results briefing · 2015. 9. 30. · the company name is changed to jewel verite ohkubo co., ltd....

Reference Data on the 70th Term Quarter 1 Results Briefing September 2, 2013 Vérité Co. Ltd. （code：９９０４） Place : Tokyo Shoken Building

Copyrights©2013 Vérité Co. Ltd. All rights reserved

CEO PRESENTATION

目次

Introduction Company Overview ・・・・・・４

1. Term 70 Quarter 1 results ・・・・・・７

2. Forecast ・・・・・・１８

3. New Strategies ・・・・・・１９

4. Q&A ・・・・・・３３

2013/9/2 2 Copyrights©2013 Vérité Co. Ltd. All rights reserved

‐ Company Profile ‐ History of VERITE ‐ About DIGICO Group

Introduction


CEO PRESENTATION

Company Profile


Corporate Name

Vérité Co. Ltd.

Location of Head

Office

Capital

Business Details

Head Count

Stock Exchange

Holding Company

3-33-8, Tsuruyacho, Kanagawa-ku, Yokohama City, Kanagawa Prefecture, 221-8705, Japan

¥3,972,736,945

Jewelry retail specialty-store chain

532 (including Part-Timers & Shokutaku contract employees as of June 30, 2013)

2nd Section of the Tokyo Stock Exchange (Security code: 9904)

DIGICO HOLDINGS LIMITED (The Diamond Trading Company (DTC) Sightholder)

CEO PRESENTATION

History of VERITE


1936 Ohkubo Clock Store is founded by Toshiharu Ohkubo

1967 Opens a store in Tachikawa Seibu Dept. Store, as the first step to chain store business

1971 Expands into the Kinki region with a store in the Hankyu Five shopping center

1984 Total stores surpass 50

1985 Total stores surpass 100

1991 The company name is changed to Jewel Verite Ohkubo Co., Ltd.

2006 The main office is relocated to Yokohama.

2008 The company celebrates its 60th Anniversary

2008 The company becomes a member of the DIGICO Group, a Sightholder of DTC

2010 Katsuyoshi Hirano becomes President and CEO.

Oct-2010 The first MAHARAJA Diamond store opens in Koshigaya AEON Lake Town’s Kaze shopping zone.

2012 Launches Mimikazari to Shinjuku Isetan Main Store

2012 Mimikazari store opens in Hankyu Umeda Dept. Store

CEO PRESENTATION 2013/9/2 6 Copyrights©2013 Vérité Co. Ltd. All rights reserved

Hong Kong ・ DIGICO Holdings Limited ・ Diamart : polished diamond wholesaler Japan ・ Verite Co., Ltd. jewelry retailer ・ Cest Bien Co., Ltd. jewelry retailer ・ Diminco Japan Limited: polished diamond wholesaler Thailand ・ Gemsiam Manufacturing (Bangkok): diamond manufacturing China ・ Diminco Manufacturing: diamond manufacturing ・ Diminco Diamond Shanghai: polished diamond wholesaler ・ Giant Jewelry Trading: jewelry retailer ・ Pacific Luxury Jewelry Manufacturing: jewelry manufacturing India ・ Plytast Jewelry: jewelry manufacturing, jewelry wholesaler ・ Cria Jewelry: jewelry retailer ・ D’damas Jewelry India: jewelry manufacturing, jewelry wholesaler ・ Desire Lifestyle: jewelry retailer, brand management ・ Fantasy Diamond Cut: diamond wholesaler ・ Gemplus Jewelry India: jewelry manufacturing and wholesaler ・ Gitanjili Exports Corporation: polished diamond manufacturing and wholesaler, rough diamond wholesaler ・ Gitanjhili Gem: polished diamond manufacturing, rough diamond wholesaler, diamond manufacturing ・ Meful Impex: polished diamond wholesaler, rough diamond wholesaler, diamond manufacturing UAE ・ Jewel Trade DMCC: polished diamond wholesaler, rough diamond wholesaler, jewelry wholesaler Belgium Diminco NV : rough diamond wholesaler, polished diamond wholesaler ・ I Cap NV: jewelry wholesaler U.S.A ・ Samuels Jewelers : jewelry retailer ・ Rogers: jewelry retailer ・ Jewelry Marketing Corp: jewelry wholesaler ・ Diamlink: polished diamond wholesaler ・ Jewelry Marketing Company: jewelry wholesaler ・ Tristar Worldwide LLC: polished diamond wholesaler, jewelry wholesaler ・

