Aoki Holdings, Inc. · TSE:8214
Aoki — FY2011 Earnings Presentation
57 slides from Aoki's earnings presentation, May 27, 2011
Slide 1: Performance Briefing for the Fiscal Year Ended March 31, 2011
Performance Briefing for the Fiscal Year Ended March 31, 2011 May 27, 2011 AOKI Holdings Inc.
Slide 2: Contents
Contents AOKI Group's Business Portfolio Management 3 Anniversaire and Bridal Business Performance and Forecast 27 Management Current Status of Business Portfolio 4-5 Industry Trends and Position within Industry 28 FY3/11 Review of Operations 6 FY3/11 Review of Operations 30 Consolidated Profit and
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 "Pleasure of dressing well" Choreographing special events where Offering entertainment and relaxation The AOKI Group's founding business. Suits are customers are in the spotlight P
Slide 5: Change in Breakdown of Business Portfolio
Change in Breakdown of Business Portfolio Sales •• The The Fashion Fashion Business Business still still accounts accounts for roughly two-thirds of for roughly two-thirds of FY3/10 65.5 17.4 9.5 7.6 sales sales •• The The ratio ratio of of sales sales from from the the Fashion Anniversaire and Brid
Slide 6: FY3/11 Review of Operations
FY3/11 Review of Operations
Slide 7: Consolidated Profit and Loss
Consolidated Profit and Loss (Millions of yen) Account/Period FY3/10 FY3/11 Change YoY % Major components Increase in existing-store sales at the Sales 131,124 132,561 1,437 101.1 Fashion Business, and contributions from new stores in the Entertainment Business Gross profit 60,637 62,429 1,791 1.0pt
Slide 8: FY3/11 Consolidated Financial Highlights
FY3/11 Consolidated Financial Highlights Sales increased due to contributions from new store openings, and profits increased due to greater sales at existing stores in the Fashion Business and an improvement in the gross profit margin Sales Operating Profit (Hundred million yen) (Hundred million yen
Slide 9: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment [Sales by business segment] (Millions of yen) Business segment FY3/10 FY3/11 Change YoY % Major components Total 131,124 132,561 1,437 101.1 Fashion 85,910 86,193 282 100.3 Increase in existing-store sales Anniversaire and Bridal 22,789 21,375 -1,413 93
Slide 10: Major Changes in Consolidated Balance Sheets
Major Changes in Consolidated Balance Sheets (Millions of yen) Account/Period FY3/10 FY3/11 Change Major components Current assets 43,424 44,583 1,159 Cash in hand and in banks 16,997 18,249 1,252 Increased due to net income, etc. Inventories 15,684 15,279 -404 Fixed assets 115,764 121,497 5,732 Inc
Slide 11: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) Account/Period FY3/10 FY3/11 Change Major components Loss on disaster of ¥818 million Cash flows from Decrease in income taxes paid of ¥1,270 million 8,182 13,255 5,072 Loss on adjustment for changes of accounting standard for operating activit
Slide 12: Number of Stores Opened/Closed
Number of Stores Opened/Closed (Millions of yen excluding number of stores) FY3/10 FY3/11 Segment Stores/facilities Number of Number of Opened Closed Opened Closed Stores Stores AOKI 431 23 5 427 4 8 Fashion ORIHICA 52 10 3 70 21 3 Anniversaire and Bridal ANNIVERSAIRE 12 - - 12 - - Karaoke COTE D'AZ
Slide 13: Impact of Great East Japan Earthquake
Impact of Great East Japan Earthquake [Number of stores in disaster areas where operations have been temporarily suspended] (Millions of yen excluding number of stores) Segment Stores/facilities As of the end of March As of May 27 AOKI 1 1 Fashion ORIHICA 6 1 Subtotal 7 2 COTE D'AZUR 5 0 Entertainme
Slide 14: FY3/12 Sales and Earnings Forecasts
FY3/12 Sales and Earnings Forecasts
Slide 15: Consolidated Forecast
Consolidated Forecast (Millions of yen) FY3/12 Account/Period FY3/11 Change YoY % Major components (forecast) Increase in sales due to contributions from Sales 132,561 139,000 6,438 104.9 new stores at all businesses Gross profit 62,429 63,700 1,270 Down 0.8pt due to an increase in Gross profit marg
