fy3/2018 results briefing materials · (1h+1.6％,2h+4.3％,full year+2.8％） ― ― change...

AOYAMA TRADING CO., LTD.FY3/2018 RESULTS BRIEFING

MATERIALS

◇FY3/2018 Results Summary andFY3/2019 Forecasts■ Review of Operations by Segment・・■ FY3/2018 Consolidated Earnings・・・■ FY3/2018 Segment Performance・・・■ FY3/2019 Consolidated Forecast・・・■ FY3/2019 Segment Forecast・・・・・■ Shareholder Returns・・・・・・・・・

◇FY3/2019 Strategies■ FY3/2019 Main Strategies

Core Business・・・■ FY3/2019 Main Strategies

Next-Gen Businesses・・・■ Store Opening/Closures and Plans・・■ Store Relocation/Renovation and

Amount of Capital Investment・・・・

CONTENTS

Aoyama Trading Co., Ltd.

◇Supplementary Data■ FY3/2018 Consolidated Results and

Interim, Full-year Forecast・・・・■ FY3/2018 Non-Consolidated Results

and Interim, Full-year Forecast・・■ FY3/2018 Main Operating Expenses

(Business Wear business)・・・・・■ FY3/2018 Non-Consolidated

Non-Operating Income-Expenses・■ FY3/2018 Per Unit Sales and

Inventories (Business Wear Business)・■ Net Sales By Product Category

(Business Wear Business)・・■ Number of Sold Menʼs Suits and

Average of Selling Price(Business Wear Business)・・・・・

■ Operating Environment : Suit Imports・・・・・・・・・・・

345679

12

2328

29

31

33

35

36

37

38

39

40

FY3/2018 RESULTS SUMMARYAND FY3/2019 FORECASTS

Managing Executive Officer andGeneral Manager of General Planning and

Policy Dept.

Shinji Zaitsu

◆ REVIEW OF OPERATIONS BY SEGMENT ◆

３ Aoyama Trading Co., Ltd.

◆FY3/2018 CONSOLIDATED EARNINGS◆

４

【\ Million】

254,846 ▲ 3,854 2,068 0.8 Reference to the next page

141,691 ▲ 2,109 1,272 0.9

(55.6%) (0.0%) (0.0%)

121,099 ▲ 1,701 891 0.7Business wear business +400million yenCasual wear business▲900milion yenOthers（glob、WTW) +1200million yen

20,591 ▲ 409 381 1.9 Reference to the next page

21,311 ▲ 489 227 1.1Exchange profit ▲250million yenLoss on valuation of derivatives ecreased▲110million yen

11,461 761 ▲ 106 ▲ 0.9Impairment loss +1170million yenCorporate income taxes▲930million yen

5.0% 0.4% 0.0% ― ―

(Note) Amounts are rounded down to the nearest million yen.

ROE

Expenses

Net sales

Net income

Gross Profit

Operating income

Ordinary income

(Sales retio)

〈Factor of sales ratio change〉Business wear business ▲0.1PtTotal repair srevice business ▲4.3PtCasual wear business +4.0Pt

Main factor of YoY changeChange YoY(%)Changefrom

ForecastFY3/2018


◆FY3/2018 SEGMENT PERFORMANCE◆

５

【\ Million】

Net SalesOperatingIncome




188,728 19,064 ▲ 1,772 ▲ 86 301 ▲ 400 0.2 ▲ 2.1

15,145 ▲ 840 ▲ 855 ▲ 290 ▲ 1,539 715 ▲ 9.2 ―

4,905 1,857 5 207 351 527 7.7 39.7

11,602 281 402 81 171 1 1.5 0.7

15,939 639 ▲ 161 ▲ 11 117 37 0.7 6.1

12,525 ▲ 506 ▲ 275 ▲ 166 710 ▲ 669 6.0 ―

9,972 22 ▲ 228 ▲ 168 2,217 102 28.6 ―

▲ 3,973 72 ▲ 973 22 ▲ 262 65 ― ―

254,846 20,591 ▲ 3,854 ▲ 409 2,068 381 0.8 1.9

(Note) Amounts are rounded down to the nearest million yen.

FY3/2018Change from

ForecastYoY(%)Change

Casual WearBusinessCredit CardBusinessPrinting andMedia Business

Sundry SalesBusiness

Other

Adjustments

Business WearBusiness

Total

Total RepairService


◆FY3/2019 CONSOLIDATED FORECAST◆

６

【\ Million】

261,500 6,654 2.6 Reference to the next page

145,000 3,309 2.3 (55.4%) (▲ 0.2% )

125,000 3,901 3.2 Business wear business +3100 million yen

20,000 ▲ 591 ▲ 2.9 Reference to the next page

20,600 ▲ 711 ▲ 3.3 ―

11,400 ▲ 61 ▲ 0.5 Extraordinay loss ▲670 million yen

5.0% 0.0% ― ―

Operating Income

Ordinary Income

ＲＯＥ

Expences

Net Sales

Net Income

(Sales raito)Business wear business ▲0.2Pt

Main factor of YoY changeFY3/2019

Gross Profit

YoY(%)

Change


◆FY3/2019 SEGMENT FORECAST◆

７

【\ Million】

Net Sales Operating Income Net Sales Operating Income

193,000 17,450 4,272 ▲ 1,614

15,500 ▲ 400 355 440

5,000 2,000 95 143

11,650 250 48 ▲ 31

16,000 600 61 ▲ 39

13,300 ▲ 100 775 406

10,800 150 828 128

▲ 3,750 50 223 ▲ 22

261,500 20,000 6,654 ▲ 591(Note) Amounts are rounded down to the nearest million yen.

