Nitori Holdings Co. Ltd. · TSE:9843
Nitori — Q2 FY2016 Earnings Presentation
37 slides from Nitori's earnings presentation, Sep 27, 2016
Slide 1: Financial Results Presentation for the Second Quarter of FY2016
Nitori Holdings Co., Ltd. Financial Results Presentation for the Second Quarter of FY2016 September 27 , 2016 TSE Ticker Code : 9843
Slide 2: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results （Billions of Yen） 1H FY2016 1H FY2015 Change 21 Feb-20 F b 20 Aug A 2016 21 Feb-20 F b 20 Aug A 2015 (to sales) (to sales) (YOY) Net sales 2 254.8 8 － 222 2 222.2 － 32.6 32 6 114.7％ Gross profit 139.5 139 5 54.8% 117.0 117 0 52.6% 22.5 22 5 119.3％ SG&A expe
Slide 3: Consolidated Balance Sheets
Consolidated Balance Sheets （Billions of Yen） 20 Aug 20 Feb Major factors Change 2016 2016 on changes Current assets 141.8 130.0 11.8 (Cash and deposits) 63.0 42.3 20.7 Merchandise and (Inventory) 36.8 45.4 (8.6) finished goods (8.2) Non-Current assets 302.3 284.6 17.7 (Property, plant and equipment
Slide 4: Consolidated Cash Flows
Consolidated Cash Flows （Billions of Yen） 1H 1H Major factors Change FY2016 FY2015 on changes ・Income before income taxes +50.4 Operating activities 49.5 32.7 16.8 ・Decrease in inventories +7.9 ・Income taxes paid (14.7) ・Purchase of property,plant and Investing activities (22.0) (25.1) 3.1 equipment
Slide 5: Consolidated Financial Ratios
Consolidated Financial Ratios 【1H】 Equity Ratio ROE 90% 10% 78.6% 78.9% 76.8% 9.8% 9% 80% 8% 8.6% 7% 70% 6% 7.1% 60% 5% Aug 2014 Aug 2015 Aug 2016 Aug 2014 Aug 2015 Aug 2016 BPS EPS ¥3,500 ¥3,076 ¥300 ¥3 014 ¥3,014 ¥3,000 ¥296 ¥2,431 ¥250 ¥2,500 , ¥200 ¥2,000 ¥201 ¥207 ¥1,500 , ¥150 Aug 2014 Aug 201
Slide 6: Comparable stores, YOY
Comparable stores , YOY【1H】 Sales ※ １０８．２％ (all stores １１３．８％ ） No. of Customers １０７．７％ (all stores １１５ ４％ ） １１５．４％ Average Spend per Customer １００ ５％ １００．５％ Average Exchange Rate ¥１０３ ２６/$ ¥１０３.２６/$ Depreciation ¥ ５.１ bil. bil Capital Investment ¥２４.７ bil. ※ Sales= Sales based on orders Copyright 20
Slide 7: Trend in YOY changes in comparable stores
Trend in YOY changes in comparable stores 【1H】 （％） 【Sales , YOY】 ※Sales = Sales based on orders 115 108.2 110 106 0 106.0 102.8 99.6 105 101.8 100 95 90 【No. of Customers・Average Spend per Customer , YOY】 （％） No. of Customers Average spend per customer 115 110 105.5 107.7 105 104.9 102 3 102.3 101 5
Slide 8: Quarterly trend in YOY changes in comparable stores
Quarterly trend in YOY changes in comparable stores （％） FY２０１３ FY２０１４ FY２０１５ FY２０１６ 120 115 112.2 109.1 110 108 8 108.8 107.5 106.0 106.5 106.7 105.2 105 100 1 100.1 105.5 100 97.0 98 7 98.7 95 97.8 94.3 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sales Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 20
Slide 9: Major factors on YOY changes
Major factors on YOY changes Net sales 【Net sales】 Amount YOY Gross profit Store sales ¥234.1 bil. 113.8% Gross profit margins E-commerce ¥11.1 bil. 129.1% SG&A ratio （Billions of Yen） Corporate ¥4.3 bil. 108.3% business sales 254.8 254 8 （＋14.7%） （＋14 7%） Rent income ¥3.0 bil. 142.3% 222.2 Other ¥2
Slide 10: Results of Opening & Closing Stores (Q2 FY2017)
Results of Opening & Closing Stores (Q2 FY2017) Q2 FY2017 ４００stores in Japan Oli Olinas Ki hi h Kinshicho Olinas Kinshicho Ohta Ohtorii COCOLIA TAMA CENTER Don Quijote Omori ７stores Y hi Yoshizuya Ki Kiyosu Vivit Minami Funabashi Ohta Ohtorii AEON Amagi Tachikawa FROM CHUBU DECO HOME LUSCA Hiratsuka
Slide 11: Stores
No. of stores as of Aug 20,2016 No. of No. of No. of Prefecture stores Prefecture stores Prefecture stores ４３７ Hokkaido H kk id Hokkaido 19 19 Yamanashi I hik Ishikawa 3 5 Shimane Hi Hiroshima hi 2 12 Stores Aomori 6 Toyama 4 Yamaguchi 5 Akita 4 Fukui 2 Kagawa 4(+1) Iwate 3 Hokuriku & Koshinetsu 31(
Slide 12: Sales by region