Slide 16: 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 FY3/11 FY3/12 (forecast) Change YoY % Total 132,561 139,000 6,438 104.9 Fashion 86,193 88,100 1,906 102.2 Anniversaire and Bridal 21,375 23,770 2,394 111.2 Entertainment (Total)
Slide 17: Outlook for Store Openings/Closings
Outlook for Store Openings/Closings (Millions of yen excluding number of stores) FY3/11 FY3/12 (forecast) Business segment Stores/facilities Number of Number of To be To be Opened Closed Stores Stores opened closed AOKI 427 4 8 435 10 2 Fashion ORIHICA 70 21 3 88 20 2 Anniversaire and Bridal ANNIVER
Slide 18: Fashion Business FY3/11 Performance and FY3/12 Forecast
Fashion Business FY3/11 Performance and FY3/12 Forecast
Slide 19: Fashion Business: FY3/11 Review of Operations
Fashion Business: FY3/11 Review of Operations Sales and profits up due to higher sales at existing stores, 25 new store openings, and an improvement in the gross profit margin Sales Operating profit ◆ Operating margin Sales up 0.3% YoY Sales (AOKI/ORIHICA) up 5.3% YoY ( Sales: Millions of yen) ( Ope
Slide 20: Existing-store Sales, Customer Volume and Sales per Customer
Fashion Business: FY3/11 Review of Operations Existing-store Sales, Customer Volume and Sales per Customer Up until the earthquake struck in March, existing-store sales had risen 13 straight months on higher customer traffic and stable sales per customer Increase Increase in in FY3/11 YoY Change in
Slide 21: AOKI: FY3/11 Initiatives and Performance
Fashion Business: FY3/11 Review of Operations AOKI: FY3/11 Initiatives and Performance Existing-store sales increased due to the coordination of product line-up, sales promotions, visual merchandising, and marketing centered on core products Initiatives Performance Strengthened fashion promotions Th
Slide 22: ORIHICA: FY3/11 Initiatives and Performance
Fashion Business: FY3/11 Review of Operations ORIHICA: FY3/11 Initiatives and Performance 70-store network due to accelerated store openings particularly in Tokyo Existing-store sales increased due to refinements to merchandise mix and strengthening of sales promotions and visual merchandising Initi
Slide 23: AOKI: FY3/12 Initiatives-1
Fashion Business: FY3/12 Earnings Forecast AOKI: FY3/12 Initiatives-1 Target greater profitability through improvements in operational efficiency, and the development of core products and the refinement of marketing to increase market share Merchandise: Strengthen the development of core products to
Slide 24: AOKI: FY3/12 Initiatives-2
Fashion Business: FY3/12 Earnings Forecast AOKI: FY3/12 Initiatives-2 Store environment: Strengthen sales floor space environment and efficiency in coordination with merchandising and sales promotion plans Strengthen Cool-Biz proposals of suits, shirts, slacks, and functional underwear Bolster ladie
Slide 25: ORIHICA: FY3/12 Initiatives
Fashion Business: FY3/12 Earnings Forecast ORIHICA: FY3/12 Initiatives Continue to pro-actively open new stores while promoting efficient management in preparation for a 100-store network Store development: Continue to pro-actively open new stores in line with store- opening standards 1H: 10 stores,
Slide 26: Fashion Business: FY3/12 Earnings Forecast
Fashion Business: FY3/12 Earnings Forecast Sales and profits up due to contributions from new stores to be opened and lower SG&A expenses at AOKI (Sales: Millions of yen) (Operating profit: Millions of yen) 100,000 Sales up 2.2% YoY 87,283 88,100 New store openings 85,910 86,193 AOKI:10 stores (4 in
Slide 27: Anniversaire and Bridal Business FY3/11 Performance and FY3/12 Forecast
Anniversaire and Bridal Business FY3/11 Performance and FY3/12 Forecast RAVIS Inc., which operated the ANNIVERSAIRE and bridal business, changed its name to ANNIVERSAIRE INC. effective October 1, 2010.
