株式会社 千趣会Senshukai
2011年度
年度
2四半期
四半期 決算説明会
Co., 第Ltd.
Second Quarter of Fiscal 2011 Earnings Presentation
July 28,2011
2011年
年7月月28日
日

Copyright SENSHUKAI Co., Ltd. All Rights Reserved.

Senshukai would like to express its deepest condolences to the families and friends of those whodied in the Great East Japan Earthquake which struck on March 11, 2011, and extends its prayers
to all those affected by the disaster.
We pray for the earliest possible recovery in disaster areas.

The Great East Japan Earthquake: Impact on Senshukai and its response
Donations of money and goods
Senshukai’s donations
30 million yen
Donations from employees of the Senshukai Group
11.43 million yen
Belle Maison’s collections
Total: About 30 million yen
Smile Supporter’s collections(as of July 25)
Gambare Tohoku/Iimono Saihakken Special Charity’s collections
All contributions made via
the Japanese Red Cross Society
About 200,000 items
Ongoing
Damage incurred by the Senshukai Group
Logistics center in Tochigi Prefecture
Call center in Chiba Prefecture

Minor damage

Subsidiary Dears Brain
Eight guesthouses in Miyagi, Tochigi, and Ibaraki prefectures: equipment damage

Currently recovered

Currently recovered⇒ The disaster impacted sales by roughly 420 million yen, and profits by roughly 220 million yen.
2Contents

1. Results of Operations for 2Q Fiscal 2011

2. Overview by Segment

3. Consolidated Earnings Forecasts for Fiscal 20113

1. Results of Operations for 2Q Fiscal 20114

Consolidated Results of Operations for 2Q Fiscal 2011 (YoY Comparison)(Millions of yen)

2Q Fiscal 2010

2Q Fiscal 2011

% to netsales% to netsales

YoY change
Difference

Percentage
pointsNet Sales

69,629-69,542--86-

Cost of Sales

35,15250.5%

35,73951.4%

5870.9%Gross Profit

34,47649.5%

33,803

48.6%

-673

-0.9%

SG&A Expenses

32,41946.6%

31,40445.2%-1,015-1.4%

Operating Income

2,057

3.0%

2,398

3.4%

341

0.4%

Ordinary Income

2,010

2.9%

2,631

3.8%

621

0.9%

Net Income

1,451

2.1%

2,166

3.1%

714

1.0%

Net sales fell sharply in March due to the impact of the Great East Japan Earthquake, but were firm thereafter
Gross profit margin declined due to a rise in the cost of sales, but operating income rose due to adecline in SG&A expenses
5Consolidated Balance Sheets for 2Q Fiscal 2011
Dec. 31, 2010

Jun. 30, 2011

Current assets

42,65639,935-2,720Noncurrent assets

47,43046,932-498

Total assets

90,08686,868-3,218Current liabilities

41,31836,144-5,173

Noncurrent liabilities

9,356

8,941

-415

Total liabilities

50,67545,086-5,589

Shareholders’ equity

49,96651,786

1,819

Valuation andtranslation adjustments-10,555-10,004550

Total net assets

39,411

41,781

2,370

Total liabilities and net assets

90,08686,868-3,218AssetsDifference

Remarks(Millions of yen)

Cash and deposits and accounts receivable-other decreased.
Investment securities decreased due to sales.

Liabilities
Short-term loans payable decreased due to repayments.
Accounts payable-other decrease due to lower expenses, etc.
Forward exchange contracts decreased.
Bonds payable decreased due to redemption.
Long-term loans payable decreased due to repayments.
Others increased due to booking of asset retirement obligations.

Net assets
Retained earnings increased due to booking of net income.
Deferred losses on hedges decreased due to a fall in balance offorward exchange contracts

6Trend in Monthly Sales (YoY Comparison)
Consolidated Net Sales

Catalog Business Sales
+8.8%
+5.6%

+4.1%

+5.0%

+3.6%
+2.6%

+2.8%
+1.5%
YoY
0%0%
-1.7%

-4.2%

-9.3%
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Net sales fell in March due to the impact of the earthquake, but recovered from April thanks
to television advertising and a “free-shipping” campaign
7Consolidated Sales by Product Category (YoY Comparison)(100 millions of yen)

99.4%
2Q Fiscal 2010

2Q Fiscal 2011

106%
97.4%

98.6%

101.1%
82.2%

ApparelFashionaccessories

Interiorgoods

Householdgoods

Foods

OthersInterior goods: strong sales of fabrics and bedding
Apparel: in line with trends since last year, strong sales of maternity wear and baby
clothes, but weak sales of sportswear

8

Net Sales by Consolidated Business Segment (YoY Comparison)(Millions of yen)103.3%
55,992 57,859