Namibia ・ Diminco Diamond Manufacturing Namibia: diamond manufacturing

DIGICO Group has 30 companies & approx. 4,000 liaison offices

‐ Summarized Profit & Loss ‐ Jewelry Business Sales, Gross Profit and Operating Profit ‐ Breakdown of SGA Expenses ‐ Customer Footfall and Sales Unit (vs Last Year) ‐ Customer Footfall and Sales Unit Trend ‐ Trade-in (CBB&SCB) Results with Metal Market ‐ Summarized Balance Sheet

１．Term 70 2013 Q1 Results


CEO PRESENTATION

Summarized Profit & Loss

2013/9/2 8

FY2012 Q1

FY2013 Q1

Increase/ Decrease vs Last Year

Net Sales 2,217 2,251 +34 101.5％

Cost of Goods Sold 1,055 1,124 -69 106.5％

Gross Profit 1,162 1,127 -35 97.0％

SGA Expenses 1,371 1,169 +202 85.3％

Operating Profit △209 △42 +167 Deficit Reduced

Current Profit △238 △66 +172 Deficit Reduced

Q1 Net Profit △254 △58 +196 Deficit Reduced

Unit : 1MJPY


CEO PRESENTATION

Jewelry Business Sales, Gross Profit and Operating Profit

2013/9/2 9

FY2012 Q1

FY2013 Q1

Increase/ Decrease vs Last Year

Net Sales Jewelry Biz 2,038 2,111 73 103.6%

Ex-Biz 179 140 -39 78.2% Total 2,217 2,251 34 101.5% Gross Profit Jewelry Biz 1,041 1,087 46 104.4% Ex-Biz 121 40 -81 33.1% Total 1,162 1,127 -35 97.0% SGA Exp. Jewelry Biz 1,179 1,103 -76 93.6% Ex-Biz 192 66 -126 34.4% Total 1,371 1,169 -202 85.3% Operating Jewelry Biz △ 138 △ 16 122 11.6% Profit Ex-Biz △ 71 △ 26 45 36.6% Total △ 209 △ 42 167 20.1%

※ Ex-Biz ： Pandora Business

51.1% 51.5% +0.4%


Unit : 1MJPY

CEO PRESENTATION 2013/9/2 10

Breakdown of SGA Expenses

0

200

400

600

800

1,000

1,200

1,400

FY2012

Q1

FY2013

Q1

700 614

367

297

178

163

126

95

その他

販売費

設備管理費

人件費

1,371 million yen 1,169 million yen

Decreased by 202 million yen


Unit : 1MJPY

Other

Sales Exp.

Equipment Exp.

Personnel Exp.

CEO PRESENTATION

Customer Footfall and Sales Unit (vs Last Year)


At the end of the previous fiscal year the franchise agreement for the brand business in question was terminated in consent. Due to this termination, we only have one segment.

CEO PRESENTATION

Customer Footfall and Sales Unit Trend

2013/9/2 12

24,146

27,495 29,616

24,928

36,667

24,853

31,743

26,810

0

10,000

20,000

30,000

40,000

50,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2012/04 2012/05 2012/06 2012/07 2012/08 2012/09 2012/10 2012/11 2012/12 2013/01 2013/02 2013/03 2013/04 2013/05 2013/06 2013/07