―

Premine

Open 11 new stores, growth rate of existing stores(1H +1.5％,2H +2.6％,Full year +2.2％）

Growth rate of existing stores of American EagleOutfitters,(1H+1.6％,2H+4.3％,Full year+2.8％）

―

―

Change

Casual WearBusiness

Credit CardBusinessPrinting andMedia BusinessSundry SalesBusiness

Other

Total RepairService Business

FY3/2019

Adjustment

Business WearBusiness

Total

―

Open 4 new stores of Restaurant businessGrowth rate of existing stores for full year +0.3％,

Due to a plan that invest for strategies ofMedim-Term Management Plan, forecast ofOperating Loss is ▲100million yen

―


SHAREHOLDER RETURNS

◆ SHAREHOLDER RETURNS ◆〜DIVIDEND AND ACQUISITION OF OWN SHARES〜

◇FY3/2018 dividend Based on the above shareholder return policy, we plan to pay 170 yen (interim ¥50, year-end ¥120) per share.(We calculated it by subtracting the total dividend amount by March 31 from 130% of consolidated net income.) ◇FY3/2019 dividend forecast (If we can achieve full-year forecast of consolidated net income in FY3/2019)

Full-year dividend of ¥160 per share (interim ¥50, year-end ¥110), including a special dividend of ¥60.(We calculated it by subtracting the total dividend amount by March 31 from consolidated net income.) ◇Acquisition of own shares①Aoyama Trading bought back a total 1,480 thousand shares (6,000 million) in FY3/2018.②In this term, we plan to buy back based on the above shareholder return policy, the acquisition

of own shares will be conducted targeting the amount derived by subtracting the total dividend amount from 100% of consolidated net income.

９

Trends in the Companyʼs Dividend （Unit:yen）

139 77 65 60

33

42

84 87 91

80

-10%

10%

30%

50%

70%

90%

110%

130%

150%

0

50

100

150

200

15/3 16/3 17/3 18/3 19/3

Amount of Dividend

Acquisition of tresurey shares

Total return reito

Trends in Total Amount of Shareholder Returns and Consolidated Total Return Ratio（Unit:100million yen）

Forecast

50

100 100 100 10020

55 65 70 60

020406080100120140160180

15/3 16/3 17/3 18/3 19/3

Special dividend

Ordinary dividend

Forecast


FY3/2019 MAIN STRATEGIES

President and CEO

Osamu Aoyama

FY3/2019 MAIN STRATEGIESCORE BUSINESS

〜INNOVATION AND CREATION〜

◆ FY3/2019 MAIN STRATEGIES ◆〜MAIN STRATEGIES OF CORE BUSINESS, BUSINESS WEAR BUSINESS〜

KEY STRATEGIES1. Corporate Business Strategies2. EC Digital Strategies3. Womenswear Strategies4. Other Strategies

Sharing items, Order suits, New itemsNew function items(Please check Web limited CM later)

１２ Aoyama Trading Co., Ltd.

◇ Expand corporate partnership sales（Sales to employees of partner companies）Main initiatives

(1) Expand the number of corporate partnerships by increasing officers in charge of regional companies and enhancing corporate marketing system.

(2) Send more customers to stores through meticulous and regular marketing activities and stronger sales promotions.

(3) Increase sales events at partner companies.

111125 135

150571

660760

900

80

100

120

140

160

200

400

600

800

1000

FY3/2018 FY3/2019 FY3/2020 FY3/2021

(Companies)

CHALLENGE Ⅱ 2020

◆ MAIN INITIATIVES IN FY3/2019 ◆CORPORATE STRATEGY (1)

Aoyama Trading Co., Ltd.１３

(100 million yen)Number of corporate partnerships

Corporate partnerships sales

◇ Full-fledged Entry into Uniform BusinessMain initiatives（1）Continue to participate actively in bidding for major uniform customers centering on large companies.（2）Strengthen acquisition of demand for uniforms from officers in charge of regional companies and stores, and enhance working wear proposals through catalogues.（3）Expand sales of student uniforms by increasing the number of uniform-handling stores and enhance recognition by beefing up sales promotions.

◆ MAIN INITIATIVES IN FY3/2019 ◆CORPORATE STRATEGY (2)

Aoyama Trading Co., Ltd.１４

Examples of introducing corporate uniforms Strengthen sales of student uniforms

◆ MAIN INITIATIVES IN FY3/2019 ◆DIGITAL STRATEGY

Aoyama Trading Co., Ltd.１５

◇ Outline of Digital Strategy Objective: Marketing automation that envisions the use of AI1. Digitalize sales promotion.2. Strengthen collaboration between EC and stores (Promote Digi labo store). 3. Digitalize customer service (Develop customer service assistance terminals).

Customer information

Action informationApps, EC site

Purchase information

Product information

Price, feature

External dataSeason,

temperature, weather, T points

Compile database

Forecast individual

customerʼs tastes, needs,

purchase appetite,

timing, and preferred purchase action.

Send mail magazine at the right timing automatically, send

DM.

