Edion Corporation · TSE:2730

Edion — H1 FY03/23 Earnings Presentation

25 slides from Edion's earnings presentation, Nov 4, 2022

  1. Slide 1: EDION Corporation Analyst Meeting 1H FY03/23

    EDION Corporation Analyst Meeting 1H FY03/23 November 4, 2022 © EDION Corporation

  2. Slide 2: Agenda of the Day

    ⽬ 次 Agenda of the Day 1. 1H FY03/23 Results 2. FY03/23 Earnings Forecast 3. Key Topics © EDION Corporation 1

  3. Slide 3: 1. 1H FY03/23 Results

    ⽬ 次 1. 1H FY03/23 Results © EDION Corporation 2

  4. Slide 4: Review of 1H FY03/23: YoY comparisons for all stores

    Review of 1H FY03/22 YoY comparisons for all stores (orders received at POS) YoY 前年⽐ Vs. 2018 (2018) コロナ前⽐ （％） % of FY03/22 sales % of FY03/19 sales 130 1H YoY 100.2％ (Vs. 2018 101.1％) 120 1Q YoY 101.6％ (Vs. 2018 108.8％) 2Q YoY 99.0％ (Vs. 2018 95.0％) 110.5 110.4 111.2 110 104.3 103.9 103.0 106.2 100

  5. Slide 5: Consolidated Statements of Income

    Consolidated Statements of Income 1H cumulative consolidated results are as follows 1H FY03/21 1H FY03/22 % of 1H % of 1H Million yen, % % of Sales Results FY03/20 % of Sales Results FY03/21 YoY Change Net Sales 348,768 91.2 351,115 100.7 2,346 Gross Profit 30.43 106,114 92.0 30.40 106,754 100.6 640

  6. Slide 6: 1H Earnings

    1H Earnings (JPYbn) （億円） 4,000 Consumption tax hike 80% stay-at-home demand 3,800 3,967 Net sales 70% 3,826 3,600 3,601 3,616 JPY351.1bn 60% 3,400 3,523 3,487 3,511 Impact (Before change from 50% in accounting 3,200 change in policy) JPY361.6bn accounting 40% 3,000 30.01% 29.41% 30.14% 30.43% 30.40%

  7. Slide 7: Sales by Product: TVs, White Goods, Air Conditioners

    Sales by Product (Monthly disclosure basis) % of 1H FY03/22; includes orders (orders received at POS) Vs. 2018 YoY 前年⽐ (for reference) コロナ前⽐ (2018) % of FY03/22 sales % of FY03/19 sales TVs White Goods Air Conditioners (Refrigerators, washing machines, cleaners) （％） （％） （％） 上期前年⽐ 85.2％ 1H YoY 85.2％

  8. Slide 8: Sales by Product: PCs, Mobile Phones, Home Improvement

    Sales by Product (Monthly disclosure basis) % of 1H FY03/22; includes orders (orders received at POS) Vs. 2018 YoY 前年⽐ (for 2018 Vs. コロナ前⽐ reference) (2018) % of FY03/22 sales % of FY03/19 sales PCs Mobile Phones Home Improvement (by units sold) (ELS Business) （％） （％） （％） 通期前年⽐ 95.2％ 1H YoY 95.2％ 20

  9. Slide 9: 1H Gross Profit Margin and SG&A Ratio

    1H Gross Profit Margin and SG&A Ratio 1 Gross profit margin 2 SG&A-to-sales ratio （％） （％） 31 29 30.43 30.40 30.01 30.14 28 27.6 27.5 30 29.41 27.0 27 26.7 Gross profit margin ︔ Change YoY: ▲0.03pp 29 25.8 26 28 25 1 FY03/19 2 FY03/20 3 FY03/21 4 FY03/22 5 FY03/23 1 FY03/19 2 FY03/20 3 FY03/21 4 FY03

  10. Slide 10: 1H Consolidated Balance Sheet and Statements of Cash Flows

    1H Consolidated Balance Sheet and Consolidated Statements of Cash Flows Consolidated Balance Sheet Consolidated Statements of Cash Flows （Million yen） （Million yen） End-March End-September YoY Change 1H FY03/22 1H FY03/23 2022 2021 Current Assets 190,597 197,196 +6,572 CFs from Operating △8,926 7,85

  11. Slide 11: 2. FY03/23 Earnings Forecast

    ⽬ 次 2. FY03/23 Earnings Forecast © EDION Corporation 10

  12. Slide 12: Consolidated Earnings Forecast

    Consolidated Earnings Forecast 1H 2H FY03/23 Million yen, % Results YoY Change Forecast YoY Change % of Sales Forecast % of FY03/22 YoY Change 351,115 95.4 384,884 105.5 100 736,000 103.1 +22,232 Million yen, % 106,754 95.3 109,545 105.8 29.4 216,300 103.2 +6,618 Net Sales 96,421 98.1 97,378 102.7 2

