Matsukiyococokara & Co. · TSE:3088
Matsukiyococokara & — H1 FY2021 Earnings Presentation
46 slides from Matsukiyococokara &'s earnings presentation, Nov 19, 2021
Slide 1: Financial Results for the Six Months Ended September 30, 2021
Financial Results for the Six Months Ended September 30, 2021 November 19, 2021 Copyright 2021 MatsukiyoCocokara & Co. MatsukiyoCocokara & Co. All rights Reserved.
Slide 2: Contents
Contents Management summery for First Half / Management policies for Second Half P.３ ～ P.６ Summary for First Half Results of former cocokarafine Inc. P.７ ～ P.９ Operating results for First Half / Forecasts for FY2021 P.10 ～ P.21 ・ Consolidated statement of income ・ Description of reportable segments
Slide 3: Management summary for First Half / Management policies for Second Half
Management summary for First Half Management policies for Second Half Copyright 2021 MatsukiyoCocokara & Co. All rights Reserved.
Slide 4: Management summary for First Half (Former Matsumotokiyoshi Holdings)
Management summery for First Half (Former Matsumotokiyoshi Holdings) Increase in Although sales hit a high hurdle due to the reactionary decline in demand for COVID-19 in the sales previous year, sales recovered mainly in urban stores, thanks in part to a recovery trend in traffic flow in downtown a
Slide 5: Management policies for Second Half (MatsukiyoCocokara & Co.)
Management policies for Second Half (MatsukiyoCocokara & Co.) By maximizing the strengths of both groups, we will aim to realize our group philosophy and vision. Initiatives leading up to Key Strategies management integration Japan Strategies April 1, 2020 Provision of values that correspond to the
Slide 6: Image of achieving management targets
Image of achieving management targets We aim to achieve our management targets based on the two axes of group growth and the realization of the federation concept. Group Management Targets for the Fiscal Year Ending March 31, 2026 The Group aims to achieve the following sales and profits in order to
Slide 7: Former cocokarafine Inc. Summary for First Half Results
Former cocokarafine Inc. Summary for First Half Results Copyright 2021 MatsukiyoCocokara & Co. All rights Reserved.
Slide 8: Summary of First Half Results (Former cocokarafine Inc.)
Summary of First Half Results (Former cocokarafine Inc.) Net sales ● Same stores struggled due to the prolonged impact of COVID-19. ● Net sales decreased by approximately 10 billion yen due to the impact of approximately 14 billion yen decrease in sales in the wholesale business. ● Net sales in the
Slide 9: Summary of First Half Results: Store changes
Summary of First Half Results (Former cocokarafine Inc.) Store changes Net increase in stores ● Openings：67 Closings：16 +51 ・Net increase of 50 pharmacies through M&As and the addition of pharmacies to drugstores Promote a comprehensive community care system by strengthening cooperation with local h
Slide 10: Financial Results and Forecasts
Financial Results and Forecasts Copyright 2021 MatsukiyoCocokara & Co. All rights Reserved.