Invite to EC and preferentially show products that meet

the needs

Use web customer service function, invite customers to stores and emphasize good points of individual

coupons

Forecast individual customerʼs needs and action

Marketing action of individual customer

・Existing stores・Digi labo stores（Offer digital customer service using customer service terminal and optimize the inventory）

・EC（Promote show room style, strengthen logistics system）

Purchase action of individual customer

Compile database of information and analyze by AI

Consolidate information

Main initiatives（1）Expand sales of formal wear and career womenʼs wear which have large room for growth.

(1) Formal wear: Strengthen product lineup for married women and enhance recognition by using various sales promotion tools.

(2) Career: Strengthen the QR system centering on TSC to respond to additional order placement and fashion trends.（2）Promote CRM of women by issuing new cards for women.

（Refer to the next page for details）（3）Enhance education for sales staff by assigning education managers for womenswear.

174 193 223 231 241 253 267 28038 43

51 55 59 60 64 70212 236

274 286 300 313 331 350

0

100

200

300

400

FY3/2014 FY3/2015 FY3/2016 FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021

TSC store type Yofuku-no-Aoyama

CHALLENGE Ⅱ 2020

(Unit: JPY100M) Sales plan

◆ MAIN INITIATIVES IN FY3/2019 ◆WOMENSWEAR STRATEGY (1)

Aoyama Trading Co., Ltd.１６

◆ MAIN INITIATIVES IN FY3/2019 ◆WOMENSWEAR STRATEGY (2)

NEW MEMBERSHIP CARD FOR WOMEN: BLUE ROSE CARD（STARTED ACCEPTING APPLICATIONS FROM JUNE 1, 2018）

By taking advantage of the strength of the Aoyama Group, we added attractive benefits for women beyond the boundary with TSC and commonizing points. We will be working on sales promotions for nurturing and maintaining core female customers and promoting CRM using apps.

◆ BLUE ROSE CARD (VISA & Mastercard)…Target in the initial year 100,000 members (300,000 in 3 years)◇ Concept: The symbolism of the blue rose is “make the impossible possible.” We want to offer dream cards

for all working women.

◆ BLUE ROSE POINT CARD

Send customers to each other within the Aoyama Group

Aoyama Trading Co., Ltd.１７

Objective: Strengthen CRM for female customers and promote reciprocal customer sending within the GroupExpand benefits within the Aoyama Group: Add benefits from TSC, Eagle Retailing, Minit, etc. to improve usability.Issuance target: 1 million people in 3 years (credit cards 300,000 + point cards 700,000)

◆ MAIN INITIATIVES IN FY3/2019 ◆OTHERS: SHARING/NEW ITEMS

Sharing economy New items

１８

Measures Results in FY3/2018 Initiatives in FY3/2019

Sharing In addition to rental morning, added rental tuxedo (Sales of about ¥200 million)

Expand range of items (Menʼs party suits, etc.)

New items Expanded items centering on maintenance itemsHangers, shoe keepers,detergents, arranging bars(picture on right)(Sales of about ¥1.3 billion)

Paper glasses (picture below)･･･Thin reading glasses with thickness of

2 mm that are easy to carry around


◆ MAIN INITIATIVES IN FY3/2019 ◆OTHERS: NEW FUNCTIONAL ITEMS

１９


New functional

items

・Developed mainly shoes and dress shirts, etc.・Waterproof and stretch suits, etc.Link with advertisements

Try to expand “NON IRON MAX” and “Coldblack®” series

Content

Started sales of “NON IRON MAX pure cotton ties” as washable items made of 100% cotton.

Started sales of womenʼs suits using “Coldblack®,” a heat shield material


◆ MAIN INITIATIVES IN FY3/2019 ◆OTHERS: ORDERS

２０


Content

There are currently three outlets for custom order shop UL Measureʼs (nine outlets of existing TSC linked shops.）Performed favorably thanks to an increase in existing repeaters and new customers through word of mouth and storeʼs website.

Revise order receipt system to shorten time for customer service and product delivery.

Make the fabric lineup more attractive by adding new colors and patterns to the current 2,000 types of fabric.

Enhance staff education to attract new segment of customers at TSC custom-order-handling stores (nine outlets).

Flagship store on Ginzaʼs Namiki-dori Street


OTHER ACTIVITIESYOFUKU-NO-AOYAMA SUPPORTS THE FOLLOWING GROUPS AND TEAMS

Get widely connected to society by supporting sports (become official suits supplier, sponsor games, etc.) and contributing to regions and society.

Aoyama Trading Co., Ltd.２１

MAIN INITIATIVES IN FY3/2019NEXT-GENERATION BUSINESS

CREATION AND NURTURING

◆ MAIN INITIATIVES IN FY3/2019 ◆MAIN INITIATIVES BY GROUP BUSINESS

Segments Main initiatives in the current FY

Casual Wear Business Refer to page 24.

Credit Card Business Acquire new customers by increasing female customers through issuance of new credit cards for women, and promote reciprocal customer sending among Group stores.

Printing and Media Business (1) Reduce manufacturing costs by using AI to save time and personnel.(2) Expand orders with digital sales promotions.

Sundry Sales Business (1) Slash sales opportunity losses by introducing automatic replenish/order placement system.(2) Renew furniture/signboard, etc.

Total Repair Service Business Refer to page 25.

Other (Restaurant Business) Plans to open four stores (one in the first half and three in the second half of the fiscal year)The issue is how to secure personnel.

