Slide 1: FY2016 (6/15-5/16) Results Explanatory Meeting
FY2016 (6/15-5/16) Results Explanatory Meeting July 14, 2016 The earnings forecasts appearing in this material are based on the business environment at the present time, and there is the possibility that actual earnings may differ from forecasts for various reasons. Furthermore, only inquiries in Ja
Slide 2: FY2016 (6/15-5/16) Results Explanatory Meeting
FY2016 (6/15-5/16) Results Explanatory Meeting ■FY2016 Consolidated Results 1. Profit and Loss Statement 2. Balance Sheet 3. Statement of Cash Flows 4. Changes in ROE 5. Changes in Dividend ■Results of a main business company 1. Profit and Loss Statement 2. New Store Openings 3. Renovation of existi
Slide 3: FY2016 Consolidated Results
FY2016 Consolidated Results (06/2015 – 05/2016) 3
Slide 4: 1. FY2016 Consolidated Profit and Loss Statement
1. FY2016 Consolidated Profit and Loss Statement FY2015 FY2016 (consolidated) (consolidated) YoY % of Share Share change adjustment in (million yen) (million yen) projection (%) (%) (%) (%) Net sales 213,918 100.0 231,892 100.0 108.4 99.9 Gross profit 57,516 26.9 63,423 27.4 110.3 100.2 SG&A expense
Slide 5: 2. FY2016 Consolidated Balance Sheet
2. FY2016 Consolidated Balance Sheet (million yen) Main causes of changes May 31, 2015 May 31, 2016 Change (consolidated) (consolidated) Total assets ・ Cash equivalent and accounts Total assets 88,767 99,334 +10,567 receivable +6,643 million yen ・ Merchandise +2,305 million yen ・ Opening new stores,
Slide 6: 3. FY2016 Consolidated Statement of Cash Flows
3. FY2016 Consolidated Statement of Cash Flows (million yen) Major breakdown FY2015 FY2016 Change (consolidated) (consolidated) ・ Net profit before taxes 13,906 million yen Cash flow from ・ Depreciation 2,942 million yen operating 11,811 11,843 +32 ・ Corporate taxes paid -5,029 million yen activitie
Slide 7: 4. Changes in ROE
4. Changes in ROE Intend IntendROE ROEMore MoreThan Than15% 15% Changes in ROE · operating profit margin operating ROE（%） profit margin （%） 2 0 .0 1 2 .0 18.6% 15.6% 14.8% 14.1% 1 5 .0 9 .0 14.4% ROE 13.5% 1 0 .0 6 .0 6.0% 5.5% 5.4% 5.5% 5.0% 4.6% 5 .0 3 .0 operating profit margin 0 .0 0 .0 FY2011 F
Slide 8: 5. Changes in Dividend
5. Changes in Dividend FY2016 FY2016performance performance Stable Stableand andSustainable Sustainable Dividend Dividendpayout payoutratio ratio18.2% 18.2% Increase Increasein inDividend Dividend Dividend DividendononEquity Equity 3.4% 3.4% Change in dividend per stock (yen) ・Conducted a stock spli
Slide 9: Results of a main business company
Results of a main business company 9
Slide 10: 1. FY2016 Profit and Loss Statement (Create SD)
1. FY2016 Profit and Loss Statement (Create SD) FY2015 FY2016 YoY % of Share Share change adjustment in (million yen) (million yen) projection (%) (%) (%) (%) Net sales 212,274 100.0 230,145 100.0 108.4 99.9 Gross profit 57,476 27.1 63,458 27.6 110.4 100.2 SG&A expenses 47,358 22.3 50,136 21.8 105.9
Slide 11: 2. New Store Openings
2. New Store Openings 28 28new newOTC OTCstores storesand and66ethical ethicalpharmacies pharmacies were wereopened opened (of (ofwhich which22were werededicated dedicatedprescription prescriptionpharmacies) pharmacies) New store openings by area Kanagawa Tokyo Shizuoka Chiba Other Total New stores
Slide 12: 3. Renovation of existing stores
3. Renovation of existing stores Expansion Expansionof ofmerchandize merchandizeandandrenovation renovationofof 21 21stores storesto toimprove improvefloor floorspace spaceallocation allocation ・・Introduction Introductionand andexpansion expansionof ofnew newmerchandize merchandizeincluding includin
Slide 13: 4. Sales
4. Sales The Thetop-line top-lineended endedat at+8.4%, +8.4%,boosted boostedby byexisting existingstores storesthat thatposted posted+3.5% +3.5% ・The ・Themain mainfactors: factors:+1.0% +1.0%increase increasein inthe thenumber numberof ofcustomers, customers, an anincrease increaseof of+1.4% +1.4%p
Slide 14: 4. Sales
