Nitori Holdings Co. Ltd. · TSE:9843

Nitori — Q3 FY2016 Earnings Presentation

32 slides from Nitori's earnings presentation, Dec 22, 2016

  1. Slide 1: Financial Results Presentation for the Third Quarter of FY2016

    Nitori Holdings Co., Ltd. Financial Results Presentation for the Third Quarter of FY2016 December 22 , 2016 TSE Ticker Code : 9843

  2. Slide 2: Overview of Consolidated Financial Results

    Overview of Consolidated Financial Results （Billions of Yen） 1Q-3Q FY2016 1Q-3Q FY2015 Change 21 Feb. F b -20 20 Nov. N 2016 21 Feb. F b -20 20 Nov. N 2015 (to sales) (to sales) (YOY) Net sales 3 90 379.0 － 33 334.7 － 44.3 3 113.2％ Gross profit 207.1 207 1 54.7% 176.8 176 8 52.8% 30.3 30 3 117.2％ SG

  3. Slide 3: Consolidated Balance Sheets

    Consolidated Balance Sheets （Billions of Yen） 20 Nov. 20 Feb Major factors Change 2016 2016 on changes Current assets 151.3 129.9 21.4 (Cash and deposits) 56.8 42.3 14.5 Merchandise and (Inventory) 42.8 45.4 (2.6) finished goods (2.2) Non-Current assets 310.4 284.5 25.9 (Property plant and equipment

  4. Slide 4: Consolidated Financial Ratios

    Consolidated Financial Ratios 【1Q-3Q】 Equity ratio ROE 80.3% 13 6% 13.6% 77.9% 11.6% 76.5% 10.9% Nov. 2014 Nov. 2015 Nov. 2016 Nov. 2014 Nov. 2015 Nov. 2016 BPS EPS ¥430 ¥3,340 ¥3,015 ¥317 ¥2 731 ¥2,731 ¥289 Nov. 2014 Nov. 2015 Nov. 2016 Nov. 2014 Nov. 2015 Nov. 2016 Copyright 2016 Nitori Holdings A

  5. Slide 5: Comparable stores YOY highlights

    Comparable stores , YOY【1Q-3Q】 Sales※ １０７．３％ N off Customers No. C t １０７ ２％ １０７．２％ Average Spend per Customer １００．１％ Average Exchange Rate ¥１０５.５９/$ /$ Depreciation ¥ ７.５ ７ ５ bil. bil Capital p Investment ¥３１.３ bil. ※Sales＝Sales based on orders Copyright 2016 Nitori Holdings All Rights Reserved 5

  6. Slide 6: Trend in YOY changes in comparable stores

    Trend in YOY changes in comparable stores 【1Q-3Q】 （％） 【Sales , YOY】 ※Sales = Sales based on orders 115 110 107 3 107.3 104.0 103.3 101.4 105 100.2 00 100 95 90 【No. of Customers・Average Spend per Customer , YOY】 （％） No. of Customers Average spend per customer 115 110 104.4 107.2 105 103 6 103.6 103

  7. Slide 7: Quarterly trend in YOY changes in comparable stores

    Quarterly trend in YOY changes in comparable stores （％） FY２０１３ FY２０１４ FY２０１５ FY２０１６ 120 115 112.2 110 108 8 108.8 109 1 109.1 106.5 105.5 107.5 106.0 106.7 105.2 105.4 105 100 1 100.1 100 98 7 98.7 95 97.8 97.0 94.3 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sales Q1 2013 Q2 2013 Q3 2013 Q4 201

  8. Slide 8: Major factors on YOY changes

    Major factors on YOY changes Net sales （Billions of Yen） 【Net sales】 Amount YOY Gross profit Store sales ¥348.1 bil. 112.3% Gross profit margins E-commerce ¥16.5 bil. 133.1% SG&A ratio Corporate ¥6.3 bil. 105.0% 379.0 （＋13.2%） business sales Rent income ¥4.5 bil. 138.2% 334.7 Other ¥3.3 bil. 114.9%