（WTW） (1) Strengthen product lineup in accordance with store characteristics and improve presentations on sales floors with seasonality.(2) Expand sales through bridal gifts and housing planning.

（Reuse Business) (1) Increase handling of clothes and accessories of reinforcing brands.(2) Create new customers by handling items for kids and household goods.

Aoyama Trading Co., Ltd.２３

◆ MAIN INITIATIVES IN FY3/2019 ◆CASUAL WEAR BUSINESS: EAGLE RETAILING CORPORATION

Aoyama Trading Co., Ltd.２４

148 136 140 146 152

(8) (3) (3)0

▲ 505101520

▲ 500

50100150200

FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021

Net salesOperating income

(100 million yen)

CHALLENGE Ⅱ 2020

▲15

From the latter half of the previous fiscal year, the Company strove to reduce cost and lower royalty rate under the new management structure, and as a result, it was able to reduce its deficit by 700 million yen while sales declined. In this fiscal year, we expect net sales to increase by 400 million yen, with existing stores to grow by 2.8% year on year in addition to an increase of EC sales, and projects that operating loss will be reduced by 500 million yen through improvement of gross profit margin. We will make this fiscal year a year to cement the base to achieve steady execution of the new medium-term management plan.

Issue Results in FY3/2018 Initiatives in FY3/2019Optimize inventory

Achieve reduction of inventory by about 30% at the end of fiscal year.

Maintain thorough optimal inventory management.

Review cost Reduce sales cost and royalty, etc. (decrease by 800 million yen from the previous year).

Focus on efficient use of funds until the business becomes profitable.

MD Constantly deliberating with the U.S. company AEO.

Continue with negotiations with the U.S.

(15)

◆ MAIN INITIATIVES IN FY3/2019 ◆TOTAL REPAIR SERVICE BUSINESS: MINIT ASIA PACIFIC

Aoyama Trading Co., Ltd.２５

Main initiatives1. Increase services and shift the store model to service convenience stores.

2. Reform domestic store management model from direct management stores to franchise stores.

3. Expand store network (Japan: 20 stores, Oceania: 14 stores, ASEAN: 18 stores).

Due to a slowdown in growth in Oceania, we revised our initial operating income target of FY3/2019 from +200 million yen to -100 million yen. Business in Japan is still positioned to be in the investment phase, but the period after FY3/2020 will be positioned as a profit phase and we will make a shift to expanding sales and profit.

161 171 182214

233

118 125 134 155 169

2 (5) (1) 6 10▲ 1001020304050

▲ 500

50100150200250

FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021

Terminal sales

Net sales

Operating income

(100 million yen)

◆ MAIN INITIATIVES IN FY3/2019 ◆INITIATIVE TOWARD ESG

Items Initiatives taken during this fiscal year

Environment（E）

(1) Completed fitting LEDs in most stores, and LEDs were fitted in all of the parking lots during the previous fiscal year.

In the current fiscal year, we are working to fit LEDs in parking lots in all of the piloti stores (whose second floor is a shop and first floor is a parking lot). (2) Study development of environmentally friendly products (recycled polyester, etc.).

Society（S)

(1)Respond to the movement to promote womenʼs active participation in the labor marketIntroduce womenswear education manager system.Implement short-working-hour system and assign women advisers.Encourage female employees to continue working, increase management ratio of female workers,hold training seminars by inviting outside instructors, etc.

(2) Embed the new personnel system.(3) Increase holding of free dressing seminars (target: 100,000 guests)

(Hold seminars at high schools, universities and job support facilities all around Japan, etc.)(4) Sponsor local public groups and various events.

(Concluded collaboration agreement with Fukuyama City, provided sponsorship to local sports clubs and events, etc.)

Corporate governance

（G）

(1) Develop group management system.(2) Further enhance corporate governance and strengthen response to CG code items.(3) Reinforce group risk management system.

Aoyama Trading Co., Ltd.２６

STORE OPENING/CLOSURES AND PLANS

1H 2H ANNUAL TOTAL 1H 2H ANNUAL TOTAL

11 18 29 8 12 20Yofuku-no-aoyama 5 6 11 0 7 7TSC、WHITE TSC 5 7 12 1 3 4Shanghai Aoyama 1 5 6 7 2 9

0 0 0 0 0 01 1 2 0 0 0

24 23 47 23 29 527 1 8 2 3 5

Yakiniku king 3 1 4 1 3 4Yuzu an 2 0 2 0 0 02nd street 1 0 1 1 0 1WTW 1 0 1 0 0 0

43 43 86 33 44 771H 2H ANNUAL TOTAL 1H 2H ANNUAL TOTAL

2 10 12 7 0 71 3 4 5 0 50 4 4 0 0 01 2 3 1 0 10 1 1 0 1 17 15 22 11 3 14

11 35 46 24 4 28Mister Minit

CALAJADAISO&AOYAMA100YEN PLAZA

Consolidated Total

Yofuku-no-aoyama

Business wear business

Casual wear businessSundry sales business

TSC、UL、BG

Total repair service business

Consolidated Total

FY3/2019 PLANFY3/2018

Shanghai Aoyama

Store opening

Other

Store closures

◆ STORE OPENING/CLOSURES AND PLANS ◆

２８

(Union : store)

(Note) Shanghai Aoyama is included in Business wear business from FY3/2018.