Sales by region E-commerce （％） Eastern 47.0 Western 42.9 Others Aug 2016 5 06 5.06.1 1 30 0 30.0 5 7 10.5 5.7 10 5 15 5 15.5 7 8 9.3 7.8 9 3 4.5 4 5 5.6 56 E-commerce Eastern 52.9 Western 43.1 Others Aug 2012 6.0 7.5 32.9 6.0 11.0 15.8 8.4 8.4 2.3 1.7 Eastern 56.0 Western 41.2 Aug 2008 7.6 5.9 37.5
Slide 13: Major indexes of management efficiency (1)
Major indexes of management efficiency（1） Sco Num un pe ber Index it Target 2016.8 2015.8 2014.8 2013.8 2012.8 1 Return on assets ％ Over 7.5％ ○ 11.6 9.1 11.5 10.5 11.4 Ti 2 Total asset turnover me s Over 1.0 × 0.59 0.54 0.64 0.64 0.63 Ordinary O di income i 3 margin ％ Over 10％ ○ 19.6 17.0 18.1 16.5
Slide 14: Major indexes of management efficiency (2)
Major indexes of management efficiency (2) Sco Num un pe ber Index it Target 2016.8 2015.8 2014.8 2013.8 2012.8 12 Sales per tsubo K Over ¥950K ○ 998 926 9 6 940 9 0 886 880 Ti 13 Stock turnover me Over 9 × 6.3 6.1 6.8 6.8 7.0 Sale of furniture and home furnishing s Operating assets Ti 14 turnover m
Slide 15: TOPICS Q2
TOPICS Q２ Q
Slide 16: Merchandise Branding Strategy
Merchandise Branding Strategy Developing company-owned brands with different price ranges “Better VALUE” in More “STYLE” to your everyday your daily life A lineup of “easy-to- easy to A lineup of stylish goods coordinate” daily goods at a focused on quality and low price design for a better lifestyl
Slide 17: Merchandise Branding Strategy
Merchandise Branding Strategy Simple & Modern Fun-and-easy-to-coordinate colors for everyone. At a low price. Copyright 2016 Nitori Holdings All Rights Reserved 17
Slide 18: School Backpack & Desk
School Backpack & Desk Early Launch on June 24 2015 2016 July J l 17 June J 24 Pre-sales at All stores some stores July 11 All stores zAdjusting to the early demand trend of the market l t l we started lately, t t d pre-sales l att 50 stores, t as well ll as online zThrough early launch and active s
Slide 19: Promotion Activities
Promotion Activities “Enfant Summer Festival” booth zAn event sponsored by “Enfant”, a parenting magazine for mothers with children in kindergarten zChildren can try the newest models of backpacks from various brands zShared a common booth in collaboration with TEIJIN Ltd Ltd. ●Attended by approxima
Slide 20: Product Development: N-sleep New Variations
Product Development N-sleep New Variations zDeveloping a firm-type mattress for our g original best-selling g N-sleep p series zUtilizing a firmer pocket coils, we managed to enhance support while maintaining comfort-fit feel zProviding more variations to the existing series Copyright 2016 Nitori Ho
Slide 21: Product Development: N-Textile
Product Development N－Textile Original Custom Made Curtains zAdopt a domestically-produced high quality fabric to compete with other key manufacturers zProvide a product lineup that is up to one third cheaper than manufacturerʼs catalogs zEasy-to-choose combination of drape (front) and sheer(back) c
Slide 22: Product Development: N-warm
Product Development N-warm Now on sale zIncreased the volume of filling as well as performance; moisture-absorption and heat release providing more warmth heat-release, with the same price zAdded a new lower lower-priced priced comforter to the lineup zMore design variations for carpet/rug Copyright
Slide 23: Seasonal Coordination Series
Seasonal Coordination Series Cafe Time WINTER HOLIDAY zThe latest trend of coordination zUsing mostly warm colors, series that is widely mentioned on “Live warmly” coordination series. the SNS z“Exciting Winter holiday” theme R l i zRelaxing and d stylish t li h room concepts t i inspired i d ffrom
Slide 24: Coordination Ideas
Coordination Ideas NITORI MOOK magazine Vol.2 Vol 2 zCoordination techniques using Nitori Nitoriʼss items suggested by popular bloggers and Instagram users zNew items introductions for the season zA total of 80 pages of expertsʼ lessons on interior as well as tips and ideas on using our best-selling
Slide 25: Making good use of SNS
