Toridoll. corporation FY2014 (2Q) Financial Result. Nov. 5, 2014

Transcription

1 Toridoll. corporation FY2014 (2Q) Financial Result Nov. 5,

2 Financial Result Digest FY2014(2Q) 2

3 Financial summary Consolidated Net sales: 43.2bn. yen (+9.0% vs. last 2Q) Consolidated Ordinary income: 3.8bn. yen (+48.3% vs. last 2Q) Consolidated Ordinary income ratio to Net sales: 9.0% (+2.4pt. vs. last 2Q) Consolidated (Unit: million yen) Actual Plan FY2013 (2Q) % to Net sales % to Net sales % to % to Net sales Plan % to % to Net sales Plan % to % to Net sales Last year Net sales 43,243-42, % 39, % Gross profit 32, % , % 107.1% Operationg income 3, % 2, % 133.4% 2, % 148.4% Ordinary income 3, % 2, % 136.6% 2, % 148.3% Net income % % 109.3% % 129.2% Nonconsolidated Actual Plan FY2013 (2Q) % to % to Net sales Last year Net sales 41,683-40, % 39, % Gross profit 31, % , % 104.7% Operationg income 4, % 3, % 124.3% 2, % 149.5% Ordinary income 4, % 3, % 129.4% 2, % 152.4% Net income 1, % 1, % 90.5% % 128.0% Financial Highlights (Consolidated) Net sales and Net income as planned Extraordinary loss counted for stores close & Impairment loss of goodwill in Overseas (Nonconsolidated) Net sales of Existing Stores increased +1.0% vs. last 2Q Net sales increase by fair goods hits COGS & Advertising expenses increase Note 1) Existing Stores are defined as those operated for 19 months or longer at the end of each month. 3

4 Consolidated: Store s Open & Close Net +2 stores in nonconsolidated market, net +20 stores in subsidiary, JV, FC Aggressive bus. expansion in overseas Numbers of Stores by Brand/Nation Nonconsolidated Subsidiary companies, Joint Ventures, Franchisees up down net up down net Marugame Seimen (udon) Overseas Road Sides U.S.A Shopping Centers Russia Toridoll (grilled chicken) South Korea Marushoya (ramen) Taiwan (ROC) Nagata-Honjyoken Australia Others DDC Total at end of FY2013 fluctuation at end of FY2014 (2Q) at end of FY2013 fluctuation at end of FY GEORGE S China (PRC) <JV> Thailand <JV> Indonesia <FC> Vietnam <FC> Domestic Athlete restaurant (2Q) Total Note 1) DREAM DINING CORPORATION ('DDC') operates 'Tokyo Table' & 'Tokyo Bento' brands in north America. Note 2) GEORGE'S CORPORATION ('GEORGE'S') operates 'Blue Marlin' & 'Hi Tide Poke Café' brands in Hawaii. 4

5 Nonconsolidated: Net sales of Existing Stores 2Q/FY14 domestic Marugame Seimen Existing Stores (+1.0% vs. last 2Q) +3.5 point higher than 1st half plan (97.5%) at FY14 beginning Year-over-year result in domestic Existing Stores (1 of Marugame Seimen brand (against corresponding day of week of last year) 116.0% 112.0% 108.0% 104.0% 100.0% 96.0% 92.0% 88.0% 84.0% Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Note 1) Existing Stores are defined as those operated for 19 months or longer at the end of each month. 5

6 Nonconsolidated: Y-o-Y Ordinary income ratio analysis FY14 (2Q: Nonconsolidated) Ordinary income ratio: 10.5% +1.9pt. better vs. last 2Q (exc. depreciation method change) 7.4% -1.3pt FY2013 2Q COGS ratio UP +1.6pt Labor cost ratio DN +0.1pt Utility cost ratio DN +2.7pt 10.5% Other cost ratio DN FY2014 2Q Main Factors of Fluctuation (Nonconsolidated) Increase of COGS Effect of high value-added product sales Expand Kamaage udon day Japan nationwide Decrease of Labor cost ratio Sales (denominator) increase Change business hours of domestic stores Decrease of Other cost ratio (Positive factors) Depreciation method change (approx. +1.2pt) Reduction of Open cost & Depreciation expenses by decrease of new shop open (Negative factor) Increase of Advertising cost 6

7 Consolidated overseas subsidiaries IS summary Sales of consolidated subsidiary companies: 1.5 bn. yen Consolidated subsidiary companies (all are overseas) Actual Plan FY2013 (2Q) % to Net Sales % to Net Sales Open 24 new stores ( in 56 stores planned for whole FY2014) Close unprofitable stores and include Impairment loss for goodwill for Russia & DDC Reflecting this, Valuation loss for stocks of subsidiaries & Reserve for doubtful accounts of subsidiaries calculated in nonconsolidated financial statement. % to Plan To construct structures for profit in next whole financial year % to Net Sales (unit: million yen) % to Last Year Net sales 1,560-1, % % Gross profit 1, % % 306.2% Operationg income Ordinary income Net income Note 1) Numbers are calculated by subtracting nonconsolidated amount from consolidated amount. 7

