Arata Corporation · TSE:2733
Arata — FY2024 Earnings Presentation
23 slides from Arata's earnings presentation, May 2025
Slide 1: ARATA Corporation Fiscal Year Ending March 2025 Financial Results
DISCLAIMER This English document is translated using a machine translation. You may use this for reference purposes only, fully understanding that it may include inaccurate translations. It is your sole responsibility if you rely not on the Japanese original but on this translation. ARATA Corporatio
Slide 2: FY03/2025 Results
FY03/2025 Results Copyright ARATA Corp. All Rights Reserved 2
Slide 3: FY03/2025 Highlights
FY03/2025 Results ■ FY03/2025 Highlights In FY03/2025 Record highs for all sales and profits However, profits fell short of the target Downward revision of Ordinary income plan for FY03/2026 to JPY18 billion due to a review of strategy with a view to 2026 and beyond Aiming to Achieve the Target of O
Slide 4: Consolidated Statements of Income
FY03/2025 Results ■ Consolidated Statements of Income Record highs for all sales and profits FY03/2024 FY03/2025 Versus forecast YoY change Planning (Millions of JPY) Results Results Change Rate (%) Change Rate (%) Net sales 944,149 986,212 969,000 17,212 101.8 42,063 104.5 Gross profit 92,418 96,22
Slide 5: FY03/2025 Factors: Net sales
FY03/2025 Results ■ FY03/2025 Factors Net sales: Record highs for the 10th consecutive year Net sales: JPY986.212 billion YoY: +JPY42.063 billion 104.5% FY03/2025 Cumulative Net sales YoY 104.5% ・ Success of existing focus categories (H&B and pets) ・ Expand sales of exclusive and preferential distri
Slide 6: FY03/2025 Factors: Ordinary income
FY03/2025 Results ■ FY03/2025 Factors Ordinary income: Record highs for the 2nd consecutive year Ordinary income: JPY15.617 billion YoY: +JPY275 million 101.8% Gross profit: JPY96.221 billion YoY: +JPY3.803 billion 104.1% Gross margin: 9.76% YoY ▲0.03 points ・ Strong sales of exclusive cosmetics and
Slide 7: Net Sales by Category (YoY)
FY03/2025 Results ■ Net Sales by Category (YoY) (Millions of JPY) 350,000 306,722 FY03/2024 FY03/2025 300,000 289,806 250,000 105.8% 190,963 186,980 200,000 183,488 176,621 103.6% 138,960 150,000 104.1% 134,155 104.0% 105.9% 78,986 98.9% 100,000 75,957 63,586 62,886 100.9% 50,000 20,712 20,533 0 H&B
Slide 8: Net Sales by Business Category (YoY)
FY03/2025 Results ■ Net Sales by Business Category (YoY) (Millions of JPY) 600,000 511,201 FY03/2024 FY03/2025 494,582 500,000 400,000 103.4% 300,000 106.2% 200,000 140,479 101.0% 111.7% 132,287 110,088 109.3% 109,215 109,016 77,128 95.5% 97,802 100,000 70,584 39,875 38,099 0 Drugstores DIY stores S
Slide 9: Consolidated Balance Sheets
FY03/2025 Results ■ Consolidated Balance Sheets FY03/2024 FY03/2025 (Millions of JPY) (Millions of JPY) Current assets Current Current assets Current liabilities liabilities 242,745 233,705 158,961 170,647 76.6% 53.8% 75.0% 51.0% Long-term 36,209 Long-term 36,609 liabilities 11.6% liabilities 11.6%
Slide 10: Improve financial soundness and ensure profitability
FY03/2025 Results ■ Ratio of net worth and ROE Excluding the temporary impact of structural reforms of the manufacturer function 9.7~9.8% (%) Equity RatioTrends (%) ROE Trends 40 12 37.4 35.6 35.4 35.1 34.6 9.7 35 10 9.6 9.4 9.2 Because the growth in equity capital is 8.3 greater than the growth in
Slide 11: Shareholder Returns
FY03/2025 Results ■ Shareholder Returns Dividend policy: Aim for stable dividends and dividend increases while keeping in mind the dividend payout ratio of 30% FY03/2025: Interim JPY51, Term end JPY51, Total JPY102 (YoY +JPY9.5) 10th consecutive year of dividend increases FY03/2026 forecast: Interim