10年第102Q
年第2Q年第2Fiscal 2010

11年第112Q
年第2Q年第2Fiscal 2011

90.0%
5,498
4,94698.9%
3,648 3,607

65.0%
3,545
2,305

87.3％％
944 824

Catalogbusiness

Hanpukaibusiness

BridalbusinessCorporatesbusiness

OtherBusinesses

Catalog business: increased due to steady increase in Internet sales
Bridal business: decreased due to postponement of wedding ceremonies and receptions in thewake of the earthquake
Corporates business: decreased due to end of contract with major outsourcing client
9Overview of Consolidated Gross Profit Margin and SG&A Expenses (YoY Comparison)
Consolidated Gross Profit MarginConsolidated SG&A Expenses(Millions of yen)

-1,015-1,015

-0.9%
49.5%
49.5%

48.6%
48.6%

32,41932,4192Q年第2Fiscal 2010
102Q
年第2Q年第2Fiscal 2011
112Q
年第Fiscal22010
10年第Q
102Q年第2年第Purchasing cost ratio: surge in raw materials expenses
Valuation losses: increased due to a higher inventorylevel

31,404
31,404

Fiscal22011
11年第Q
112Q年第2年第Packing and freightage expenses declined due toimprovement in the delivery-to-order ratio:-179

Catalog costs declined due to circulation reduction: -959
Other expenses increased:

+123
10

2. Overview by Segment11Overview of Catalog Business (YoY Comparison)

2Q Fiscal 2010

2Q Fiscal 2011

Difference

Number of orders( 10,000 orders)

547.3

551.2

3.9

Semi-annual number of activecustomers (10,000 members)

259.9

263.8

3.9

Average sales per customer (Yen)

11,386

11,168-218

Semi-annual order frequency per
customer (Times)

2.1

2.1

±0

4,201

3,724-477

Catalog circulation (10,000volume)

Number of orders/Number of active customers: increased due to cross-media promotions in spring
Catalog circulation: decreased due to more efficient distribution of catalogs and a decline in thenumber of media
12

Overview of Hanpukai Business (YoY Comparison)

2Q Fiscal
2010
Number of groups(10,000 groups)
Average sales per group(yen)2Q Fiscal
2011

Difference

7.2

6.4

-0.8

Greater-than-expected decline in
office groups

5,230

5,770

540

Higher average sales per groupresulted in a greater-than-expected
improvement in earnings

Hit products in first half
↓ Note paper and stationery
in illustrated case

↓ Pelvis support shorts↓ Alluring bra with outerwear feel

No.1

No.2

No.3

Pelvis tightening shortsLittle library

Dressy bra

Sales 86,000 units

67,000 units

32,000 units
13Overview of Bridal Business (YoY Comparison)

Net sales (millions of yen)

2Q Fiscal 2010

2Q Fiscal 2011

3,648

3,607(4,154)-41

1213(13)

1905(1,096)3390(379)-1

Guesthouses
Weddings (couples)

902

Average sales per wedding(10,000 yen)391

Difference*Initial plan in parentheses

Net sales: Despite the opening of a new guesthouse, sales declined slightly due to the postponement of weddings andreceptions in the wake of the Great East Japan Earthquake, and damage to some guesthouses
Average sales per wedding: Roughly in line with the YoY figure
References: Average sales per wedding/reception: 3.26 million yen (“Zexy Marriage Trend Report” by Recruit Co., Ltd.): Bridal market size: 1.5 trillion yen (Yano Research Institute estimate)

14

Overview of Corporates Business (YoY Comparison)(Millions of yen)

Breakdown of sales

2Q Fiscal 2010

2Q Fiscal 2011

Difference

Contracting
services

2,744

1,646

-1,098Sampling

376

432

56

Novelties

168

190

22

Others257

37-220

Total

3,545

2,305

-1,240Contracting services: decreased due to end of contract with major outsourcing client
Others: gift catalogs were transferred to the catalog business15

2Q Results Relative to Initial Plan (Comparison to Initial Budget)(Millions of yen)

Initial plan for
2Q Fiscal 2011

2Q Fiscal 2011

% to net
sales

Relative to initial plan

% to net
sales

Difference

Percentage
pointsNet Sales

69,000-69,542-

542-

Cost of Sales

35,58851.6%

35,739

51.4%

151

-0.2%

Gross Profit

33,411

48.4%

33,803

48.6%

392

0.2%

SG&A Expenses

32,21146.7%

31,40445.2%-807-1.5%

Operating Income

1,200

1.7%

2,398

3.4%

1,198

1.7%

Ordinary Income

1,600

2.3%

2,631

3.8%

1,031

1.5%

Net Income

1,100

1.6%

2,166

3.1%

1,066

1.5%

Sales slightly exceeded the initial plan, and the gross profit margin improved due to a decline in valuation losses.
Profits increased at each level due to across-the-board cuts in SG&A expenses.
16Differences in Gross Profit Margin and SG&A Expenses Relative to the Initial Planfor 2Q (Comparison to Initial Budget)
Consolidated Gross Profit Margin