  9. Slide 9: Results of Opening Stores (Q3 FY2016)

    Results of Opening Stores (Q3 FY2016) Nakameguro NITORI DECO HOME 12 stores 7 stores Miyagi 1 Hokkaido 1 Saitama 1 Tokyo 2 Tokyo 3 Hyogo 1 Kanagawa 1 Fukuoka 1 Shiga 1 Taiwan DECO HOME Shibuya Tokyu Toyoko 2 stores O k Osaka 3 Taipei 1 Kaohsiung 1 Nara 2 China Okayama 1 2 stores Nanjing 1 Kochi 1 Sh

  10. Slide 10: Stores

    No. of stores as of Nov. 20,2016 No. of No. of No. of Prefecture stores Prefecture stores Prefecture stores ４５９ Hokkaido H kk id Hokkaido 20 (+1) 20 (+1) ( 1) Yamanashi I hik Ishikawa 3 5 Shimane Hi Hiroshima hi 2 12 Stores Aomori 6 Toyama 4 Yamaguchi 5 Akita 4 Fukui 2 Kagawa 4 (+1) Iwate 3 Hokuriku

  11. Slide 11: Sales by region

    Sales by region E-commerce （％） Eastern 47.2 Western 42.6 Others Nov. 2016 5 06 5.06.0 0 30 3 30.3 5 7 10.4 5.7 10 4 15 6 15.6 7 8 9.0 7.8 9 0 4.5 4 5 5.7 57 E-commerce Eastern 52.6 Western 43.2 Others Nov. 2012 6.1 7.4 32.7 6.0 11.0 15.9 8.4 8.3 2.3 1.9 Eastern 56.1 Western 41.2 Nov. 2008 7.5 5.8 37

  12. Slide 12: Major indexes of management efficiency (1)

    Major indexes of management efficiency（1） Sco Num un pe ber Index it Target 2016.11 2015.11 2014.11 2013.11 2012.11 Over 1 Return on assets ％ 11 25％ ○ 11.25％ 16.2 13.6 15.0 15.4 16.7 Ti 2 Total asset turnover me s Over 1.5 × 0.86 0.80 0.87 0.93 0.92 Ordinary O di income i 3 ％ Over 10％ ○ 18.8 16.9 17

  13. Slide 13: Major indexes of management efficiency (2)

    Major indexes of management efficiency (2) Sco Num un pe ber Index it Target 2016.11 2015.11 2014.11 2013.11 2012.11 12 Sales per tsubo K Over ¥950K ○ 980 922 9 918 9 8 888 871 8 Ti 13 Stock turnover me Over 9 × 5.8 5.4 5.7 6.0 6.1 Sale of furniture and home furnishing s Operating assets Ti 14 turno

  14. Slide 14: TOPICS Q3

    TOPICS Q3 Q

  15. Slide 15: Product Development

    Product Development Sales Quantity (YOY) N-Warm Sales Expansion 141% zIncreased the volume of the moisture-absorbing-heat-releasing filling, resulting in increased heat-retention property p p y zMore variety of kids products and other Home Furnishing goods with N warm feature N-warm zAdded N-Warm se

  16. Slide 16: Product Development System Kitchen

    Product Development System Kitchen ¥159,000 59,000 (before tax/ installation, assembly, delivery fee is not included) y zSystem g kitchen with a high price-appeal on sale starting October zComes standard with a non- yp range filter-type g hood that realizes filter-maintenance-free z3 different workt

  17. Slide 17: Merchandise Branding Strategy

    Merchandise Branding Strategy Launched and on sale Copyright 2016 Nitori Holdings All Rights Reserved 17

  18. Slide 18: Good Design Award

    Good Design Award Awarded in 2 categories Light Karusara Bathrobe Robot Warehouse 〜Household Household goods & Daily necessities category〜 category 〜Space Space & Interior for business use category category〜 zGood at absorbing moisture and dry zAutomatic warehouse system that has fast, and soft to t

  19. Slide 19: Product Safety/Quality Improvement Initiatives

    Product Safety/Quality Improvement Initiatives Pre-production technical evaluation meeting zAssign a risk rating to the structural vulnerability Disassemble prototype to review the structure of the zDisassemble actual product y through zCheck the durability g a testing g equipment q p zAsk business

  20. Slide 20: Product Safety Award

    The FY2016 10th Best Contributor to Product Safety Award Awarded with 「The METI Ministerʼs Award」 for the first time Award Criteria zCommitment to ens ensuring ing safet safety as an integrated cooperative industry zCommitment to technical evaluation and accident prevention strategy zCommitment to t

