FY 2010FY 2010Financial Results Presentation MaterialsFinancial Results Presentation Materials
May 11, 2011BOOKOFF Corporation Ltd.BOOKOFF Corporation Ltd.
Ordinary profit fell short of forecast in the fiscal year ended Ordinary profit fell short of forecast in the fiscal year ended March 31, 2011 on the impact of the March 31, 2011 on the impact of the Great East Japan Earthquake.Great East Japan Earthquake.Added to the expected effects of Added to the expected effects of ““the application of asset retirement obligations,the application of asset retirement obligations,”” the Group the Group recorded an unanticipated recorded an unanticipated ““loss on disaster,loss on disaster,”” resulting in lower income on higher sales. resulting in lower income on higher sales.
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 11
Immediate performance is improving due to factors including a reImmediate performance is improving due to factors including a recovery of disastercovery of disaster--stricken areas. stricken areas. New stores are getting off to a strong start, and our policy on New stores are getting off to a strong start, and our policy on opening new stores is unchanged.opening new stores is unchanged.We plan to continue to open 4 We plan to continue to open 4 –– 5 BOOKOFF SUPER BAZAAR stores annually.5 BOOKOFF SUPER BAZAAR stores annually.
Earnings forecasts for the fiscal year to March 2012 are slightlEarnings forecasts for the fiscal year to March 2012 are slightly conservative due to ongoing y conservative due to ongoing uncertainty about the earthquakeuncertainty about the earthquake’’s impact on consumption, but we anticipate gains in both sales s impact on consumption, but we anticipate gains in both sales and income. and income. Ordinary profit is forecast to reach Ordinary profit is forecast to reach ¥¥3.5 bn, matching the Group3.5 bn, matching the Group’’s alls all--time high. time high.
FY 2010FY 2010Consolidated Financial Results SummaryConsolidated Financial Results Summary
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 22
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 33
Unit: mn yen
FY 2009 Ratio FY 2010 Ratio Yoy Vs. plan Factors
Net sales 71,091 100.0% 73,345 100.0% 103.2% -2,655New emphasis on gross margin. Earthquake’s negative impact on existing store sales: approx. ¥900 mn.
Gross profit 40,081 56.4% 41,442 56.5% 103.4% -Declining trend in gross margin ratio due to business mix comes full circle. Slight gain from 2H onward as product-specific gross margin ratios improve.
SG&A 37,269 52.4% 38,694 52.8% 103.8% -Amid progress in cost reductions, prior investments made in Reuse Business personnel. Cost cut benefits seen in 2H but full-year gains are slight.
Operating income 2,811 4.0% 2,748 3.7% 97.8% -552 Improved gross margin ratio largely offsets
missed portion of sales target. However, ordinary profit misses target as earthquake-related sales decline in Tohoku and Kanto regions.
Ordinary profit 3,137 4.4% 3,157 4.3% 100.6% -443
Extraordinary gain 119 0.2% 139 0.2% 116.8% - 【Extraordinary Losses】
・¥626 mn loss on adjustment for changes of accounting standard for asset retirement obligations (included in initial forecast)
・Loss on disaster: ¥275 mn (not in initial forecast)
Extraordinary loss 634 0.9% 1,628 2.2% 256.9% -
Net income 1,378 1.9% 568 0.8% 41.2% -632 Net income declines as ordinary profit misses target due to earthquake’s impact and extraordinary losses caused by asset retirement obligations, loss on disaster are recorded.EPS(yen) 76.96 31.57 -45.39
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Consolidated Statements of IncomeConsolidated Statements of Income
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 44
Unit: mn yen
FY 2009 Ratio FY 2010 Ratio Change Factors
Cash/deposits 4,832 13.2% 6,631 17.0% +1,799
Cash and deposits rise on ¥2.0 bn in temporary bank loans taken to ensure business stability following the earthquake.
Inventories 9,072 24.8% 9,481 24.2% +408 Inventories rise on business expansion (inventory turnover rate consistent with previous year’s)
Current assets 17,374 47.5% 19,333 49.4% +1,959Noncurrent assets 19,175 52.5% 19,773 50.6% +598 (Noncurrent Assets)
Asset retirement obligations: + ¥427 mn;systems development/goodwill/guarantee deposits: + ¥671 mn;stocks of subsidiaries & affiliates (consolidation) : -¥584 mn
Total assets 36,549 100.0% 39,107 100.0% +2,558
Current liabilities 14,738 40.3% 16,631 42.5% +1,893 Short-term loans payable: + ¥2,240 mn
Accounts payable-trade: -¥ 411 mn
Noncurrent liabilities 9,096 24.9% 9,738 24.9% +641 Asset retirement obligations: + ¥1,135 mn
Long-term loans payable: -¥437 mn
Total liabilities 23,834 65.2% 26,369 67.4% +2,534Net Assets 12,714 34.8% 12,738 32.6% +23
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Consolidated Balance SheetConsolidated Balance Sheet
Interest-bearing debt = Short-term loans payable + current portion of long-term loans payable + long-term loans payable + long-term accounts payable – other (installment)
Interest-bearing debt 15,801 43.2% 17,574 44.9% +1,773 -¥227 mn year-on-year, excluding temporary bank loans
(¥2.0 bn)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 55
Unit: mn yen
FY 2009 Ratio FY 2010 Ratio Yoy Factors
BOOKOFF Business 47,724 67.1% 50,001 68.2% 104.8%【BOOKOFF Business】
・New stores fuel growth at directly operated stores・Online sales increase【Reuse Business】
・New stores fuel growth at directly operated stores・Yoy gain at existing stores (102.9%)【Packaged Media Business】
・Existing rental, new merchandise stores decline Yoy・Closures of unprofitable new book stores
Reuse Business 8,940 12.6% 9,761 13.3% 109.2%
Packaged Media 13,462 18.9% 12,943 17.6% 96.1%
Other 963 1.4% 638 0.9% 66.2%
Corporate/Adjustments - - - - -
Total 71,091 100.0% 73,345 100.0% 103.2%
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Performance by SegmentPerformance by Segment<<SalesSales>>
FY 2009 Margin FY 2010 Margin Yoy Factors
BOOKOFF Business 4,288 9.0% 4,724 9.4% 110.2% 【BOOKOFF Business】
・Increased earning power of new stores, increased profitability of existing stores【Reuse Business】
・Prior investment in personnel 【Packaged Media Business】
・Gross margin ratio improvement and cost cuts offset sales drop ・Closures of unprofitable stores【Corporate】
・Portion of expenses shifted to other segments (transferred from BOOKOFF Business): -80; Allowance for doubtful accounts: -50; taxes -50; Strengthening of HQ: -30
Reuse Business 128 1.4% -116 -1.2% -
Packaged Media -27 -0.2% 30 0.2% -
Other 49 5.1% 9 1.4% 18.5%
Corporate/Adjustments -1,626 - -1,898 - -
Total 2,811 4.0% 2,748 3.7% 97.8%
<<Operating incomeOperating income>>
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 66
Unit: mn yen
FY 2009 FY 2010 Change Factors
Income before income taxes 2,622 1,668 -954 Due to the recording of retirement asset obligations & a loss on disaster
Depreciation & amortization 1,958 2,348 +390 Factors arising from increased capital investment for store openings
Loss on disaster - 275 +275 Damaged to goods/allowance for repairs resulting from the Great East Japan Earthquake
Loss on adjustment for changes of accounting standard for asset
retirement obligations- 626 +626 One-time extraordinary loss caused by change in accounting
principles
Impairment 311 365 +54Change in current assets/liabilities -55 -731 -786 Inventories: -¥277 mn (business expansion)
Income taxes paid/other -574 -1,007 -433 Income taxes (including refunds): -¥378 mn
Operating Activities 4,262 3,544 -718Change in noncurrent assets &
guarantee deposits -1,248 -1,272 -24 Investment in store openings and computer systems
Outlays for store acquisitions -294 -786 -492 Acquisition of 14 franchise stores (mainly in Chukyo region)
Other -363 -12 +351 (FY 2009) Stocks of subsidiaries & affiliates: -¥258 mn
Investing Activities -1,905 -2,070 -165Operating activities + investing activities 2,356 1,473 -883Financing activities -1,955 264 +2,219 ¥2.0 bn in temporary bank loans following the earthquake
Cash & cash equivalents 4,711 6,505 1,794 Cash and deposits rise temporarily on temporary loans
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Consolidated Cash FlowsConsolidated Cash Flows
3,243 3,371
4,509
3,820 3,717
837
3,300
2,0402,348
1,9581,756
1,3541,003
2,336
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 (est.)
