Toridoll Corporation FY2015(4Q) Financial Result. May 16, 2016

Transcription

1 Toridoll Corporation FY2015(4Q) Financial Result May 16,

2 Financial Result Digest FY2015(4Q) 2

3 Profit for this year increase 2.6 times as last year, reach a record high. Profit & Loss Outline Consolidated PL (IFRS) Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization) Highlights (Consolidated) Actual Revenue This period Planned Revenue Plan Domestic business has been performing well and Overseas business became profitable early. Profit for the year of this period increased by 2.6 times as much as that of last year. (Non-consolidated) Performance of Existing Stores increased (+6.4% vs. previous period). Performance of Existing Stores of Marugame Seimen brand increased (+6.7% vs. previous period). Material cost decreased by price revision and Advertising cost increased by broadcasting TV CM s. Cost ratio to Net sales decreased because of Net sales increase. Amount (unit: Million yen) Previous period Revenue Prev. period Revenue 95, % 93, % 102.3% 87, % 109.5% Adjusted EBITDA 12, % , % Operating profit 8, % 6, % 135.6% 4, % 209.2% Profit before tax 8, % 6, % 133.2% 3, % 224.6% Profit for the year 5, % 3, % 139.5% 2, % 260.7% Profit for the year attributable to owners of the parents 5, % 3, % 141.1% 1, % 263.0% 3

4 Profit & Loss Outline(J-GAAP) Consolidated PL (J-GAAP) This period Actual Net sales Amount (unit: Million yen) Previous period Net sales Prev. period Net sales 95, % 87, % 109.5% Operating profit 10, % 7, % 132.5% Ordinary profit 9, % 6, % 132.5% Profit for the year 5, % 2, % 204.4% Non-consolidated PL (J-GAAP) Actual Net sales This period Planned Net sales Plan Amount Previous period Net sales Prev. period Net sales 89, % 87, % 101.9% 83, % 107.3% Gross profit 67, % , % 107.9% Operating profit 9, % , % 121.4% Ordinary profit 9, % 8, % 111.7% 8, % 117.3% Profit for the year 5, % 4, % 136.5% 2, % 221.6% 4

5 Non-consolidated Sales Change of Existing Stores of Marugame Seimen Brand Monthly sales of Existing Stores of Marugame Seimen brand keep better than last year s months even after August, 2015 when a whole yearly promotion measures ended. (unit: Million yen) 5,400 5,300 5,200 Sales keep increasing for consecutive 20 months 5,100 5,000 4,900 4,800 4,700 4,600 Moving average for 12 months of Existing Stores Calculation is based on the Existing Stores at the end of March, Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar (Year over-year result in domestic Existing Stores) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total Net Sales 117.0% 113.3% 106.2% 111.8% 102.0% 101.1% 103.6% 103.2% 108.5% 109.6% 103.3% 103.5% 106.7% # of Guests 108.9% 106.5% 99.2% 104.5% 99.2% 98.6% 101.1% 100.2% 101.9% 103.8% 98.3% 99.6% 101.8% Sales per Guests 107.4% 106.4% 107.0% 107.0% 102.8% 102.5% 102.5% 103.0% 106.5% 105.6% 105.0% 104.0% 104.9% 5

6 Measures Implemented in the 2 nd Half Measures implemented to support the performance of the Existing Stores Sales & Marketing Measures Developed value-added menus effectively, such as Niku tama ankake Udon and Dashitama niku zutsumi Udon, based on the data from previous years. Improved variety of value-added products and sub-products which contributed to increasing their composition ratio of sales. Rolled out cost effective promotions such as limiting the TV commercials to specific areas. Guest-count Increasing Measures Eliminated staff lack : increased approx.+2,000 staffs compared to previous period ( Head count of part-time workers) Implemented trainer certification Trained trainers who can not only provide knowledge and techniques but also equipped with the ability to teach, which contributed to more effective training of newly hired and retention of the staffs Reinforced the sales of Tempura of take-aways. 6