Slide 12: Progress of Medium-Term Management Plan 2026
Progress of Medium-Term Management Plan 2026 Copyright ARATA Corp. All Rights Reserved 12
Slide 13: Progress of Medium-Term Management Plan 2026
Progress of Medium-Term Management Plan 2026 Medium-Term Management Plan 2026 Strategy FY03/2025 Results Growth Strategy ・ Expand sales of exclusive and preferential - Expansion of H&B and pet categories distribution items - Strengthening Uniqueness by Expanding Monopoly and ・ Started new transactio
Slide 14: Deviations and delays from the plan ①: Review of manufacturer function strategy
Progress of Medium-Term Management Plan 2026 ■ Deviations and delays from the plan①: Review of growth strategy of manufacturer function Promoting Manufacturing function with the Aim of Expanding Domains Other than Wholesale Business as part of the Medium-Term Management Plan 2026 strategy Implemente
Slide 15: Deviations and delays: personnel and logistics costs
Progress of Medium-Term Management Plan 2026 ■ Deviations and delays from the plan②: Higher than expected personnel cost increase ・ Early implementation of improvement in employee salary levels as a means of strengthening human capital investment －In terms of salaries per regular employee compared t
Slide 16: Downward revision of consolidated earnings forecast for FY03/2026
Progress of Medium-Term Management Plan 2026 ■ Downward revision of consolidated earnings forecast for the FY03/2026 FY03/2026 FY03/2026 Change (Millions of JPY) Initial forecast Revised forecast Net sales 1,000,000 1,000,000 ±0 Operating income - 17,280 - Ordinary income 20,000 18,000 ▲2,000 Profit
Slide 17: Looking ahead to the Next Medium-Term Management Plan
Looking ahead to the Next Medium-Term Management Plan Copyright ARATA Corp. All Rights Reserved 17
Slide 18: Toward Ordinary income of JPY20 billion in 2027: Net Sales
Looking ahead to the Next Medium-Term Management Plan ■ Toward Ordinary income of JPY20 billion in 2027: Net Sales FY03/2025: Strong performance exceeding forecasts FY03/2026: Early achievement of JPY1 trillion, originally targeted for 2030 FY03/2027: Aiming for JPY1.05 trillion through further sale
Slide 19: Toward Ordinary income of JPY20 billion in 2027: SG&A expenses
Looking ahead to the Next Medium-Term Management Plan ■ Toward Ordinary income of JPY20 billion in 2027: SG&A expenses Delayed by 1 year from the initial plan due to a delay in implementation of IT Medium-Term Management Plan (%) Reduction in SG&A expenses by introducing IT Medium-Term Management Pl
Slide 20: Toward Ordinary income of JPY20 billion in 2027
Looking ahead to the Next Medium-Term Management Plan ■ Toward Ordinary income of JPY20 billion in 2027 FY03/2025: Target not achieved due to restructuring and revision of foundation strengthening FY03/2026: The Medium-Term Management Plan target of JPY20 billion was revised downward to JPY18 billio
Slide 21: Topics
Topics Copyright ARATA Corp. All Rights Reserved 21
Slide 22: ESG Key Points for FY03/2025
Topics ■ ESG Key Points for FY03/2025 ・ CDP response C rating (previous period) → B rating(current period) ・ Acquired “Kurumin” certification on January 31, 2025 Certified by the Minister of Health, Labour and Welfare as a child-rearing support company ・Certified as a “2025 Health and Productivity M
Slide 23: Cautionary Statement and IR inquiry addresses
Cautionary Statement with Respect to Forward-Looking Statements This material is solely for information purposes and should not be construed as a solicitation. This document (including the performance plan) has been prepared by us based on reliable information currently available, but it involves