Village Vanguard Co., Ltd. · TSE:2769
Village Vanguard — FY05/09 Earnings Presentation
50 slides from Village Vanguard's earnings presentation, May 2009
Slide 1: FY05/09 Results Presentation Materials
表紙ＶＶ FY05/09 Results Presentation Materials
Slide 2: Notes
Notes Any current plans, forecasts, strategy projections, expressions of confidence and other statements made by us in these materials, are premised on the information that was available at the moment of the initial publication and on models that depend on uncertain factors that could impact future
Slide 3: Table of Contents
Table of Contents Village Vanguard Corporation Titicaca Co., Ltd. 3)Problems and Solutions Portal P.24 1) Corporate Overview Portal P.34 1) Corporate Overview Portal P.3 ■ Theme 1 Over-Emphasis on P.35 P.4 P.25 ■ Corporate Overview ■ Corporate Overview Some Products P.36 P.5 ■ Stores from Outside ■
Slide 4: VV Corporate Overview
VV Corporate Overview 2009.5 P.3
Slide 5: Corporate Overview
Corporate Overview Name Village Vanguard Corporation Business Retail concept mixing books, SPICE (variety goods), and new media (CDs, DVDs) under the motto “Bookstore where you can have fun” Main Office 12-1 Kamikamoda Nagakuteaza Nagakute-cho Aichi-gun Aichi Tel 0561-63-3031 Representative
Slide 6: Our Principles
Our Principles 【 Raison D’etre 】 Our name is Village Vanguard and we are offering our customers a creative space that never existed before. Our customers will probably always demand from us to develop this unique space with power and grace. We cannot stand still. A lot is expected from us. 【 Code of
Slide 7: Business Introduction
Business Introduction ↑Standalone Store ← Shopping Mall Store ■Village Vanguard ■Diner Based on concept “Bookstore where you can have fun”. Combination of books, variety Hamburger shop modeled after an goods, CDs and other products are presented from an original point of view. American diner. ■new s
Slide 8: Product Development 1
Product Development 1 We offer our merchandise by creating original spaces in various locations inside a store, entertaining customers. ■ “Liquor” Themed Corner. 2009.5 P.7
Slide 9: Product Development 2
Product Development 2 2009.5 P.8
Slide 10: Product Selection
Product Selection We choose merchandise store by store, looking at our customers. Most popular items also differ from store to store. Shinjuku Lumine Fukuoka Daimyo Store America-Mura Store Store Rest of Japan ★Sign＝’Store Manager Recommends’ 1) Lover’s Diary 1)Dying in the Gutter Deluxe 1) Go Go!!
Slide 11: Sales Strategy
Sales Strategy Purchasing and sales authority is delegated to a store level Store =Marketing and Execution HQ = Control and Guidance Directly Experience Customer Decide on Suppliers and Price Responses Provide Information and Design Sales Area Guidance Decide on Purchasing Allocate Perso
Slide 12: Personnel Strategy
Personnel Strategy 人材戦略 Customer Part-Time Staff Full-Time Employees Secure staff with deep understanding of the company Give part-time staff purchasing authority Perform long term on-the-job training (OJT) 2009.5 P.11
Slide 13: Store Openings
Store Openings *Numbers in brackets are FC stores Total 312 Tohoku Area Hokkaido Area DM 31 FC 3 DM 283 DM 17 FC 2 Aomori VV 239 5 new style 25 Hokkaido Akita QK 10 19（2） Iwate 4 Diner 9 5 FC 29 Yamagata Miyagi 2（2） 6（1） Niigata 5 Fukushima Chugoku/Shikoku Area 2 Toyama Tochigi Ishikawa Gunma DM 35
Slide 14: Financial Results Parent (VV)
Financial Results Parent (VV) 2009.5 P.13
Slide 15: Results Trends
Results Trends Results Trends (In Million Yen) FY05/07 FY05/08 FY05/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 4,950 9,871 16,510 22,672 6,118 12,047 19,761 26,859 7,096 14,240 23,678 32,075 As % of Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Gross Profit 1,883 3,
Slide 16: Comparable Store Sales
Comparable Store Sales Comparable Store Sales (YoY) (%) September 2008 was the 1st negative month in 90 months 4 consecutive negative months from February to May 2009 FY05/05 FY05/06 FY05/07 FY05/08 FY05/09 2009.5 P.15
Slide 17: Sales by Store Age
Sales by Store Age 売上高前年比 Sales Growth YoY 106.0% 104.0% Comparable Store Sales Increased of 0.2% in FY05/09 102.0% 100.0% 98.0% 96.0% 94.0% >5 Years 4-5 Years 3-4 Years 2-3 Years 1-2 Years 5年以上 4～5年 3～4年 2～3年 1～2年 Store Age >5 Years 4-5 Years 3-4 Years 2-3 Years 1-2 Years <1 Year Number of 87 36 36
