FY2012 (6/11-5/12) Results Explanatory Meeting
July 20, 2012
The earnings forecasts appearing in this material are based on the business environment at the present
time, and there is the possibility that actual earnings may differ from forecasts for various reasons.
Furthermore, only inquiries in Japanese are handled.
Inquiries should be direct to Mr. Kasakawa or Mr. Ohno (045-914-8241) in the Corporate Planning Office.

1

FY2012
Consolidated Results(06/2011 – 05/2012)2

1. FY2012 Consolidated Profit and Loss Statement
Existing
Existingstoresstoresshow
showsteadysteadygrowth,
growth,achievinghighersales
andprofitachieving higher sales and profit

ReturnReturnononassets
assets [ROA][ROA] 14.5%
14.5%
Returnonequity[ROE]
14.1%
Return on equity [ROE] 14.1%
FY2012FY2011(consolidated)

YoYchange(%)% of initialprojection(%)

Adjustments
in projection(%)

154,875 100.0 169,790 100.0 109.6
41,627 26.9 45,123 26.6 108.4
33,184 21.4 35,999 21.2 108.5
8,442 5.5
9,124 5.4 108.1
8,744 5.6
9,441 5.6 108.0
4,540 2.9
4,824 2.8 106.3

102.0

+845

102.9

－

100.1

－

115.2

+431

115.1

+441

107.4

-7

(million yen)

Net sales
Gross profit
SG&A expenses
Operating profit
Recurring profit
Net profit(consolidated)* Accounting period

Share
(%)

CREATE SD HOLDINGS CO., LTD.
CREATE SD CO., LTD.
Welllife Co., Ltd.
SALON DAY CO.,LTD(million yen)

Share
(%)

June 1-May 31, 2012
June 1-May 31, 2012
April 1-May 31, 2012 (The accounting period is 14 months.)
June 1-May 31, 20123

2. FY2012 Consolidated Balance Sheet(million yen)
May 31, 2011(consolidate)

Main
Maincauses
causesof
ofchanges
changes

May 31, 2012
(consolidated)

ChangeTotal assets

62,62668,030+5,404Current assets

36,55939,770+3,211

Fixed assets

26,06728,260+2,192

Total liabilities

30,104

32,129+2,025Current liabilities

27,16930,079+2,909Fixed liabilities

2,934

2,050

-884

Total net assets

32,52135,900+3,379Total liabilities
and net assets

62,62668,030+5,404* Accounting period

CREATE SD HOLDINGS CO., LTD.
CREATE SD CO., LTD.
Welllife Co., Ltd.
SALON DAY CO.,LTD

Total
Totalassets
assetsOpening
Openingofof33
33newnewstores,
stores,etc.
etc.
Fixed
assets+2,192
millionFixed assets +2,192 millionyen
yen

Total
Totalliabilities
liabilities

Accruedretirement benefits
Accrued retirement benefits
decreased
decreasedby
by846
846million
millionyen
yen

Total
Totalnet
netassets
assetsDeclineDeclinedueduetoto1,447
1,447million
millionyenyeninindividends
dividends
Net
Netprofit
profit+4,824+4,824million
millionyenyenJune 1-May 31, 2012
June 1-May 31, 2012
April 1-May 31, 2012 (The accounting period is 14 months.)
June 1-May 31, 20124

3. FY2012 Consolidated Statement of Cash Flows(million yen)

FY2011FY2012(consolidated)(consolidated)

Major
Majorbreakdown
breakdown
ChangeNet profit before taxes
Net profit before taxes
Depreciation
 Depreciation
 Corporate taxes paid
 Corporate taxes paidCash flow fromoperating activities

8,578

6,997

-1,580Cash flow frominvesting activities-4,539-4,297+241

Cash flow fromfinancing activities-1,101-1,527-426

Cash flows related to opening new stores:
Cash flows related to opening new stores: Purchase of fixed tangible assets 2,861 million yen
 Purchase of fixed tangible assets 2,861 million yen
 Joint loans for construction
796 million yen
 Joint loans for construction
796 million yen

Change in cash andcash equivalents

2,938

1,172

Opening balance of
cash and cash
equipments

12,525

15,463 +2,938

Closing balance of
cash and cash
equipments

15,463

16,635 +1,172* Accounting period

CREATE SD HOLDINGS CO., LTD.
CREATE SD CO., LTD.
Welllife Co., Ltd.
SALON DAY CO.,LTD-1,766

9,165 million yen
9,165 million yen
2,121 million yen
2,121 million yen
4,491 million yen
4,491 million yen



Repayment of long-term loans
79 million yen
Repayment of long-term loans
79 million yen
Dividends
1,447 million yen
 Dividends
1,447 million yen
June 1-May 31, 2012
June 1-May 31, 2012
April 1-May 31, 2012 (The accounting period is 14 months.)
June 1-May 31, 20125