Slide 28: Share of Guesthouse Weddings Rising Every Year
Anniversaire and Bridal Business: Industry Trends Share of Guesthouse Weddings Rising Every Year Market size Approximately ¥2 trillion Value of wedding and reception market: 719,822 marriages annually multiply *1 ¥2 trillion nationwide average sales per couple of ¥3.26 million *2 Wedding-related mar
Slide 29: To Improve the Brand Image
Anniversaire and Bridal Business: Company and Facility Name Changes To Improve the Brand Image Company name changed in October 2010 RAVIS INC. ANNIVERSAIRE INC. Facility name changed in January 2011 WEDDING VILLAGE ANNIVERSAIRE PARTIRE GEIHINKAN Origin of new company name and facility name "Annivers
Slide 30: 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 Omotesando, Toyosu, Tokyo Bay, Tachikawa Nagano Omiya Metro area: 7 facilities Kashiwa Fukuoka Hills Yokohama Kobe Osaka, Esaka Shir
Slide 31: Anniversaire and Bridal Business: FY3/11 Review of Operations
Anniversaire and Bridal Business: FY3/11 Review of Operations Sales and Profits Down due to Fewer Couples Married in the Wake of the Economic Slump Since 2009 and the Recent Earthquake Disaster, and due to Costs to Prepare for the Opening of a New Facility Operating profit Sales /Operating margin Sa
Slide 32: Analysis Indicators
Anniversaire and Bridal Business: FY3/11 Review of Operations Analysis Indicators FY3/10 FY3/11 Change YoY % No. of facilities at period- end 12 12 ±0 100.0% No. of wedding/reception halls at period-end 32 32 ±0 100.0% No. of couples married 5,487 5,051 -436 92.1% Capacity utilization ratio 74.6% 68
Slide 33: Anniversaire and Bridal Business: FY3/12 Earnings Forecast
Anniversaire and Bridal Business: FY3/12 Earnings Forecast Sales and Profits up due to Contributions from Opening of ANNIVERSAIRE TOYOSU in April Sales Operating profit /Operating margin (Millions of yen) 25,000 (Millions of yen) 2,000 (%) Sales up 11.2% YoY 23,770 Contribution of newly opened ANNIV
Slide 34: Towards Growth Strategy; Opening a New Model Facility
Anniversaire and Bridal Business: Further Evolution Towards Growth Strategy; Opening a New Model Facility Grand opening of "ANNIVERSAIRE TOYOSU“ on April 14, 2011 Features ◆ Ideally located just a 5-minute train ride from Ginza, and a 3-minute walk from Toyosu Station ◆ Follows the wedding style of
Slide 35: Entertainment Business FY3/11 Performance and FY3/12 Forecast
Entertainment Business FY3/11 Performance and FY3/12 Forecast We subdivided the entertainment business into two segments from FY3/11: the karaoke facility operations segment and the café complex operations segment
Slide 36: Top-tier Industry Position, and Large Growth Potential
Entertainment Business: Facility Chain, and Industry Position Top-tier Industry Position, and Large Growth Potential [Industry position] Karaoke market scale Café Complex Industry rank: No.6 Industry rank: No.1 "28th service industry “28th service industry comprehensive survey" comprehensive survey"
Slide 37: Karaoke Facility Operations: Facility Features
Karaoke Facility Operations: Facility Types Facility Features: Facilities Based on a Clear Concept Relaxing space for tomorrow's dynamism COTE D'AZUR, a karaoke and party facility that draws inspiration from the "paradise-on-earth" coastal region of the same name in southern France, provides a refre