◆STORE RELOCATION/RENOVATION AND AMOUNT OF CAPITAL INVESTMENT◆

FY3/2018 (unit : store, million) FY3/2019 (unit : store, million)Relocation 1H 2H ANNUAL TOTAL 1H 2H ANNUAL TOTAL

Yofuku-no-aoyama 0 5 5 0 5 5TSC 0 0 0 0 1 1Total 0 5 5 0 6 6

Capital investment 1H 2H ANNUAL TOTAL 1H 2H ANNUAL TOTAL

Business wear business 3,411 2,348 5,759 170 3,410 3,580Casual wear business 26 5 31 20 130 150Credit card business 48 8 56 55 100 155Printing and media business 146 78 224 330 100 430Sundry sales business 62 105 167 50 100 150Total repair service business 474 686 1,160 725 560 1,285Other 982 168 1,150 240 480 720Consolidated Total 5,149 3,398 8,547 1,590 4,880 6,470

Renovation 1H 2H ANNUAL TOTAL 1H 2H ANNUAL TOTAL

Yofuku-no-aoyama 0 98 98 0 91 91TSC・UL 0 12 12 0 11 11Total 0 110 110 0 102 102

(Note) As for stores of Eagle Retailing Corporation and glob Co., Ltd. made capital investment and subleases them. The investment is included in each business.

２９ Aoyama Trading Co., Ltd.

SUPPLEMENTARY DATA

◆FY3/2018 CONSOLIDATED RESULTS AND INTERIM FORECAST◆(unit : million yen,%)

３１

Result Sales ratio Result Sales ratio YoY Forecast Sales ratio YoY106,140 100.0 108,438 100.0 102.2 110,600 100.0 102.074,608 ― 75,020 ― 100.6 76,150 ― 101.58,605 ― 8,241 ― 95.8 8,400 ― 101.92,268 ― 2,475 ― 109.1 2,500 ― 101.05,049 ― 5,083 ― 100.7 5,150 ― 101.37,985 ― 8,108 ― 101.5 8,100 ― 99.95,627 ― 6,061 ― 107.7 6,400 ― 105.63,359 ― 4,833 ― 143.9 5,200 ― 107.6

▲ 1,365 ― ▲ 1,385 ― ― ▲ 1,300 ― ―58,506 55.1 59,973 55.3 0.2 61,000 55.2 ▲ 0.155,381 52.2 56,429 52.0 101.9 58,300 52.7 103.33,124 2.9 3,543 3.3 113.4 2,700 2.4 76.23,077 2.9 3,930 3.6 127.7 3,000 2.7 76.31,652 1.6 1,995 1.8 120.8 1,400 1.3 70.1

31.21yen ― 38.82yen ― ― 27.73yen ― ―1．

a subsidiary of Kirito Co., Ltd. are included in the business ware business from the fiscal year ended March 2018.2． Segment sales include transactions between Group businesses.3． Sales in "Casual wear business" include the casual wear business of Aoyama Trading Co., Ltd., and Eagle Retailing Corporation.4． Sales in "Others" include the reuse business of Aoyama Trading Co., Ltd., and glob Co., Ltd and WTW Corporation, our affiliated company since April 1,2016.5． "YoY " is growth rates for all items expect gross profit, which is YoY change in ratio to net sales.6． "Interim net income per share" in 1H FY2017 and 1H FY2018 are calculated based on the average number of shares outstanding during the first half period

(excluding treasury stock), in 1H FY2019 is calculated based on the average number of shares outstanding during the period (excluding treasury stock).

FY3/2018 FY3/2019Interim Interim

Gross profit

FY3/2017

Net sales

Interim

Business wear businessCasual wear businessCredit card businessPrinting and media business

Sundry sales business


(Notes) "Aoyama Suits (Shanghai) Co., Ltd." and "Shanghai Fukuryo International Trading Co., Ltd.,"

Interim net income

Selling,general and administrative expence

OtherAdjustment

Ordinary income

Interim net income per share

Operating income


◆FY3/2018 CONSOLIDATED RESULTS AND FULL-YEAR FORECAST◆

３２

Result Sales ratio Reslut Sales ratio YoY Plan Change fromForecast Forecast Sales ratio YoY

252,777 100.0 254,846 100.0 100.8 258,700 ▲ 3,854 261,500 100.0 102.6188,426 ― 188,728 ― 100.2 190,500 ▲ 1,772 193,000 ― 102.328,655 ― 29,983 ― 104.6 30,000 ▲ 17 31,300 ― 104.416,684 ― 15,145 ― 90.8 16,000 ▲ 855 15,500 ― 102.34,554 ― 4,905 ― 107.7 4,900 5 5,000 ― 101.9

11,430 ― 11,602 ― 101.5 11,200 402 11,650 ― 100.415,822 ― 15,939 ― 100.7 16,100 ▲ 161 16,000 ― 100.411,815 ― 12,525 ― 106.0 12,800 ▲ 275 13,300 ― 106.27,754 ― 9,972 ― 128.6 10,200 ▲ 228 10,800 ― 108.3

▲ 3,710 ― ▲ 3,973 ― ― ▲ 3,000 ― ▲ 3,750 ― ―Gross profit 140,419 55.6 141,691 55.6 0.0 143,800 ▲ 2,109 145,000 55.4 ▲ 0.2