Slide 11: Consolidated statement of income
Consolidated statement of income (Millions of yen) 1H FY2020 1H FY2021 YoY change % Net sales 267,637 277,003 3.5 Gross profit 83,716 86,705 3.6 SG & A 69,480 70,919 2.1 Operating profit 14,235 15,785 10.9 Ordinary profit 15,280 16,752 9.6 Profit attributable to owners of parent 9,548 10,305 7.9 Bas
Slide 12: Description of reportable segments
Description of reportable segments ■ Retail business (Millions of yen) Net sales (Millions of yen) Segment profit 300,000 30,000 250,000 Matsumoto- kiyoshi Retail 20,000 200,000 161,877 163,860 150,000 （＋1.2%） 9,778 100,000 10,000 8,184 Other Retail （＋19.5%） 50,000 98,160 99,378 6,683 6,634 （+1.2%）
Slide 13: Net sales by product
Net sales by product (Millions of yen) Total Gross profit 274,297 Net sales YoY change margin 264,905 Medical and Compo- sition pharmaceutical products 81,901 ＋8.2％ 42.3％ 28.6% 29.9 % Dispensing pharmacy sales increased due to an increase in the number of prescriptions in reaction to the previous ye
Slide 14: Non-operating income, Extraordinary profit
Non-operating income, Extraordinary profit (Millions of yen) Main factors for change 1H FY2020 (a) 1H FY2021 (a) YoY change Non-operating income ＋ 21 Operating profit 14,235 15,785 1,550 Gain on receipt of donated non-current assets ＋42 Dividend income ＋15 Non-operating Othe (34) income 1,299 1,320
Slide 15: Balance sheet
Balance sheet （Millions of yen） Total assets Total assets Current assets ＋ 6,573 368,936 373,765 Cash and deposits ＋4,581 Merchandise ＋2,098 Total Other ＋3,531 Notes and accounts receivable - trade (3,597) liabilities Current Total assets 125,956 Property, plant and equipment, Current liabilities (+
Slide 16: Statement of cash flows
Statement of cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Free cash flows Overview of cash flows for 1H FY2020 （Millions of yen） Cash flows from operating activities 17,774 Profit before income taxes 15,905 Depreciation 3,9
Slide 17: Store Openings, Closings, and Renovations
Store Openings, Closings, and Renovations End of March, 2021 End of September, 2021 (Unite : No. of stores) Number of stores Number of stores YoY change Openings Closings Renovations Others Group companies total 1,764 1,787 23 38 15 29 0 Matsumotokiyoshi Co., Ltd. 947 959 12 23 10 5 (1) Matsumotokiy
Slide 18: Consolidated statement of income (Former cocokarafine Inc.)
Consolidated statement of income (Former cocokarafine Inc.) (Millions of yen) 1H FY2020 1H FY2021 YoY change % Net sales 191,889 181,790 (5.3) Gross profit 53,705 57,763 7.6 SG & A 48,209 52,323 8.5 Operating profit 5,495 5,439 (1.0) Ordinary profit 6,583 6,459 (1.9) Profit attributable to owners of
Slide 19: Store Openings, Closings, and Renovations (Former cocokarafine Inc.)
Store Openings, Closings, and Renovations (Former cocokarafine Inc.) Openings, closings, and renovations of former cocokarafine stores End of March, 2021 End of September, 2021 (Unite : No. of stores) Number of stores Number of stores YoY change Openings Closings Renovations cocokarafine 1,461 1,512
Slide 20: Forecasts for FY2021 (April 1, 2021 to March 31, 2022)
Forecasts for FY2021 ( from April 1, 2021 to March 31, 2022) (Millions of yen ) FY2020 FY2021 change % change % change % 1H (a) (1) Full Year (a) (2) 1H (f) (3) 1H (a) (4) Full Year (f) (5) ( (4)/(3) ) ( (4)/(1) ) ( (5)/(2) ) Net sales 267,637 544,737 274,000 277,003 1.1 3.5 744,000 36.6 Gross profi
Slide 21: Dividends plan
Dividends plan Dividends per share trend (yen) Annual total (f) 70 70 Fiscal year-end 35 35円 35 35 35 35円 30円 30 Second 25円 30円 35円 quarter-end 30 35 35 35 25 FY2020(a) 17 18 19 20 21予想 FY2017(a) FY2018(a) FY2019(a) FY2021(f) Note : 1. The year-end dividend for fiscal year ending March 31, 2022 will
Slide 22: Key strategic themes
Key strategic themes Copyright 2021 MatsukiyoCocokara & Co. All rights Reserved.