Consolidated SG&A Expenses(Millions of yen)-807

0.2 points
48.4%
48.4%

48.6%
48.6%

32,211
32,211

31,404
31,404

2Q Fiscal 2011
第2 Q 当初

2Q Fiscal 2011
第2 Q 実績

2Q 2Fiscal2011
第Q 当初2011
第2Q2Fiscal
Q 実績
results

initial plan

results

Valuation losses declined due to the early clear-out of inventory

initial plan

Sales promotion expenses-233

Production costs-211

Fixtures and supplies expenses-101

Other expenses

-262
17

Trend in Internet Sales in 2Q 2011, and Measures to Strengthen the Internet Business+3,35334,787(Millions of yen)

36,56833,215

Salesvia catalog

Renewal of Belle Maison Net in April-Strengthening of search engine functionality-Simplification of order flow
Internet-related measures in the first half
-Television advertising to guide users to the Internet-“Free-shipping” campaign for Internet orders only
Future Internet-related measures-Smartphone-related application development-Full video use on Internet

Internet-onlysales

2Q Fiscal 2009

2Q Fiscal 2010

2Q Fiscal 2011

Mobakore-Opening of new website “mini cole” with brands formothers and children

Sales via catalog : Customer reads a catalog then purchases by Internet, entering catalog number.
Internet-only sales: Customer makes purchase through the Internet by putting products into online shopping cart.

Internet sales: Internet-only sales steadily increased
Ratio of internet orders : 57% ⇒ 63%
18

3. Consolidated Earnings Forecasts for Fiscal 201119

Consolidated Earnings Forecasts for Fiscal 2011 (YoY Comparison)(Millions of yen)

Fiscal 2010
results% to netsales

Fiscal 2011
forecasts% to netsales

YoY change
AmountPercentage
points

Net sales

136,859-

138,500-

1,641-

Cost of sales

69,44750.7%

71,705

51.8%

2,258

1.1%

Gross profit

67,412

49.3%

66,794

48.2%

-618

-0.9%

SG&A expenses

63,98946.8%

63,794

46.1%

-195

-0.7%

Operating income

3,422

2.5%

3,000

2.2%

-422

-0.3%

Ordinary income

3,167

2.3%

3,400

2.5%

233

0.2%

Net income

2,037

1.5%

2,600

1.9%

563

0.4%

We forecast an increase in sales, but a decline in the gross profit margin due to surging raw materials
expenses and other procurement expenses, and a decline in operating income due to greater
promotional spending in the second half.
20Net Sales Forecast by Business Segment for Fiscal 2011 (YoY Comparison)

105.7%(Millions of yen)

114,371
108,187

Fiscal
2010
10年実績
年実績
102011
11年予想
年予想
11Fiscalresults

forecasts

88.0%
103.7%

10,983
9,665

8,149 8,452

54.0%
7,651
4,129

99.6%
1,8881,880

Catalogbusiness

Hanpukaibusiness

Bridalbusiness

Corporates
business

OthersCatalog business: We expect Internet sales to continue to increase steadily in the second half
Bridal business: We expect sales to recover in the second half
Corporates business: We expect a continued impact in the second half from the end of a contract
with a major outsourcing client
21

Second-half Topics in Fiscal 2011
Cross-media promotion in autumn

As in spring, to be implemented to improve awareness of the Belle
Maison brand, and acquire new customers
Advertising on television and the Internet
Manami Konishi - the main personality ofour television advertising campaign

Store operations in China

Currently operate 10 stores
Shanghai: 2 stores; Beijing: 2 stores; Tianjin, Qingdao, Shenyang, Zibo,
Dalian, Weihai

We plan to open five new stores in Fiscal 2011

Dalian store opened in June22Dividends and Results Announcements Scheduled in Fiscal 2011
Dividend forecast
Our basic policy is to continuously return profits to shareholders targeting a consolidated payout ratio of30%.
We plan a dividend of 7 yen per share in cumulative 2Q.
This, together with our divided forecast of 7 yen per share for the yearend, gives an annual dividend of 14
yen per share.

Dates of earnings announcements for Fiscal 2011
Third quarter of Fiscal 2011
Financial Report of Fiscal 2011
Presentation for earnings of fiscal 2011

Friday, October 28, 2011
Thursday, February 9, 2012
Friday, February 10, 2012

The forward-looking statements contained in this earnings presentation are based on
information that was available at the time. Actual results could differ from these projections
due to a variety of factors.

2324