Aoki Holdings, Inc. · TSE:8214
Aoki — H1 FY3/13 Earnings Presentation
60 slides from Aoki's earnings presentation, Nov 22, 2012
Slide 1: Performance Briefing for the First Half of FY Ending March 2013
Performance Briefing for the First Half of the Fiscal Year Ending March 31, 2013 November 22, 2012 AOKI Holdings Inc.
Slide 2: Contents
Contents AOKI Group's Business Portfolio Management 3 Anniversaire and Bridal Business Performance and Forecast 31 Business Portfolio Comprised of Three Segments 4 Features and Position within Industry 32 First Half of FY3/13: Ongoing Success with Business Portfolio 5 First Half of FY3/13 Review of
Slide 3: AOKI Group's Business Portfolio Management
AOKI Group’s Business Portfolio Management
Slide 4: Business Portfolio Comprised of Three Segments
Business Portfolio Comprised of Three Segments Anniversaire and Bridal Fashion Business Business Entertainment Business Promoting the pleasure of dressing well Choreographing special events where Offering entertainment and relaxation The AOKI Group's founding business. customers are in the spotlight
Slide 5: First Half of FY3/13: Ongoing Success with Business Portfolio
First Half of FY3/13: Ongoing Success with Business Portfolio Targets met in all business segments; Group sales and profits up Sales Operating Profit Sales rose in all business segments The Fashion and ANNIVERSAIRE/Bridal Businesses contributed to profits (Millions of yen) (Millions of yen) 70,000 6
Slide 6: Business Portfolio Sustaining Growth
Business Portfolio Sustaining Growth Group targeting record sales and operating profit, just as in FY3/12 Sales Operating Profit (Millions of yen) (Millions of yen) 160,000 16,000 155,830 154,900 15,200 150,000 15,000 146,591 14,600 140,000 14,000 13,766 130,0000 13,0000 FY3/12 FY3/13 FY3/13 FY3/12
Slide 7: Stepping up Expansion of Business Portfolio: 100 New Stores Planned
Stepping up Expansion of Business Portfolio: 100 New Stores Planned Fashion Business Plans for new stores AOKI ORIHICA (Stores) 1. Store openings in areas not yet entered 60 AOKI 2. Solidify dominant position in areas where demand for suits is strong 40 17 1. Solidify dominant presence in Tokyo and
Slide 8: AOKI Group's Target Benchmarks
AOKI Group's Target Benchmarks AOKI Group aims to achieve the following targets over the medium term FY3/12 FY3/13 Plan Medium-term Target Benchmark Benchmark Benchmark Operating margin 9.4% Operating margin 9.8% Operating margin 11.0% ROA 8.5% ROA 9.2% ROA 10.0% EPS ¥167.07 EPS ¥197.98 EPS ¥250 ×10
Slide 9: First Half of FY3/13 Review of Operations
First Half of FY3/13 Review of Operations
Slide 10: Consolidated Profit and Loss
Consolidated Profit and Loss (Millions of yen) Account/Period 1H FY3/12 1H FY3/13 Change YoY % Major Components Increase in existing-store sales and Sales 61,945 67,425 5,479 108.8 contributions from new stores in each business segment Gross profit 27,349 30,836 3,487 Improvement in 1.0pt at Fashion
Slide 11: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment Sales by business segment (Millions of yen) Business segment 1H FY3/12 1H FY3/13 Change YoY % Major Components Total 61,945 67,425 5,479 108.8 Fashion Increase in existing-store sales and contributions from 36,698 40,227 3,529 109.6 new stores Anniversa
Slide 12: Major Changes in Consolidated Balance Sheets
Major Changes in Consolidated Balance Sheets (Millions of yen) Account/Period FY3/12 1H FY3/13 Change Major Components Current assets 52,924 44,493 -8,431 Decreased due to capital investments and Cash in hand and in banks 23,108 16,858 -6,250 payment of income taxes Inventories 16,058 17,936 1,878 I
Slide 13: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) Account/Period 1H FY3/12 1H FY3/13 Change Major Components Increase in net income ¥673mn Cash flows from operating Decrease in accounts receivable-trade ¥1,216mn activities 3,245 -9 -3,254 Decrease in accounts payable-trade ¥4,839mn Increase in
