Edion Corporation · TSE:2730
Edion — FY03/23 Earnings Presentation
26 slides from Edion's earnings presentation, May 9, 2023
Slide 1: EDION Corporation Analyst Meeting FY03/23
EDION Corporation Analyst Meeting FY03/23 May 9, 2023 © EDION Corporation
Slide 2: Agenda of the Day
Agenda of the Day 1. FY03/23 Results Announcement 2. FY03/24 Earning Forecast 3. Key Topics © EDION Corporation
Slide 3: 1. FY03/23 Results Announcement
⽬ 次 1. FY03/23 Results Announcement © EDION Corporation
Slide 4: Review of FY03/23
Review of FY03/23 YoY comparisons for all stores (orders received at POS) YoY 100.0% （Vs. 2018 101.6%） （％） 120 1H YoY 100.2%（ Vs. 2018 101.1%） 2H YoY 99.7%（ Vs. 2018 102.2%） YoY Vs. 2018 111.2 111.4 110.5 110.4 110 107.6 104.3 106.2 104.6 103.9 103.0 101.5 102.8 103.0 97.8 100 99.7 94.0 97.8 98.0 97
Slide 5: Consolidated Statements of Income
Consolidated Statements of Income FY03/22 FY03/23 Million yen, % % of % of % of % of Results Results YoY Change Sales FY2021 Sales FY2022 Net Sales 100.0 713,768 92.9 100.0 720,584 101.0 6,816 Gross Profit 29.38 209,681 92.9 29.26 210.876 100.6 1,195 SG&A Expenses 26.7 190,884 96.0 26.6 191,690 100.
Slide 6: Earnings
Earnings (JPYbn) 8,000 Net Sales 80% stay-at-home demand Consumption 70% tax hike 7,500 7,681 JPY740.6bn Impact 7,406 60% 7,335 7,374 from (Before change in accounting policy) 7,000 7,186 7,205 change in 7,137 JPY720.5bn 50% accounting policy 40% 6,500 29.20% 28.71% 29.38% 29.38% 29.26% 30% GPM 6,00
Slide 7: YoY Comparison of Orders by Product: TVs, Air Conditioners
YoY Comparison of Orders by Product (orders acquired at POS) YoY Vs. 2018 （％） Compare to before TVs 140 128.8 the COVID-19 outbreak 124.9 117.0 112.7 YoY (full year) 120 105.0 111.8 103.3 103.2 105.8 100.9 88.4％ 100 94.3 88.9 Vs. 2018 102.4 80 94.9 93.7 93.2 105.9％ 88.9 86.0 90.2 90.1 90.0 81.4 77.7
Slide 8: YoY Comparison of Orders by Product: Refrigerators, Washing Machines
YoY Comparison of Orders by Product (orders acquired at POS) YoY Vs. 2018 Compare to before （％） the COVID-19 Refrigerators 130 126.9 outbreak 117.9 117.6 111.8 112.9 111.9 YoY (full year) 115 107.7 101.6 108.4 104.3 104.9 121.4 98.7 100.9 104.9％ 100 101.1 108.1 100.6 108.3 Vs. 2018 95.9 86.0 99.5 97
Slide 9: YoY Comparison of Orders by Product: PCs, Mobile Phones
YoY Comparison of Orders by Product (orders acquired at POS) YoY Vs. 2018 Compare to before （％） the COVID-19 outbreak PCs 130 119.9 112.2 121.2 111.5 111.5 115 108.2 106.0 107.3 YoY (full year) 97.9 100.5 101.5 107.6 109.0 106.7 102.2％ 100 91.8 94.5 100.2 104.2 106.7 Vs. 2018 85 94.3 Win8.1サポート終了 97
Slide 10: Home Improvement (ELS Business)
YoY Comparison of Orders by Product (orders acquired at POS) YoY Vs. 2018 Compare to before the COVID-19 （％） Home 139.4 135.3 138.6 139.4 outbreak 140 Improvement 131.9 132.3 126.7 127.5 126.6 123.5 123.9 (ELS Business) 120 132.7 116.0 116.3 111.9 107.8 122.5 YoY (full year) 116.4 108.3 93.3 108.5％
Slide 11: Analysis of Financial Impact (Gross profit margin and SG&A-to-sales ratio)
Analysis of Financial Impact (Gross profit margin and SG&A-to-sales ratio) 1 Gross Profit Margin 2 SG&A-to-sales Ratio （％） （％） 29 30 29.38 29.38 29.26 28 29.20 29 28.71 27.0 27 26.7 26.7 26.6 25.9 28 26 27 25 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 ▷ GPM: 29.2
Slide 12: Consolidated Balance Sheet and Consolidated Statements of Cash Flows
Consolidated Balance Sheet and Consolidated Statements of Cash Flows Consolidated Balance Sheet （Million yen） Shareholdersʼ Equity Ratio End-March End-March YoY 2022 2023 Change （％） Current Assets 190,597 185,739 △4,857 54.6 55 52.8 Property, Plant, and 125,504 122,126 △3,377 51.5 Equipment 50.1 50.