Slide 38: Karaoke Facility Operations: FY3/11 Review of Operations
Karaoke Facility Operations: FY3/11 Review of Operations Increase in Sales due to Contributions from Newly Opened Facilities, but Decline in Profits due to Lower Existing-facility Sales and Higher Expenses for New Store Openings Sales Operating profit /Operating margin Sales up 1.8% YoY (Millions of
Slide 39: Karaoke Facility Operations: FY3/12 Earnings Forecast
Karaoke Facility Operations: FY3/12 Earnings Forecast Increase in Sales due to Contributions from Stores Newly Opened in the Previous and Current Fiscal Years, but Decline in Profits due to Lower Existing-facility Sales and Higher Expenses for New Store Openings and Renovations Operating profit Sale
Slide 40: Café Complex Operations: Facility Features
Café Complex Operations: Facility Types Facility Features: Facilities Based on a Clear Concept Extreme relaxation close at hand Café complex "KAIKATSU CLUB," which draws inspiration from the Asian resort island of Bali, is a "relaxation convenience store." We provide "convenient" relaxation space re
Slide 41: Café Complex Operations: FY3/11 Review of Operations
Café Complex Operations: FY3/11 Review of Operations Sales and Profits up, Despite Increase in Complex-opening Expenses, due to Contributions from Newly Opened Complexes and Higher Sales at Existing Complexes Operating profit Sales /Operating margin (Millions of yen) (Millions of yen) 14,000 1,000 S
Slide 42: Café Complex Operations: FY3/12 Earnings Forecast
Café Complex Operations: FY3/12 Earnings Forecast Increase in Sales due to Contributions from Complexes Newly Opened in the Previous and Current Fiscal Years, but Decline in Profits due to Increase in Expenses for New Complex Openings and Renovations Sales Operating profit Sales up 12.4% YoY /Operat
Slide 43: Supplementary Documents
Supplementary Documents Notes on page 43, 45, 46: 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 44: FY3/11 Consolidated Business Results
FY3/11 Consolidated Business Results (Millions of yen excluding %) FY3/10 FY3/11 FY3/11 % % % YoY change YoY % Results Plan Results Sales 131,124 100.0 130,300 100.0 132,561 100.0 1,437 101.1 Fashion 85,910 100.0 82,500 100.0 86,193 100.0 282 100.3 Anniversaire/Bridal 22,789 100.0 22,820 100.0 21,37
Slide 45: FY3/11 SG&A Expenses
FY3/11 SG&A Expenses (Millions of yen excluding %) FY3/10 Results FY3/11 Results Anniversaire Café Anniversaire/ Total Fashion Karaoke Total Fashion Karaoke Café complex / Bridal complex Bridal YoY % YoY % YoY % YoY % YoY % Advertising 8,004 6,407 1,046 170 90 8,911 111.3 7,394 115.4 1,149 109.9 206
Slide 46: First Half FY3/12 Consolidated Forecast
First Half FY3/12 Consolidated Forecast (Millions of yen) 1H FY3/11 1H FY3/12 % % YoY change YoY % Results Plan Sales 58,603 100.0 60,600 100.0 1,996 103.4 Fashion 35,466 100.0 36,200 100.0 733 102.1 Anniversaire/Bridal 10,990 100.0 11,410 100.0 419 103.8 Karaoke 6,110 100.0 6,200 100.0 89 101.5 Caf
Slide 47: Full-year FY3/12 Consolidated Forecast
Full-year FY3/12 Consolidated Forecast (Millions of yen) FY3/11 FY3/12 % % YoY change YoY % Results Plan Sales 132,561 100.0 139,000 100.0 6,438 104.9 Fashion 86,193 100.0 88,100 100.0 1,906 102.2 Anniversaire/Bridal 21,375 100.0 23,770 100.0 2,394 111.2 Karaoke 12,657 100.0 13,250 100.0 592 104.7 C