  21. Slide 21: Corporate Business Sales, Products Development

    Corporate Business Sales, Products Development ー Examples of delivered goods Combining our specialties in product development and total coordination solution, we expand our service to healthcare providers Healthcare Providers Example① Healthcare Providers Example② Copyright 2016 Nitori Holdings All

  22. Slide 22: Logistics Measures

    Logistics Measures New large-scaled ProLogis Park（Rental） distribution center in Area：Approx. 130,000 ㎡ Osaka Start operating on Jan 2017（plan） Increase of stores in Kinki area and expansion of the online li b business i Centralization of distribution centers in Osaka, in order to improve logistics

  23. Slide 23: Urban Type Store Initiatives

    Urban Type Store Initiatives Introducing a new delivery system New Delivery System developed for urban type store that utilizes the automated storage system Before: On-site packing and shipment to customers for products purchased in-store Change After: Online stock utilization and straight shipment

  24. Slide 24: Opening Store at Central Tokyo

    Opening Store at Central Tokyo Shinjuku Takashimaya Times Square Store 12/1 OPEN Copyright 2016 Nitori Holdings All Rights Reserved 24

  25. Slide 25: Opening Store at Central Tokyo

    Opening Store at Central Tokyo Deco Home Shibuya Tokyu Toyoko Store 9/29 Ueno Marui Store 10/7 / Ikebukuro Sunshine City Store(expansion) 12/8 Copyright 2016 Nitori Holdings All Rights Reserved 25

  26. Slide 26: Opening Large-scale Store

    Opening Large-scale Store Kannana 12/8（7,000 ㎡） Kanpachi Yoga Store 12/8（6,500 ㎡） Umejima Store Firstt shared Fi h d commercial i l complex l with Ito Yokado 「Umejima j Shopping pp g Center」 Suminoe Store 11/3（5 400 ㎡） 11/3（5,400 Copyright 2016 Nitori Holdings All Rights Reserved 26

  27. Slide 27: Opening Stores in Small Market Area

    Opening Stores in Small Market Area AEON Nayoro Store (Hokkaido) 10/28 OPEN Rich line •Rich line-up up of home furnishing products •Emphasis on seasonal・ coordination products Frequency increase of Seiyu Nagahama Rakuichi Store（Shiga） 11/3 OPEN customersʼ store visit customers Be able to open stores

  28. Slide 28: Opening Stores in Taiwan

    Opening Stores in Taiwan First urban type 6 th Taipei Store 10/7 OPEN store in Taiwan 4 th Kaohsiung 11/11 5 th Kaohsiung 12/9 Store OPEN Store OPEN Copyright 2016 Nitori Holdings All Rights Reserved 28

  29. Slide 29: Opening Stores in China

    Opening Stores in China 1st Nanjing Store 9/28 OPEN 2nd Shanghai Store 10/30 OPEN Copyright 2016 Nitori Holdings All Rights Reserved 29

  30. Slide 30: Store roll-out plan in FY 2016

    Store roll-out plan in FY 2016 Store Total Taiwan USA China End of Q3 ３６７ ５１ ２６ ５ １０ ４５９ Ｑ4 ＋１０ ー ＋１ ー ＋１ ＋１２ net increase End of FY ３７７ ５１ ２７ ５ １１ ４７１ 2016 China ＋１ Japan Taiwan ＋１０ ＋１ Copyright 2016 Nitori Holdings All Rights Reserved 30

  31. Slide 31: Projection in FY 2016

    Projection in FY 2016 （Billions of Yen） FY 2016 , Projection FY 2015 Change （ sales） （to ） （ sales） （to ） （ （YOY） ） Net sales 500.0 － 458.1 － 41.9 109.1% Gross profit p 263.0 52.6% 243.5 53.2% 19.5 108.0% SG&A expenses 184.0 36.8% 170.5 37.2% 13.5 107.9% Operating income 79.0 15.8% 73.0 15.9% 6.0 10

  32. Slide 32: Disclaimer

    【DISCLAIMER】 Th forecasts The f andd projected j d operating i results l contained i d iin this hi report are b based d on iinformation f i available at the time of preparation, and thus involve inherent risks and uncertainties. Accordingly, readers are cautioned that actual results may differ mater

Nitori Holdings — Q3 FY2016 Earnings Presentation on 6ix