Mn yen
Total capital investment Depreciation
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 77
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Capital Investment & Depreciation Actual vs. PlanCapital Investment & Depreciation Actual vs. Plan
FY 2011 estimate: FY 2011 estimate: ¥¥3.3 bn in capital investment, 3.3 bn in capital investment, ¥¥2.3 bn in depreciation2.3 bn in depreciationInvestment in new store openings in line with prior FY, but downInvestment in new store openings in line with prior FY, but down yoy due to POS system development, yoy due to POS system development, largelarge--scale acquisition of franchise stores in FY 2010 scale acquisition of franchise stores in FY 2010
Online business launched
Acquired stock in TSUTAYA’s operating company
Took over business operations of new book stores
Accelerated opening of large-scale urban stores and mixed secondhand retail complexes.
New POS system developedAcquired franchise stores (14)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 88
Impact of the Great East Japan Earthquake (1)Impact of the Great East Japan Earthquake (1)
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
March monthly net sales
BOOKOFF Stores Reuse Stores
Existing storesYoy
No. of closed stores as of
3/31
Existing storesYoy
No. of closed stores as of
3/31
Tohoku region 72.7% 7 30.3% 5
Kanto region 86.9% 2 68.5% 1
Other 97.9% - 93.4% -
Total 89.1% 9 73.8% 6
2. Loss on disaster (extraordinary loss) recorded2. Loss on disaster (extraordinary loss) recorded
1. Impact on sales1. Impact on sales
・・Damage to merchandiseDamage to merchandise・・Allowance for repairsAllowance for repairs・・Financial contributions, relief suppliesFinancial contributions, relief supplies・・Recovery personnel costs, compensation for employees on leaveRecovery personnel costs, compensation for employees on leave
Kanto, Tohoku regions account for nearly 70% of both no. of storKanto, Tohoku regions account for nearly 70% of both no. of stores and net saleses and net salesShortened business hours due to scheduled power outages hit saleShortened business hours due to scheduled power outages hit saless
*Data from directly operated stores
Total: Total: ¥¥275 mn275 mn
404
193
803
145228
1,077
3,600
3,1963,003
2,200
510
1,180
3,013
3,157
2,785
1,708
333
943
-600
0
600
1,200
1,800
2,400
3,000
3,600
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Unit: mn yen
-300
0
300
600
900
1,200
1,500
1,800FY initial plan (monthly)Actual (monthly)
FY initial plan(cumulative)Actual (cumulative)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 99
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
Impact of the Great East Japan Earthquake (2)Impact of the Great East Japan Earthquake (2)
As of 3Q, ¥500 mn short of FY initial plan
Gross margin ratio improvement and cost cuts emerge; clear initial target for 3 straight months starting in Dec.; gap closed to -¥180
mn as of Feb.
¥600 mn set as March target; earthquake
strikes As of 2Q, ¥240 mn short
of FY initial plan
Ordinary profit trends
Ordinary profit trends
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1010
Impact of the Great East Japan Earthquake (3)Impact of the Great East Japan Earthquake (3)
FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary
~~ BOOKOFF Group InitiativesBOOKOFF Group Initiatives ~~
1. Recovery assistance for member stores in disaster areas1. Recovery assistance for member stores in disaster areas
1. Personnel assistance1. Personnel assistance 2. Financial contributions (2. Financial contributions (¥¥50 mn from the company)50 mn from the company)
2. 2. ””Sell and support programSell and support program””: Started program that allows customers to donate by selling boo: Started program that allows customers to donate by selling books, etc.ks, etc.
As of 5/6:As of 5/6: 8,596 participants, 8,596 participants, ¥¥14.25 mn in donations14.25 mn in donations
3. Provision of books (through NPOs, etc.)3. Provision of books (through NPOs, etc.)
4. Financial contributions made in the company4. Financial contributions made in the company’’s name: s name: ¥¥10 mn (total, through Japan Red Cross)10 mn (total, through Japan Red Cross)
Net SalesBOOKOFF Stores Reuse Stores
Existing storesYoy
No. of closed stores as of
3/31
Existing storesYoy
No. of closed stores as of
3/31
Tohoku region 72.7% 7 30.3% 5
Kanto region 86.9% 2 68.5% 1
Other 97.9% - 93.4% -
Total 89.1% 9 73.8% 6
BOOKOFF Stores Reuse StoresExisting storesYoy
No. of closed stores as of
4/30
Existing storesYoy
No. of closed stores as of
4/30
89.4% 1 22.5% -
96.7% 1 100.2% -
97.4% - 112.0% -
96.5% 2 99.2% All stores reopen
<<March 2011March 2011>> <<April 2011April 2011>> *Directly operated store results; no. of stores*Directly operated store results; no. of stores
Major recovery in immediate performance on normalization of busiMajor recovery in immediate performance on normalization of business hours, reopening of closed storesness hours, reopening of closed storesTargeted products particularly strong (April yoy net sales by prTargeted products particularly strong (April yoy net sales by product: comics 104.8%, clothing 108.0%) oduct: comics 104.8%, clothing 108.0%)
* For assumptions behind plan for yoy change in existing store net sales, please see pp. 13-14. * April monthly consolidated ordinary profit up by ¥48 mn (123%) on improved gross margin ratio
Morning meeting on reopening day (4/30), Morning meeting on reopening day (4/30), BOOKOFF SUPER BAZAAR Sendai Izumi BOOKOFF SUPER BAZAAR Sendai Izumi FuruFuru--uchi Store uchi Store
FY 2011FY 2011Consolidated Earnings ForecastConsolidated Earnings Forecast
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1111
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1212
Unit: mn yen
FY 2010 Ratio FY 2011 Ratio Yoy Change
Net sales 73,345 100.0% 77,000 100.0% 105.0% +3,655
Operating income 2,748 3.7% 3,200 4.1% 116.4% +452
Ordinary profit 3,157 4.3% 3,500 4.5% 110.9% +343
Net income 568 0.8% 1,600 2.1% 281.7% +1,032
EPS (yen) 31.57 88.33 +56.76
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
Consolidated P/L PlanConsolidated P/L Plan
Please see p.13Please see p.13--14 for assumptions behind plan14 for assumptions behind planNet income to increase as extraordinary losses on Net income to increase as extraordinary losses on ¥¥626 mn in asset retirement 626 mn in asset retirement obligations and obligations and ¥¥275 mn loss on disaster (including provision) disappear 275 mn loss on disaster (including provision) disappear
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1313
Assumptions behind Plan by Segment (1): Segment RequirementsAssumptions behind Plan by Segment (1): Segment Requirements
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
□Overall・Open 4-5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)・Profit increase mainly due to contributions by stores newly opened in FY 2010・Increase number of stores with over ¥100 mn in ordinary profit from 4 to 7 through improvements at existing BSB stores (see p.26)
・Termination of T-POINT service to generate ¥300 mn reduction in 1H operating costs, but half of that amount will be used on chain enhancements, including franchise stores
・Adopt slightly conservative plan due to ongoing uncertainty about the earthquake’s impact on consumption
□□OverallOverall・・Open 4Open 4--5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)・・Profit increase mainly due to contributions by stores newly openProfit increase mainly due to contributions by stores newly opened in FY 2010ed in FY 2010・・Increase number of stores with over Increase number of stores with over ¥¥100 mn in ordinary profit from 4 to 7 100 mn in ordinary profit from 4 to 7 through improvements at existing BSB stores (see p.26)through improvements at existing BSB stores (see p.26)
・・Termination of TTermination of T--POINT service to generate POINT service to generate ¥¥300 mn reduction in 1H operating costs, 300 mn reduction in 1H operating costs, but half of that amount will be used on chain enhancements, inclbut half of that amount will be used on chain enhancements, including franchise storesuding franchise stores
・・Adopt Adopt slightly conservative plan due to ongoing uncertainty about the slightly conservative plan due to ongoing uncertainty about the earthquakeearthquake’’s impact s impact on consumptionon consumption
□BOOKOFF Business・Shift from “pursuit of sales” to “gross margin ratio + productivity,” strengthen measures to improve gross margin ratio for each product
・Yoy change in existing store net sales (forecast): 1H: 97.9%, 2H: 102.7% (see pg.14)・Stores’ gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2% (+0.9% yoy)
□□BOOKOFF BusinessBOOKOFF Business・・Shift from Shift from ““pursuit of salespursuit of sales”” to to ““gross margin ratio + productivity,gross margin ratio + productivity,”” strengthen measures to improve strengthen measures to improve gross margin ratio for each productgross margin ratio for each product
・・Yoy change in existing store net sales (forecast): 1H: 97.9%, 2HYoy change in existing store net sales (forecast): 1H: 97.9%, 2H: 102.7% (see pg.14): 102.7% (see pg.14)・・StoresStores’’ gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2%gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2% (+0.9% yoy)(+0.9% yoy)
□Reuse Business・Tie prior investment to profitability through operational optimization/streamlining, such as structural changes implemented in 2H of previous fiscal year.
