H2O Retailing Corporation · TSE:8242
H2O Retailing — Q3 FY2022 Earnings Presentation
18 slides from H2O Retailing's earnings presentation, February 2022
Slide 1: 3Q of FY2022 Presentation Materials
3Q of FY2022 Presentation Materials H2O RETAILING CORPORATION
Slide 2: Topics
Topics Ⅰ. Consolidated Financial Results Ⅱ. Forecast of FY2022 Copyright © H2O Retailing Corp. All Rights Reserved. 2
Slide 3: Ⅰ. Consolidated Financial Results
Ⅰ. Consolidated Financial Results １．Consolidated Financial Results ２．Results by segment ３．Department store business ４．Supermarket business ５．Extraordinary income and losses Copyright © H2O Retailing Corp. All Rights Reserved. 3
Slide 4: Ⅰ-1. Consolidated Financial Results
Ⅰ－１. Consolidated Financial Results ▶ Total sales increased due to sales growth in the department store business in the 3Q, when the number of infected people of COVID-19 was at a low level. Return to profitability in operating profit in 3Q total for the first time since FY2020 ▶ Significant growth
Slide 5: Ⅰ-2. Results by segment
Ⅰ－２. Results by segment ▶ Dpt. : Returned to the black due to a recovery in sales in 3Q ▶ SM : Profit level higher than before COVID-19 due to continued demand for eating at home ▶ SC : Profit increased due to H2O SC Development and Oi Development [improved operation ratio and cost reduction] Gross
Slide 6: Ⅰ-3. Department store business
Ⅰ－３. Department store business ▶ Returned to black due to sales recovery in 3Q ▶ Store closures and operational restrictions due to expansion of COVID-19 in 1Q and 2Q Business was generally normal in 3Q, when the number of infected people decreased. Performance recovery due to rising fashion demand
Slide 7: Ⅰ-3. Department store business
Ⅰ－３. Department store business ▶ Store closures and operational restrictions due to the 4th wave of COVID-19 outbreak(Apr.-May.) and the 5th wave(Jul.-Sep.) Infections have decreased since October, and domestic sales have remained at the same level as FY2019, before COVID-19 and tax increase. ▶ Sale
Slide 8: Ⅰ-4. Supermarket business
Ⅰ－４. Supermarket business ▶ Supermarket ：Sales increased and profit decreased ー Demand for eating at home settled down in 3Q when the number of infected people decreased. ー Hankyu Oasis : profit increased due to steady sales at existing stores and improved profit margins ー Izumiya : profit decreased
Slide 9: Ⅰ-5. Extraordinary income and losses
Ⅰ－５. Extraordinary income and losses ▶ Progressing on sales of non-current assets and investment securities as an initiative to improve asset efficiency in the mid-term management plan ▶ Loss related to COVID-19 of ¥4.0bn., including rent and personnel expenses during the store closure period Subsid
Slide 10: Ⅱ. Forecast of FY2022
Ⅱ. Forecast of FY2022 ▶ Sales increased due to business integration with Kansai Super Market ▶ Expectation of OP is at the same level as the initial forecast due to the severe sales forecast for existing businesses due to the rapid re-expansion of COVID-19 from Jan. 2022 ▶ Net income revised upward
Slide 11: Ⅱ. Forecast of FY2022
Ⅱ. Forecast of FY2022 ▶ Dept. : Return to black for full year despite uncertainty over the COVID-19 expansion Forecast assumptions: Domestic sales at existing stores have been over 90% of FY2019 levels since February ▶ SM : Kansai Super Market* was newly consolidated from 4Q. ＊Kansai Food Market, Ka
Slide 12: (Ref.) Management Integration with Kansai Super Market
（Ref.）Management Integration with Kansai Super Market Dec.15,2021 Feb.1,2022 Share exchange of Kansai Super Market Intermediate holding company with split New with Izumiya and Hankyu Oasis Kansai Super Market as a wholly owned subsidiary together with Izumiya and Hankyu Oasis. H2O H2O Retailing Reta
Slide 13: (Ref.) Scope of H2O Retailing's consolidated results
（Ref.） Scope of H2O Retailing’s consolidated results As of end of 3Q, only BS of Kansai Super Market and KSP is included in consolidated results. For 4Q, consolidated results include the results (Jan.-Mar.) of Kansai Food Market, Kansai Super Market, and KSP. Profit reflecting the share of voting ri
Slide 14: (Ref.) Scope of Kansai Food Market's consolidated results
（Ref.）Scope of Kansai Food Market’s consolidated results Until 2Q,consolidated results including Kansai Super Market and KSP. For 3Q,consolidated results including Izumiya and Hankyu Oasis (Apr.-Dec.) due to reverse acquisition occurred by share exchange. Only BS included in consolidated results as
Slide 15: (Ref.) Calculating goodwill for management integration
（Ref.）Calculating goodwill for management integration Calculating goodwill Kansai Super Market（KS）stock price 1,068 yen（End of Dec.2021） Market Value of Market Value of Net Book Value of IZ/OA KS KS ¥26.8bn. ¥26.8bn. （@1,068 yen✕25million stocks） ¥27.1bn. （Same as KS） H2O share Net Book H2O Consolid
Slide 16: (Ref.) Consolidated Result and Forecast FY22 of KFM
（Ref.）Consolidated Result and Forecast FY22 of KFM ▶ Consolidated result of Izumiya and Hankyu Oasis for 3Q (No relation to 3Q of FY2021 ） ▶ Kansai Super Market Business and KSP consolidated in only 4Q . Forecast of FY 2022 １-３Q Forecast of 4Q FY 2022 （Non-consolidated Total） （KFM consolidated） Anno
Slide 17: (Ref.) Result of Kansai Food Market subsidiaries (1-3Q)
（Ref.）Result of Kansai Food Market subsidiaries(1-3Q) Supermarket companies / 3Q cumulative total Not consolidated in KFM results Kansai Hankyu Kansai Super Market Izumiya Food Oasis Business Market （billions of yen） Total Amount YoY Amount YoY Amount YoY Amount Gross Sales 105,5 4.1％ 84.0 (0.6)％ 97
Slide 18: The information contained in this material reflects judgments made by H2O Retailing at the
The information contained in this material reflects judgments made by H2O Retailing at the time of preparing this material, and no guarantees are provided concerning the accuracy of the information. The information is also subject to change without prior notice. H2O and the information providers ass