Slide 23: Operating profit margin for 1H FY2020
Operating profit margin for 1H FY2020 Matsumotokiyoshi Holdings' operating profit margin in the first half was as follows. Matsumotokiyoshi's retail business operating profit margin, which had declined due to the stalling of inbound sales, improved to the 6% level. Matsumotokiyoshi Retail Other
Slide 24: Strategic themes for FY2021
Strategic themes for FY2021 The group's key strategic themes are as follows Japan Strategy “Provision of values that correspond to the life stages of customers” Pursuit of convenience – deeper ties with customers Pursuit of uniqueness – renewal of experience and service provisions Pursuit of special
Slide 25: Management strategy from bird's eye view
Management strategy from bird’s eye view In Japan, we will expand our business while enhancing our uniqueness, convenience, and specialization. Overseas, we will steadily implement our strategy to make a leap forward in after-coronavirus. Japan Overseas Pursuit of convenience, uniqueness, and specia
Slide 26: Digital Strategy
Digital Strategy Data from stores, e-commerce, and apps will be integrated and used for “own marketing," "PB product development," " ad serving business," and "new digital services. Accumulate member and product data How to use the data Stores Own marketing PB product development Data utilization Da
Slide 27: Membership size and composition
Membership size and composition The growth rate of digital members is higher than card members. The increase in the composition of digital members has led to an increase in the unit purchase price. Total number of contact points for Cocokrafine Inc. members 82.75 million as of the end of Sep. 2021 2
Slide 28: Sales of digital sales promotion and cost of analog sales promotion
Sales of digital sales promotion and cost of analog sales promotion Sales of digital sales promotion are increasing year by year. Sales of digital sales promotion In the first half of FY2021, it has also increased by more than 140% YoY. 1H FY2021 Cost of analog sales promotion 140% over YoY Cocokraf
Slide 29: National brand marketing (advertising business)
National brand marketing (advertising business) The company is engaged in the ad serving business for maker brands. Both the number of transactions and sales have been growing steadily, resulting in a high rate of return. 1H FY2021 Number of transactions 113% YoY Sales 106% Operating profit YoY marg
Slide 30: Private brands and new business models
Private brands and new business models The company has been promoting the development of private brands and specialized business formats. In the first half of FY2021, the ratio of private brand sales to total sales reached 12%, an improvement from the same period last year. PB product sales composit
Slide 31: Overseas business
Overseas business The number of overseas SNS followers is being maintained in order to recover inbound demand after coronavirus. Overseas stores have been affected by the closure, but sales have increased from the previous fiscal year. Number of overseas SNS followers Cross-border e-commerce sales E
Slide 32: Maximizing integration synergies
Overall picture of key strategies for maximizing integration synergies To maximize the integration effect, we will enhance our specialization and convenience at the point of contact with customers. Utilize digital to provide unique value to all stakeholders. Maximizing integration synergies × Conven
Slide 33: Appendix
Appendix Copyright 2021 MatsukiyoCocokara & Co. All rights Reserved.
Slide 34: Corporate profile
Corporate profile Trade name MatsukiyoCocokara ＆ Co． Address 1-8-2 Yushima, Bunkyo-ku, Tokyo Directors & Auditors Chairman, Representative Director Namio Matsumoto President, Representative Director Kiyoo Matsumoto Vice President, Representative Director Atsushi Tsukamoto Senior Managing Director, T
Slide 35: History of the management integration
History of the management integration Oct. 1, 2021 MatsukiyoCocokara ＆ Co． 1932 1954 Founded Matsumoto Pharmacy From private enterprise to as a privately-run enterprise incorporated body 2007 1937 Established Matsumotokiyoshi Holdings Co., Ltd. Established Segami Pharmacy 2008 Established Cocokara f