Results for Each BusinessCompany61. FY2012 Profit and Loss Statement (Create SD)
FY2011(million yen)

Net sales

FY2012
Share(%)(million yen)

Share
(%)

YoY
change(%)% ofprojection(%)

154,094 100.0 168,711 100.0 109.5 102.1

Gross profit

41,51626.9

45,15526.8 108.8 103.0

SG&A
expenses

33,42221.7

36,30121.5 108.6 100.1

Operatingprofit

8,093

5.3

8,853

5.2 109.4 117.0

Recurringprofit

8,311

5.4

9,076

5.4 109.2 116.7

Net profit

4,333

2.8

4,765

2.8 110.0 110.2

7

2. Sales

Create SD

Concentrated
Concentratedon
onmeasures
measuresfor
forboosting
boostingof
ofsalessalesandandnumbernumberof
ofcustomers
customers
Sales
Salesatatexisting
existingstoresstoresrose
rose1.6%,
1.6%,number
numberof
ofcustomers
customers0.2%,
0.2%,andandaverage
averagespending
spendingpercustomer
0.8%
year
on
year
as
a
resultofenhancingproductline-upfocusing
per customer 0.8% year on year as a result of enhancing product line-up focusingon
onfood
food
and
daily
products
andimprovingthecontentofhand-distributed
flyers.
and daily products and improving the content of hand-distributed flyers.
Monthly change in sales in existing storescompared to the previous year

Impact of The
earthquake

(％)

120.0

FY2012 Hand-distributed flyers
Day-by-day sales

115.0
110.0
FY2012

105.0
100.0
95.0
90.0

June,2010
Eliminated budget
pleasing sale

85.0

December,2010
Started Handdistributed flyers

80.0
FY2011

75.0
Jun.

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

8

3. Sales by Segment

Create SD

Strengthening
Strengtheningof
ofthe
theselection
selectionof
ofgoods
goodscentering
centeringon
onfoodfoodproducts
productsand
anddailydailyproducts
products
Workingforboosting
of
sales
and
numberofcustomers
Working for boosting of sales and number of customers

FY2012
Medical
Medicalandandhealthhealthproducts
products

Sales(million yen)

Share
(%)

YoY
change(%)

Medical andhealth products

37,70322.3 105.7

Cosmetics

27,93416.6 106.2

Food products

59,79135.4 117.9

Daily products

31,402

18.6 106.4

Other

11,878

7.1

Total

168,71199.9

100.0 109.5

Pharmacy related sales continue to be robust despite
Pharmacy related sales continue to be robust despitesluggishness in pollen allergy-related products. For the overallsluggishness in pollen allergy-related products. For the overall
segment, sales rose 5.7% year on year. (-1.2% on an existing
segment, sales rose 5.7% year on year. (-1.2% on an existing
stores basis)stores basis)

Cosmetics
Cosmetics
Sales of bath related products rose 6.1% year on year as a

Sales of bath related products rose 6.1% year on year as aresult of introducing high-priced shampoos. For the overall
result of introducing high-priced shampoos. For the overall
segment, sales rose 6.2% year on year. (-1.1% on an existing
segment, sales rose 6.2% year on year. (-1.1% on an existing
stores basis)stores basis)

Foodproducts
Food
Salesproducts
grew 17.9% year on year as a result of changing shelf

Sales grew 17.9%
year on productyear as line-up.
a result (8.3%of changing
arrangementthat improvedon an shelfarrangementthat
improved
productline-up.
(8.3%
on an
existing stores basis)existing stores basis)

Daily
products
Dailyproducts
Sales grew 6.4% year on year resulting from hand distribution

Sales grew 6.4% year on year resulting from hand distributionof flyers and strong growth in heat-beating products. (-0.9%
of flyers and strong growth in heat-beating products. (-0.9%
on an existing store basis)on an existing store basis)* “Other” includes items such as stationery, baby products, clothing, pet products, gardening products, and film development services.

9Create SD

4. SG&A Expenses

As
Asaaresult
resultof
ofefforts
effortsto
toenhanceenhanceprofit
profitstructure,
structure,SG&A
SG&Aexpense
expenseratio
ratiodecreased
decreasedby
by0.2
percentage
pointsto
21.5%
0.2 percentage points to 21.5%
Yearly change in SG&A Expenses and SG&A Expenses ratio
Graph: SG&A Expenses ratio(%)

Bar graph: SG&A Expenses(million yen)
50,00028.0%

45,0002 0 .8 %2 0 .0 %2 1 .4 %2 1 .7 %40,00035,00030,00029,16731,72233,4222 1 .5 %24.0%

36,301

20.0%
16.0%
12.0%

25,45725,0008.0%

20,0004.0%

15,0000.0%

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012◆Efforts to reduce costs

Personnel
expenses
AdvertisingexpensesUtilities
expensesRose 8.9% year on year (1.7% higher than forecast)
While the number of personnel increased (+12.0%) due to the planned opening of new stores,
personnel expenses on an existing store basis was reduced by 1% year on year.