Slide 13: 2. FY03/24 Earning Forecast
⽬ 次 2. FY03/24 Earning Forecast © EDION Corporation
Slide 14: Consolidated Earnings Forecast
Consolidated Earnings Forecast 1H 2H FY03/24 Million yen, % Forecast YoY Change Forecast YoY Change % of Sales Forecast % of FY03/23 YoY Change Net Sales 367,000 104.5 378,000 102.3 100.0 745,000 103.3 +24,415 Gross Profit 111,600 104.5 106,750 102.5 29.31 218,350 103.5 +7,473 SG&A Expenses 98,600 1
Slide 15: Store openings, Relocations, and Closings (Actual and Planned)
Store openings, Relocations, and Closings (Actual and Planned) Relocations and End-of-Period New openings Closures YoY Change Renovations Store Count 1 1H 4 3 non-home electronics +3 452 stores) 3 FY03/23 Results 2H 1 - (including two non- △2 450 home electronics stores) Full-year 5 3 4 +1 450 １ FY0
Slide 16: 3. Key Topics
⽬ 次 3. Key Topics © EDION Corporation
Slide 17: Organizational Reform Through Restructuring of Subsidiaries
Organizational Reform Through Restructuring of Subsidiaries Reorganization of system business companies ▷In October 2022, we merged Hampstead Co., Ltd. with system subsidiary NWORK Corporation. Company name changed to EDION X Ventures Corporation Reorganization of Logistics business companies ▷Plann
Slide 18: Efforts to Improve Productivity
Efforts to Improve Productivity Promotion of Work-life Balance >Increase annual holidays to 113 days >Enhanced consecutive holidays system >Uniform bear-up for all employees >Strengthen work improvement to eliminate overtime hours ■Completed introduction of e- ■Renewal of personnel system price to a
Slide 19: Strengthen Service System
Strengthen Service System We place great emphasis on taking responsibility and helping customers use the products ■Promotion of air conditioner cleaning FY03/23 results Plan for FY03/24 220,000 units 300,000 units ■Strengthening the repair acceptance system Expansion of on-site チャット WEBﾌｫｰﾑ repair s
Slide 20: Home Improvement (ELS Business)
Home Improvement (ELS Business) Expanding the scale of sales with an awareness of quality improvement ■Outlet for EV/PHEV FY03/23 Sales Results JPY620bn （ orders acquired at POS ） (JPYbn) 620 572 521 521 483 440 Focusing on implementation of construction Currently Growing as training and expansion o
Slide 21: Programming Education Business
Programming Education Business Promote the opening of Changes in the number of students schools within EDION's 12,000 11,000 9,000 Target directly managed stores 9,000 7,000 5,528 281 6,000 5,000 4,500 155 3,000 3,500 Fiscal 2022 results︓ Plan 2025 (target)︓ 0 2019 2020 2021 2022 2023 2024 2025 Plan
Slide 22: EDION PB Brand Introduction
EDION PB Brand Introduction We Will Continue to Develop Products Developed from the Viewpoint of Our Customers ＋ Collaboration with NITORI HD to Create Attractive Stores Mutual product exchange and product lineup expansion © EDION Corporation 21
Slide 23: Introduction of a proposal corner with NITORI Holdings
with NITORI Holdings Introduction of a proposal corner to gain new experiences and impressions EDION Kurashiki (Okayama Prefecture) EDION Toyonaka (Hyogo Prefecture) EDION and NITORI Holdings will strive to create new value by leveraging each other's strengths. Expect inspiring results moving forwar
Slide 24: Strengthening of Sustainability Management: Toward Solving Social Issues
Strengthening of Sustainability Management: Toward Solving Social Issues Intensification of Relevant Initiatives 1 Initiatives Targeting a Sound Material-Cycle Society In pursuit of a sound material-cycle society, we actively ensure proper disposal of home electronics products covered by the Act on
Slide 25: Dividends and Share Prices
Dividends and Share Prices While striving to improve capital efficiency, as measured through ROIC growth, we will focus 中間 期末 記念 配当性向 取り組み強化 on maintaining a sound and stable balance 70 39.2% 45.0% 33.6% 35.1% sheet. 40.0% 60 30.8% 29.6% 30.4% 1. Dividend Policy 35.0% 50 EDION recognizes the return
Slide 26: Disclaimer
Disclaimer The financial forecasts and other forward-looking statements in these materials are based on judgment made under normally foreseeable conditions, in accordance with information reasonably available to the Company as of the date these materials were produced. The forward-looking statements