・Yoy change in existing store net sales (forecast): 1H: 101.9%, 2H: 107.9% (see p.14)・Stores’ gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%(+2.4% yoy)
□□Reuse BusinessReuse Business・・Tie Tie prior investment to profitability through operational optimizatiprior investment to profitability through operational optimization/streamlining, such as on/streamlining, such as structural changes implemented in 2H of previous fiscal yearstructural changes implemented in 2H of previous fiscal year. .
・・Yoy change in existing store net sales (forecast): 1H: 101.9%, 2Yoy change in existing store net sales (forecast): 1H: 101.9%, 2H: 107.9% (see p.14)H: 107.9% (see p.14)・・StoresStores’’ gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%((+2.4% yoy)+2.4% yoy)
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
Assumptions behind Plan by Segment (2): Assumptions behind Plan by Segment (2): Yoy Change in Existing Store SalesYoy Change in Existing Store Sales
Yoy change in Yoy change in existing store existing store
net salesnet sales
1H1H 2H2HFull yearFull year
1Q1Q 2Q2Q 3Q3Q 4Q4Q
BOOKOFFstores
97.8% 97.9% 102.2% 103.2%100.2%
97.9% 102.7%
Reusestores
101.4% 102.4% 103.5% 113.6%104.8%
101.9% 107.9%
(Existing BOOKOFF Stores)(Existing BOOKOFF Stores)Decline in CD sales is a main factor behind drop in IH (book salDecline in CD sales is a main factor behind drop in IH (book sales to rise)es to rise)Strive to improve gross margin ratio, continuing shift from Strive to improve gross margin ratio, continuing shift from ““salessales”” to to ““gross margingross margin”” in FY in FY 2010 2H 2010 2H Strong 4Q gain due to comparison with sales lost in March 2011 fStrong 4Q gain due to comparison with sales lost in March 2011 following the earthquakeollowing the earthquake
(Existing Reuse Stores)(Existing Reuse Stores)1Q reflects impact of delayed resumption of operations in disast1Q reflects impact of delayed resumption of operations in disasterer--stricken areas (BSB Sendai stricken areas (BSB Sendai Izumi FuruIzumi Furu--uchi store reopened on 4/30)uchi store reopened on 4/30)Strong 4Q gain due to comparison with sales lost in March 2011 fStrong 4Q gain due to comparison with sales lost in March 2011 following the earthquakeollowing the earthquake
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1414
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1515
By segment: Factors behind change in ordinary profitBy segment: Factors behind change in ordinary profit
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
3,1573,1573,157
3,5003,5003,500BOOKOFF BusinessBOOKOFF Business
Reuse BusinessReuse Business
Packaged Packaged Media BusinessMedia Business Other Other
CorporateCorporate
FY 2010 ActualFY 2010 Actual FY 2011 PlanFY 2011 Plan
Unit: mn yenUnit: mn yen
+200+200
+190+190--4040 --77
SegmentSegment ChangeChange Factors Behind ChangeFactors Behind Change
BOOKOFF BusinessBOOKOFF Business +200+200FY 2010 new stores: +350; new stores: FY 2010 new stores: +350; new stores: --150, T150, T--POINT operating costs: +300; online: +70POINT operating costs: +300; online: +70Franchise chain enhancements: Franchise chain enhancements: --180; new POS system: 180; new POS system: --100; gain on recycled paper sales 100; gain on recycled paper sales --40; other 40; other --5050
Reuse BusinessReuse Business +190+190 Existing stores: +90; FY 2010 new stores: +250, new stores: Existing stores: +90; FY 2010 new stores: +250, new stores: --180; T180; T--POINT operating POINT operating costs: +50; franchise chain enhancements: costs: +50; franchise chain enhancements: --2020
Packaged Media/Other/CorporatePackaged Media/Other/Corporate --4747 TSUTAYA stores: TSUTAYA stores: --40; rise in enterprise tax & depreciable property tax due to bus40; rise in enterprise tax & depreciable property tax due to business iness expansion: expansion: --77
TotalTotal +343+343
+343+343
3,157
1,6001,708
943
333
3,500
2,040
1,100
300
568
- 13- 320- 502
910400
- 40
- 1,000
0
1,000
2,000
3,000
4,000
FY 2011 1Q 2Q 3Q 4Q
Mn yen
Ordinary profit (FY 2010)
Ordinary profit (FY 2011 plan)
Net income (FY 2010)
Net income (FY 2011 plan)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1616
Quarterly Trends (Ordinary profit/Net Income)Quarterly Trends (Ordinary profit/Net Income)
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
【FY 2010】Loss on adjustment for changes of accounting standard for asset retirement obligations of ¥626 mn results in 1Q deficit
【FY 2011】1Q deficit expected on anticipated extraordinary loss resulting from losses related to store closures, financial contributions to franchise stores, etc.
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1717
FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast
FY 2011: Match Ordinary profit Record Set in FY 2006FY 2011: Match Ordinary profit Record Set in FY 2006
3,1573,467 3,500
1,600
568
1,900
0
1,000
2,000
3,000
4,000Mn yen
Recurring 2,511 2,966 3,467 2,571 2,672 3,137 3,157 3,500Net 1,423 1,539 1,900 1,044 1,024 1,378 568 1,600
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010FY 2011
(est.)