120,208 47.6 121,099 47.5 100.7 122,800 ▲ 1,701 125,000 47.8 103.2Operating income 20,210 8.0 20,591 8.1 101.9 21,000 ▲ 409 20,000 7.6 97.1Ordinary income 21,084 8.3 21,311 8.4 101.1 21,800 ▲ 489 20,600 7.9 96.7Net income 11,568 4.6 11,461 4.5 99.1 10,700 761 11,400 4.4 99.5

220.06yen ― 224.81yen ― ― 209.92yen ― 225.84yen ― ―1．

a subsidiary of Kirito Co., Ltd. are included in the business ware business from the fiscal year ended March 2018.2． Segment sales include transactions between Group businesses.3． Sales in "Casual wear business" include the casual wear business of Aoyama Trading Co., Ltd., and Eagle Retailing Corporation.4． Sales in "Others" include the reuse business of Aoyama Trading Co., Ltd., and glob Co., Ltd and WTW Corporation, our affiliated company since April 1,2016.5． "YoY " is growth rates for all items expect gross profit, which is YoY change in ratio to net sales.6． "Interim net income per share" in 1H FY2017 and 1H FY2018 are calculated based on the average number of shares outstanding during the first half period

(excluding treasury stock), in 1H FY2019 is calculated based on the average number of shares outstanding during the period (excluding treasury stock).


FY3/2019

Net sales

FY3/2017 FY3/2018

WomenswearCasual wear businessCredit card business

"Aoyama Suits (Shanghai) Co., Ltd." and "Shanghai Fukuryo International Trading Co., Ltd.,"

Printing and media business

(Notes)

Sandry sales business

Adjustment

Selling, general and administrative

Net income per share


Others


(unit : million yen, %)

◆ FY3/2018 NON-CONSOLIDATED RESULTS AND INTERIM FORECAST ◆

３３

Result Sales ratio Result Sales ratio YoY Forecast Sales ratio YoY75,151 100.0 74,969 100.0 99.8 76,140 100.0 101.673,959 100.0 73,817 100.0 99.8 75,060 100.0 101.71,191 100.0 1,151 100.0 96.6 1,080 100.0 93.8

45,170 60.1 45,235 60.3 0.2 45,810 60.2 ▲ 0.144,518 60.2 44,590 60.4 0.2 45,185 60.2 ▲ 0.2

651 54.7 645 56.0 1.3 625 57.9 1.943,107 57.4 42,948 57.3 99.6 44,740 58.8 104.242,371 57.3 42,248 57.2 99.7 44,050 58.7 104.3

735 61.7 699 60.8 95.2 690 63.9 98.62,063 2.7 2,287 3.1 110.8 1,070 1.4 46.82,146 2.9 2,341 3.2 109.1 1,135 1.5 48.5▲ 83 ▲ 7.0 ▲ 54 ▲ 4.7 ― ▲ 65 ▲ 6.0 ―

305 0.4 795 1.1 260.8 690 0.9 86.7(▲ 393) (▲ 0.5) (▲ 70) (▲ 0.1) (―) (0) (0.0) （－）

2,368 3.2 3,082 4.1 130.2 1,760 2.3 57.1▲ 127 ▲ 0.2 ▲ 348 ▲ 0.5 ― ▲ 310 ▲ 0.4 ―1,401 1.9 1,757 2.3 125.4 930 1.2 52.9

26.47yen ― 34.18yen ― ― 18.42yen ― ―1. "YoY" is growth rates for all items except gross proft, which is YoY change in ratio net sales.

2. Interim net income per share in 1H FY2017 and 1H FY2018 are calculated based on the average number of shares outstanding during the first half period (excluding treasury stock), in 1H FY2019 is calculated based on the average number of shares outstanding during the period (excluding treasury stock).

3. "Loss (gain) on derivatives" under non-operating income/expenses is mainly related to coupon swap contracts Since it ended at the end of March 2018, it is not expected to be planned for the fiscal year ending March 2019.

Ordinary incomeOther extraditionary loss(gain)

Interim net income

FY3/2019FY3/2018FY3/2017InterimInterimInterim

(Notes)

Net salesBusiness wear business


Gross proft


Casual wear and reuse business

Interim net income per share

(Loss(gain) on valuation of derivatives)





Operating incomeBusiness wear business

Non-operating income and expenses


(unit : million yen, %)

◆FY3/2018 NON-CONSOLIDATED RESULTS AND FULL-YEAR FORECAST◆

３４

Result Sales ratio Result Sales ratio YoY Plan Change from Result Forecast Sales ratio YoY189,650 100.0 188,853 100.0 99.6 190,300 ▲ 1,447 192,780 100.0 102.1186,993 100.0 186,372 100.0 99.7 187,830 ▲ 1,458 190,430 100.0 102.2

2,656 100.0 2,481 100.0 93.4 2,470 11 2,350 100.0 94.7113,357 59.8 112,853 59.8 ▲ 0.0 113,990 ▲ 1,137 115,060 59.7 ▲ 0.1111,910 59.8 111,485 59.8 ▲ 0.0 112,595 ▲ 1,110 113,705 59.7 ▲ 0.1

1,446 54.5 1,367 55.1 0.6 1,395 ▲ 28 1,355 57.7 2.694,646 49.9 94,592 50.1 99.9 95,240 ▲ 648 97,860 50.8 103.593,148 49.8 93,194 50.0 100.0 93,845 ▲ 651 96,480 50.7 103.51,498 56.4 1,398 56.4 93.3 1,395 3 1,380 58.7 98.7