7 Year-on-year Analysis of Adjusted EBITDA Adjusted EBITDA ratio to Net sales for the 1st half of this period achieve 13.4%. +1.9pt because of decrease of cost ratio (by increase of sales) in domestic business and improvement of profit structure in overseas business +1.2pt -0.8pt +0.5% 13.4% +0.6pt +0.3pt 11.5% Note 1) Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization 7

8 Open/Close Stores Outline +24 stores for Domestic; +157 stores in Overseas (+85 stores by Acquisition) Huge progress in number of shops in overseas business, which lead 1,092 shops of Toridoll Group at end of FY2015. Number of stores by brands/countries Non-consolidated March 2015 During period Open Close March 2016 Marugame Seimen (Udon) Road Side Shopping Center Toridoll (Yakitori) Marushoya (Ramen) Nagatahonjoken (Yakisoba) Kona's Coffee etc. (Café) Others Total Subidiaries, JVs, FCs March 2015 During period March 2016 Brand Open Close Hawaii Marugame Udon 2 2 Korea Marugame Udon TDC Tokyo Table GEORGE S CRACKIN KITCHEN Taiwan (90%) Marugame Udon, Tonichi Kenya (90%) Teriyaki Japan Cambodia (65%) Marugame Udon NNE (60%) Kaya Street Kitchen WOK TO WALK (60%) WOK TO WALK Russia (49%) Marugame Udon 5 5 Thailand (40%) Marugame Udon U5FB (40%) Boat Noodle Chill Chill China (37%) Marugame Udon Malaysia (30%) Marugame Udon Indonesia Marugame Udon, Toridoll Vietnam Marugame Udon etc Australia Marugame Udon Total Note 1) Name of DREAM DINING CORPORATION was changed to TORIDOLL DINING CORPORATION ( TDC ). This subsidiary company is operating/managing Tokyo Table brands in north America. Note 2) GEORGE S CORPORATION ( GEORGE S ) is operating/managing CRACKIN KITCHEN brand. Note 3) Nom Nom Enterprise LLC( NomNom )is operating/managing Kaya Street Kitchen brand in L.A.. Note 4) Wok to Walk Franchise B.V.( WOK TO WALK )is operating/managing WOK TO WALK brand around Europe. 8

9 Overseas segment This period Actual Revenue Overseas Consolidated Subsidiary Companies PL Outline Operating profit of overseas segment improve 500 million yen from last year. Overseas business turn into the black earlier than scheduled. Amount Previous period Revenue Prev. period J-GAAP (Unit: Million yen) FY2015(4Q) Progress rate Planned Revenue 6, % 4, % 155.2% Revenue 5, % OP of Overseas Operating segment % profit % Achievement of profitability FY13 FY14 FY15 2Q FY15 4Q Improve 500 million yen from last year by maintaining opening new stores and closing unprofitable stores. Taiwan : 190 million yen increased Russia : 240 million yen improved GEORGE S : 100 million yen improved Profit of investments accounted for using the equity method improve 130 million yen from last year by the profitability of China business Profit at store level has been profitable since before. Stable profit and scalability are ensured covering the cost of store opening and head office 9

10 Overview of Overseas Businesses by Locations USA Asia Tokyo Table operated by TDC continues to perform well. Plan to open a 2 nd store is under way. Marugame Seimen Waikiki and CRACKIN KITCHEN continue to perform well. They proudly represent No.1 and No. 2 sales among all stores of Toridoll in the world. Taiwan:Continues to perform well with high profitability. New Tonkatsu brand opened in October and planning on expanding. Korea:Affected by MERS, but recovering. Improved by closing unprofitable stores. China:Both existing and new stores are performing well. Continue to expand aggressively. Thailand:Struggling with the influence of terrorism. Improve by closing unprofitable stores. Indonesia:Performing well. Acquired halal authorization last October. Continue to expand aggressively. Vietnam:Continuing to open new stores. 7 th store of Marugame Seimen opened recently. Examining transition to Joint Venture company. Cambodia:Implementing measures, such as introducing breakfast menu, to improve profitability. Malaysia (Boat Noodle):Operating 17 stores currently and aggressively expanding. Others Kenya : Struggling with the influence of strikes. Measures taken to enhance profitability. WOK TO WALK:Aggressively expanding with currently 77 stores. Seeking direct-owned stores as well as expanding areas of franchise stores. 10