Trends in consolidated ordinary profit & net income, actual & plannedTrends in consolidated ordinary profit & net income, actual & planned
MediumMedium--Term Growth StrategyTerm Growth Strategy
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1818
Infrastructure for “people who don’t
let things go to waste”
Infrastructure for Infrastructure for ““people who donpeople who don’’t t
let things go to wastelet things go to waste””Store package
strategyStore package Store package
strategystrategy
BOOKOFF SUPER BAZAAR(BSB)
BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAAR(BSB)(BSB)
BOOKOFF large-scale urban stores
BOOKOFF BOOKOFF largelarge--scale urban storesscale urban stores
MediumMedium--Term Growth StrategyTerm Growth Strategy
【Sustainable profits】Ordinary profit:
¥10 bnROA15%
【【Sustainable profitsSustainable profits】】Ordinary profit: Ordinary profit:
¥¥10 bn10 bnROA15%ROA15%
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 1919
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2020
MediumMedium--Term Growth StrategyTerm Growth Strategy
Current Status by Package (FY 2010 FullCurrent Status by Package (FY 2010 Full--Year Year Results)Results)
All stores
Store package External view Definition No. of
outlets
Net sales
(store area)
% of net sales(yoy)
1BOOKOFF
SUPER BAZAAR
Comprehensive reuse large-scale mixed-use package
16 10,912(14,502)
20.3%(+3.0pt)
2BOOKOFF
large-scale urban stores
Sales area: 150+ tsubo (450+ m2)Near train stations with 50,000+ passengers (no parking facilities)
23 8,959(5,628)
16.7%(+0.8pt)
3 BOOKOFF standalone stores
BOOKOFF standalone stores excluding 1 & 2 238 24,455
(30,144)45.6%(-3.1pt)
4BOOKOFF-Plus(mixed-use stores other than 1)
Stores combining BOOKOFF and Reuse businesses (Smaller than 1)
35 8,320(10,589)
15.5%(-0.7pt)
5 Reuse Business standalone stores
Reuse Business standalone stores 15 999
(1,898)1.9%
(±0.0pt)
Total 327 53,648(62,761)
100.0%
Existing stores
Ordinary profit
% of profit
Profit ratio
923 14.9% 12.1%
1,123 18.1% 15.3%
3,271 52.7% 14.1%
826 13.3% 10.5%
59 1.0% 8.0%
6,205 100.0% 13.3%
Monetary unit: mn yen
*No. of outlets: multiple shops in mixed-use stores treated as 1 outlet
Focus resources on BOOKOFF SUPER BAZAAR and BOOKOFF large-scale urban stores,
increasing both their profitability and % share of sales and income
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2121
The More BOOKOFF LargeThe More BOOKOFF Large--Scale Urban Stores become Scale Urban Stores become ““Mega Terminals,Mega Terminals,””the Greater their Profitability & Recoverability the Greater their Profitability & Recoverability
MediumMedium--Term Growth StrategyTerm Growth Strategy
Investment recovery
Store name Opening Sales area Full-year ordinary profit
Total investment
Recovery period (years)
Akihabara Eki-mae store 4/2008 331 tsubo
(1,092.3 m2) ¥208 mn ¥280 mn 3.2
Ikebukuro Sunshine 60-dori store 11/2009 390 tsubo
(1,287 m2) ¥134 mn ¥238 mn 3.7
Average 3.53.5
Investment recovery
No. of stores Average store area (m2)
Average investment
Payback period (years)
4 244 tsubo (805.2 m2) ¥98 mn 5.25.2
BOOKOFF standalone stores
Total investment
Payback period (years)
¥42 mn 5.45.4
* Payback period is calculated based on after-tax results and estimated operating cash flows at time of store opening
*Investment amount = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories
* BOOKOFF standalone store data based on stores opened in FY 2009
<<FY 2010 Store OpeningsFY 2010 Store Openings>>
Yokohama Vivre store (12/2010)Yokohama Vivre store (12/2010)Sendai Sakurano store (6/2010)Sendai Sakurano store (6/2010)
Akihabara Eki-mae store
Ikebukuro Sunshine 60-dori store
With the exception of the top-class Akihabara/Ikebukuro stores, BOOKOFF large-scale urban stores feature large investments and quick recovery = large contribution to both profit ratios & amounts
Passaggio Nishiarai store(5/2010)Passaggio Nishiarai store(5/2010) Shin Yurigaoka OPA store Shin Yurigaoka OPA store (11/2010)(11/2010)
MediumMedium--Term Growth Term Growth StrategyStrategy StoreStore’’s Meritss Merits
・Most products discounted by 50% or more・Affordable pricing starting at ¥200
1. Low prices
Unlike department stores, brands are not grouped separately. Multiple brands displayed together
3. Sales floor
Staff don’t push customers to buy4. Service
Overwhelming volume of products & variety of brands
2. Product volumes
(Unparalleled breadth of options (= merit of size increase)
(Unparalleled breadth of options (Unparalleled breadth of options (= merit of size increase)(= merit of size increase)
““The fact that prices are lower than The fact that prices are lower than Uniqlo or g.u. is appealing.Uniqlo or g.u. is appealing.”” (Man, 36)(Man, 36)
““New, it costs New, it costs ¥¥10,000, so I could 10,000, so I could purchase only one. But here I can purchase only one. But here I can buy three.buy three.”” (Man, 43)(Man, 43)
““At a regular shop, the target At a regular shop, the target age range and styles are limited. age range and styles are limited. But the range of ages and But the range of ages and brands represented here makes brands represented here makes choosing fun.choosing fun.”” (Woman, 43)(Woman, 43)
““ Department stores are sectioned by Department stores are sectioned by brand, but I like how you can see a brand, but I like how you can see a variety of brands at once here.variety of brands at once here.””(Woman, 24)(Woman, 24)
The store staff donThe store staff don’’t pester t pester me, so I can feel relaxed me, so I can feel relaxed while choosing clothes.while choosing clothes.””(Man, 38) (Man, 38)
Using 4 Values to Offer an Unparalleled Breadth of Options Using 4 Values to Offer an Unparalleled Breadth of Options Using 4 Values to Offer an Unparalleled Breadth of Options
Comments from customers (100 sellers, 101 buyers) visiting BSB stores in April 2011 at Machida Chuo-dori, Route 409 Kawasaki Minato-cho, Omiya Stellartown .
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials
MediumMedium--Term Growth Term Growth StrategyStrategy CustomersCustomers
Supported both by customers seeking low prices and customers with their own sensibilities who want to enjoy fashion freely
Supported both by customers seeking low prices and Supported both by customers seeking low prices and customers with their own sensibilities who want to enjoy fashioncustomers with their own sensibilities who want to enjoy fashion freely freely
There are quite a few rare soccer uniforms. It’s quite well-known among my soccer buddies. Items that cost ¥18,000 at the regular price are ¥2,000 here, so I can’t help buying them. (Man, 36)
Consumers who dig up rare items that fit their interests
I can try out new genres of clothing. I want to be adventurous. I can choose young people’s brands like Cecil McBee or Tommy Hilfiger without hesitation. (Woman, 40)
Housewives looking to try new brands and genres
If I think it suits me, I go ahead and buy it. Department stores only carry what’s in season, but here I buy things like a different color of something that I used to like. (Woman, 24)
Young consumers who want to enjoy coordinating their own wardrobes
Maternity is temporary, so secondhand is fine. You wear it for just one season, so the clothes in decent condition are enough. (Woman, 31)
Housewives who casually buy secondhand goods as disposable items
I come to buy the brand I like (Vivienne Westwood). I always wear it, so even if it’s secondhand I can feel comfortable buying it. Here they have designs that aren’t currently sold in department stores. (Woman, 28)
I think people have different tastes, so I want to find things that suit me. With secondhand goods, I feel happy thinking I’ve found the last remaining one. (Woman, 42)
Middle-aged consumers who wish to mix-and-match one-of-a-kind clothes
*Photographs shown only as illustrations
Office workers looking to wear only their favorite brands
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials
(14%)
(47%)
(22%)
(18%)
(20%)
(38%)
(10%)
(32%)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2424
MediumMedium--Term Growth StrategyTerm Growth Strategy
More customers are selling items for the first time because it’s possible at BSBMore customers are selling items for the first time because itMore customers are selling items for the first time because it’’s possible at BSBs possible at BSB