Slide 18: Sales by Format (1)
Sales by Format (1) ■ Village Vanguard Comparable Store Sales YoY ■ new style/QK Comparable Store Sales YoY Village Vanguard new style QK FY05/07 FY05/08 FY05/09 FY05/07 FY05/08 FY05/09 ■ Sales by Format (Village Vanguard/new style/QK） (Million Yen) FY05/07 FY05/08 FY05/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 19: Sales by Format (2)
Sales by Format (2) ■ Online “Comp Sales” YoY ■ Diner Comparable Store sales YoY Diner Online Impact of a month-long shutdown of the service year earlier FY05/07 FY05/08 FY05/09 FY05/07 FY05/08 FY05/09 ■ Sales by Format (Online / Diner) (Million Yen) FY05/07 FY05/08 FY05/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 20: Sales by Product Genre
Sales by Product Genre (Million Yen) FY05/07 FY05/08 FY05/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SPICE 3,518 6,980 11,775 16,051 4,304 8,381 13,927 18,938 5,109 10,352 17,454 23,764 As % of Total 71.1 70.7 71.3 70.8 70.3 69.5 70.5 70.5 72.0 72.7 73.7 74.1 Of which HQ sourcing Team - 1,227 - 2,727 73
Slide 21: Operating Profit Analysis
Operating Profit Analysis (Million Yen) 3,500 Increase in Operating Profit due to Contribution of Decrease in Operating Profit due to Lower Other New Stores (Stores Opened for Less than 13 Sales (Sales to Franchisees etc.)：-39 Million Yen Months)：61 Million Yen 39 61 3,400 3,300 299 359 3,200 3,100
Slide 22: Income Statement
Income Statement (Million Yen) FY05/07 (Actual Results) FY05/08 (Actual Results) FY05/09 (Actual Results) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3* Q4* Sales 4,950 9,871 16,510 22,672 6,118 12,047 19,761 26,859 7,096 14,240 23,678 32,075 As % of Plan - - - - - - - - - - 101.9 102.3 YoY (%) 122.3 122.1 124.6
Slide 23: Balance Sheet
Balance Sheet (Million Yen) FY05/07 (Actual Results) FY05/08 (Actual Results) FY05/09 (Actual Results) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Assets 11,537 12,267 11,965 12,961 12,972 14,725 14,604 15,310 15,839 17,742 18,323 18,895 As % of Total 83.1 82.0 81.9 79.2 79.6 81.1 81.0 81.4 81.4 79.
Slide 24: Cash Flow
Cash Flow (Million Yen) FY05/08 FY05/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash Flow from Operating Activities -586 459 328 1,076 -393 -565 -1,694 -669 Changes in Inventory 45 -1,055 -1,076 -1,126 -421 -2,766 -2,900 -3,107 Other -632 1,515 1,405 2,203 27 2,201 1,206 2,437 Cash Flow from Investing Activities 16
Slide 25: Problems and Solutions
Problems and Solutions 2009.5 P.24
Slide 26: Theme 1
Theme 1 Decreased individuality of merchandise selection and sales area design at each store •Myopic Pursuit of “Sales Efficiency” Instill the Principles in all ＶＶ Solutions staff members •Fewer motives to visit stores, such as “Joy of Customers Choosing”, “Excitement”, “Discovery” Introduce Introdu
Slide 27: Theme 2
Theme 2 Need to Strengthen HQ Functions as Business Grows Problems Solutions Sales Department ● Lack of communication between business Establish Three Department Structure units Project Team Structure ● Decreased levels Meeting of information Corporate sharing Administration Planning Department Depa
Slide 28: Theme 3 Inventory Control
Theme 3 Inventory Control 07/08 07/11 08/2 08/05 08/8 08/11 09/02 09/05 Cash Flow from Operating Activities -586 459 328 1,076 -393 -565 -1,694 -669 ■ Net Income Before Tax 691 1,276 2,373 2,917 744 1,116 2,276 3,149 ■ Change in Inventories 45 -1,055 -1,076 -1,126 -421 -2,768 -2,900 -3,107 Change in
Slide 29: Forecasts (VV Parent)
Forecasts (VV Parent) 2009.5 P.28
Slide 30: Store Opening Plan
Store Opening Plan FY05/08 FY05/09 FY05/10 Actual Results Actual Results Plan FY FY 1H 2H FY Openings 27 59 15 18 33 Village Vanguard 22 42 14 16 30 new style 3 8 0 0 0 QK 1 5 0 0 0 Diner 1 4 1 2 3 Closures 5 6 1 0 1 Village Vanguard 5 6 1 0 1 new style - - 0 0 0 QK - - 0 0 0 Diner - - 0 0 0 2009.5
Slide 31: Income Statement
Income Statement (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 6,118 12,047 19,761 26,859 7,096 14,240 23,678 32,075 8,170 15,980 25,950 35,879 As % of Plan - - - - - - - - - - - - YoY (%) 123.6 122.0 119.7 118.5 116.0 118.2
Slide 32: Balance Sheet
Balance Sheet (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Assets 12,972 14,725 14,604 15,310 15,839 17,742 18,323 18,895 19,016 20,422 19,987 21,401 As % of Total 79.6 81.1 81.0 81.4 81.4 79.8 80.4 80.2 80.4 81.6 81.6 82.