18,711 9.9 18,260 9.7 97.6 18,750 ▲ 490 17,200 8.9 94.218,762 10.0 18,290 9.8 97.5 18,750 ▲ 460 17,225 9.0 94.2

▲ 51 ▲ 1.9 ▲ 30 ▲ 1.2 ― 0 ▲ 30 ▲ 25 ▲ 1.1 ―1,087 0.6 317 0.2 29.2 1,170 ▲ 853 1,030 0.5 324.2

(▲ 268) (▲ 0.1) (▲ 155) (▲ 0.1) (―) (▲ 160) (5) (0) (0.0) (－)19,798 10.4 18,578 9.8 93.8 19,920 ▲ 1,342 18,230 9.5 98.1

▲ 5,287 ▲ 2.8 ▲ 1,715 ▲ 0.9 ― ▲ 2,000 285 ▲ 1,510 ▲ 0.8 ―8,665 4.6 11,438 6.1 132.0 10,950 488 11,340 5.9 99.1

164.84yen ― 224.35yen ― ― 214.83yen ― 224.65yen ― ―(Notes) 1. YoY is growth rates for all items except gross proft, which is YoY change in ratio net sales.

2. "Change from forecast" is change of amount.3. Interim net income per share in 1H FY2017 and 1H FY2018 are calculated based on the average number of shares outstanding during the first half period

(excluding treasury stock), in 1H FY2019 is calculated based on the average number of shares outstanding during the period (excluding treasury stock).4. Loss (gain) on derivatives under non-operating income/expenses is mainly related to coupon swap contracts

Since it ended at the end of March 2018, it is not expected to be planned for the fiscal year ending March 2019.

Net income per share

FY3/2017 FY3/2018 FY3/2019


Net salesBusiness wear business




Gross profit



Operating incomeBusiness wear business

Net income


Non-operating income and expences

(Loss(gain) on valuationof derivatives)

Ordinary incomeOther extraordinary loss(income)


(union : million yen, %)

◆ FY3/2018 MAIN OPERATING EXPENSES ◆(BUSINESS WEAR BUSINESS)

３５

【Interim】

Result Sales ratio Result Sales ratio YoY Forecast Sales ratio YoY14,894 20.1 14,913 20.2 100.1 16,100 21.4 108.01,178 1.6 1,177 1.6 99.9 1,200 1.6 101.9▲ 69 ▲ 0.1 ▲ 83 ▲ 0.1 － ▲ 85 ▲ 0.1 ―4,668 6.3 4,517 6.1 96.8 4,410 5.9 97.61,403 1.9 1,420 1.9 101.2 1,410 1.9 99.2

10,012 13.5 10,064 13.6 100.5 9,875 13.2 98.13,351 4.5 3,101 4.2 92.5 2,985 4.0 96.2

【Full-year】

Result Sales ratio Result Sales ratio YoY Forecast change from Forecast Forecast Sales ratio YoY31,001 16.6 31,343 16.8 101.1 31,380 ▲ 37 34,025 17.9 108.62,781 1.5 2,754 1.5 99.0 2,800 ▲ 46 2,810 1.5 102.0

85 0.0 41 0.0 48.9 70 ▲ 29 45 0.0 107.714,678 7.8 14,234 7.6 97.0 14,600 ▲ 366 14,160 7.4 99.52,771 1.5 2,866 1.5 103.5 2,935 ▲ 69 2,890 1.5 100.8

20,111 10.8 20,285 10.9 100.9 20,310 ▲ 25 19,765 10.4 97.46,879 3.7 6,407 3.4 93.1 6,435 ▲ 28 6,145 3.2 95.9

(Note) "Change from forecast" is change of amount.

2.01.3 108.6 1,530

(unit : million yen,%)

FY3/2017 FY3/2018 FY3/2019

Computer and internetadministration costs

2,810 1.51.1 102.1 2,145 ▲ 184

Interim

156.4Utility expenses

1,921 1.0 1,961

900 1.2

Utility expenses

978

Personal expensesLoyalty point reimbursements

Provision for point card certificates

Advertising expenses

Computer and internetadministration costs

Rent expensesDepreciation

143.3

(unit : million yen,%)

Advertising expenses

Rent expensesDepreciation

FY3/2018 FY3/2019Interim Interim

Personal expensesLoyalty point reimbursements

Provision for point card certificates

FY3/2017


◆FY3/2018 NON-CONSOLIDATED NON-OPERATING INCOME-EXPENSES◆

３６

Interim Full-year Interim Full-year Interim forecast Full-year forecast

533 716 624 823 600 7801,609 3,339 1,729 3,521 1,840 3,720

― ― ― ― ― ―32 251 78 132 ― ―

105 302 130 256 40 1502,280 4,609 2,564 4,735 2,480 4,650

58 116 58 116 60 1101,508 3,109 1,605 3,249 1,670 3,390

393 268 70 155 ― ―― ― ― ― ― ―― ― ― 847 ― ―15 27 33 48 60 120

1,975 3,522 1,768 4,417 1,790 3,620305 1,087 795 317 690 1,030

( 475) ( 600) ( 566) ( 707) ( 540) ( 670)1． "Real estate rent" and "Cost of real estate rent" are compensating items.2． Loss (gain) on derivatives is mainly related to coupon swap contracts

Since it ended at the end of March 2018, it is not expected to be planned for the fiscal year ending March 2019.