Omiya Stellartown Route 409 KawasakiMinato-cho
May 2011 survey of BSB store customers Omiya Stellartown: 51 people, Route 409 Kawasaki Minato-cho: 50 people
Changing Customer Behavior (1)Changing Customer Behavior (1)
First experience selling items is at BSB
A: Has previously sold items at other BO Group stores
B: Has previously sold items at non-BO Group secondhand stores
C: Has previously sold items at both non-BO Group secondhand stores and other BO Group stores
First experience selling items is at BSB
C: Has previously sold items at both non-BO Group secondhand stores and other BO Group stores A: Has previously sold items at
other BO Group stores
B: Has previously sold items at non-BO Group secondhand stores
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2525
MediumMedium--Term Growth StrategyTerm Growth Strategy
Because BSB exists, things are reused without being thrown awayBecause BSB exists, things are reused without being thrown awayBecause BSB exists, things are reused without being thrown away
Nagoya MinatoOmiya Stellartown, KawasakiMinato-cho
Changing Customer Behavior (2)Changing Customer Behavior (2)
55 people (55%) 58 people (57%)
35 people (35%)
12 people (12%)
5 people (5%)
34 people (34%)
8 people (8%)
20 people (20%)
Unit: People
* Multiple responses allowed
Used to take to a different secondhand store
Used to take to a different secondhand store
Kept at home
Give to someone
Used to throw away
Used to throw away
Kept at home
Give to someone
Unit: People
* Multiple responses allowed
N = 100 people; May 2010BSB Nagoya Minato store survey
N = 101 people; May 2011BSB Omiya Stellartown, Kawasaki Minato-cho store survey
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2626
MediumMedium--Term Growth StrategyTerm Growth Strategy
FY 2010 actual
Net sales Ordinary profit
BSB store name Sales area (m2) Actual Reuse % Yoy Actual Profit
ratio
Higashi Chiba Yuukou 2,874.30 796 39% 102%102% 42 5%
Tama Nagayama 4,811.40 1,017 61% 102%102% 106106 11%
Sendai Izumi Furu-uchi 2,415.60 496 67% 98% 75 15%Route 1 Tamagawa-Ohashi 1,722.60 834 58% 97% 148148 18%
Hiroshima Otemachi 1,937.10 646 55% 103%103% 63 10%Yokohama Seya Minamidai 2,194.50 597 71% 104%104% 95 16%
Route 2 Kobe Nagata 1,745.70 489 66% 102%102% 64 13%
Machida Chuo-dori 3,161.40 1,323 25% 130%130% 109109 8%Yokohama Higashi Totsuka Olympic 2,065.80 463 72% 106%106% 49 11%
Kawasaki More’s 1,963.50 944 38% 101%101% 166 18%
~FY 2008 Openings 24,891.90 7,611 51% 106%106% 923 12%12%
FY 2011 plan
Ordinary profit
Plan Yoy Profit ratio
76 178% 9%
154154 144% 15%
112112 149% 21%
155155 105% 19%
82 130% 12%
117117 122% 19%
87 136% 18%
159159 145% 12%
63 127% 13%
196196 118% 20%
1,204 130% 15%15%
Hiroshima Yagi 2,491.50 482 54% 38 8%Kamakura Ofuna 2,399.10 652 58% 23 4%Nagoya Minato 4,547.40 990 46% 84 9%
FY 2010 Openings 9,438.00 2,125 52% 146 7%7%
FY 2010 existing store net sales (yoy): 106%; 4 stores achieve FY 2010 existing store net sales (yoy): 106%; 4 stores achieve ordinary profit of ordinary profit of ¥¥100 mn 100 mn FY 2011 plan for 3 more stores to surpass FY 2011 plan for 3 more stores to surpass ¥¥100 mn100 mn
Sendai Izumi Furu-uchi store suspends operations after earthquake (reopened 4/30)Tamagawa-Ohashi affected by Kawasaki Minato-cho new store opening
60 157% 12%47 201% 7%
142142 167% 14%250 171% 11%11%
Unit: mn yen
* Reuse %: Ratio of Reuse business segment’s net sales to store’s overall net sales
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2727
MediumMedium--Term Growth StrategyTerm Growth Strategy
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
01.3期 02.3期 03.3期 04.3期 05.3期 06.3期 07.3期 08.3期 09.3期 10.3期 11.3期
売場面積(坪)
Omiya Stellartown 1,303 Omiya Stellartown 1,303 tsubo (tsubo (4,299.90 m2 )
Route 409 Kawasaki Route 409 Kawasaki MinatoMinato--cho 1,351 tsubo cho 1,351 tsubo ((4,458.30 m2 )
ArakawaokiArakawaoki 1,445 tsubo 1,445 tsubo ((4,768.50 m2)
(Large(Large--scale store pioneer) Tama scale store pioneer) Tama Nagayama: 1,458 tsubo (Nagayama: 1,458 tsubo (4,811.40 m2)
2010 renewal 6,9596,959 tsubo (22,964.70 m2)
in the past 2 years
7,543 7,543 tsubotsubo((24,891.90 m2) in the 9 years up
to FY 2008
Nagoya Minato Sparks Sudden Acceleration Nagoya Minato Sparks Sudden Acceleration in Sales Area Growth in Sales Area Growth
Total: 14,502 tsuboTotal: 14,502 tsubo(47,856.60 m(47,856.60 m2)2)
Existing stores evolving one by one from Existing stores evolving one by one from ““ChukoChuko--GekijoGekijo””-- style to style to ““BSBBSB””--style style
By fiscal year at openingCumulative trends in BSB sales area
By fiscal year at openingCumulative trends in BSB sales area
Nagoya MinatoNagoya Minato1,378 tsubo1,378 tsubo ((4,547.40 m2)
FY ‘00 FY ‘01 FY ‘02 FY ‘03 FY ‘04 FY ‘08 FY ‘09 FY ‘10FY ‘06 FY ‘07FY ‘05
Sales area (tsubo)
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2828
FY 2010 New Store OpeningsFY 2010 New Store Openings
MediumMedium--Term Growth StrategyTerm Growth Strategy
BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAAROmiya StellartownOmiya Stellartown
1,303 tsubo (1,303 tsubo (4,299.90 m2)Opening: July 15, 2010 (Thu)
3 months after opening: Cumulative ordinary profit: ¥19 mn
BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAARRoute 409 Kawasaki MinatoRoute 409 Kawasaki Minato--chocho
1,351 tsubo (1,351 tsubo (4,458.30 m2)Opening: October 28, 2010 (Thu)
3 months after opening: Cumulative ordinary profit: ¥29 mn
BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAARArakawaokiArakawaoki
1,445 tsubo (1,445 tsubo (4,768.50 m2)Opening: November 17, 2010 (Thu)
3 months after opening: Cumulative ordinary profit: -¥4 mn
*Temporary closures and shortened hours due to earthquake result in FY 2010 deficit of ¥12 mn for 3 stores
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 2929
MediumMedium--Term Growth StrategyTerm Growth Strategy
StaffingStaffing
TrainingTraining
ProfitProfit
SalesSales
AdvertisingAdvertising
QQ・・SS・・CC
【【 Human Asset DevelopmentHuman Asset Development】】・・Hire 3 months in advance, train at flagship storesHire 3 months in advance, train at flagship stores・・Majority promoted to Challenger C or B (*) by time of opening Majority promoted to Challenger C or B (*) by time of opening Make independent operation possible from time of openingMake independent operation possible from time of opening(*)Grades based on the company’s own “Career Path Plan.”
Challenger B: “Able to perform duties according to the manual without instruction.”
Route to securing profitsProfit Pyramid
【【 Sales PromotionsSales Promotions】】1. 1. Analyze targets, sales territories through research data, blogs,Analyze targets, sales territories through research data, blogs, insert insert statusstatus2. 2. Media planning, including message contentMedia planning, including message content3. 3. Verify key message, multiple designs through customer surveysVerify key message, multiple designs through customer surveys
1010【【名古屋栄名古屋栄】】 現地≒栄への来街者特性の把握1現地≒栄への来街者特性の把握1
◎警察庁生活安全局「栄地区の安心・安全で快適な◎警察庁生活安全局「栄地区の安心・安全で快適なまちづくり計画まちづくり計画 平成19年」平成19年」
来街者の男女比では、女性が約6割と多い。年齢層だと、20・30代で、来街者の男女比では、女性が約6割と多い。年齢層だと、20・30代で、こちらも約6割と半数を越える。来訪目的はこちらも約6割と半数を越える。来訪目的は4割が4割が通勤通勤(通学)、(通学)、2割が買物であり、2割が買物であり、交通手段交通手段はは鉄道が6割強と非常に多い。鉄道が6割強と非常に多い。
【【2店舗共通2店舗共通】】投下媒体について5投下媒体について5 1616
TVCM・交通短期媒体だけでなく、もちろん折込みチラシは近隣商圏に対して、TVCM・交通短期媒体だけでなく、もちろん折込みチラシは近隣商圏に対して、投下、またフリーペーパーなど新聞未購読者にもリーチできるよう出稿する事で、投下、またフリーペーパーなど新聞未購読者にもリーチできるよう出稿する事で、一人でも多くの人にOPEN情報を認知してもらうように効率的に費用投下を行う。一人でも多くの人にOPEN情報を認知してもらうように効率的に費用投下を行う。(また、OPEN後GWがある事から、そこも第2の山と捉えて費用投下を行う。)(また、OPEN後GWがある事から、そこも第2の山と捉えて費用投下を行う。)
→足元商圏を中心に投下し、→足元商圏を中心に投下し、情報深度を狙う。情報深度を狙う。
→→広範囲にリーチできる媒体。高い効率性から広範囲にリーチできる媒体。高い効率性から
メインの媒体として使用。メインの媒体として使用。
→来街者へ気付きを与え、→来街者へ気付きを与え、CM連動し、情報波及を狙う。CM連動し、情報波及を狙う。
【【2店舗共通2店舗共通】】デザイン制作について2デザイン制作について2 2929
今回の販促で狙う、ターゲット層(20・30代男女)にどのような印象を与えるか、今回の販促で狙う、ターゲット層(20・30代男女)にどのような印象を与えるか、またその他の層(10-50代全般)に今回の新しい打ち出し方が、マイナスのまたその他の層(10-50代全般)に今回の新しい打ち出し方が、マイナスの印象を与えないか≒理解できない、他人事等印象を与えないか≒理解できない、他人事等 を調査するために・・・を調査するために・・・
BO新百合ケ丘OPAで店頭アンケートを実施。BO新百合ケ丘OPAで店頭アンケートを実施。(10-50代男女対象(10-50代男女対象 N52)N52)
A案A案 B案B案 C案C案 D案(比較対象案)D案(比較対象案)
各ポスター案に対して各ポスター案に対して・来店したいと思うか?(遠くても・来店したいと思うか?(遠くてもかか、近くならかを指標に質問)、近くならかを指標に質問)
・洋服を買いに行きたいと思うか?・洋服を買いに行きたいと思うか?