お客様単価お客様数 Sales Unit


Unit : JPY

Footfall

CEO PRESENTATION

Trade-In (CBB & SCB) Results with Metal Market

2013/9/2 13

Unit : JPY

■：下取 ■：買取－：金地金相場

4,272 4,007

4,313

5,258

4,194

4,294

0

1,000

2,000

3,000

4,000

5,000

6,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

2012/4 2012/5 2012/6 2012/7 2012/8 2012/9 2012/10 2012/11 2012/12 2013/1 2013/2 2013/3 2013/4 2013/5 2013/6 2013/7


CBB SCB Gold Metal Market

CEO PRESENTATION

Summarized Balance Sheet

2013/9/2 14

2013/3/31 2013/6/30 Increase/ Decrease vs Last Year

Current Assets 10,324 10,193 -131 98.7％

Fixed Assets 1,636 1,669 +33 102.0％

Total Assets (Liabilities & Net Assets) 11,960 11,862 -98 99.2％

Current Liabilities 4,778 4,728 -50 99.0％

Fixed Liabilities 289 297 +8 102.8％

Total Liabilities 5,068 5,025 -43 99.2％

Net Assets 6,892 6,836 -56 99.2％ 57.6% 57.6% +0.0%


Unit : 1MJPY

‐ Forecast for the 70th Term

２．Forecast


CEO PRESENTATION

Forecast for the 70th Term

2013/9/2 16

Net Sales 8,600 million Yen Operating Profit 390 million Yen Current Profit 240 million Yen Net Profit 130 million Yen Net Profit per share 4.78 yen


https://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ZzjhhT0hwjl4pM&tbnid=ZmxrYo3KVM7VCM:&ved=0CAUQjRw&url=https://www.tokyu-dept.co.jp/tama-plaza/shop/detail.html?shopcode=verite&ei=jF2rUfCVPISkkwW1jIDwAQ&bvm=bv.47244034,d.dGI&psig=AFQjCNG3z579zJtPO6fYy2YRgOJQObNpBA&ust=1370271449779827

３．New Strategies



Jun 2008 April 2009 October 2010 2013

Joined the DIGICO Group, a DTC Sightholder

Start of New Strategy

Implementation

Mid-term Business Plan: Phase 1 Intensive business

streamlining

Mid-term Business Plan: Phase 2

Maharaja Diamond

Start implementing new strategies in 2013! Aim to be a leading company in the jewelry industry

while maintaining stable profit.

Start implementing new strategies


New Corporate VISION


BEAUTY FOR EVERYONE Beautify all women.

As a pioneer of jewelry retail business, Verite offers all women jewelry that is exciting, just by wearing it.

Jewelry that makes their everyday sparkle, help them stand out, and filled with confidence.

Until now, from now, and forever…

Verite will continue to provide jewelry that adds beautiful brilliance to all women.


Measures for New Strategies

Objective: Establish a stable profit mechanism in Verite

Multi-brand strategy Efficiently cover the market and reinforce profitability 1

Maximize customers’ lifetime value (LTV) in link with ＣＲＭ 2

Thorough Supply Chain of ＤＩＧＩＣＯ 3


３６０°market-covering Multi-brand Strategy

×

Aim of Multi-brand Strategy

360° Jewelry market

coverage × ＝ Verite Maharaja MiMiKaZaRi

Handle individual brands to meet diverse values of different customer groups

CEO PRESENTATION

THE NEW BRAND DEBUT


In summer 2013 QIREINI will make its debut as a Heart & Cupid Diamond Brand. QIREINI is a proof of a stronger diamond radiating in even more exquisite brilliance. QIREINI delivers a beautiful, brilliant premium Quality to women who wish to always stay beautiful in their own way and to live with full confidence.

CEO PRESENTATION

BRAND CONCEPT / CUSTOMER IMAGE


PROPOSAL

Women in their 40s & 50s

In choosing diamonds, prioritize essential factors such as quality & beautiful brilliance rather than famous brands.

Knowledgeable about jewelry, buy jewelry for their own use.

Confidence in H&C Ambassador Conversation with expert jewelers

Pleasure of discovering a diamond on your own and sharing premium time.