Interest expenses

Cost of real estate rent

(Notes)

Non-operating income and expenses

(Net financial income)

Loss on valuation of derivatives

Foreign exchange losses

Provision of allowance for doubtful accounts

OthersTotal non-operating income

FY3/2019FY3/2018FY3/2017

OthersTotal non-operating income

Real estate rent

Gain on valuation of derivatines

Foreign exchange gains

Interest and dividend income


(unit : million yen)

◆ FY3/2018 PER UNIT SALES AND INVENTORIES(BUSINESS WEAR BUSINESS) ◆

３７

1． Company employees are directly employed personnel, the number of temporary employees is calculated based on an 8-hours working day per person.

2． Net sales per unit are calculated based on net sales, excluding mail-order sales, sales to Taiwan Aoyama and loyalty point rembursements.

3． The number of temporary employees is calculated based on an 8-hours working day per person.

(2,401)

2732 2225 22203809 3894

6069

No. of employees at year-end (parent)

No. of temporary employees

TotalAverage number of active employees

6034 61146331

3599

336k541,117 ㎡

29,983k(2,371) (2,400)29,044k 28,014k

543,822 ㎡ 547,279 ㎡

(Notes)

206,507k 200,635k

51,164k82k 79k 79k

48,991k 48,821k

210,123kNet sales per store

Year-end inventories per store

FY3/2016 FY3/2017 FY3/2018

(Of which, temporary employees)

Year-end inventories per m²

328k881 896866

Net sales per employee

Avarage sales area in use

Net sales per m²Avarage no. of stores in use

334k

6264 6417


◆NET SALES BY PRODUCT CATEGORY◆(BUSINESS WEAR BUSINESS)

３８

Amount Share of totalamount(%) Amount Share of total

amount(%) Amount GrowthSuits/three-peace suits 60,506 32.3 58,136 31.2 ▲ 2,370 ▲ 3.9Jackets 5,909 3.2 5,788 3.1 ▲ 121 ▲ 2.1Pants 8,189 4.4 7,775 4.2 ▲ 413 ▲ 5.1Coats 5,761 3.1 6,049 3.2 288 5.0Formalwear 22,914 12.2 22,578 12.1 ▲ 336 ▲ 1.5

Subtotal 103,281 55.2 100,327 53.8 ▲ 2,954 ▲ 2.9Shirts/Necktie etc 30,160 16.1 29,764 16.0 ▲ 396 ▲ 1.3Casualwear 5,209 2.8 5,228 2.8 19 0.4Other products 13,013 7.0 14,345 7.7 1,332 10.2

Subtotal 48,383 25.9 49,338 26.5 955 2.028,655 15.3 29,983 16.1 1,327 4.6

2,781 1.5 2,754 1.5 ▲ 27 ▲ 1.03,892 2.1 3,969 2.1 77 2.0

186,993 100.0 186,372 100.0 ▲ 621 ▲ 0.3(Notes) 1. "Other products" include shoes, underwear and sundries.

2. Womenswear includes women's suits, formal wear, shirts, pumps, etc.

Loyalty point reimbursements

Womenswear

Total

Change

Heavyclothing

Lightclothing

FY3/2017 FY3/2018

Apparel adjustment services

While menʼs suits, jacket, pants and casual wear were unfavorable, sales of womenswear was favorable. The other items increased by increasing sales of corporate uniform.


【unit : million yen】

◆NUMBER OF SOLD MENʼS SUITS AND AVERAGE OF SELLING PRICE ◆

(BUSINESS WEAR BUSINESS)

３９

Number of sold suits and average of selling price decreased.

2,240thousand suits 2,223thousand suits 2,195thousand suits

2,126thousand suits

26,337 yen

27,484 yen 27,498 yen

24,000

25,000

26,000

27,000

28,000

29,000

1,400

1,600

1,800

2,000

2,200

2,400

FY3/2015 FY3/2016 FY3/2017 FY3/2018

(unit : yen)(unit : thousand suits)

Number of sold suits Average of selling suits

27,298yen


◆OPERATING ENVIRONMENT : SUIT IMPORTS◆Continue to shift in suit manufacturing sites from China to Southeast Asia especially Myanmar and Indonesia.Price of imported suits increased with rising costs of wool etc.( The others of mainly countries, Cambodia, Bangladesh and India etc.)

４０

2015(Jan-Dec)

2016(Jan-Dec)

2017(Jan-Dec)

Change inimportvolume

Change inshare ofglobalimport

Unitprice(\)

Changein unitprice

China 4,911 4,334 4,035 ▲ 6.9 ▲ 3.7 8,218 6.6

Vietnam 1,131 889 819 ▲ 7.9 ▲ 0.9 6,707 0.2

Myanmar 1,158 1,103 1,223 10.9 1.4 5,214 2.5

Indonesia 781 872 1,034 18.6 1.9 6,028 0.0

Italy 59 61 61 0.0 ▲ 0.0 60,541 ▲ 0.4

Others 1,108 1,269 1,388 9.4 1.3 6,143 ▲ 3.2

Total 9,148 8,528 8,560 0.4 0.0 7,416 2.1

Unit price (\) 7,571 7,267 7,416 －－－－Foreign exchange (average) 121.0円 109.4円 112.0円 2.4 －－－


(unit : thousand suits, %)

fy3/2018 results briefing materials · (1h+1.6％,2h+4.3％,full year+2.8％） ― ― change...

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