  13. Slide 13: Store Openings, Relocations, and Closings (Actual and Planned)

    Store Openings, Relocations, and Closings (Actual and Planned) Relocations and End-of-Period Store (stores) New openings Closures YoY Change Renovations Count FY03/22 Results Full-year 16 3 4 + 12 449 4 3 1 +3 452 1H Results (including two non-home FY03/23 Plan electronics stores) 2H Plan 1 ─ ─ +1 4

  14. Slide 14: 3. Key Topics

    ⽬ 次 3. Key Topics © EDION Corporation 13

  15. Slide 15: Key Topic: Corporate Reorganization

    ■Key Topic: Corporate Reorganization Reorganization effective October 1, 2021 to achieve the mid-term vision Sales Blocks Sales Division Divided Into Each Store Management Dept. 12 ・Product development ・Eliminate the previous management of subdividing the company into ・EC Enhancement six regional sa

  16. Slide 16: Key Topic: E-commerce Initiatives

    ■ Key Topic: E-commerce Initiatives 400 Growth Rate with Q1 FY19 as 100 374 381 381 Situation in the 1H of FY23 (YoY） 342 Refrigerators 204.5％ 350 312 309 Washing Machines 205.1％ 300 283 280 288 Microwave Oven 158.9％ In-house websites 250 250 Air Conditioners 133.9％ Reduced mall 200 store openings S

  17. Slide 17: Key Topic: Initiatives for the 2H of the Year

    ■ Key Topic ︓ Initiatives for the 2H of the Year (Responding to Inbound and Strengthen logistics in the Kanto Region) Population coverage to 100% Rising demand for e-commerce, strengthening service capabilities in the Kanto region ＳＣ● ★ＤＰ ●ＳＣ ★ＤＰ ★ＤＰ EDION Nanba main EDION Kyoto Shijō Kawaramachi ★Ｄ

  18. Slide 18: Key Topic: Stores That Can Respond to Changing Market Trends

    ■ Key Topic ︓ Stores That Can Respond to Changing Market Trends Large Urban Stores In-Shop Stores Suburban Stores Franchise Stores Strengths in store development tailored to dominant-formed customer needs We will strengthen product lineups, prices, and sales promotions tailored to each store and sce

  19. Slide 19: Key Topic: Work Style Reforms and Operational Efficiency

    ■ Key Topic ︓Implementing work style reforms by improving operations and operational efficiency Introduction of Reduction of time spent on creating Portable Terminal electronic pricing in-store prices Introduction Streamlining confirmation time Price guidance without error from the customer's point

  20. Slide 20: Key Topics: Initiatives with Nitori Holdings

    ■ Key Topics: Initiatives with Nitori Holdings × Total coordination of living space from the customer's perspective with highly compatible combinations Initiatives for mutual customer transfers between Opening of collaboration booth e-commerce sites ■ Mutual exchange of products and expansion The fi

  21. Slide 21: Key Topic: Sports Contribution Activities

    Key Topic ︓Sports Contribution Activities Yuki Kawata wins the recurve men's championship at Ai Hosoda placed 9th in the London Marathon 2022, the 70th All-Japan Businessmen's Archery the highest Japanese finish Competition ©2022 S.FC Sanfrecce Hiroshima October 22: Won the J.LEAGUE YBC Levain CUP W

  22. Slide 22: Key Topic: Energy Conservation Initiatives

    ■Key Topic ︓Energy Conservation Initiatives Reducing Electricity Usage to Cope with Rising Electricity Costs and High Resource Prices Turn off tower sign and wall sign lighting Partial light-out of store display items We will continue to work toward the effective use of limited resources © EDION Cor

  23. Slide 23: Strengthening of Sustainability Management: Toward Solving Social Issues

    Strengthening of Sustainability Management: Toward Solving Social Issues Intensification of Relevant Initiatives 1 Initiatives Targeting a Sound Material-Cycle Society 3 Toward Better Governance In pursuit of a sound material-cycle society, we actively ensure To ensure fair and impartial management

  24. Slide 24: Dividends and Share Prices

    Dividends and Share Prices While striving to improve capital efficiency, as measured through ROIC growth, we will focus on Interim 系列1 Year-end 系列2 系列3ratio Payout Forecast 取り組み強化 maintaining a sound and stable balance sheet. ¥50 dividend dividend 35.1% 32.2% 40.0% 33.6% 29.6% ¥45 30.8% 30.4% 35.0%

  25. Slide 25: Disclaimer

    Disclaimer • The financial forecasts and other forward-looking statements in these materials are based on judgment made under normally foreseeable conditions, in accordance with information reasonably available to the Company as of the date these materials were produced. • The forward-looking statem

EDION — H1 FY03/23 Earnings Presentation on 6ix