Slide 12: Major indicators of management efficiency (2)
Major indicators of management efficiency (2) Sco Num pe ber Indicator unit Target 2020.2 2019.2 2018.2 2017.2 2016.2 ○ 105.5 103.4 101.7 Over 12 Sales per tsubo K ¥950K 98.1 93.8 13 Stock turnover Times Over 9 × 5.0 5.3 5.6 5.5 5.4 Sale of furniture and home furnishing Operating assets 14 turnover
Slide 13: Main measures of FY2019
Melee be | Main measures of FY2019 | {
Slide 14: Results of 4Q sales
Results of 4Q sales ※Sales = Sales based on orders 4Q sales YOY by month Numbers of Average spend per Sales Customers customers Existing All Existing All Existing All Stores Stores Stores Stores Stores Stores Dec. 92.7％ 95.4％ 95.2％ 99.4％ 97.4％ 96.0％ Jan. 97.1％ 99.4% 97.1% 101.0% 100.0% 98.4% Feb. 10
Slide 15: Sales trend after increase of sales tax
Sales trend after increase of sales tax （％） Sales YOY changes in comparable stores by furniture and HFa before increase of sales tax after increase of sales tax 240 220 200 180 160 140 120 100 80 60 40 10/14… 10/21… 10/28… 11/11… 11/18… 11/25… 12/16… 12/23… 12/30… 3/4… 4/1… 4/8… 5/6… 6/3… 7/1… 7/8…
Slide 16: Product Development
Product Development “CA1” “GIO” （a combination sofa） （a bed with drawers） ✓ Various combinations are ✓ With four drawers. possible according to the ✓ It has full slide rail that room space and using. is easy to open and close. Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 16
Slide 17: E-Commerce
E-Commerce （Billions of Yen） Sales （YOY 114.6%） 44.3 38.6 30.5 22.6 17 Feb. 2016 Feb. 2017 Feb. 2018 Feb. 2019 Feb. 2020 Below these were only website products that most popular sales expansion in 4Q Only website products YOY 140％ Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 17
Slide 18: Deco home
Deco home Coordinate planning Product development IN BLOOM IN LOUNGE Cosmetic series “GUARDIO” Linking official website and EC website Official website EC website Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 18
Slide 19: N+ (N plus)
N＋（N plus） Brand concept For ma’am. “In your life, moreover, enjoy your color with your coordination.” Location and EC website ✓ Starting experimental stores mainly in the Kanto region. ✓ Starting the EC website. Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 19
Slide 20: Opening stores in Japan
Opening stores in Japan Noshiro(Akita) Fukuoka-minami (Fukuoka) Fushimi-mukaijima(Kyoto) Deco home rasora-sapporo Deco home mallage saga Hanazono-inter(Saitama) (Hokkaido) (Saga） Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 20
Slide 21: Renovation concept
Renovation concept Prototype counter Evolution of Evolution of department display methods purchasing methods 2 nd FY2020～ Accelerating standardization Feb 2020 Renovating Narimasu shop Feb 2019 ➢ Evolution of furniture & Hfa floor Renovating ➢ Evolution of purchasing methods Niiza shop ➢ Evolution o
Slide 22: Renovation (Narimasu)
Renovation（Narimasu） Prototype counter department Digital catalog Self check-out Displaying by coordination Concierge service for interior Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 22
Slide 23: Renovation in China
Renovation in china Renovating to flagship store at Xujiahui Success for re-writing of NITORI in China YOY 2 digits growth Renovating to standard store at Qibao Success for adapting of know-how NITORI in japan for China YOY 2 digits growth Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布
Slide 24: China (Japan & China project)
China（japan & china project） Issues of china Display Product HR methods Supply chain development Standard for KPI logistics roll-outing store EC Project completed as originally planned. In the next phase, it will be taken over by Japan HQ and assigned to each department in order to execute a global
Slide 25: Taiwan
Taiwan ①Renovation After trying a renovation of large store. ⇒Improved performance and big growth. Before renovation After renovation 台南頂美店 ②commonization×③optimization Counter products department marketing Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 25
Slide 26: NITORI's concept of ESG/SDGs
NITORI’s concept of ESG/SDGs Contributing various fields by leveraging our unique Biz model ex１）Reduction of environmental load in logistics process Improved loading efficiency by reducing product packaging size, as a results optimized delivery routes. ⇒Mitigating the impact of business activities o
Slide 27: Corporate governance
NITORI’s concept of ESG/ Corporate governance A corporate governance system that supports NITORI's strengths Mission・Vision Initiatives to address for A unique Biz model sustainable growth （ Over 30 Years long （NITORI Biz model*） term planning ） （ES） A corporate governance system One-third or more A
Slide 28: Award
Award Received the 8th Corporate Value Improvement Award, Excellence Award Award companies Award point （In front row to left ） To continuously utilize management goals ALL NIPPON AIRWAYS CO., LTD. and indicators that are conscious of Komatsu Ltd. capital productivity over the long term in order to i