Rose 10.2% year on year (3.3% lower than forecast)
While conducting hand distribution of flyers throughout the year, flyers for new stores has beenverified a number of times, and the distribution areas and numbers are being reviewed.

Rose 3.9% year on year (11.9% lower than forecast)
The amount of electric power being used on an existing store basis was reduced by 13% year on
year as a result of Continuous efforts to decrease electric power usage and adopting LED lights.

1010

5. New Store Openings

Create SD

33
33newnewstores
storeswere
wereopened
opened(of(ofwhichwhich55were
werededicateddedicatedprescription
prescriptiondrug
drugstores)
stores)
New store openings by area
Kanagawa Tokyo Shizuoka Saitama

OTC
New stores
opened in
FY2012

dedicatedprescription
drug storesin-store
pharmacies

14
1
4

6
1
3

6
0
1

0
1
0

Chiba

Gunma

Ibaraki

Total

2
2
0

0
0
0

0
0
0

28
5
8

NumberNumberof
ofnew
newstores
storesby
byOTC
OTCtypetype(28(28stores)
stores)Suburbanstandalone:23
Shop-in-shop:2
Suburban stand alone:23 Shop-in-shop:2 NSC
NSC:2:2 Urban
Urbancenter
center:1:1
33storesstoreswere
wereclosed
closed(1(1ininKanagawa,Kanagawa,11ininShizuoka,
Shizuoka,11ininSaitama)
Saitama)

Kanagawa Tokyo Shizuoka Saitama

OTC
Total
number of dedicatedstores as of prescription
the end of drug storesin-store
FY2012
pharmacies

201
13
24

52
5
6

60
0
8

13
1
1

Chiba

Gunma

Ibaraki

Total

16
3
0

5
0
0

7
0
0

354
22
39
11

6. Prescription Operations

Create SD

13
13newnewstores
storesopened
opened(5 dedicated prescription drug stores and61
61storesstoresat
atthe
theendendof
ofFY2012
FY2012(22 dedicated prescription drug stores anddedicatedprescription drug stores and8(5in-store
pharmacies)
8 in-store pharmacies)(22in-store
dedicated prescription drug stores and39
39 in-storepharmacies)
pharmacies)
Sales in prescription operations and the number ofprescriptions issued

FY2012(million yen)

Share
(%)

YoY
change(%)

92

10,000Gross profit

8064

6,865 100.0 122.7

7,000
6,000

60

2,754

5,000

50

40.1 120.9

Existing
Existingstoresstorescomparisonscomparisons
Sales
14.9%
Prescriptions
Sales 14.9% Prescriptions7.5%
7.5%

Net sales

90

71

70

4,000
3,000

(Home service
operations)

100

80

9,000
8,000

Net sales

Graph:
Number of prescriptions issued(unit: 10,000)

Bar graph: Sales(million yen)

FY2012(million yen)

Share
(%)

423 100.0

2,000

3 ,9 6 4

132.9

30
20

1,000

10

0

0
FY2009YoY change(%)

4 ,6 5 8

5 ,5 9 340

6 ,8 6 5

FY2010FY2011FY2012

Medication
Medicationguidance
guidanceby
byvisitvisit
Collaboration
with29
nursing
Collaboration with 29 nursing
facilities
facilities(demand(demandfrom
from11
11new
newfacilities)
facilities)

127. Assisted-living fee-charging nursing home
and Preventive Nursing BusinessWelllife
SALON DAYFY2012(million yen)

Difference fromprojection(million yen)

Share
(%)

100.0

Operating profit

1,078
-79

－

-143
-43

Recurring profit

-75

－

-33

Net profit

-146

－

-12

Net sales* The income statement is based on the simple addition of figures for Welllife Co., Ltd. and SALON DAY CO., LTD.
*The accounting period of Welllife Co., Ltd. is 14 months from April 1, 2011 to May 31, 2012.