8 Summary of balance sheet Capital-asset ratio 30.0%, Debt-equity ratio 48.0% Summary of consolidated balance sheet FY2014 (2Q) end % to Total (unit: million yen) FY2013 end % to Total Difference Total assets 52, % 49, % 2,823 Current assets 14, % 10, % 3,537 Fixed assets 38, % 38, % -713 Total liabilities and net assets 52, % 49, % 2,823 Total liabilities 36, % 34, % 2,337 Interest-bearing debts in Total liabilities 25, % 24, % 675 Current liabilities 18, % 16, % 1,987 Fixed liabilities 18, % 17, % 350 Total net assets 16, % 15, % 486 Shareholders' equity in Total net assets 15, % 15, % 459 Main Factors of Fluctuation Increase of Assets Cash Increase by Sales increase Increase of Liabilities Account payable increase by procurement increase Tax payable increase by profit increase Loans payable increase Increase of Net assets Profit increase 30% or higher Capital-asset ratio is aimed in mid-long term. 50% or lower Debt-equity ratio is aimed in mid-long term. 8

9 Cash flow summary Cash & equivalents up by Sales up & slow down new store open Summary of consolidated cash flow FY2014 (2Q) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash & equivalents balance as of 2nd Quarter end (unit: million yen) FY2013 Change (2Q) 5,396 3,520 1,875 2,041 5,125 3, ,253 5,867 5,386 Main Factors of Fluctuation Cash flows from operating activities Cash Increase by Sales increase (Fair products hits) Cash flows from investing activities Investment decrease by slowing down new stores open pace Cash flows from financing activities Negligible 9

10 Financial forecast for FY

11 Financial forecast revision Financial forecast for FY2014 revised up by good 1st half performance Financial forecast for FY2014 Consolidated (unit: million yen) Sales Operating Ordinary Net income income income Previous forecast (A) 84,000 6,200 5,890 1,700 Revised forcast (B) 84,803 7,200 6,928 1,775 Difference (B-A) 803 1,000 1, Differing ratio (%) 1.0% 16.1% 17.6% 4.4% (ref.) FY2013 result 78,318 5,014 4, Nonconsolidated Sales Operating Ordinary Net income income income Previous forecast (A) 79,400 6,910 6,600 2,400 Revised forcast (B) 80,583 7,773 7,597 2,270 Difference (B-A) 1, Differing ratio (%) 1.5% 12.5% 15.1% -5.4% (ref.) FY2013 result 76,749 5,769 5,621 1,647 11

12 Summary of management measure (2Q / FY14) Domestic business 1st half review Planed measure for 2nd half Summary of new brands Overseas business Summary of overseas business Policy for future overseas business 12

13 Domestic business: 1st half review Implemented measures for Existing Stores Store cannibalizations QSC Substantially slow down new Marugame Seimen stores open Close unprofitable stores, consider & implement changing brand Construct education structures for quality control, rebuild more comfortable working environments More aggressively recruit & improve employee turnover Brand improvements & Products Sell new fair menus: Nikumori udon & Tarutoriten Bukkake udon Launch nationwide TV-CM for more customers Start Udon school for contribution to society & creation of Marugame Seimen fans 13

14 TV-CMs (for reference) Nikumori udon Tarutoriten Bukkake udon 幸せ Televised for August 1 st 31 st Televised for October 1 st - 26 th 14

15 Udon school (for reference) Udon school sceneries As a company in food business, promote society contribution by food education Implement trial sessions of udon making for applying kids and their parents in Japan nationwide Marugame Seimen fan creation & brand improvement also expected 15

16 Domestic business: 1st half review 2nd half measure for plan completion New store opening plan To focus opening in shopping centers for less cannibalization To open 21 new stores in whole FY (1 st half 13, +8 stores in 2 nd half) Product measure To develop and sell fair products customers feel value To brush-up existing products Sales & Marketing measure To examine investment-effectiveness & consider TV-CM To recruit more & enhance education programs for store QSC improvement To increase Udon school frequency 16

17 Domestic business: Summary of new brands Café business ( Kona s Coffee & Lanai Café ), Tempura teishoku Makino go well To improve for more stores open Topics on new brands Store opening result 3 Lanai Café stores open Open inquiries from many commercial facilities (e.g. shopping centers) Success example of business change Marugame Seimen Fujimino Store change into Kona s Coffee Reported by many media: TVs, Internets, Newspapers Super News in Fuji-TV, Nikkei Trendy Net, major newspapers, etc. To create more new businesses for stable growth To train employees for producing brands Effective practical use of out-sourcing, M&A, etc. 17

18 Business change example (for reference) 1 of 4 cannibalizing Marugame Seimen stores change into Kona s Coffee After Before Business change effects Transfer effect (20% of Sales transfer to other 3 stores) Sales up effect (Business change make Sales up by 2.4 times) 18

19 Summary of overseas business Unhesitatingly scrap unprofitable overseas stores Big progress to go into the black for whole fiscal year Topics on overseas business Achieve going into the black for monthly basis Make profit in overseas group (excluding GEORGE S CORPORATION that start in July) for this August. (including nonconsolidated affiliated companies and FC royalties) Scrapping unprofitable stores and concentration of financial resources Swiftly decide and implement closing unprofitable stores in Russia, etc. Intensively open new stores in more profitable markets (e.g. Taiwan) Expand FC business Newly start FC business of Marugame Seimen brand in South Korea. 19

20 Policy for future overseas business To escalate new stores open mainly in Asia To study locally acceptable new brands (in addition to Marugame Seimen) in other area Past business policy New business policy Asia Hawaii Mainly Mainly Other area Mainly + α brands (ex. ) To strengthen global brand development & expansion 20

21 Disclaimer This document is provided for informational purposes only. No investment opinion or advice is provided, intended, or solicited. Toridoll. corporation (the Toridoll ) offers no warranty, either expressed or implied, regarding the veracity of data or interpretations of data included in this report. Toridoll shall not be held responsible for any damage caused by the use of this report. 21