Bellpark Co., Ltd. · TSE:9441
Bellpark — FY2021 Earnings Presentation
31 slides from Bellpark's earnings presentation, Feb 10, 2022
Slide 1: Results of Operations for 2021
Results of Operations for 2021 February 10, 2022 Bell-Park lo., Ltd. Tokyo Stock Exchange JASDAQ Standard (Stock code: 9441) © Bell-Park lo., Ltd. All rights reserved
Slide 2: Agenda
1. 2021 Financial Highlights 2. Initiatives for Medium- to Long-term Growth 3. 2022 Plan and Shareholder Returns © Bell-Park lo., Ltd. All rights reserved 2
Slide 3: Statement of Income
Statement of Income Net sales: Sales surpassed 100 billion yen for the second time and rose to an all-time hioh Growth backed by record-high number of mobile phones sold: 1,066,000 units (+26.1% YoY) Operatino income: Decreased because of a decline in profit per mobile phone sold that started in the
Slide 4: 2021 Topics by Sales Channel
2021 Topics by Sales Channel Impact on Impact on net Sales operatino Topics sales income channels (YoY chanoe) (YoY chanoe) ・Increase in the number of mobile phones and other products sold (1) Higher sales vs. 2020, when the pandemic reduced shop operating hours in April-May 2020 (2) Strong sales of
Slide 5: Strengthening Customer Support Services
Strenothenino Customer Support Services In April 2021, started providing smartphone set up support for a fee. Services include transfers of data to the new mobile phone, applying screen protectors and other activities. Started providino Growth of After-sales Services support for a fee Support servic
Slide 6: Number of Shops Operated by Bell-Park
Number of Shops Operated by Bell-Park Progress continues with establishing a dominant presence in targeted areas by relocating and rebuilding shops (lonsolidated shops in every area to improve the efficiency of shop operations) Number of Directly Operated larrier Shops Newly opened/acquired llosed/s
Slide 7: Agenda
1. 2021 Financial Highlights 2. Initiatives for Medium- to Long-term Growth 3. 2022 Plan and Shareholder Returns © Bell-Park lo., Ltd. All rights reserved 7
Slide 8: Initiatives for Medium- to Long-term Growth
Initiatives for Medium- to Lono-term Growth Steady growth of the information and communication device sales Expand the business portfolio and services business larrier shops • Take actions for the growth of the • Increase the number of shops while marriage matchmaking service, IoT recruiting and tra
Slide 9: Initiatives for Medium- to Long-term Growth
Initiatives for Medium- to Lono-term Growth Steady growth of the information and communication device sales Expand the business portfolio and services business larrier shops • Take actions for the growth of the • Increase the number of shops while marriage matchmaking service, IoT recruiting and tra
Slide 10: Outlook for the Carrier Shop Business Climate
Outlook for the Carrier Shop Business Climate 2022 Topics Expected effects Carrier shops of the future Shift in focus from price competition Fewer customers at shops than in 2021 to quality of services (Shop visit demand expected to be Price-based competition for mobile phone stable at a certain lev
Slide 11: Training People for the Future of Carrier Shop Operations
Trainino People for the Future of Carrier Shop Operations Assistino customers to use dioitalization to make their lives more convenient and enjoyable Training people to give them skills that go beyond carrier shop services to encompass consulting capabilities involving peripheral digital devices and
Slide 12: Enabling everyone to enjoy the benefits of digital transformation
Enablino everyone to enjoy the benefits of the dioital transformation Assistance for seniors as one way to help eliminate the dioital divide In addition to current smartphone lessons, Bell-Park is working with public-sector partners for activities to eliminate worries about using digital technologie
Slide 13: Are Carrier Shops Stressful for Customers?
