H2O Retailing Corporation · TSE:8242
H2O Retailing — Q2 FY2022 Earnings Presentation
19 slides from H2O Retailing's earnings presentation, November 2021
Slide 1: 2Q of FY2022 Presentation Materials
2Q of FY2022 Presentation Materials H2O RETAILING CORPORATION
Slide 2: Topics
Topics Ⅰ. Consolidated Financial Results Ⅱ. Forecast of FY2022 Ⅲ. Topics of Mid-term management plan Copyright © H2O Retailing Corp. All Rights Reserved. 2
Slide 3: 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. 3
Slide 4: Ⅰ－１. Consolidated Financial Results
Ⅰ－１. Consolidated Financial Results ▶ Sales fell short of forecast due to COVID-19 expansion, such as the declaration of state of emergency and cluster outbreaks at both main department stores, whereas OP was in line with expectations ▶ Significant growth in profit due to gains on sales of non-curre
Slide 5: Ⅰ－２. Results by segment
Ⅰ－２. Results by segment ▶ Supermarket : outperformed forecast due to continued demand for eating at home ▶ Shopping center : profit increased due to H2O SC Development and Oi Development [improved operation ratio and cost reduction] * Segmentation has been changed [results for the previous year have
Slide 6: Ⅰ－２. Results by segment
Ⅰ－２. Results by segment （billions of yen） YoY versus forecast Sep. 30, 2020 Sep. 30, 2021 Forecast (0.7) +0.1 (4.4) (5.1) (5.2) SC +0.4 SM SC +0.7 +0.7 Dpt. Other (0.6) Other (0.3) (0.9) Dpt. SM (0.2) (0.5) Copyright © H2O Retailing Corp. All Rights Reserved. 6
Slide 7: Ⅰ－３. Department store business
Ⅰ－３. Department store business ▶ Sales increased and OP decreased due to the increased costs in reaction to the previous year's operating restriction ▶ Sales decreased in 2Q due to COVID-19 expansion [the declaration of state of emergency, partial closure due to cluster outbreak and restricted entry
Slide 8: Ⅰ－３. Department store business
Ⅰ－３. Department store business ▶ The emergency declaration with the 4th wave of COVID-19 outbreak(Apr.-May.) led to store operation restriction. Sales decreased due to deterioration of customer's buying motivation due to the 5th wave(Jul.-Sep.) and partial closure due to cluster outbreak. ▶ Recovery
Slide 9: Ⅰ－４. Supermarket business
Ⅰ－４. Supermarket business ▶ Supermarket : Sales increased and profit decreased - Hankyu Oasis : Sales and profit increased due to strong sales at existing stores absorbed the increase in SG&A expenses. - Izumiya : Sales and profit exceed expectation due to strong sales at SM in spite of struggles at
Slide 10: Ⅰ－５. Extraordinary income and losses
Ⅰ－５. Extraordinary income and losses ▶ Recorded gains on sales of non-current assets and investment securities as an initiative to improve asset efficiency in the mid-term plan ▶ Loss related to COVID-19 of ¥3.9bn., including rent and personnel expenses during the store closure period Subsidy income
Slide 11: Ⅱ. Forecast of FY2022
Ⅱ. Forecast of FY2022 ➤ Existing businesses ● The full-year forecast remains unchanged because OP has been in line with expectations through 2Q - Sales are likely to continue to be affected by the spread of COVID-19. ➤ Management integration with Kansai Supermarket ● Impact on financial results yet
Slide 12: Ⅲ. Topics of Mid-term management plan
Ⅲ. Topics of Mid-term management plan １．Pre-opening of Hanshin Umeda main store ２．Management integration with Kansai Supermarket ３．Head office relocation ４．Sustainability Management Copyright © H2O Retailing Corp. All Rights Reserved. 12
Slide 13: Ⅲ－１. Pre-opening of Hanshin Umeda main store
Ⅲ－１. Pre-opening of Hanshin Umeda main store ➤ Pre-opening on Oct. 8,2021 ● Store concept “Store that makes your daily life happy” - In food, proposals for every scene, including eating out and eating in - In non-food products, experience value across product categories based on lifestyles and prefe
Slide 14: Ⅲ－１. Pre-opening of Hanshin Umeda main store
Ⅲ－１. Pre-opening of Hanshin Umeda main store ➤ Maximize the strong point “Hanshin Boasting Food” ● Expansion of food-related floors to four floors ● “Food Festival Terrace” on the first floor A space for experiencing food that symbolizes the concept ● “Hanshin Shokuhin-kan” on the first basement flo
Slide 15: Ⅲ－２. Management integration with Kansai Supermarket
Ⅲ－２. Management integration with Kansai Supermarket Oct. 29, 2021 Approval of business integration at the extraordinary general meeting of shareholders of Kansai Supermarket Dec. 1, 2021 Management integration with Kansai Supermarket Feb. 1, 2022 Transition to holding company + 3 SM companies ➤ Aims
Slide 16: Ⅲ－３. Head office relocation
Ⅲ－３. Head office relocation ➤ Late August 2022, relocate headquarters offices of H2O Retailing and Hankyu Hanshin Department Store to the 14th floor of Osaka Umeda Twin Towers South. Open Collaborative events ● Transformation to an self-motivated and Space for flexible work style through ABW Free ad
Slide 17: Ⅲ－４. Sustainability Management
Ⅲ－４. Sustainability Management ➤ Commitment for sustainability management ● Set the sustainability management policy and materiality based on the Group vision ⇒ Aim to be the No. 1 mindshare company by contributing to the local community Group To be a customers' partner to enrich their hearts throug
Slide 18: Ⅲ－４. Sustainability Management
Ⅲ－４. Sustainability Management ➤ Strengthen stakeholder communication ● Published integrated report in November 2021 Information on the Group's business and sustainability initiatives such as value creation process, KPIs and initiatives for materiality, etc. ● Plan to hold a briefing session for inv
Slide 19: Disclaimer
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