・取り扱い商品が分かるか?・取り扱い商品が分かるか?
・4つに対する順位付け・4つに対する順位付け 以上を中心にアンケートを実施。以上を中心にアンケートを実施。
Initiatives 1Initiatives 1
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3030
MediumMedium--Term Growth StrategyTerm Growth Strategy
Initiatives 2Initiatives 2 ““Reduce Initial InvestmentReduce Initial Investment””
FY 2009 FY 2009 openingsopenings
FY 2010FY 2010openingsopenings
ChangeChange PointsPoints
No. of openingsNo. of openings 3 stores3 stores 3 stores3 stores NoneNone Sales area per store expands;Sales area per store expands;sales area per new store sales area per new store opened annually increases 43%opened annually increases 43%Sales area (Sales area (㎡㎡)) 9,438㎡ 13,526.70㎡ +4,088.70㎡
Initial investmentInitial investment ¥¥970 mn970 mn ¥¥1,110 mn1,110 mn ++¥¥140 mn140 mnIncreases in proportion to Increases in proportion to expansion of sales area in new expansion of sales area in new storesstores
Initial investment per Initial investment per Tsubo of sales areaTsubo of sales area ¥¥339,000339,000 ¥¥270,000270,000 --¥¥69,00069,000 Initial investment per tsubo of Initial investment per tsubo of
sales area falls 20%sales area falls 20%
Ordinary profit 2 mos. Ordinary profit 2 mos. after openingafter opening --¥¥167 mn167 mn --¥¥167 mn167 mn NoneNone Scale expands but initial deficit Scale expands but initial deficit
is the same; profitability is the same; profitability improves after openingimproves after openingOrdinary profit 3 mos. Ordinary profit 3 mos.
after openingafter opening ¥¥14 mn14 mn ¥¥44 mn44 mn ++¥¥30 mn30 mn
* Initial investment = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories
While promoting creation of largeWhile promoting creation of large--scale stores, scale stores, cut initial investment per tsubo (3.3 mcut initial investment per tsubo (3.3 m22) by ) by 20%20%Sharp improvement in profitability through Sharp improvement in profitability through ““initial investment cutsinitial investment cuts”” x x ““staffing policies/sales promotion staffing policies/sales promotion policiespolicies””
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3131
MediumMedium--Term Growth StrategyTerm Growth Strategy
* Data in 2Q materials include Omiya. This time, classified by FY of store opening * Total investment = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories* Payback period is calculated based on after-tax results and estimated operating cash flows at time of store opening * BOOKOFF standalone store figures calculated using data on stores opened in FY 2009
2 Initiatives Drive Substantial Improvement in Investment 2 Initiatives Drive Substantial Improvement in Investment EfficiencyEfficiency
FY 2009 store openings
BSB name Sales area (㎡)
Total investment
Payback period(years)
Hiroshima Yagi 2,491.50 ¥220 mn 9.0
Kamakura Ofuna 2,399.10 ¥300 mn 9.3
Nagoya Minato 4,547.40 ¥450 mn 6.6
Average 7.87.8
BOOKOFF standalone stores
Total investment
Payback period(years)
¥42 mn 5.45.4
FY 2010 store openings
BSB name Sales area (㎡)
Total investment
Payback period(Years)
Omiya Stellartown 4,299.90 ¥380 mn 5.6
Route 409 Kawasaki Minato-cho
4,458.30 ¥330 mn 5.2
Arakawaoki 4,768.50 ¥400 mn 6.0
Average 5.65.6
Closing in on investment efficiency of BOOKOFF standalone storesClosing in on investment efficiency of Closing in on investment efficiency of BOOKOFF standalone storesBOOKOFF standalone stores
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3232
44--5 New Stores Planned in FY 20115 New Stores Planned in FY 2011
BOOKOFF SUPER BAZAAR Sendai SakuranoBOOKOFF SUPER BAZAAR Sendai Sakurano((Chuo, AobaChuo, Aoba--ku, Sendai City)ku, Sendai City)
Sales Area: 935 tsubo (Sales Area: 935 tsubo (3,085.50 m2)Opening (plan): May 12 (Thu)
Inside largest station-front department store in TohokuAdded Reuse business to BOOKOFF store opened last year
MediumMedium--Term Growth StrategyTerm Growth Strategy
Additional plans to open 1,500 tsuboAdditional plans to open 1,500 tsubo--class class ((4,950 m2) ) roadside BSB in Chukyo & Kanto roadside BSB in Chukyo & Kanto regions regions
BOOKOFF SUPER BAZAAR Sakae SkyleBOOKOFF SUPER BAZAAR Sakae Skyle((Sakae, Naka Ward, Nagoya) Sakae, Naka Ward, Nagoya)
Sales Area: 650 tsubo (Sales Area: 650 tsubo (2,145 m2)Opening: April 21 (Thu)
Opening-day sales: ¥995 mn (Visitors: 5,116 people)Good location next to Maruei Dept. Store,
across the street from Mitsukoshi Dept. Store
415
9,283
385
3,861
1,190
22,797
1,200
90,612
1,296
19,356
0 20,000 40,000 60,000 80,000 100,000
Jewelry (used)
Jewelry (new)
Wristwatches (used)
Wristwatches (new)
Fashion accessories (used)
Fashion accessories (new)
Clothing(used)
Clothing(new)
Books (used)
Books (new)
100 mn yen
2,7523,044
3,1903,397
4,100
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
FY 2007 FY 2008 FY 2009 FY 2010 FY 2015(est.)
100 mn yen
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3333
MediumMedium--Term Growth StrategyTerm Growth Strategy
The reuse market has grown by 10 times over the past 10 years, aThe reuse market has grown by 10 times over the past 10 years, and is seen nd is seen sustaining around 5% annual growth, with clothing continuing to sustaining around 5% annual growth, with clothing continuing to lead the market lead the market (not at the stage to compete for existing share)(not at the stage to compete for existing share)
Reuse fashion (*) Retail market forecastReuse fashion (*) Retail market forecast
Reuse rate(used market/new
market)
Share of co. sales (reuse)
Books 6.7%
Clothing 1.3% 48.4%
Fashion accessories 5.2% 14.9%
Wristwatches 10.0% 3.7%
Jewelry 4.5% 8.7%
Clothing has the potential to reach 5 times current size, assuming the same growth potential for reuse rate as in the maturing secondhand
book market
Clothing has the potential to Clothing has the potential to reach 5 times current size, reach 5 times current size, assuming the same growth assuming the same growth potential for reuse rate as in potential for reuse rate as in the maturing secondhand the maturing secondhand
book market book market Primary distribution
market, which is about 5 times larger
than book
Primary distribution Primary distribution market, which is market, which is
about 5 times larger about 5 times larger than book than book
Market size comparison by new and used itemsMarket size comparison by new and used items
(Source: Estimates based on materials from the Research Institute for Publications & Yano Research Institute Ltd.)