Slide 33: Cash Flow
Cash Flow (Million Yen) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash Flow from Operating Activities -393 -565 -1,694 -669 -38 157 -576 1,237 Changes in Inventory -421 -2,766 -2,900 -3,107 -96 -1,753 -1,606 -2,050 Other 27 2,201 1,206 2,437 58 1,910 1,029 3,287 Cash Flow from
Slide 34: Titicaca Co., Ltd.
表紙チチカカ Titicaca Co., Ltd. FY05/09 Results Presentation Materials Village Vanguard Corporation 2009.5 P.33
Slide 35: Corporate Overview (Titicaca)
Corporate Overview (Titicaca) 2009.5 P.34
Slide 36: Corporate Overview (Titicaca)
Corporate Overview (Titicaca) Name Titicaca Co., Ltd. Business Import and Sales of Ethnic Clothing and Variety Goods Main Office 2-2-3 Shin Yokohama Kohoku-ku Yokohama Kanagawa Prefecture Representative Director Hitoshi Kinami Incorporated July 2005 (Established May 1977) Capital 99 Mill
Slide 37: Titicaca Stores from Outside
Titicaca Stores from Outside Example of a Standalone Store Example of a Tenant Shop Using Vacated Pre-Existing Retail Space Large Scale Shopping Centers, “Fashion Buildings”, Rail Terminal Buildings Main Store Aeon Tsuchiura (Tokyo Shibuya) (Tsuchiura, Ibaraki Prefecture) Apparel Type Store Focusing
Slide 38: Inside Titicaca Stores
Inside Titicaca Stores 2009.5 P.37
Slide 39: Results and Forecasts (Titicaca)
Results and Forecasts (Titicaca) 2009.5 P.38
Slide 40: Business Results
Business Results (Million Yen) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 251 573 879 1,178 373 859 1,317 1,777 As % of Plan 100.0 98.4 97.7 96.6 - - - - YoY (%) 125.1 137.9 140.4 141.6 148.2 149.9 149.8 150.7 Operating Profit 10 36 43 36 20 61 83 84 As % of Plan 95.4 111.
Slide 41: Business Results
Business Results □ Addressing FY05/09 results topics: 1. Achieve Comparable Store Sales Targets ・ Better in-store displays ・ Better customer service As a first step to build Titicaca fan base, strengthen our stores by creating retail space suited to customer tastes and buying behavior, and improve c
Slide 42: Business Forecasts
Business Forecasts 1. Aim to Sustain 15% Growth in Comparable Store Sales 150 140 130 Acquisition 120 Announced 110 100 90 Start of AM System 80 Month of Acquisition Feb Jan Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May ‘07 ‘08 ‘09 YoY 105.2
Slide 43: Business Forecasts
Business Forecasts 2. From Crisis Management to Principles Based Management □ Measures Post Acquisition (May 2007) Crisis Management ＝ Stop Bleeding Red Ink (Issues and measures at time of acquisition. Main theme: Lack of sense of crisis within the organization) ・Sharing the annual recurring loss by
Slide 44: Business Forecasts
Business Forecasts □ Agenda for FY05/10 and Beyond Instilling Management Principles and Strengthening the Organization ◆ Instilling Management Principles ① Create Management Principles and work on instilling of these Principles in all employees to heighten their sense of belonging ② Build a company
Slide 45: Business Forecasts
Business Forecasts □ Agenda for FY05/10 and Beyond Instilling of the Management Principles and Strengthening the Organization ◆ Strengthening the Organization Sales ・Training of Area Managers ：Grow sales managers that can think and act autonomously ・Creating of Education Support Team ：Reinforce trai
Slide 46: Consolidated Results and Forecasts
Consolidated Results and Forecasts 2009.5 P.45
Slide 47: Income Statement (Consolidated)
Income Statement (Consolidated) (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 6,317 12,460 20,380 27,678 7,343 14,805 24,544 33,226 8,541 16,833 27,255 37,640 As % of Plan - - - - - - 101.8 102.1 - - - - YoY (%) - - - - 116.2
Slide 48: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million Yen) FY05/08 (Actual Results) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Assets 13,714 15,501 15,332 15,921 16,512 18,470 19,119 19,695 19,906 21,343 21,025 22,428 As % of Total 82.0 83.2 83.1 83.3 83.3 81.4 81.9 81.8 81.
Slide 49: Cash Flow (Consolidated)
Cash Flow (Consolidated) (Million Yen) FY05/09 (Actual Results) FY05/10 (Plan) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash Flow from Operating -419 -533 -1,758 -735 -119 159 -724 1,133 Activities Changes in Inventory -412 -2,783 -2,953 -3,203 -144 -1,837 -1,757 -2,253 Other -6 2,250 1,194 2,467 25 1,996 1,033 3,38
Slide 50: FY05/09 Results Presentation Materials
裏表紙 FY05/09 Results Presentation Materials