Slide 48: FY3/12 SG&A Expenses Forecast
FY3/12 SG&A Expenses Forecast (Millions of yen excluding %) FY3/11 Results FY3/12 Plan Anniversaire Café Anniversaire/ Total Fashion Karaoke Total Fashion Karaoke Café complex / Bridal complex Bridal YoY % YoY % YoY % YoY % YoY % Advertising 8,911 7,394 1,149 206 98 8,878 99.6 7,375 99.7 1,052 91.5
Slide 49: Reference: FY3/11 Fashion Business Performance
Reference: FY3/11 Fashion Business Performance (1) Change in existing-store sales (%) First half Oct. Nov. Dec. Jan. Feb. Mar. Second half Full year FY3/11 2.2 12.3 1.9 0.7 7.0 11.4 -2.8 4.0 3.3 FY3/10 -8.8 -4.2 -10.6 -3.2 -3.3 4.7 0.2 -3.2 -5.6 (2) Change in number of customers and sales per custom
Slide 50: Sales by Category; Average Total Sales Area
(4) Sales by category (Millions of yen) FY3/10 FY3/11 % % YoY change YoY % Results Results Heavy clothing 42,301 49.2 43,914 51.0 1,612 103.8 Medium clothing 6,701 7.8 6,669 7.7 -31 99.5 Light clothing 34,801 40.5 33,439 38.8 -1,362 96.1 Other 2,105 2.5 2,170 2.5 64 103.1 Total 85,910 100.0 86,193 1
Slide 51: Store Network by Prefecture
(6) Store network by prefecture (Number of stores) FY3/10 FY3/11 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 15 15 Iwate 2 2 2 2 Miyagi 6 3 9 6 3 9 Fukushi
Slide 52: Reference: FY3/12 Fashion Business Outlook
Reference: FY3/12 Fashion Business Outlook (1) Change in existing-store sales (%) First half Second half Full year FY3/12 (plan) -1.6 -0.5 -0.9 FY3/11 2.2 4.0 3.3 (2) Change in number of customers and sales per customer at existing stores (%) First half Second half Full year Customers FY3/12 (plan)
Slide 53: Sales Plan by Category
(3) Sales plan by category (Millions of yen) FY3/11 FY3/12 % % YoY change YoY % Results Plan Heavy clothing 43,914 51.0 44,800 50.9 885 102.0 Medium clothing 6,669 7.7 6,650 7.5 -19 99.7 Light clothing 33,439 38.8 34,480 39.1 1,040 103.1 Other 2,170 2.5 2,170 2.5 0 100.0 Total 86,193 100.0 88,100 10
Slide 54: Reference: FY3/11 Entertainment Business Performance
Reference: FY3/11 Entertainment Business Performance (1) Karaoke facility operations: Change in existing-store sales, number of customers and sales per customer at existing stores (%) First half Second half Full year Sales -5.3 -9.4 -7.5 Number of customers -5.1 -8.1 -6.6 Sales per customer -0.3 -1.
Slide 55: Café Complex Operations: Existing-store Metrics
(3) Café complex operations: Change in existing-store sales, number of customers and sales per customer at existing stores (%) First half Second half Full year Sales 4.6 6.0 5.3 Number of customers 3.0 4.5 3.7 Sales per customer 1.6 1.4 1.5 Average sales per customer (yen) 1,290 1,320 1,305 YoY chan
Slide 56: Entertainment Business: Store Network by Prefecture
(5) Entertainment Business: Store network by prefecture (Number of stores) FY3/10 FY3/11 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 CL
Slide 57: Reference: FY3/12 Entertainment Business Outlook
Reference: FY3/12 Entertainment Business Outlook (1) Karaoke facility operations: Change in existing-store sales, number of customers and sales per customer at existing stores (%) First half Second half Full year FY3/12 (plan) -5.4 1.4 -2.0 Sales FY3/11 -5.3 -9.4 -7.5 Number of FY3/12 (plan) -3.0 4.