Diamonds in stronger, more beautiful brilliance.

The supreme brilliance is created by veteran artisans’ cutting techniques

Certificated Global Standards DTC sightholder, DIGICO delivers reliable

diamonds from mines to market to offer customers satisfaction in owning high-quality legitimate diamonds.

Material Value Emotional Value

New Diamond Value Standards: ４C＋Brilliance

BRAND PROMISE Offering a beautifully brilliant high quality to women who wish: “to always stay beautiful in their own way,” and “to live in full confidence.”


BRAND Brand Attributes and Activity Directions

A Pioneer of Jewelry Chain Use CRM as a foundation and place importance on LTV by retaining VIP customers. Increase freshness of merchandise.

High quality Bridal Brand Strategically operate this brand as a highly profitable strategic brand to cultivate department store distributions.

One-and-only brand specialized in in Japan Expedite diverse channel development of H&C diamond as a brand with strong awareness and reputation as a H&C brand, synonymous as Verite.

One-and-only Designers Pierced Earrings Specialty Store in Japan Aim to secure open display cases on the accessory floor by making use of dominant merchandise assortment as an ammunition.

1

2

3

4

4 Core Brands with Common Customer Points


Integrate DIGICO Group’s Capabilities & Improve Supply Chain

Design & MD Development

Purchase & MD Manufacturing

Distribution & Marketing

Strategic Door Plans

Always conscious of cost for value. Alert to trends and stories in proposing designs.

Increase ratio of overseas procurement to cut down on manufacturing cost while committed to slash wasteful cost to the maximum.

Committed to proper distribution of budgets, budget control based on ROI as index, & effectiveness measurement

Choose doors possible to reinforce branding & run business there to improve ad effects.

Maximize the group capability of DIGICO, a DTC sightholder. Improve accuracy of quality & operation in all fields of supply chain, from MD development to the touch point with consumers.



Comparison of Diamond Distribution Routes

De Beers （DTC）

Sightholder Overseas dealers Importers

Manufacturer (process)

Manufacturing wholesale・ secondary

Retailers

Diamond Only 70

in the world Import Process/

manufacturing Productization Sales to customers

Standard Diamond Distribution Routs

De Beers （DTC）

Since a Holding company is a DTC Sightholder, quality diamonds are secured

Diamonds are polished & processed at Group’s factories and imported to Japan

Diamond DIGICO GROUP Only 70firms worldwide

Verite’s Diamond Distribution Route

1 2 3 4 5 6

1 2


FOCUS of New Mid-term Business Plan

Design & MD Development

Purchase & MD Manufacturing

Distribution & Marketing

Strategic Door Plan

Strengthen this part of supply chain, and establish highly competitive Verite with jewelry manufacturing/retailing functions

Strengthen strategy and take action

FOCUS



New Corporate VISION


BEAUTY FOR EVERYONE Beautify all women.

As a pioneer of jewelry retail business, Verite offers all women jewelry that is exciting, just by wearing it.

Jewelry that makes their everyday sparkle, help them stand out, and filled with confidence.

Until now, from now, and forever…

Verite will continue to provide jewelry that adds beautiful brilliance to all women.

CEO PRESENTATION

IR CONTACTS

30 2013/9/2

This document contains descriptions about future performances. They, however, are not guaranteed, as risks and uncertainties are contained in them. Please note that future performance is subject to change, depending on business environments.

Any comments or inquiries for this information, please contact below: Vérité Co., Ltd. Business Planning Div. （Yodono or Dobashi） Tel +81-(0)45-415-8870 Fax +81-(0)45-329-1588 E-mail [email protected]

Vérité Co., Ltd. http://www.verite.jp/

DIGICO Group http://www.digicogroup.com/



Reference Data on the 70th Term Quarter 1 Results Briefing September 2, 2013 Vérité Co. Ltd. （code：９９０４）

results briefing · 2015. 9. 30. · the company name is changed to jewel verite ohkubo co., ltd....

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