4. Sales Traction Tractionexpertise expertiseof ofthe thepharmacy pharmacybusiness businessand andthe theconvenience convenienceof ofgrocery grocery FY2015 FY2016 YoY YoY Sales Share Sales Share change change (million yen) (%) (%) (million yen) (%) (%) Medical and health products 49,309 23.2 110.5 5
Slide 15: 5. Pharmacy department
5. Pharmacy department Existing tore sales rose +17.2% FY2016 ・Expanded remarkably as recognition rose against Share YoY the background of a large number of in-store change pharmacies handling mainly prescriptions issued (million yen) (%) (%) by multiple medical institutions ・Boosted by renovation a
Slide 16: 6. Gross profit margin
6. Gross profit margin Gross Grossprofit profitmargin margin27.6％ 27.6％ Previous Previousyear yeardifference difference++0.5pt 0.5pt Selling price measures ・・Gross Grossprofit profitof ofeach eachproduct productwas wascontrolled controlledby byEDLP EDLPwhile while restraining restrainingspecial spec
Slide 17: 7. Expense rate
7. Expense rate Expense Expenserate rate21.8％ 21.8％ Previous Previousyear yeardifference difference--0.5pt 0.5pt Cost Costof utilities ⇒ ofutilities ⇒--0.2pt 0.2pt ・Curbing ・Curbingelectricity electricityconsumption consumptionby byshifting shiftingstore storelighting lightingto toLED LED and andtak
Slide 18: Growth Strategy
Growth Strategy CREATE SD HOLDINGS
Slide 19: 1. New Store Openings
1. New Store Openings New Newdrugstores drugstores40 stores⇒ 40stores ⇒Previous Previousyear yeardifference difference+12 +12stores stores ・Opening ・Openingof ofstores storesin inKanto Kanto(mainly (mainlyin inKanagawa Kanagawaprefecture prefecture)) and andTokai Tokairegions regions ・Improve ・Impro
Slide 20: 2. Renovation of existing stores
2. Renovation of existing stores Existing Existingstores storesrenovated renovatedto toincrease increasethe theconvenience convenience30 30stores stores Expansion Expansionof ofthe thestore storethat thatcan canprovide providemore moreconvenience convenience in inaasmall smalltrade tradearea area ・・
Slide 21: 3. Efforts to improve productivity
3. Efforts to improve productivity Raise Raiseefficiency efficiencyby byexpanding expandingaacomputer-assisted computer-assistedordering orderingsystem system Not Notonly onlyshorten shortenthe thetime timefor forplacing placingorders ordersbut butalso alsoimprove improve the theaccuracy accuracyof
Slide 22: 4. Pharmacy efforts
4. Pharmacy efforts Expansion Expansionofofprescription prescriptionnumber numberofofpharmacies pharmacies dealing dealingwith withprescription prescriptionissued issuedby byaanumber numberof ofmedical medicalinstitutions institutions ・・Shorten Shortenwaiting waitingtimes timesby byimproving improvi
Slide 23: 4. Pharmacy efforts
4. Pharmacy efforts Control Controlof ofstock stock Utilize Utilizethe thelogistics logisticscenter centerto tooptimize optimizeinventories inventoriesin ineach eachstore store Corresponding Correspondingto tothe themedical medicalfee feerevision revision ・Raise ・Raisethe therate rateof ofgeneric ge
Slide 24: 5. Care Business
5. Care Business Fee-charging Fee-chargingNursing NursingHome Homebusiness business Improvement Improvementofofthe theoccupancy occupancyraterate by bystrengthening strengtheningsales salescapabilities capabilities ⇒ ⇒occupancy occupancyrate rate80% 80% Preventive PreventiveNursing Nursingbusiness b
Slide 25: 6. FY2017 Forecasts (Consolidated)
6. FY2017 Forecasts (Consolidated) FY2016 FY2017 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 231,892 100.0 247,700 100.0 106.8 Gross profit 63,423 27.4 67,730 27.3 106.8 SG&A expenses 49,469 21.3 53,030 21.4 107.2 Operatin
Slide 26: 7. Medium-term vision
7. Medium-term vision Line graph: Sales Bar chart: the number of stores (unit : hundred million yen) 800 4,000 3,500 Medium-term target 3,500 700 Number of stores 700 stores 3,000 600 Amount of sales 2, 318 2,500 3,500 2, 139 hundred million yen 500 1, 819 1, 974 700 Operating margin 2,000 6.0% or m