H2O Retailing Corporation · TSE:8242
H2O Retailing — Q3 FY2023 Earnings Presentation
17 slides from H2O Retailing's earnings presentation, February 2023
Slide 1: 3Q of FY2023 Presentation Materials
3Q of FY2023 Presentation Materials H2O RETAILING CORPORATION
Slide 2: Digest of Financial Results for the Third Quarter
Digest of Financial Results for the Third Quarter ▶ Consolidated results exceeded forecast of 3Q and cumulative operating profit exceeded full- year forecasts. ▶ (Department Store) Existing store sales exceeded pre-COVID-19 level due to strong domestic sales and a recovery in inbound sales. ▶ (Super
Slide 3: Topics
Topics Ⅰ. Consolidated Financial Results Ⅱ. Forecast of FY2023 Ⅲ. Direction of efforts for FY2024 Copyright © H2O Retailing Corp. All Rights Reserved. 3
Slide 4: 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. 4
Slide 5: Ⅰ-1. Consolidated Financial Results
Ⅰ-1. Consolidated Financial Results ▶ Sales continued to recover particularly in department store business ▶ Increase in gross profit and operating profit by sales recovery despite increase in SG&A expenses including external factors like higher utility costs Operating profit exceeded the full-year
Slide 6: Ⅰ-2. Results by segment
Ⅰ-2. Results by segment ▶ Department store : Continued sales recovery, increased sales and operating profit ▶ Supermarket : Double-digit increase in operating profit in 3Q (Oct.-Dec.) due to new consolidation of Kansai Super Market and cost reductions at Izumiya and Hankyu Oasis, and operating profi
Slide 7: Ⅰ-3. Department store business-Summary of results
Ⅰ-3. Department store business-Summary of results ▶ Urban store sales increased due to sales of high-end items such as jewelry, watches and luxury brand. ▶ SG&A expenses increased from the previous year due to a decrease in the amount transferred to COVID-19 extraordinary losses (¥3.3 bn. compared w
Slide 8: Ⅰ-3. Department store business-Factors of Profit Increase/Decrease
Ⅰ-3. Department store business-Factors of Profit Increase/Decrease ▶Profit increased by ¥10.1 bn. compared to the previous year on a real basis, excluding the decrease in transfer of SG&A expenses to the COVID-19 extraordinary loss. Factors of Increase/Decrease in Operating Profit (YoY) (billions of
Slide 9: Ⅰ-3. Department store business-Sales of each category
Ⅰ-3. Department store business-Sales of each category ▶ Increased sales in all categories ▶ Foods, whose share had increased during the COVID-19 outbreak, returned to the pre-COVID-19 level of share. ▶ Sales of general merchandise, which includes watches and jewelry, and Accessories, bags and others
Slide 10: Ⅰ-3. Department store business-Existing store sales (versus pre-COVID-19)
Ⅰ-3. Department store business-Existing store sales (versus pre-COVID-19) ▶ Existing store sales in 3Q were 102% of FY2019 (104% domestic, 86% inbound), exceeding pre-COVID-19 level. ▶ Domestic sales generally exceeded pre-COVID-19 levels throughout the period. ▶ Inbound sales recovered throughout t
Slide 11: Ⅰ-3. Department store business-Inbound sales trends
Ⅰ-3. Department store business-Inbound sales trends ▶ Pre-COVID-19, FY2019 inbound sales were about ¥40 bn., of which China accounted for about 80% share. ▶ In 3Q after relaxation of entry restrictions, South Korea, Hong Kong, and Taiwan exceeded pre-COVID-19 levels, while China only recovered by ab
Slide 12: Ⅰ-4. Supermarket business-Summary of results
Ⅰ-4. Supermarket business-Summary of results ▶ Supermarket : Sales and profit increased due to new consolidation of Kansai Super Market (PL consolidated from January 2022) . ▶ Existing store sales, which struggled in 1Q and 2Q due to downturn after the previous year’s demand increase, were on a reco
Slide 13: Ⅰ-4. Supermarket business-Existing store sales
Ⅰ-4. Supermarket business-Existing store sales ▶ In 1Q and 2Q, demand for eating at home was particularly strong in the previous year, in Kansai region due to the expansion of COVID-19 infection. This made existing stores to struggle in 1Q and 2Q in reaction, resulting in a year-on-year decline in e
Slide 14: Ⅰ-5. Extraordinary income and losses
Ⅰ-5. Extraordinary income and losses ▶ Recorded ¥3.8 bn. gain on sale of Takashimaya shares in 3Q Major items Amount Major contents (billions of yen) Extraordinary Gain on sales of non-current income assets 5.0 former head office Gain on sales of investment securities 3.8 Takashimaya Extraordinary H
Slide 15: Ⅱ. Forecast of FY2023
Ⅱ. Forecast of FY2023 ▶ Operating profit exceeded the full-year forecast on a consolidated basis, although there are differences by business segment. ▶ Due to following uncertainties, the full-year forecast announced in November remains unchanged. Unpredictable impact of COVID-19 infection and risin
Slide 16: Ⅲ. Direction of efforts for FY2024
Ⅲ. Direction of efforts for FY2024 FY2023 FY2024 ⚫ New approach to expand the number of customers at Hanshin Umeda Main store (Subscription, mobile ordering) ⚫ Strengthen approach for the wealthy market (Establish an all-in-one system from content development to customer service) Department ⚫ Promot
Slide 17: 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