Slide 36: Philosophy, Vision, and Management Targets
Philosophy, Vision, and Management Targets Group Management Targets for the Fiscal Year Ending March 31, 2026 The Group aims to achieve the following sales and profits in order to become Asia's No.1 drugstore and establish a leading position in the health and beauty fields. Group net sales 1.5 trill
Slide 37: Group Symbol and Group Slogan
Group Symbol and Group Slogan Group Symbol The meaning of the Group symbol Based on our vision of “Making health and beauty more delightful and accessible,” we have created a motif based on the shape of the “&” in “MatsukiyoCocokara & Co.” to represent the smiles of all those stakeholders who encoun
Slide 38: Toward the implementation of sustainable management (Materiality)
Toward the implementation of sustainable management (Materiality) Materiality as the basis for the Employee growth Group's growth Enhancement of The source of our group's corporate value is governance and compliance our employees and their growth. We will To maintain and improve the efficiency and c
Slide 39: Net Sales by Product
Net Sales by Product Medical and pharmaceutical products Cosmetics (Billions of yen) (Billions of yen) Former Matsumotokiyoshi Holdings 149.6 170.8 177.3 160.8 137.3 2,000 2,000 142.4 145.1 153.5 135.2 138.7 1,800 1,800 1,600 1,600 55 57.3 53.2 1,400 1,400 1,200 58.2 59.3 62.7 67.7 1,200 45.5 45 1,0
Slide 40: Dispensing and nursing care
Dispensing and nursing care Dispensing Dispensing pharmacy (Billions of yen) (Stores) Former Matsumotokiyoshi Holdings Former cocokarafine Inc. 827 67.9 1,000 1,000 900 900 800 800 561 601 654 56.5 700 700 600 47.9 49.8 55.4 600 518 469 500 416 500 299 327 400 311 321 400 260 283 300 264 280 300 327
Slide 41: Stores by area, customer contact points, and PB product sales
Stores by area, customer contact points, and PB product sales Stores by area Customer contact points Group total 107.59 million （ As of Sep. 30, 2021 ） 3,299stores in Japan Total （ As of Sep. 30, 2021 ） Hokkaido Total Matsumotokiyoshi Tohoku (Million) Holdings cocokarafine Inc. 132 Total 107.59 82.7
Slide 42: 5 years full-years results (Former Matsumotokiyoshi Holdings)
5 years full-years results (Former Matsumotokiyoshi Holdings) Net sales and No. of stores Gross profit and gross profit margin (%) Operating profit and operating profit margin (%) 7,000 (Stores) 1,654 1,717 1,764 2,000 40.0 800 8.0 1,604 1,800 3,000 29.6 30.3 31.2 32.1 32.7％ 35.0 700 6.0 6.3 6.4 7.0
Slide 43: 5 years full-years results (Former cocokarafine Inc.)
5 years full-years results (Former cocokarafine Inc.) Net sales and No. of stores Gross profit and gross profit margin (%) Operating profit and operating profit margin (%) (Stores) 1,461 6,000 40.0 800 8.0 1,600 1,322 1,354 1,345 3,000 1,304 29.7％ 5,500 35.0 700 7.0 1,400 26.8 27.0 27.7 5,000 2,500
Slide 44: 5 years interim results (Former Matsumotokiyoshi Holdings)
5 years interim results (Former Matsumotokiyoshi Holdings) 58.2 Net sales and No. of stores Gross profit and gross profit margin (%) Operating profit and operating profit margin (%) 1,738 1,787 5,000 1,800 40.0 400 8.0 (Stores) 32.6 31.3％ 2,000 4,500 1,681 30.6 31.3 6.1 1,617 1,600 29.7 35.0 350 7.0
Slide 45: 5 years interim results (Former cocokarafine Inc.)
5 years interim results (Former cocokarafine Inc.) Net sales and No. of stores Gross profit and gross profit margin (%) Operating profit and operating profit margin (%) 5,000 (Stores) 1,800 40.0 400 8.0 2,000 4,500 31.8％ 1,512店舗 1,600 35.0 350 7.0 28.0 4,000 1,354 1,400 26.2 26.5 27.0 3,500 1,319 1,
Slide 46: Cautionary Statement
Cautionary Statement This document contains future outlooks such as plans, forecasts, strategies, and others which are not historical fact and these are made by the management’s judgement based on the obtainable information at the time of the disclosure. Actual results may significantly differ from
MatsukiyoCocokara & — H1 FY2021 Earnings Presentation on 6ix