(*(*※※) Reuse fashion: General term covering clothing, fashion accesso) Reuse fashion: General term covering clothing, fashion accessories, wristwatches, jewelry;ries, wristwatches, jewelry;accounts for accounts for 75% 75% of BOOKOFFof BOOKOFF’’s net sales of reuse merchandise s net sales of reuse merchandise
Forecast: Continue annual average growth of
about 5%
Forecast: Continue Forecast: Continue annual average growth of annual average growth of
about 5%about 5%
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3434
MediumMedium--Term Growth StrategyTerm Growth Strategy
Room to Open 141 New Stores in JapanRoom to Open 141 New Stores in Japan
【エリア分類】大分類 中分類 小分類 市区町村名
横浜・川崎 川崎 川崎市川崎区 川崎市幸区
【小分類ポテンシャル】
小分類 商業人口 BO売上 BSB売上 館数
【既存店実績】坪数計 BO売上 差額 達成率 既存店店舗数 店名 会社名 店名 会社名
川崎モアーズ 店 ブックオフコ ホー゚レーション㈱
国道1号多摩川大橋店 ブックオフコ ホー゚レーション㈱
【複合店実績】坪数計 売上合計 業態数
2館
457坪 76,159千円 +16,029千円 126.66% 2店
川崎 401,883人 60,130千円 150,325千円
店名
595坪 77,595千円 4
BO川崎モアーズ店BPO川崎モアーズ店BST川崎モアーズ店
BSE川崎モアーズ店
525坪 72,169千円 6
BO国道1号多摩川大橋店
BH国道1号多摩川大橋店
BK国道1号多摩川大橋店
BSP国道1号多摩川大橋店
BST国道1号多摩川大橋店
HO国道1号多摩川大橋店
神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区
鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区
港北区港北区港北区港北区港北区港北区港北区港北区港北区
幸区幸区幸区幸区幸区幸区幸区幸区幸区
高津区高津区高津区高津区高津区高津区高津区高津区高津区
中原区中原区中原区中原区中原区中原区中原区中原区中原区
鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区
川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区
川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区
大田区大田区大田区大田区大田区大田区大田区大田区大田区
江東区江東区江東区江東区江東区江東区江東区江東区江東区
川崎野川店
鶴見店
片倉町店
シァルプラット東神奈川店
大倉山店
ライフガーデン綱島店
日吉中央通り店
元住吉店
川崎三の辻店
矢向店
鹿島田店
小杉店 池上駅前店 大森町駅前店
大森店
横浜日吉本町店
武蔵中原店
川崎大師店(退)
新横浜駅北口店
アクロスプラザ東神奈川店
港北綱島西店
鶴見駅東口店
東有馬店
6川崎梶ヶ谷店
武蔵新城店
雪が谷大塚店
川崎モアーズ店
BH国道1号多摩川大橋店 雑色駅前通り店(退)
糀谷駅前店
JR蒲田駅東口店
大森駅東口店
6 km6 km6 km6 km6 km6 km6 km6 km6 km
【エリア分類】大分類 中分類 小分類 市区町村名
中央 大宮 さいたま市大宮区 さいたま市西区 さいたま市北区 さいたま市見沼区
【小分類ポテンシャル】
小分類 商業人口 BO売上 BSB売上 館数
【既存店実績】坪数計 BO売上 差額 達成率 既存店店舗数 店名 会社名 店名 会社名
大宮中川店 ブックオフコーポレーション㈱
大宮駅東口店 ブックオフコーポレーション㈱
1館41,912千円
45,804千円 109.29% 2店
104,779千円大宮 473,539人
+3,892千円391坪
三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町
朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市
志木市志木市志木市志木市志木市志木市志木市志木市志木市
戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市
蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市
南区南区南区南区南区南区南区南区南区
ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市
富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市桜区桜区桜区桜区桜区桜区桜区桜区桜区
中央区中央区中央区中央区中央区中央区中央区中央区中央区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区
西区西区西区西区西区西区西区西区西区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区
見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区
鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市
川口市川口市川口市川口市川口市川口市川口市川口市川口市
草加市草加市草加市草加市草加市草加市草加市草加市草加市
八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市
緑区緑区緑区緑区緑区緑区緑区緑区緑区
越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市
桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市
北区北区北区北区北区北区北区北区北区
上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市
伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町
蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市
岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区
春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市
松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町
野田市野田市野田市野田市野田市野田市野田市野田市野田市
東川口店
蓮田椿山店
鶴瀬店
大宮店
足立舎人店
越谷店
春日部店
ふじみ野駅前店
上福岡店
北本店
みはら店
さいたま新都心店
八潮店
イオンレイクタウン越谷店
大宮宮原店
上尾駅前店
上尾原市店
岩槻店
蓮田店
すばる書店七光
ふじみ野店
さいたま浦和南店
さいたま大宮西店
北上尾店
桶川店
さいたま上小町店
さいたま吉野町店
さいたま深作店
春日部店
白岡店
三郷
階店
南古谷店
浦和店
伊奈店
南桜井店
富士見みずほ台店
志木駅南口店(退)
浦和南元宿店
埼玉上福岡店
17号北浦和店
埼玉伊奈店
川口駅東口店
蕨駅東口店(退)
川口戸塚店
越谷駅前店
草加バイパス北越谷店(退)
岩槻インター店(退)
春日部駅東口店
16号春日部庄和店
埼玉杉戸店
BST浦和花月店
BINGO越谷レイクタウン店
戸田新曽店 西川口駅東口店
さいたま円正寺店
草加店
草加新田駅西口店
ン川越小仙波店
大宮駅東口店
大宮中川店
17号北上尾店
4号せんげん台店
10 km10 km10 km10 km10 km10 km10 km10 km10 km
【エリア分類】大分類 中分類 小分類 市区町村名
中央 大宮 さいたま市大宮区 さいたま市西区 さいたま市北区 さいたま市見沼区
【小分類ポテンシャル】
小分類 商業人口 BO売上 BSB売上 館数
【既存店実績】坪数計 BO売上 差額 達成率 既存店店舗数 店名 会社名 店名 会社名
大宮中川店 ブックオフコーポレーション㈱
大宮駅東口店 ブックオフコーポレーション㈱
1館41,912千円
45,804千円 109.29% 2店
104,779千円大宮 473,539人
+3,892千円391坪
三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町
朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市
志木市志木市志木市志木市志木市志木市志木市志木市志木市
戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市
蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市
南区南区南区南区南区南区南区南区南区
ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市
富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市桜区桜区桜区桜区桜区桜区桜区桜区桜区
中央区中央区中央区中央区中央区中央区中央区中央区中央区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区
西区西区西区西区西区西区西区西区西区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区
見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区
鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市
川口市川口市川口市川口市川口市川口市川口市川口市川口市
草加市草加市草加市草加市草加市草加市草加市草加市草加市
八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市
緑区緑区緑区緑区緑区緑区緑区緑区緑区
越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市
桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市
北区北区北区北区北区北区北区北区北区
上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市
伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町
蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市
岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区
春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市
松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町
野田市野田市野田市野田市野田市野田市野田市野田市野田市
東川口店
蓮田椿山店
鶴瀬店
大宮店
足立舎人店
越谷店
春日部店
ふじみ野駅前店
上福岡店
北本店
みはら店
さいたま新都心店
八潮店
イオンレイクタウン越谷店
大宮宮原店
上尾駅前店
上尾原市店
岩槻店
蓮田店
すばる書店七光
ふじみ野店
さいたま浦和南店
さいたま大宮西店
北上尾店
桶川店
さいたま上小町店
さいたま吉野町店
さいたま深作店
春日部店
白岡店
三郷
階店
南古谷店
浦和店
伊奈店
南桜井店
富士見みずほ台店
志木駅南口店(退)
浦和南元宿店
埼玉上福岡店
17号北浦和店
埼玉伊奈店
川口駅東口店
蕨駅東口店(退)
川口戸塚店
越谷駅前店
草加バイパス北越谷店(退)
岩槻インター店(退)
春日部駅東口店
16号春日部庄和店
埼玉杉戸店
BST浦和花月店
BINGO越谷レイクタウン店
戸田新曽店 西川口駅東口店
さいたま円正寺店
草加店
草加新田駅西口店
ン川越小仙波店
大宮駅東口店
大宮中川店
17号北上尾店
4号せんげん台店
10 km10 km10 km10 km10 km10 km10 km10 km10 km
<<Calculation of space for new stores Calculation of space for new stores >>1.1. Classify Japan into 476 urban areas centering on major citiesClassify Japan into 476 urban areas centering on major cities2.2. Calculate potential of each area through statistical analysis Calculate potential of each area through statistical analysis based on national census and commercial statisticsbased on national census and commercial statistics’’ census datacensus data3. Establish possible areas to open new stores, keeping in mind 3. Establish possible areas to open new stores, keeping in mind the companythe company’’s own stores own store--opening standards and opening standards and overlap/competition with existing franchiseesoverlap/competition with existing franchisees’’ sales territoriessales territories
First, develop a First, develop a ““dominantdominant”” strategy prioritizing Kanto & Chukyo regions strategy prioritizing Kanto & Chukyo regions After site setup is complete, raise awareness of both the scale After site setup is complete, raise awareness of both the scale of BSB stores of BSB stores and sales promotions through TV ads and other concentrated efforand sales promotions through TV ads and other concentrated efforts, ts, thereby ensuring superiority over competitors. thereby ensuring superiority over competitors.
