Belluna Co., Ltd. · TSE:9997
Belluna — H1 FY March 2019 Earnings Presentation
31 slides from Belluna's earnings presentation, Nov 22, 2018
Slide 1: Corporate Presentation – 1st Half ended September 30, 2018
CORPORATE PRESENTATION (1st Half ended September 30, 2018 for FY March 2019) Main catalog BELLUNA Net - Apparel stores 「BELLUNA」 Cosmetics mail order BELLUNA A mail order website 「OZIO」 Thursday, November 22, 0 2018
Slide 2: Contents
Contents 1.Financial Highlights P.2 2.Management Policies and Initiatives P.12 1
Slide 3: 1. Financial Highlights
1. Financial Highlights 1. Financial overview 2. Financial summary 3. Profitability by segment 4. Analysis of increases and decreases in sales 5. Analysis of increases and decreases in operating income 6. Balance sheet 7. Statement of cash flows 8. Plan for FY March 2019 2
Slide 4: 1-1. Financial overview
1-1. Financial overview Both net sales and profit ended higher than the forecasts. Net sales increased 5.7% year on year. Operating income decreased 9.0% year on year, but was 1.3% higher than the forecast. Ordinary income increased 19.6% year on year, to 6.62 billion yen, thanks to the contri
Slide 5: 1-2. Financial summary
1-2. Financial summary Net sales: Up 5.7% year on year to top the plan. Operating income: Decreased, but exceeded the overall forecast because Retail Store Sales and Specialty Mail Order and General Mail Order, etc. exceeded the forecast. Ordinary income: Results well in excess of the plan after exc
Slide 6: 1-3. Profitability by segment
1-3. Profitability by segment Net sales: Increased primarily thanks to strong results of the Specialty Mail Order and Retail Store Sales segments, which offset a decrease in the General Mail Order, Solution, and Property segments. Operating income: Increased in the Specialty Mail Order and Retail St
Slide 7: 1-4. Analysis of increases and decreases in sales
1-4. Analysis of increases and decreases in sales Sales in the Retail Store Sales segment increased chiefly based on the consolidation of Sagami Group Holdings Co., Ltd. Sales growth in the Specialty Mail Order was led by Ozio Co., Ltd. operating a cosmetics business. Factors for change in net sales
Slide 8: 1-5. Analysis of increases and decreases in operating income
1-5. Analysis of increases and decreases in operating income Income rose in the Specialty Mail Order segment thanks in particular to the growing profitability of Refre Co., Ltd.’s health food business and sales added by Ozio Co., Ltd. operating a cosmetics business. Meanwhile, the decline in income
Slide 9: 1-6. Balance sheet
1-6. Balance sheet Current assets rose, mainly reflecting increases in operating loans and merchandise and finished goods. Fixed assets increased, which was led particularly by growth in tangible fixed assets. Liabilities rose, chiefly due to an increase in interest-bearing liabilities. Unit: Billio
Slide 10: 1-7. Statement of cash flows
1-7. Statement of cash flows Cash flows from investing activities decreased, primarily due to the purchase of shares of subsidiaries. Overall, cash decreased by 4.42 billion yen as a result of an increase in long- and short-term loans payable. FY March FY March 2019/1H Unit: Billion Yen 2018/1H Actu
Slide 11: 1-8. Plan for FY March 2019
1-8. Plan for FY March 2019 Net sales and ordinary income reached the targets in the last two fiscal years. The results of operating income were also mostly as targeted. All items from net sales to net income are expected to reach the targets in the fiscal year ending March 2019. Unit: Billion Yen F
Slide 12: 1-8. Plan for FY March 2019 – Budgets by segment
1-8. Plan for FY March 2019 Operating income is expected to reach the target in the current fiscal year thanks to the steady progress in the General Mail Order segment, sales growth and an increase in profitability in the Specialty Mail Order segment. Budgets by Segment Unit: Billion Yen FY March 20
Slide 13: 2. Management Policies and Initiatives
2. Management Policies and Initiatives 1. General Mail Order Business 2. Specialty Mail Order Business 3. Retail Store Sales Business 4. Property Business 5. Development of New Businesses 6. Returns to shareholders 12
Slide 14: 2. Management Policy ~ External Environment
2. Management Policy ~ External Environment Our business plans respond to changes in the external environment (changes in the consumption environment and growth of Internet users). External environment Internal environment ・ Lingering deflationary ・ Maturity of portfolio mindset management ・ Slowdow
Slide 15: 2. Management Policy – 3rd and 4th Business Plan
2. Management Policy The fiscal year ending March 2019 is the final fiscal year of our 3rd Business Plan. To reach the targets for the fiscal year ending March 2019 and toward the 4th Business Plan Change in net sales 3rd Business 4th Business ・Working to achieve (billion yen) Plan Plan record-high
Slide 16: 2. Management Policy – Strengthen four businesses
2. Management Policy – Strengthen four businesses Expansion of four main businesses General Specialty mail order mail order 1. Expand the general mail order business Retail store Property sales in a stable manner. 2. Expand the specialty mail order business. 3. Expand the retail store sales business