Making good use of SNS Posting coordination ideas on the Instagram zPhoto posting campaign to share the fun of interior coordination using Nitori products with customers zIntroducing coordination ideas from magazines and displays at stores Total number of applied photos: 1,361 Copyright 2016 Nitori
Slide 26: More convenient Nitori Net
More convenient “Nitori Net” Pick-up in store service Available at all stores from July 21 z Goods purchased through the internet can be picked up for free of shipping charge. z More than 5,000 users have used this service. z Pre-service test period of “Stock Reserve service” started from Sept. 8 fr
Slide 27: Corporate Business Sales, Products Development
Corporate Business Sales, Products Development ー Examples of delivered goods Providing “total coordination” For healthcare providers with safe and hygienic furniture Copyright 2016 Nitori Holdings All Rights Reserved 27
Slide 28: Logistic Measures
Logistic Measures Have been introduced in cooperation Swap Body Containers with Fuji Transport Co., Ltd. Vehicle with a detachable container body y zNo waiting time for unloading and uploading Æ improving transportation capacity zNo heavy physical work for drivers Æ countermeasure for drivers (labor
Slide 29: Social Contribution Activity
Social Contribution Activity Nitori Otaru Art Village opened on July 23 Stained Glass Art Gallery Art Nouveau Glass Building (Former Takahashi warehouse) (Former Arata Commercial Firm) Copyright 2016 Nitori Holdings All Rights Reserved 29
Slide 30: Nitori Ladies' Golf Tournament
Nitori Ladiesʼ Golf Tournament The 7 th Nitori Ladiesʼ Golf Tournament Saki S ki Nagamine, N i Winner：Ritsuko Ryu, affiliated to Nitori, a professional golfer was awardedd d the th 7 th prize i Copyright 2016 Nitori Holdings All Rights Reserved 30
Slide 31: Nippon Store Awards 2016
Nippon Store Awards 2016 1st prize on ʻAdding color to the daily lifeʼ. Basis of evaluation Rank Points of Evaluation 1st Adding color to the daily life Overall evaluation 2nd Interior suggestions gg for daily y life Stores and facilities are laid out for easy Evaluation 2nd shopping by visiting cus
Slide 32: Opening Stores in Department Stores
Opening Stores in Department Stores Takashimaya Konandai store zSales floor: about 5,000㎡ zColorful p presentation and extensive merchandise assortment Copyright 2016 Nitori Holdings All Rights Reserved 32
Slide 33: Opening Stores at Central Tokyo
Opening Stores at Central Tokyo Nakameguro OPEN on Sept. 16 Store Ueno Marui Oct 7 OPEN on Oct. Store Copyright 2016 Nitori Holdings All Rights Reserved 33
Slide 34: Store roll-out plan of Central Tokyo
Store roll-out plan of Central Tokyo Scale Name Region Open (Unit : tsubo) Nakameguro Meguro Ward Sep. 16 , 2016 700 y Toyoko Tokyu y Shib a Ward Shibuya Wa d Sep 29 , 2016 Sep. 130 (Deco Home) Ueno Marui Ueno Ward Oct. 7 , 2016 315 Shinjuku Takashimaya Shibuya Ward Dec. 2016 900 Times Square Kannan
Slide 35: Store roll-out plan in FY 2016
Store roll-out plan in FY 2016 Store Total Taiwan USA China End of Q2 ３５５ ４５ ２４ ５ ８ ４３７ Q3〜Ｑ4 ＋２２ ＋９ ＋３ ＋１ ＋３ ＋３８ net increase End of FY ３７７ ５４ ２７ ６ １１ ４７５ 2016 China USA ＋３ ＋１ Japan Taiwan ＋３１ ＋３ Copyright 2016 Nitori Holdings All Rights Reserved 35
Slide 36: Projection in FY 2016
Projection in FY 2016 （Billions of Yen） FY 2016 , Projection FY 2015 Change （ sales） （to ） （ sales） （to ） （ （YOY） ） Net sales 500.0 － 458.1 － 41.9 109.1% Gross profit p 263.0 52.6% 243.5 53.2% 19.5 108.0% SG&A expenses 184.0 36.8% 170.5 37.2% 13.5 107.9% Operating income 79.0 15.8% 73.0 15.9% 6.0 10
Slide 37: Disclaimer
【DISCLAIMER】 The forecasts and projected operating results contained in this report are based on information available at the time of preparation, and thus involve inherent risks and uncertainties. Accordingly readers are cautioned that actual results may differ materially from those Accordingly, pr