11 BS Outline Equity attributable to owner of parent company for this period: 51.9% Interest-bearing liabilities dependence: 25.3% Consolidated BS (IFRS) End of this year End of previous year Amount Ratio Amount Ratio Difference Total assets 57, % 59, % 1,226 Current assets 13, % 17, % 4,317 Non-current assets 44, % 41, % 3,091 Total liabilities and equity 57, % 59, % 1,226 Liabilities 26, % 33, % 6,738 (included interest-bearing liabilities) 14, % 21, % 6,875 Current liabilities 15, % 18, % 2,525 Non-current liabilities 11, % 15, % 4,213 Total equity 30, % 25, % 5,513 (Equity attributable to owners of the parent) 29, % 25, % 4,687 Main factors of fluctuation Decrease of assets Decrease of cash equivalents by little borrowing money Decrease of liabilities Little borrowing money Increase of equity Profit for the year 11

12 CF Outline CF by investing activities decrease by M&A CF by financing activities decrease by little borrowing money Consolidated CF (IFRS) Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Cash and cash equivalents at end of period This period (unit: Million yen) Previous Difference period 8,578 9, ,194 3,468 2,726 7, ,301 10,094 14,992 4,898 Main factors of fluctuation Net cash provided by (used in) operating activities Decrease by increase of Income tax & Consumption tax Net cash provided by (used in) investing activities Decrease by M&A Net cash provided by (used in) financing activities Decrease by little borrowing money 12

13 Financial forecast for FY2016 / 3 Years Expansion Plan Financial forecast for FY Years Expansion Plan Domestic business Overseas Business Expansion of Business Domain Future Vision 13

14 Financial forecast for FY 2016 Domestic business: Reinforcing business base. Aggressive expansion of new brands. Overseas business: Continue aggressive development estimating 670m yen growth in profit Consolidated PL (IFRS) FY 2016 Opened new stores: Domestic: 34 stores, Overseas: 80 stores (direct-owned:11 stores, JV FC:69 stores) Premise of monthly sales of Existing Stores: First half 100.0%, Second half 101.2% 1,590 million yen calculated for impairment loss Previous period (unit: Million yen) Prev. period Revenue 102,660-95, % Adjusted EBITDA 14,110 14% 12,799 13% 110.2% Operating profit 8, % 8,733 9% 100.3% Profit before tax 8, % 8, % 105.7% Profit for the year 5, % 5, % 104.7% Profit for the year attributable to owners of the parent 5, % 5, % 105.5% Overseas segment FY 2016 Previous period Prev. period Revenue 8,102-6, % 129.5% Operating profit of Overseas segment 1, % % 254.4% 14

15 3 years Expansion Plan Continuously expand business and reach 1,600 stores in the world in FY2016 Consolidated PL (IFRS) Ammount FY2016 Revenue Prev. period Ammount FY2017 Revenue Prev. period Ammount (Unit: million yen) FY2018 Revenue Prev. period Revenue 102, % 111, % 126, % Adjusted EBITDA 14, % 110.2% 15, % 107% 17, % 117% Operating profit 8, % 100.3% 9, % 113% 11, % 117% Profit before tax 8, % 105.7% 10, % 121% 12, % 118% Profit for the year 5, % 104.7% 7, % 130% 8, % 120% Profit for the year attributable to owners of the parents 5, % 105.5% 6, % 125.4% 7, % 115.7% Overseas segment Revenue 8, % 11, % 20, % OP of overseas segment 1, % 254.4% 1, % 151% 3, % 181% Numbers of opening stores (numbers in overseas) 114(80) (119) (166) - Total numbers of stores (numbers of overses) 1,185(315) - 1,358 (434) - 1,608(600) - 15

16 Reinforcing business base for even more rapid growth Existing Stores Opening stores in the metropolitan area Build the base of expansion in the metropolitan area by reinforcing adequate staffs. Strategically renovate store design and client route. Evolving measures for products and marketing enhancement. Expanding sub products, period-limited value-added products, and introducing Don (rice bowl) and combination menus. Effective sales promotion by quantitative analysis of the TV CM effect. Continue investing in talented persons (Improvement of QSC by Staff sufficiency) Reinforce hiring of part time staffs. Improve retention by improving staff education. Implementing High-school grads in addition to University grads to stabilize recruitment. New brands Rolling out Tempura brand and Tonkatsu brand Utilization of real estates in metropolitan area. Building a base for multiple-store expansions. Domestic business 16

