Slide 1: FY2014 (6/13-5/14) Results Explanatory Meeting
FY2013 (6/12-5/13) Results Explanatory FY2014 Meeting (6/13-5/14) Results Explanatory Meeting July 18, 2014 July 19, 2013 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 for
Slide 2: FY2014 (6/13-5/14) Results Explanatory Meeting
FY2014 (6/13-5/14) Results Explanatory Meeting ■FY2014 Consolidated Results 1. Profit and Loss Statement 2. Balance Sheet 3. Statement of Cash Flows ■Results for Each Business Company 1. Profit and Loss Statement 2. Sales by Segment 3. Sales 4. Gross Profit 5. SG&A Expenses 6. New Store Openings 7.
Slide 3: FY2014 Consolidated Results
FY2014 Consolidated Results (06/2013 – 05/2014) 3
Slide 4: 1. FY2014 Consolidated Profit and Loss Statement
1. FY2014 Consolidated Profit and Loss Statement Return on assets [ROA] 12.1% Return on equity [ROE] 13.5% FY2013 FY2014 (consolidated) (consolidated) YoY % of initial % of Share Share adjustment (million yen) (million yen) change projection in projection (%) (%) (%) (%) (％) Net sales 181,966 100.0
Slide 5: 2. FY2014 Consolidated Balance Sheet
2. FY2014 Consolidated Balance Sheet (million yen) Main causes of changes May 31, 2013 May 31, 2014 Change (consolidated) (consolidated) Total assets ・ Merchandise +2,047 million yen Total assets 74,795 81,140 +6,344 ・Opening new stores, etc. Fixed assets +4,475 million yen Current assets 45,020 46,
Slide 6: 3. FY2014 Consolidated Statement of Cash Flows
3. FY2014 Consolidated Statement of Cash Flows (million yen) Major breakdown FY2013 FY2014 Change (consolidated) (consolidated) ・Net profit before taxes 9,327 million yen ・Depreciation 2,300 million yen ・Corporate taxes paid 4,735 million yen Cash flow from operating 8,001 7,249 -752 activities ・ In
Slide 7: Results for Each Business Company
Results for Each Business Company 7
Slide 8: 1. FY2014 Profit and Loss Statement (Create SD)
1. FY2014 Profit and Loss Statement (Create SD) FY2013 FY2014 % of YoY % of initial adjustment Share Share (million yen) (million yen) change projection in (%) (%) projection (%) (%) (％) Net sales 180,709 100.0 195,841 100.0 108.4 100.5 100.6 Gross profit 48,426 26.8 51,908 26.5 107.2 100.0 100.6 SG
Slide 9: 2. Sales by Segment
2. Sales by Segment Create SD FY2013 FY2014 YoY YoY Sales Share Sales Share change change (million yen) (%) (million yen) (%) (%) (%) Medical and health products 41,184 22.8 109.2 44,629 22.8 108.4 (O T C) 32,958 18.2 106.9 34,170 17.5 103.7 (Prescription) 8,226 4.6 119.8 10,458 5.3 127.1 Cosmetics
Slide 10: 3. Sales
3. Sales Create SD For existing stores, sales 101.1%, number of customers 100.0% year on year ・Strengthening of prices for daily necessities such as daily foods and daily products ・Review of point-system sales promotion and implementation of measures to increase the number of customer visits before
Slide 11: 3. Sales
3. Sales Create SD Modification of sales promotion methods Steep reduction in costs through in-house production of the reward card system in 2012. Decrease in the rate of point use due to abolition of reward coupon distributed each 400 points ※Old reward card ※Point ticket ※Current reward card Distr
Slide 12: 3. Sales
3. Sales Create SD 2. Promote the renovation of existing stores the remodeling of 52 stores Number of in-store pharmacies Addition of the specialty to stores ⇒ 12 stores Adjustment of the sales floor Change to a sales floor makeup matching the sales makeup Addition to the production line-up and impr
Slide 13: 3. Sales
3. Sales Create SD 3. Increasing the number of stores that offer a home delivery service for customers FY2013 148 stores FY2014 49 stores introduction 197 stores The ratio changes after purchase product delivery service introduction in earlier period of sales amount of the shop in progress for six m
Slide 14: 4. Gross Profit
4. Gross Profit Create SD Original plan ratio, 100.0%. Rose 7.2% year on year The first half year Implementation of initiatives to increase sales and the number of customers by strengthening of prices for daily necessities with a high consumption frequency (mainly daily foods, beverages, and daily p
Slide 15: 5. SG&A Expenses
5. SG&A Expenses Create SD 2.6% higher than forecast. Plan difference +1,109 million yen Personnel expenses 0.9% higher than forecast. Plan difference +189 million yen (Rose 9.6% year on year) ・Increase in man-hours in response to the consumption tax increase ・Increase in man-hours due to response t
Slide 16: 5. SG&A Expenses
5. SG&A Expenses Create SD Repair expenses 53.3% higher than forecast. Plan difference +262 million yen (Rose 45.2% year on year) ・ Advance investment for switch to LED lighting for stores Supplies expenses 37.3% higher than forecast. Plan difference +247 million yen (Rose 36.7% year on year) ・Sales
Slide 17: 6. New Store Openings
6. New Store Openings Create SD 42 new OTC stores and 26 ethical pharmacies were opened (of which 2 was dedicated prescription drug store) New store openings by area Kanagawa Tokyo Shizuoka Chiba Aichi Other Total New stores OTC 19 16 2 2 2 1 42 13 6 1 1 2 1 24 in-store opened in pharmacies FY2014 d