Slide 29: FY2020 Initiatives to address growth
FY2020 Initiatives to address growth
Slide 30: FY 2020 NITORI ISSUES
FY 2020 NITORI ISSUES 1. Progressing of coordinate proposals and progressing of O2O 2. Developed Global Biz and expansion of Biz regions 3. Reinforcement for product development / production system / quality control system 4. Rebuilding domestic logistics bases 5. Optimization of HQ operations 6. De
Slide 31: Progressing of coordinate proposals
1(1/2). Progressing of coordinate proposals Furniture HFa （consuming by each life stage) (Increasing purchase frequency) Coordinating =Further demand awakening Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 31
Slide 32: Progressing of O2O
1(2/2). progressing of O2O One to one marketing make more pleasure our customers → Via more high-level system it possible for them EC website store coupon Extracting Big-Data Big- cutomer Data Feed-back catalog SNS Free Off-line DX magazines paper On-line Use Case ✓ Researching figure AI system Copy
Slide 33: Global Biz development and expansion of Biz regions
Global Biz development and 2. expansion of Biz regions Implement measures according to the market characteristics of each region and the growth stage For steady growth • Expansion of prototype counter department based on HFa standard store China experiment. • Standardization of shelving allocation,
Slide 34: Reinforcement for product development / production system
Reinforcement for product development / 3(1/2). production system / quality control system Reinforcement for product development / production system Vietnam’s Manufacturing Footprint Dining Mattress Annual production of 1 mil sets Dining chair [Ba Ria-Vung Tau + Hanoi] Target 1,000/day Copyright 202
Slide 35: Global quality control system
Reinforcement for product development / 3(2/2). production system / quality control system Global quality control system →Build a system for the most efficient quality activities Nitori USA Taiwan NCH NTI NTL affiliates globalization of reinforcement of training for the the provisions affiliates tec
Slide 36: Rebuilding domestic logistics bases
4. 1. Rebuilding domestic logistics bases 1. Concept of domestic base Including new and existing DC：11 sites 145 acre sites place / reorganization of function. In-house: Inc.4 sites 80 acre 2. Optimization of inventory and lead time Review the delivery method to the store and the delivery TC・XD：17 s
Slide 37: Optimization of HQ operations
5. Optimization of HQ operations Further utilization of DX Optimization via “speedup for operation” &“manpower saving” &“Automation” DX Use case ✓ Auto Store picking system ✓ Applied of RPA for routine work ✓ Applied of robot technology for Ba Ria-Vung Tau Copyright 2020 Nitori Holdings All Rights R
Slide 38: Developed human resource for the future
6. Developed human resource for the future Building a platform of a talent pool ✓ Supporting autonomous career building by linking individual orientations with in-house education (Nitori University) study recognize thinking observing Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 38
Slide 39: Store roll-out plan in FY 2020
Store roll-out plan in FY 2020 Store Total Taiwan USA China End of FY2019 ４４７ ９４ 4 ３０ ２ ３４ ６１１ Openings +２５ +２０ +６ +６ +１ +２ +６０ End of FY2020 ４７２ １１４ １０ ３６ ３ ３６ ６７１ China USA ＋２ ＋１ Taiwan Japan ＋６ ＋５１ Copyright 2020 Nitori Holdings All Rights Reserved ■不許複製印刷配布 39
Slide 40: Initiatives to address COVID-19
Initiatives to address COVID-19 Impact for supply chain Having been executing the following the item via owned our capabilities 1. Close cooperation with local suppliers by group companies in 8 countries and regions. 2. Building a product supply system that can maintain supply and demand. 3. Establi
Slide 41: Plan in FY 2020
Plan in FY 2020 （Billions of Yen） FY2020 FY2019 Change Plan Actual （to sales） (to sales) （to actual） Net sales 653.2 － 642.2 － 11.0 101.7% Gross profit 371.0 56.8% 354.3 55.2% 16.7 104.7% SG&A expenses 258.8 39.6% 246.8 38.4% 12.0 104.8% Operating income 112.2 17.2% 107.4 16.7% 4.8 104.4% Ordinary i
Slide 42: Distribution of Profits to Shareholders
Distribution of Profits to Shareholders Shareholders dividends increase for consecutive 16 fiscal years （Unit : Yen） 【FY2019】 108 115 Annual dividend：108 Yen / share（prev.FY+11Yen） Half-year dividend(Yen) Fiscal year-end dividend(Yen) 57 ※Adjusted stock splits 54 50 47 54 58 '05.2 '06.2 '07.2 '08.2
Slide 43: Cautionary notes on forward-looking statements
【見通しに関する注意事項】 本資料では、当社および関係会社の将来についての計画や戦略、業績に関する予想および見通しの記述が含まれています。こ れらの記述は過去の事実ではなく、当社が現時点で把握可能な情報から判断した仮定および所信に基づく見込みです。また、 経済動向や個人消費、市場需要、税制や諸制度などに関わるリスクや不確実性を含んでいます。それゆえ実際の業績は当社 の見込みとは異なる可能性のあることをご承知おきください。 本資料には監査を受けていない参考数値が含まれており、金額は億円未満切捨て、それ以外を四捨五入で表示しております。