Are Carrier Shops Stressful for Customers? Measures by all carriers to reduce time needed to serve customers are improving all customer interaction processes. Nevertheless, there is still a large volume of documents and other information to protect consumers and improve customer satisfaction. The lo
Slide 14: Our Goal – Stress-free Carrier Shops
Our Goal – Stress-free Carrier Shops Winning carrier shops will be places that use the digital transformation to dramatically shorten time for customer services and the amount of paper documents needed in order to eliminate as much customer stress as possible Usino the dioital transformation for inn
Slide 15: Initiatives for Medium- to Long-term Growth
Initiatives for Medium- to Lono-term Growth Steady growth of the information and communication device sales Expand the business portfolio and services business larrier shops • Take actions for the growth of the • Increase the number of shops while marriage matchmaking service, IoT recruiting and tra
Slide 16: Performance of Three Non-Consolidated Subsidiaries
Performance of Three Non-Consolidated Subsidiaries lumulative earnings of Bell-Park’s three non-consolidated subsidiaries are shown below ・ Bellbride, Inc. and B-Lab, Inc. had losses in their first three years, became profitable in the fourth year and ended cumulative losses in the fifth year ・ Wact
Slide 17: Leverage and Extend Bell-Park Strengths to Create New Businesses
Leveraoe and Extend Bell-Park Strenoths to Create New Businesses Consultino skills for face-to-face customer services is a core strength of Bell-Park. We are currently using M&A consulting firms, private equity funds and other organizations for the consideration of a large number of M&A opportunitie
Slide 18: Agenda
1. 2021 Financial Highlights 2. Initiatives for Medium- to Long-term Growth 3. 2022 Plan and Shareholder Returns © Bell-Park lo., Ltd. All rights reserved 18
Slide 19: 2022 Forecast Assumptions
2022 Forecast Assumptions Impact on Impact on Sales operatino Topics sales income channels (YoY chanoe) (YoY chanoe) ・End of increase in customer store visits for mobile phone service plan reviews, resulting in decrease in the number of mobile phones and other products sold ・Decrease in renewal comm
Slide 20: 2022 Consolidated Forecasts
2022 Consolidated Forecasts Forecast sales of 100 billion yen and operatino income of 4 billion yen Planned number of mobile phones and other products to be sold: approx. 1,000,000 units (-6.3% YoY) (million yen) 2021 2022 YoY chanoe results plan Net sales 107,281 100,000 -7,281 (lomp.) (100.0%) (10
Slide 21: Shareholder Returns
Shareholder Returns Bell-Park positions the distribution of earnings to shareholders as one of its highest priorities lonsolidated dividend lonsolidated dividend 2022 annual dividend forecast payout ratio payout ratio (yen) 30.1% 30.3% 41 yen per share Before the 3-for-1 stock split (2Q-end 20.50 ye
Slide 22: Lovely future
Lovely future © Bell-Park lo., Ltd. All rights reserved 22
Slide 23: Appendix
Appendix © Bell-Park lo., Ltd. All rights reserved 23
Slide 24: Profile of Bell-Park
Profile of Bell-Park Information and communication Name Bell-Park lo., Ltd. Business device sales and service business Total: 367 stores (64 stores) lapital 1,148 million yen *Franchised stores in parentheses (as of Dec. 31, 2021) 301 (53) SoftBank Shops No. of carrier shops 51 (11) Y!mobile Shops (
Slide 25: 5-year Financial Summary
5-year Financial Summary （million yen) 2017 2018 2019 2020 2021 Net sales 88,894 98,088 103,303 98,843 107,281 Gross profit 18,553 19,975 24,165 24,349 25,483 Personnel, etc. 8,821 9,282 10,636 11,355 12,234 Rent 2,153 2,295 2,537 2,716 2,915 Ads/sales promotion 1,529 1,927 2,818 1,427 1,807 Others
Slide 26: Number of Carrier Shops, Employees and Mobile Phones Sold
Number of Carrier Shops, Employees and Mobile Phones Sold Number of mobile phones sold Number of carrier shops Number of employees (10 thousand units) UQ Spot au Shop Full-time Temporary Sales of Sales to new employees employees replacement subscribers Docomo Shop Y!mobile Shop mobile phones SoftBan
Slide 27: Quarterly Renewal Commissions (Gross Profit)
Quarterly Renewal Commissions (Gross Profit) * Renewal commissions are payments by carriers to Bell-Park that are a percentage of the monthly mobile phone service fees paid by phone users who purchased their service plans at a shop operated by Bell-Park (million yen) 2020 2021 © Bell-Park lo., Ltd.
Slide 28: Balance Sheet
Balance Sheet (million yen) End-Dec. 2020 End-Dec. 2021 YoY change lurrent assets 40,420 37,000 -3,419 Noncurrent assets 5,951 6,366 +414 Assets 46,371 43,366 -3,005 lurrent liabilities 18,980 13,806 -5,173 Noncurrent liabilities 730 788 +58 Liabilities 19,710 14,595 -5,114 Net assets 26,661 28,771
Slide 29: Cash Flows
Cash Flows (million yen) Profit before income taxes: +4,673 Depreciation/Amortization of goodwill: +486 lash and cash equivalents Decrease in notes and accounts receivable-trade: at beginning of period +506 Increase in inventories: -582 Increase in notes and accounts payable-trade: +106 Operating lF
Slide 30: Activities for a Sustainable Society
Activities for a Sustainable Society Key Issues (1) Key Issues (2) Environmental Responsibility Customer’s Smile • Internal power generation • Strengthening consulting skills • Use of energy from renewable sources • lustomer support • Activities to lower the environmental impact of business operatio
Slide 31: Forward-Looking Statements
Forward-Lookino Statements All plans, strategies and financial forecasts that are not based on historical facts are forward-looking statements. Such statements are based on the judgment of management in accordance with information available when these materials were prepared. Actual results may diff