Slide 18: 7. Prescription Operations
7. Prescription Operations Create SD 26 new stores opened 113 stores at the end of FY2014 (24 in-store pharmacies and 2 dedicated (88 in-store pharmacies and 25 prescription drug store) dedicated prescription drug stores) Store distribution of Kanagawa In-store pharmacies OTC stores Rate of pharmacy
Slide 19: 7. Prescription Operations
7. Prescription Operations Create SD Existing stores comparisons FY2014 YoY Sales 16.0% Share (million yen) (%) change Prescriptions 7.1% (%) Sales in prescription operations and the number of Net sales 10,458 100.0 127.1 prescriptions issued Bar graph: Sales Graph: Number of prescriptions issued (u
Slide 20: 8. Assisted-living Fee-charging Nursing Home and Preventive Nursing Business
8. Assisted-living Fee-charging Nursing Home Well life SALON DAY and Preventive Nursing Business Action of the pay nursing home business ・Large-scale renewal of "well Haym Tokyo" ・Switch to flexible pricing Action of preventive nursing business ・Upbringing and fixation of the talented person by the
Slide 21: 9. Social Contribution and Regional Contribution
9. Social Contribution and Regional Contribution Social contribution “Let’s walking” event ・Holding in three areas outside Kanagawa Prefecture ・Holding of health counseling at sites near the finish line Clean campaign in Kataseenosima ・Clean-up of shorelines in cooperation with public service founda
Slide 22: Growth Strategy
Growth Strategy HOLDINGS
Slide 23: 1. Growth Strategy – Create SD
1. Growth Strategy – Create SD New development program ■42 new drug stores ・Develop stores with focus on Kanagawa, Tokyo, and Shizuoka ■28 in-store pharmacies ・Addition of the specialty to OTC stores ・Achieve 25% of rates of the drugstore establishment of the OTC stores ■5 dedicated prescription dru
Slide 24: 1. Growth Strategy – Create SD: Business policy
1. Growth Strategy – Create SD Business policy 100.3% or more increase in sales year on year OTC stores ・Improving product line-up and addition of a new article ・75 remodeling stores ・Delivery service for customers Prescription drug stores ・Improvement in waiting time for receipt of prescription med
Slide 25: 1. Growth Strategy – Create SD: Profit improvement
1. Growth Strategy – Create SD Profit improvement ■Review of the sales promotion ・New sales promotion offering incentives for good customers ・Flyers sales promotion ・EDLP sales promotion ・Sales promotion at the time of the new store opening ■Development of new private-brand products and renewal of e
Slide 26: 1. Growth Strategy – Create SD: Cost control
1. Growth Strategy – Create SD Cost control ■Utilities expenses ・Complete an LED change of the store illumination in July to down the running cost ■Store-opening costs ・Review of building specifications and interior decoration / decoration specifications ・Reduction of the equipment procurement cost
Slide 27: 1. Growth Strategy – Create SD: New action
1. Growth Strategy – Create SD New action 1. Improve services by making use of the EC website Provide goods including those that are not sold at the stores, targeting the reward card members ・Grant points in the same way when customers purchase goods at stores ・Allow customers to receive purchased g
Slide 28: 1. Growth Strategy – Create SD
1. Growth Strategy – Create SD 2. Introduce the application of the assist ordering system into all sections storewide ・Alleviation of the burden of ordering work ・Prevent a stock out ・Rationalization of inventories ・Alleviation of replenishment work By these effects… ・ Improvement of the customer sa
Slide 29: 1. Growth Strategy – Create SD
1. Growth Strategy – Create SD 3. The new action in merchandising ・Introduction of the sum side dish ・Introduction experiment of the hot snack 4. New approaches to sales promotion utilizing smartphones ・Experiment of the "LINE@" sales promotion ・Introduction experiment of "The prescription applicati
Slide 30: 2. Care Business
2. Care Business Preventive nursing business ■Opening of 10 centers Long-term care support center, 2 establishments Number of facilities, users change Number of users Number of facilities ■Profit improvement 50 45 3,000 ・Switch from “10 capacity system" 40 2,054 2,500 35 to "15 capacity system" 30 1
Slide 31: 3. Create SD Medium-term Vision
3. Create SD Medium-term Vision Decreasing birthrate of the population when aging, "a post-baby boom generation" becomes 75 years old or older in 2025, and a market changes around an urban area In aged society, our company add specialty and convenience as a business model of the narrow commercial do
Slide 32: 4. FY2015 Forecasts (Consolidated)
4. FY2015 Forecasts (Consolidated) FY2014 FY2015 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 197,483 100.0 216,200 100.0 109.5 Gross profit 52,004 26.3 57,652 26.7 110.9 SG&A expenses 42,997 21.8 47,407 21.9 110.3 Operatin