Slide 14: Number of Stores Opened/Closed
Number of Stores Opened/Closed (Millions of yen excluding number of stores) 1H FY3/12 1H FY3/13 Segment Stores/Facilities Number of Number of Opened Closed Opened Closed Stores Stores AOKI 428 4 3 442 10 8 Fashion ORIHICA 79 12 3 98 8 1 Anniversaire and Bridal ANNIVERSAIRE 13 1 - 13 - - Karaoke COTE
Slide 15: FY3/13 Sales and Earnings Forecast
FY3/13 Sales and Earnings Forecast
Slide 16: Consolidated Forecast
Consolidated Forecast (Millions of yen) FY3/13 Account/Period FY3/12 Change YoY % Major Components (forecast) Contributions from new stores (100 Sales 146,591 155,830 9,238 106.3 stores) in each business segment Gross profit 68,902 74,600 5,697 Improvement in 0.6pt at Fashion Gross profit margin 108
Slide 17: Forecast for Sales and Operating Profit by Business Segment
Forecast for Sales and Operating Profit by Business Segment Sales by business segment (Millions of yen) Business segment FY3/12 FY3/13 (forecast) Change YoY % Total 146,591 155,830 9,238 106.3 Fashion 94,252 99,400 5,147 105.5 Anniversaire and Bridal 23,437 24,120 682 102.9 Entertainment (Total) 28,
Slide 18: Outlook for Store Openings/Closings
Outlook for Store Openings/Closings (Millions of yen excluding number of stores) FY3/12 FY3/13 (forecast) Segment Stores/Facilities Number of Number of To be To be Opened Closed Stores Stores opened closed AOKI 440 16 3 460 28 8 Fashion ORIHICA 91 25 4 107 17 1 Anniversaire and Bridal ANNIVERSAIRE 1
Slide 19: Fashion Business
Fashion Business FY3/13 First-half Performance and Full-year Forecast
Slide 20: Fashion Business: First Half of FY3/13 Review of Operations
Fashion Business: First Half of FY3/13 Review of Operations Sales and profits increased due to sales growth at existing stores, openings of 18 new stores, and improvement in gross profit margin Sales Operating profit/ (Millions of yen) (Millions of yen) Operating margin Sales up 9.6% YoY 1,200 Chang
Slide 21: Existing-store Sales Growth, Customer Volume and Sales per Customer
Fashion Business: First Half of FY3/13 Review of Operations Existing-store Sales Growth, Customer Volume and Sales per Customer Strong existing-store sales due to an increase in sales per customer on higher demand for suits and formal wear FY3/13 YoY Change in Monthly Performance Apr-May: Jun-Jul: C
Slide 22: AOKI: First-half Initiatives and Performance
Fashion Business: First Half of FY3/13 Review of Operations AOKI: First-half Initiatives and Performance Achieved sales growth on store openings and coordinated marketing activities (coordination of product, sales promotions, visual merchandising, and marketing) for core products Initiatives Perform
Slide 23: ORIHICA: First-half Initiatives and Performance
Fashion Business: First Half of FY3/13 Review of Operations ORIHICA: First-half Initiatives and Performance Polished product mix and styling proposals, opened 8 new stores (including newer format) Initiatives Performance Strengthened lineup of Super Cool Biz items Higher sales per customer on strong
Slide 24: AOKI: Second-half Initiatives-1
Fashion Business: FY3/13 Full-year Earnings Forecast AOKI: Second-half Initiatives-1 Strengthen marketing and the lineup of core products, and expand market share through aggressive new store openings Strengthen lineup of suits and coordination to meet the needs/wants of customers, and the changing
Slide 25: AOKI: Second-half Initiatives-2
Fashion Business: FY3/13 Full-year Earnings Forecast AOKI: Second-half Initiatives-2 Strengthen marketing and the lineup of core products, and expand market share through aggressive new store openings Strengthen lineup and proposals of CAFÉ SOHO products to respond to the trend toward more casual bu
Slide 26: AOKI: Second-half Initiatives-3