Slide 17: 2-1. General Mail Order Business – Situation
2-1. General Mail Order Business （1）Situation of the general mail order business While some impact of the turmoil in the home delivery industry remains, we are implementing measures to increase growth potential and profitability and are developing a business platform for the 4th Business Plan 1. Str
Slide 18: 2-1. General Mail Order Business – Increase catalog-based sales
2-1. General Mail Order Business Increase catalog-based sales 4th Business Plan (final fiscal year) Aim to achieve net sales of 100 billion yen in the General Mail Order segment 1. Revive paper catalogs 2. Increase the exposure of paper catalogs 3. Increase product appeal 4. Carry out customer-orien
Slide 19: 2-1. General Mail Order – Strengthen operations via the Internet
2-1. General Mail Order Business Strengthen operations via the Internet Focus on the development of the platform for the 4th Business Plan 1. Introduce online-exclusive products 2. Continue to increase standard products 3. Improve production and operation 4. Online shopping mall (1) Develop systems
Slide 20: 2-1. General Mail Order – Synergy among catalog, Internet, in-store
2-1. General Mail Order Business Synergy among catalog, Internet, and in-store operations 1. Efficiency is improved reciprocally (among catalogs, Internet and in-store operations) through synergy. (1) Improved responses in mail ordering. Catalogs (2) Improved CVR in online operations. Collection and
Slide 21: 2-2. Specialty Mail Order Business
2-2. Specialty Mail Order Business Focus on the development of the Specialty Mail Order business. In particular, growth of the cosmetics mail-order business of Ozio Co., Ltd. is expected. Continue to improve domestic and overseas expansion. 6.7% 7.4% ■Net Sales 5.8% (Unit: Billion Yen) －Rate of oper
Slide 22: 2-2. Specialty Mail Order Business: Top Sales in Order
2-2. Specialty Mail Order Business ： Top Sales inOrder Specialty Mail Industry Ranked first in sales of mail-order wine for 10 consecutive years and mail-order Japanese sake for two consecutive years. (provided by Tokyo Shoko Research, Ltd. ) Highest domestic sales of mail-order Highest domestic sal
Slide 23: 2-3. Retail Store Sales Business: BANKAN Wamonoya
Stores selling kimono and Japanese-style goods 2-3. Retail Store Sales Business: (BANKAN Wamonoya Co., Ltd.） Opened three stores in the current fiscal year, and the total reached 82 stores as of the end of September 2018. While sales and income decreased in the first half, chiefly due to a delay in
Slide 24: 2-3. Retail Store Sales Business: Sagami GHD
Stores selling kimono and Japanese-style goods 2-3. Retail Store Sales Business: (Sagami GHD） Acquired shares in Sagami Group Holdings ＜Sagami Co., Ltd.＞ Co., Ltd,which sells kimono and Japanese- style goods, on June 22 and made it a consolidated subsidiary. Company name SAGAMI GROUP HOLDINGS Co., L
Slide 25: 2-3. Rebuilding of Sagami Group: 10% Operating Income Ratio
Stores selling kimono and Japanese-style goods 2-3. Retail Store Sales Business: (Sagami GHD） Rebuilding of Sagami Group: Aiming to Achieve 10% Operating Income Ratio Strategies: 1. Improve the mentality of employees 2. Balance the denominator and numerator 3. Return to a growth track 4. Restore the
Slide 26: 2-3. Retail Store Sales Business: Apparel stores
2-3. Retail Store Sales Business: Apparel stores Aim to operate 200 stores FY March 2019 30 stores Store opening plan FY March 2020 40 stores FY March 2021 50 stores FY March 2022 20 stores Achieve approximately +/- 10% of the target Net sales and operating income 90 －Number of stores ■Net Sales ■ O
Slide 27: 2-4. Property Business
2-4. Property Business Three hotels were opened in the current fiscal year. Maintaining balanced operation of the rental, hotel and development businesses. ＜Hotels that opened＞ July Le Grand GALLE July Le Grand Karuizawa Hotel＆Resort October The Westin Maldives Miriandhoo Resort ■Net Sales ■ Operati
Slide 28: 2-5. Development of New Businesses
2-5. Development of New Businesses 1.Horizontal development of nursing business ~Business development using databases~ （1）Recruiting agent service for nurses 2.Overseas development of Mini Belluna （1）Develop a Belluna business model that fits the local market For example, cosmetics, health food prod
Slide 29: 2-6. Returns to shareholders
2-6. Returns to shareholders We increased dividends by 2.5 yen. ＜ Annual dividends ＞ FY March FY March FY March FY March 2016 2017 2018 2019(Plan) EPS (yen) 36.45 59.68 99.41 107.99 Dividend (yen) 12.5 12.5 12.5 15.0 <Shareholder incentive program> ［Details］ 100 shares or more 500 shares or more 1,0
Slide 30: Summary
≪Summary≫ The fiscal year ending March 2019 is the final year of our 3rd Business Plan. We will work to further strengthen our business foundation. 29
Slide 31: Note
Note <Important notice> This material is prepared for the purpose of publicly disclosing information concerning the financial results of the 1st Half ended September 30,2018. Nothing in this document shall be considered to be an offer to sell or a solicitation of an offer to buy securities issued by