Kanto (54 areas)Kanto (54 areas) Chukyo (13 areas)Chukyo (13 areas)
195 Kawasaki
113 Omiya
0102030405060708090
100110(100 mn yen)
Packaged Media Business
Reuse BusinessBOOKOFF Business/Corporate
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3535
MediumMedium--Term Growth StrategyTerm Growth Strategy
BOOKOFF BOOKOFF BusinessBusiness
Reuse Reuse BusinessBusiness
FY 2010
Position expansion of BOOKOFF SUPER BAZAAR stores and pursuit ofPosition expansion of BOOKOFF SUPER BAZAAR stores and pursuit ofinvestment efficiency as key items. Develop Reuse Business so thinvestment efficiency as key items. Develop Reuse Business so that it becomes at it becomes a future pillar of earnings equal in scale to the BOOKOFF Businea future pillar of earnings equal in scale to the BOOKOFF Business.ss.Target Target ”¥”¥10 bn in ordinary profit,10 bn in ordinary profit,”” ““ROA of 15%.ROA of 15%.””
Ordinary profit: ¥10
bn
<Vision for Medium- term Growth><Vision for Medium<Vision for Medium-- term Growth>term Growth>
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3636
Cautionary Statement Regarding ForwardCautionary Statement Regarding Forward--Looking StatementsLooking Statements
Statements made in these presentation materials with respect to Statements made in these presentation materials with respect to BOOKOFF Corporation Ltd.BOOKOFF Corporation Ltd.’’s plans, strategies, and financial s plans, strategies, and financial estimates that are not historical facts are forwardestimates that are not historical facts are forward--looking looking statements made by management based on information available statements made by management based on information available at the time this document was prepared, and the details could vaat the time this document was prepared, and the details could vary ry significantly due to changes in the business environment.significantly due to changes in the business environment.
Supplementary MaterialsSupplementary Materials
FY 2010 Financial Results Presentation Materials 3737
(Online Business)(Online Business)・・4 years since launch, profitable for 2 straight years4 years since launch, profitable for 2 straight years
(FY 2010 results(FY 2010 results::EC sales: EC sales: ¥¥2.5 bn; ordinary profit: 2.5 bn; ordinary profit: ¥¥20 mn)20 mn)・・500,000 secondhand items currently (inventory: 1 million items);500,000 secondhand items currently (inventory: 1 million items);
1.2 million members1.2 million members・・Mobile site opened in Feb. 2011; develop a structure capable ofMobile site opened in Feb. 2011; develop a structure capable of
¥¥230 mn in monthly sales230 mn in monthly sales
(TSUTAYA Business)(TSUTAYA Business)・・Sales fell due to severe situation for rental, new software Sales fell due to severe situation for rental, new software
products, but profit increased on improved gross margin ratproducts, but profit increased on improved gross margin ratio io and cost cuts and cost cuts (FY 2010 division results: ordinary profit (FY 2010 division results: ordinary profit ¥¥350 mn)350 mn)
(New Book Store Business)(New Book Store Business)・・Promoting closure of unprofitable stores; lossPromoting closure of unprofitable stores; loss--making stores largely making stores largely eliminatedeliminated
・・KnowKnow--how sharing through personnel mobility within Grouphow sharing through personnel mobility within Group
(BOOKOFF Overseas Business)(BOOKOFF Overseas Business)・・FY 2010: Opened W 45FY 2010: Opened W 45thth St (NY) and Del Amo Fashion Center stores, St (NY) and Del Amo Fashion Center stores, replacing existing stores with those in locations with stronreplacing existing stores with those in locations with strong customer appealg customer appeal
・・Amid shift from Amid shift from ““Japanese products for Japanese customersJapanese products for Japanese customers”” to to ““local local products for local customers,products for local customers,”” dominance on U.S. West Coast and dominance on U.S. West Coast and procurement efficiency increaseprocurement efficiency increase
・・Prioritize profitability in FY 2011; firm up Prioritize profitability in FY 2011; firm up operational foundation, including human asset operational foundation, including human asset development and trainingdevelopment and training
FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 3838
Supplementary Materials: Progress and Policies Regarding DevelopSupplementary Materials: Progress and Policies Regarding Development of ment of Other BusinessesOther Businesses
Del Amo Fashion Center storeDel Amo Fashion Center store
W 45W 45thth St, NY storeSt, NY store
BOOKOFF OnlineBOOKOFF Online
FY 2010 Financial Results Presentation Materials 3939
Supplementary Materials: BOOKOFFSupplementary Materials: BOOKOFF’’s Gross Profit Improvements Gross Profit Improvement
【【ComicsComics】】List operation (*) introduced at all directly List operation (*) introduced at all directly operated stores in 11/2010. Sales and gross operated stores in 11/2010. Sales and gross margin ratio both rise (no. of products margin ratio both rise (no. of products procured also increases).procured also increases).
【【CDsCDs】】From August, market surveys have been From August, market surveys have been used to thoroughly adjust selling and used to thoroughly adjust selling and purchase prices. As in new products market, purchase prices. As in new products market, sales are declining, but gross profit amount sales are declining, but gross profit amount kept level with previous FY thanks to kept level with previous FY thanks to improved gross margin ratio improved gross margin ratio
Comics
-67
-26-34
+ 8
-16
-43
-20
-5
+ 10
-5
-38-47
-22-32
+ 0 + 2
-28
-12
+ 3
+ 21
+ 4
-11
+ 32+ 33
-100
-80
-60
-40
-20
0
20
40
60
80(Mn yen)
69.0%
70.0%
71.0%
72.0%
73.0%
74.0%
75.0%
Gross margin ratioSales amount: yoy
Gross margin ratio (prior FY)
CDs
-27-37
-22 -18 -23
-51 -53 -51-62
-29
-77
-35-18 -19
-72
+ 36+ 49
+ 5
-6 -2-19
-6
-44
+ 1
-120
-70
-20
30
80
130
180
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Amount
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%Gross profit amount: yoy
Amount
(Mn yen)Gross margin ratio
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Sales amount: yoy
Gross profit amount: yoy
Gross margin ratio (prior FY)Gross margin ratio (current FY)
Gross margin ratio (prior FY)
(*) An operation in which popular comic titles that dominate sales are restricted, and selling and purchase prices are established for those items in response to demand. This operation ensures the availability of popular items and increases sales and, by virtue of the effects provided by gross profit mix, improves gross margin ratio.
FY 2010 Financial Results Presentation Materials 4040
Supplementary Materials: Status of LossSupplementary Materials: Status of Loss--Making StoresMaking Stores
FY 2010FY 2010 Existing LossExisting Loss--Making Stores (*)Making Stores (*)Segment Response No. of
storesDeficit
amount
BOOKOFFBusiness
FY 2011: Profit expected 1 -1
Impairment completed 1 -10
FY 2011: Extraordinary loss planned 4 -13
BOOKOFF Business total 6 -24
Reuse Business
FY 2011: Profit expected 7 -11
Closed in FY 2010 10 -44
Impairment completed 6 -33
FY 2011: Extraordinary loss planned 11 -71
Reuse Business total 34 -160
Packaged Media Business
FY 2011: Profit expected 1 -4
Closed in FY 2010 3 -3
Impairment completed 3 -20
FY 2011: Extraordinary loss planned 2 -7
Packaged Media Business total 9 -34
OtherClosed in FY 2010 2 -4
FY 2011: Extraordinary loss planned 3 -18
Other total 5 -22
Total 54 -241*Excludes stores whose business activities were affected by the earthquake
【【BOOKOFF BusinessBOOKOFF Business】】Disposal of lossDisposal of loss--making stores nearly making stores nearly completecomplete
【【Reuse BusinessReuse Business】】MidMid--sized mixsized mix--use BOOKOFF+ (Plus) stores use BOOKOFF+ (Plus) stores and Reuse Business standalone stores face and Reuse Business standalone stores face uphill battle.uphill battle.Continue to promote reContinue to promote re--packaging into largepackaging into large--scale mixedscale mixed--use stores; shrink deficits.use stores; shrink deficits.
【【Packaged Media BusinessPackaged Media Business】】Majority of propMajority of prop--up efforts completed, thanks up efforts completed, thanks to cost cuts such as closure of lossto cost cuts such as closure of loss--making making new book stores and rent negotiations.new book stores and rent negotiations.
【【OverallOverall】】Extraordinary losses recorded due to 4Extraordinary losses recorded due to 4--year year restructuring effort, but the loss amount is restructuring effort, but the loss amount is expected to shrink in FY 2011, and expected to shrink in FY 2011, and consolidation of lossconsolidation of loss--making stores will making stores will largely end.largely end.Scrap and build to continue amid development Scrap and build to continue amid development of largeof large--scale BSB, etc. stores.scale BSB, etc. stores.