Fashion Business: FY3/13 Full-year Earnings Forecast AOKI: Second-half Initiatives-3 Strengthen marketing and the lineup of core products, and expand market share through aggressive new store openings Further strengthen ladies' products Designs created by Akiko Ogawa Silhouette that looks beautiful
Slide 27: AOKI: Second-half Initiatives-4
Fashion Business: FY3/13 Full-year Earnings Forecast AOKI: Second-half Initiatives-4 Strengthen marketing and the lineup of core products, and expand market share through aggressive new store openings Strengthen store openings Plans to open 28 stores (vs. 25 initially) Develop stores with standard o
Slide 28: ORIHICA: Second-half Initiatives
Fashion Business: FY3/13 Full-year Earnings Forecast ORIHICA: Second-half Initiatives Upon achievement of 100-store network, we will continue to open new stores but also prepare the environment to standardize stores Propose styles and prepare core products for “mixing and matching” for business and
Slide 29: Fashion Business: FY3/13 Full-year Earnings Forecast
Fashion Business: FY3/13 Full-year Earnings Forecast FY3/13 Full-year Earnings Forecast Forecast sales and profit increase due to contributions from newly opened stores and improvement in gross profit margin Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 5.5% Y
Slide 30: AOKI wins top industry awards in customer satisfaction survey
Fashion Business AOKI wins top industry awards in Japan's largest customer satisfaction survey Takes first place in five categories for suit retailers 1st Place 1st Place 1st Place 1st Place 1st Place Customer Customer Referrals Aesthetic quality Aesthetic value satisfaction expectations Recommendat
Slide 31: Anniversaire and Bridal Business
Anniversaire and Bridal Business FY3/13 First-half Performance and Full-year Forecast
Slide 32: Provides Anniversaire-Style Weddings Mainly in Major Cities
Anniversaire and Bridal Business: Features and Position within Industry Provides "Anniversaire"-style Weddings Mainly in Major Cities Manage 13 facilities and 35 halls Metro area: 7 facilities Nagano Omiya Omotesando, Toyosu, Tokyo Bay, Tachikawa Hills Yokohama Fukuoka Kashiwa Kobe Osaka, Esaka Shir
Slide 33: Anniversaire and Bridal: First Half Review of Operations
Anniversaire and Bridal Business: First Half of FY3/13 Review of Operations Sales rose and profits also rose sharply due to an increase in the number of married couples and average sales per couple, and improvement in gross profit margin Operating profit/ Sales Operating margin Sales up 4.1% YoY (Mi
Slide 34: Performance Benchmarks
Anniversaire and Bridal Business: First Half of FY3/13 Review of Operations Performance Benchmarks 1H FY3/12 1H FY3/13 Change YoY % No. of facilities at period- end 13 13 - - No. of wedding/reception halls at period-end 35 35 - - No. of couples married 2,612 2,670 +58 102.2% Capacity utilization rat
Slide 35: Measures to Strengthen Existing Facilities
Anniversaire and Bridal Business: First Half of FY3/13 Review of Operations Measures to Strengthen Existing Facilities Renovation of 4 facilities in response to customer needs and recent wedding trends Tachikawa (1 hall): Crystal decorations, furniture, antechamber, etc. Kobe (1 hall): Design on wal
Slide 36: Anniversaire and Bridal: FY3/13 Full-year Earnings Forecast
Anniversaire and Bridal Business: FY3/13 Full-year Earnings Forecast Forecast sales and profit increase from higher number of couples married and average sales per couple, and improvement in gross profit margin Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 2.9
Slide 37: Plan to Open Japan's Largest Wedding Facility in February 2014
Anniversaire and Bridal Business: Efforts Targeting Growth Plan to Open Japan's Largest Wedding Facility in February 2014 Overview of planned facility Facility name: ANNIVERSAIRE MINATO MIRAI YOKOHAMA Address: Shinko 2-chome, Naka-ku, Yokohama, Kanagawa Facility scale: five above-ground floors, two
Slide 38: Entertainment Business