17 Develop various regions as our market Adopt the culture and taste in each county/region Pursue mass-market by local customization Not mono-brand strategy but multi-brand strategy Overseas: Multi-portfolio Strategy Our goal is 4,000 stores in overseas in 2025 with multi-portfolio strategy 17

18 Decided to open Marugame Udon in the main land of the US Overseas: Marugame Udon Plan to open a store in Los Angels this fall Marugame Udon is one of popular restaurants in the US * イメージパース図 Waikiki store ranked in 10th No.1 in Japanese restaurant category Source: places-to-eat-in-the-us-for-2016-fast-track-to-a-food-coma Continuously open stores in Asia Started Cambodia business in FY

19 Overseas: Boat Noodle / WOK TO WALK Hot fast casual restaurants in Euro WOK TO WALK Malaysian noodle restaurant chain Boat Noodle Established subsidiaries in UK & US Searching potential locations for directly owned restaurants Target new middle class in Asia and other developing countries Penetrate Islamic market in South East Asia and Middle East 19

20 M&A: Expansion of Business Domain Acquired 100% shares of SONOKO which is a life-style company providing beauty and health with oil-free and additive-free foods Food safety & security Procurement Mail-order channel The elderly & the wealthy Highly loyal customers For customers pleasure with food all over the world Business development in overseas New customers Merchandising Mass marketing Develop SONOKO brand as our domestic business with comfort and safe foods Also strengthen its brand mainly in developing counties where food safety and security are getting required 20

21 Future Vison 500 billion yen revenue and 6,000 restaurants in the world in 2025 Rank in top ten companies in restaurant industry McDonald's Corporation (USA) Starbucks Corporation (USA) Yum Brands Inc. (USA) Darden Restaurants Inc. (USA) AUTOGRILL SPA (Italy) ZENSHO HOLDINGS CO., LTD. (Japan) Bloomin Brands Inc. (USA) ARCOS DORADOS HD Inc. (Argentine) Chipotle Mexican Grill, Inc. (USA) TIM HORTONS Inc. (Canada) To be ranked in ten years 0 5,000 10,000 15,000 20,000 25,000 30,000 (Unit: million USD) Multi-brands in the world Global company with growth axes World leading company from Japan in restaurant business market 4,000 stores 290 bil yen Overseas business New domestic brands Existing domestic brands 95.6 bil yen 150 bil yen 500 bil yen 700 stores 80 bil yen 1,300 stores 130 bil yen 21

22 Corporate logo and management philosophy renovated New management philosophy New corporate logo design 22

23 Newly set up the Tokyo headquarter in order to keep on challenging world s restaurant market with our creativity and innovation Entrance Symbol of challenging the global market from Japan New Tokyo Headquarter Cafe area Space that support creativity & innovation in business 23 23

24 Reference materials 24

25 Non-consolidated year-on-year analysis of Ordinary profit Achieve 10.6% of Ordinary profit ratio (to Net sales) at Non-consolidated basis. Advertising cost increase but cost ratio (to sales) itself go down because of the sales increase, which increase profit ratio from the previous period. +1.2pt -0.9pt 9.7% +0.4pt +0.5pt +0.2% 10.6% 25

26 Basic information of Overseas Marugame Seimen brand Overseas Marugame Seimen brand Basic information (Monthly date per store) # target stores Sales (1,000 yen) # of Guests (person) Sales per Guests (yen) USA 2 31,554 31, Russia 10 6,005 7, South Korea 12 16,033 24, Taiwan (ROC) 5 7,736 10, Cina(PRC) <JV> 29 8,479 12, Thailand <JV> 20 3,160 5, Japan 756 8,836 16, Sales, # of Guests, Sales per Guests are the means in the period from July to December of Adopt an exchange rate at end of March, 2016 # target stores are ranning in the period from July to December of