Slide 1: FY2010 (6/09-5/10) Results Explanatory Meeting
FY2010 (6/09-5/10) Results Explanatory Meeting July 23, 2010 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: FY2010 Consolidated Results
FY2010 Consolidated Results 2
Slide 3: FY2010 Consolidated Profit and Loss Statement
1. FY2010 Consolidated Profit and Loss Statement FY2009 results FY2010 results (consolidated) (consolidated) Share Share YoY change % of projection (million yen) (million yen) (%) (%) (%) (%) Net sales 139,932 100.0 149,081 100.0 106.5 100.9 Gross profit 37,269 26.6 38,713 26.0 103.9 100.9 SG&A expe
Slide 4: FY2010 Consolidated Balance Sheet
2. FY2010 Consolidated Balance Sheet Main Maincauses causesof ofchange change (million yen) May 31, 2009 May 31, 2010 Change Total (consolidated) (consolidated) Totalassets assets Products +2,006 Products +2,006million millionyen yen Fixed Total assets 53,560 56,721 +3,160 Fixedassets assets +577 +5
Slide 5: FY2010 Consolidated Statement of Cash Flows
3. FY2010 Consolidated Statement of Cash Flows Breakdown Breakdown (million yen) FY2009 FY2010 Change (consolidated) (consolidated) Net Netprofit profitbefore beforetaxes taxes 7,404 7,404million millionyen yen Depreciation expenses 2,074 million yen Depreciation expenses 2,074 million yen Cash flow
Slide 6: Results for Each Business Company
Results for Each Business Company 6
Slide 7: FY2010 Profit and Loss Statement (Create SD)
1. FY2010 Profit and Loss Statement (Create SD) Both Bothsales salesand andprofits profitsdeclined declinedfor forvarious variousreasons reasonsincluding includingananincrease increaseininSG&A SG&Aexpenses expensesdue due to the Revised Pharmaceutical Affairs Act, sales decrease of flu related produ
Slide 8: Sales and Gross Profit
2. Sales and Gross Profit Create SD Prices Priceswere werelowered loweredas asconsumers consumersbecame becamemore moreprice priceconscious conscious For Forexisting existingstores, stores,sales salesfell fell1.8%, 1.8%,the thenumber numberof ofcustomers customersdeclined declined2.2%, 2.2%,and anda
Slide 9: Results by Segment
3. Results by Segment Create SD Gross Grossprofit profitmargin marginfell fell0.7 0.7percentage percentagepoints pointscompared comparedto tothe theprevious previousyear yeardue dueto tosales salesstrategy. strategy. Medical and health products Medical and health products Gross profit The gross prof
Slide 10: SG&A Expenses
4. SG&A Expenses Create SD SG&A SG&Aexpense expenseratio ratiorose rose0.6 0.6percentage percentagepoints pointsto to21.4% 21.4%from from20.8%. 20.8%. Rose Rose0.4 0.4percentage percentagepoints pointsyear yearon onyear yearafter afterthe theadjustment adjustmentfor forin-house in-house transactions
Slide 11: New Store Openings
5. New Store Openings Create SD 25 25new newstores storeswere wereopened Sales (of opened Salesrose rose6.0% 6.0% (ofwhich which33were werededicated dedicatedprescription year pharmacies) pharmacies) prescription yearon onyear year Store openings by area Figures in parenthesis are dedicated prescrip
Slide 12: Prescription Operations
6. Prescription Operations Create SD AAtotal totalof of41 41stores storesat atthe theend endof ofthe the 66new newstores storeswere wereopened opened fiscal year (3(3dedicated fiscal year dedicatedprescription prescriptionpharmacies pharmaciesand and33in- in- (12 (12dedicated dedicatedprescription p
Slide 13: Fee-charging Nursing Home and Preventive Nursing Business
7.Fee-charging Nursing Home Welllife and Preventive Nursing Business Two Twofee-charging fee-chargingnursing nursinghomes homeswith withcare carefacilities facilitiesand andtwo twoday dayservice servicecenters centerswere wereopened opened FY2010 results (April 1, 2009 - March 31, 2010) Share % of p
Slide 14: Growth Strategy
Growth Strategy CREATE SD HOLDINGS
Slide 15: Growth Strategy – Drug Store Operations
1. Growth Strategy – Drug Store Operations Firmly Firmlydominate dominatethe theKanto Kantoand andTokai Tokairegions regions ––focus focuson onKanagawa, Kanagawa,Shizuoka, Shizuoka,and andTokyo Tokyo–– Maintain the largest market share (number of suburban stores) in the three prefectures Create SD’s
Slide 16: Growth Strategy – Prescription Operations
2. Growth Strategy – Prescription Operations The Themission missionof ofaadrug drugstore storeisisto tocontribute contributeto tomedical medicaland andnursing nursingcare carein inthe the local localcommunity. community. Create CreateSD SDwill willbecome becomeaacompany companythat thatfirmly firmly
Slide 17: Growth Strategy – Nursing Operations
3. Growth Strategy – Nursing Operations Expand Expandrehabilitation-type rehabilitation-typeday dayservice service →→spin spinoff offthe thecompany companytotoaccelerate acceleratethe theopening openingof of new newstores stores Rehabilitation Rehabilitationday dayservices services Strength ＋ Dement
Slide 18: Create Group Medium-term Vision
4. Create Group Medium-term Vision Creating Creatingaasystem systemto tocontribute contributeto tosociety societyas asaacomprehensive comprehensivehealthcare healthcare support supportcompany companyinincooperation cooperationwith withcommunity communitymedical medicalfacilities facilities Operation
Slide 19: FY2011 Projection (Create SD – Drug Stores and Prescription Operations)
FY2011 Projection (Create SD – Drug Stores and Prescription Operations) (Thoughts on projections) YoY Change in sales and customers during 2010 (%) 105.0 Customers Net Netsales sales 100.0 Recovery Recoverytrend trendininApril Apriland andMay May2010 2010 →Major revision of sale price strategy →Majo
Slide 20: FY2011 Projections (Create SD – Drug Stores and Prescription Operations)
FY2011 Projections (Create SD – Drug Stores and Prescription Operations) FY2010 FY2011 (results) (projection) Share Share YoY change (million yen) (million yen) (%) (%) (%) Net sales 148,346 100.0 156,435 100.0 105.5 Gross profit 38,472 25.9 41,675 26.6 108.3 SG&A expenses 31,722 21.4 34,453 22.0 10
Slide 21: FY2011 Projections (Fee-charging Nursing Home and Preventive Nursing Business)
FY2011 Projections (Fee-charging Nursing Home and Preventive Nursing Business) FY2010 FY2011 (results) (projection) Share Share YoY change (million yen) (million yen) (%) (%) (%) Net sales 734 100.0 789 100.0 107.5 Operating profit 190 25.9 108 13.7 56.8 Recurring profit 187 25.5 106 13.4 56.7 Net p
Slide 22: FY2011 Projections (Consolidated)
FY2011 Projections (Consolidated) FY2010 FY2011 (consolidated results) (consolidated projection) Share Share YoY Change (million yen) (million yen) (%) (%) (%) Net sales 149,081 100.0 157,224 100.0 105.5 Gross profit 38,713 26.0 41,835 26.6 108.1 SG&A expenses 31,434 21.1 34,140 21.7 108.6 Operating