Entertainment Business FY3/13 First-half Performance and Full-year Forecast
Slide 39: Karaoke Facility Features: Facilities Based on a Clear Concept
Karaoke Facility Operations: Facility Types Facility Features: Facilities Based on a Clear Concept Various types of "communication space" Regular room Ladies’ room Family room Party room Online darts Relaxing space for tomorrow's dynamism COTE D'AZUR, a karaoke and party facility that draws inspirat
Slide 40: Karaoke: First Half of FY3/13 Review of Operations
Karaoke Facility Operations: First Half of FY3/13 Review of Operations Results largely as planned: sales up on new store openings, profits down on higher refurbishing expenses and other overhead Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 5.8% YoY New store
Slide 41: Karaoke: Conditions at Existing Stores
Karaoke Facility Operations: First Half of FY3/13 Review of Operations Conditions at Existing Stores Monthly trend in sales growth (%) 40 Jul-Aug: Customer traffic Sales Customers Sales per customer declined due to the London Olympic Games, fireworks 30 festivals in various locations, and other even
Slide 42: Karaoke: FY3/13 Full-year Earnings Forecast
Karaoke Facility Operations: FY3/13 Full-year Earnings Forecast Forecast sales and profit increase due to contributions from new store openings and higher sales at existing facilities Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 7.6% YoY New store openings pa
Slide 43: Café Complex Facility Features: Facilities Based on a Clear Concept
Café Complex Operations: Facility Types Facility Features: Facilities Based on a Clear Concept For friends For singles and couples Reclining seat Massage seat Full flat seat Sofa seat For families and groups Pair flat seat Online darts Extreme relaxation close at hand Living room Café complex "KAIKA
Slide 44: Café Complex: First Half of FY3/13 Review of Operations
Café Complex Operations: First Half of FY3/13 Review of Operations Results largely as planned: sales up on new store openings and higher existing- store sales, profits down on higher store opening expenses Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 15.2% Yo
Slide 45: Café Complex: Conditions at Existing Stores
Café Complex Operations: First Half of FY3/13 Review of Operations Conditions at Existing Stores: Sales have remained on an uptrend since June 2010 Monthly trend in sales growth (%) 16 Jul-Sep: Customer traffic Sales Customers Sales per customer increased for escaping 14 the summer heat. 12 10 8 6 4
Slide 46: Café Complex: FY3/13 Full-year Earnings Forecast
Café Complex Operations: FY3/13 Full-year Earnings Forecast Forecast sales and profit increase due to contributions from new store openings and higher sales at existing facilities Operating profit/ Sales Operating margin (Millions of yen) (Millions of yen) Sales up 16.0% YoY New store openings: 40 (
Slide 47: Creating a New Market by Aggressively Opening New Stores
Café Complex Operations Creating a New Market by Aggressively Opening New Stores No. of stores at period-end Maintaining pace of at least 20 store openings a year 211 172 Store openings 133 152 103 110 89 59 42 49 26 18 25 21 20 40 7 7 11 10 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY
Slide 48: Supplementary Documents
Supplementary Documents Notes on pages 49 and 51: 1. Net income per share: Net income divided by average number of common shares outstanding (excluding treasury stock). 2. All amounts are rounded down to million yen. 3. The total operating profit for each segment and operating profit do not match du
Slide 49: First Half of FY3/13 Consolidated Business Results
First Half of FY3/13 Consolidated Business Results (Millions of yen unless otherwise stated) 1H FY3/12 1H FY3/13 1H FY3/13 % % % YoY change YoY % Results Plan Results Sales 61,945 100.0 66,650 100.0 67,425 100.0 5,479 108.8 Fashion 36,698 100.0 39,650 100.0 40,227 100.0 3,529 109.6 Anniversaire/Brid
Slide 50: First Half of FY3/13 Major Expenses
First Half of FY3/13 Major Expenses SG&A Expenses (Millions of yen unless otherwise stated) 1H FY3/12 Results 1H FY3/13 Results Anniversaire Café Anniversaire Total Fashion / Bridal Karaoke Complex Total Fashion /Bridal Karaoke Café Complex YoY % YoY % YoY % YoY % YoY % Advertising expenses 3,696 2,
Slide 51: Full-year FY3/13 Consolidated Forecast
Full-year FY3/13 Consolidated Forecast (Millions of yen unless otherwise stated) FY3/12 % FY3/13 Plan % YoY change YoY % Sales 146,591 100.0 155,830 100.0 9,238 106.3 Fashion 94,252 100.0 99,400 100.0 5,147 105.5 Anniversaire/Bridal 23,437 100.0 24,120 100.0 682 102.9 Karaoke 14,313 100.0 15,400 100
Slide 52: Full-year FY3/13 Major Expenses
Full-year FY3/13 Major Expenses SG&A Expenses (Millions of yen unless otherwise stated) FY3/12 FY3/13 Plan Anniversaire Café Total Fashion Karaoke Total Fashion Anniversaire /Bridal Karaoke Café Complex /Bridal Complex YoY % YoY % YoY % YoY % YoY % Advertising 10,397 8,398 1,275 417 111 11,001 105.8
Slide 53: Reference: First Half of FY3/13 Fashion Business Performance
Reference: First Half of FY3/13 Fashion Business Performance (1) Change in existing-store sales (%) Apr. May Jun. Jul. Aug. Sep. First half Second half Full year FY3/13 16.6 1.2 -3.6 -2.0 6.8 15.2 4.5 FY3/12 3.6 1.1 2.1 1.2 -8.8 -2.8 0.2 8.5 5.1 (2) Changes in number of customers and sales per custo
Slide 54: Sales by Category and Average Total Sales Area
(4) Sales by category (Millions of yen unless otherwise stated) 1H FY3/12 Results % 1H FY3/13 Results % YoY change YoY % Heavy clothing 16,417 44.7 17,394 43.3 976 105.9 Medium clothing 4,054 11.1 4,799 11.9 744 118.4 Light clothing 15,226 41.5 16,813 41.8 1,587 110.4 Other 999 2.7 1,219 3.0 220 122
Slide 55: Store Network by Prefecture
(6) Store network by prefecture (Number of stores) FY3/12 1H FY3/13 No. of stores at period-end No. of stores opened No. of stores closed No. of stores at period-end AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total Hokkaido 15 15 3 3 1 1 17 17 Hokkaido/ Iwate 2 2 2 2 Tohok
Slide 56: Reference: FY3/13 Fashion Business Outlook
Reference: FY3/13 Fashion Business Outlook (1) Change in existing-store sales (%) 1H Results 2H Full year FY3/13 (plan) 4.5 -1.2 1.0 FY3/12 0.2 8.5 5.1 (2) Changes in number of customers and sales per customer at existing stores (%) 1H Results 2H Full year Customers FY3/13 (plan) 1.0 -1.2 -0.2 FY3/1
Slide 57: Reference: First Half of FY3/13 Entertainment Business Performance
Reference: First Half of FY3/13 Entertainment Business Performance (1) Karaoke facility operations: Change in existing-store sales (%) Apr. May Jun. Jul. Aug. Sep. First half Second half Full year FY3/13 4.2 -1.4 8.9 -5.9 -1.7 1.1 0.5 FY3/12 -2.2 -0.6 6.1 7.0 7.1 6.0 3.9 8.9 6.4 (2) Karaoke facility
Slide 58: Reference: First Half of FY3/13 Entertainment Business Performance
Reference: First Half of FY3/13 Entertainment Business Performance (4) Café complex operations: Change in existing-store sales (%) Apr. May Jun. Jul. Aug. Sep. First half Second half Full year FY3/13 2.2 0.2 7.0 1.7 1.3 4.1 2.7 FY3/12 13.5 10.4 8.5 8.9 7.4 3.5 8.5 5.9 7.2 (5) Café complex operations
Slide 59: Store Network by Prefecture
(7) Store network by prefecture (Number of stores) FY3/12 1H FY3/13 No. of stores at period-end No. of stores opened No. of stores closed No. of stores at period-end COTE KAIKATSU COTE KAIKATSU COTE KAIKATSU COTE KAIKATSU Total Total Total Total D'AZUR CLUB D'AZUR CLUB D'AZUR CLUB D'AZUR CLUB Iwate
Slide 60: Reference: FY3/13 Entertainment Business Outlook
Reference: FY3/13 Entertainment Business Outlook (1) Karaoke facility operations: Changes in existing-store sales, number of customers and sales per customer at existing stores (%) 1H Results 2H Full year FY3/13 (plan) 0.5 0.2 0.4 Sales FY3/12 3.9 8.9 6.4 FY3/13 (plan) 1.5 0.5 1.0 Number of customer