Preventive nursing business (SALON DAY)
Openedday
centers
Opened14
14
dayservice
service
centers
creatinga
networkof
24
creating a network of 24centers
centers
OpenedOpenedoneonelong-term
long-termcare
caresupport
supportcenter
centerNumber of day service centersat the end of FY2012

Stand-alone
Stand-alonecenters:
centers:17
17
In-store
centers:
7
In-store centers: 7

13

Growth Strategy

14

1. Growth Strategy – Drug Store Operations
1. Opening 40 new stores-Targeting 8–10% growth in sales・Develop stores with focus on Kanagawa, Tokyo, and Shizuoka
・Opening small stores in the areas where shopping is inconvenient・Opening large-scale stores with more than 350 tsubo

Minato Ward Shibadaimon Store(Opened on August, 2011)

2. Enhancing the operations of existing stores
・1% or more increase in the number of customers year on year
・Introducing and enhancing new product categories(vegetables, desserts, prepared food, etc.)
・Improving the freshness of products in stores by changing shelf arrangement

3. Establishing a low-cost structure
・Decrease in the number of man-hours to 99% year on year
・Introduction of a new reward card
・Continuous efforts to decrease electric power usage

4. Moving forward to the future
・Promoting online shoppingand home delivery businesses

Create Ouchi Shop
http://netsuper.create-sd.co.jp/15

2. Growth Strategy – Prescription Operations
1. Opening 31 new stores・6 dedicated prescription drug stores and
25 in-store pharmacies
・In-house development of two medical malls

2. Newly engaging with more than
11 nursing homes
・Increasing the home medication guidance fee

3. Improving profitability
・Negotiation on purchase prices
・Increased usage of generic drug
・Increased stores that calculate standard prescription fee

4. Securing and developing human resources
・Group training and OJT education at the pharmaceutical training room in the head office(allocating 80 personnel to pharmacy-related segment)
・Fostering highly skilled pharmacists who conduct home medication guidance

16

3. Growth Strategy – Nursing Operations
Assisted-living fee-charging nursing home
1. Measures to increase occupancy rates
・Offering a more flexible price system including the “zero entry fee” plan
(responding to legal changes)
・Strengthening marketing promotion and advertising

Preventive nursing business
1. Opening of new facilities
・Opening of 6 facilities30 facilities

2. Improving profitability ofexisting facilities
・Achieving higher operating rates
by enhancing sales capability
・Enhancing the functional training menu
・Converting highly operational facilities
into “facilities with a capacity of 15 people”

174. Create Group Medium-term Vision
Creating
Creatingaasystemsystemto
tocontributecontributeto
tosocietysocietyas
asaacomprehensive
comprehensivehealthcare
healthcare
supportsupportcompany
companyin
incooperationcooperationwith
withcommunity
communitymedical
medicalfacilities
facilities
Operations in each field
Planned number of stores in FY2015
Medical treatment

Prevention
Health counseling
Nutrition counselingBaby counseling

Cooperate withhospitals and clinics

Drug stores
Pharmacies

Day
services

Daily life

Feecharging
nursinghomes

Nursing

OTC

473

Dedicated prescription
pharmacies
In-store pharmacies

43
114

Salon Day
46
Fee-charging nursing home 2

Business indicators that the company emphasizes
Recurring
Recurringprofit
profitmargin
margintarget:5%ormoretarget: 5% or more

ReturnReturnononassets
assetstarget:15%
ortarget: 15% ormore
more

ReturnReturnononequityequityTarget:15%
orTarget: 15% ormore
more
18

Net sales and recurring profit
Bar graph: Net sales(million yen)

Graph: Recurring profit(million yen)

2 4 0 ,0 0 0

12,000

million yen

2 2 0 ,0 0 0
2 0 0 ,0 0 0
1 8 0 ,0 0 0

7,860

8,396

million yen

8,744

9,441

10,0057,610
221,000

1 4 0 ,0 0 0127,817

139,932

1 2 ,0 0 0
1 0 ,0 0 0

1 6 0 ,0 0 0

1 2 0 ,0 0 0

1 4 ,0 0 0

149,081

154,875

169,790

183,403

8 ,0 0 0

million yen 6 ,0 0 0

4 ,0 0 0

million yen

1 0 0 ,0 0 0

2 ,0 0 0

FY 2 0 0 8

FY 2 0 0 9

Number of stores

FY 2 0 1 0

FY 2 0 1 1

FY 2 0 1 2

FY 2 0 1 3（projection）

FY 2 0 1 5（projection）

Total for OTC stores and dedicated prescription drug stores(stores)

600

516(stores)

550
500

420

450
400
350
300

268 (stores)

300

319

346

376

250
200

FY 2 0 0 8

FY 2 0 0 9

FY 2 0 1 0

FY 2 0 1 1

FY 2 0 1 2

FY 2 0 1 3（projection）

FY 2 0 1 5（projection）

19

FY2013 Forecasts (Consolidated)
FY2012(consolidated results)(million yen)

Net sales
Gross profit
SG&A expenses
Operating profit
Recurring profit
Net profit

Share
(%)

FY2013(consolidated projection)(million yen)

Share
(%)

YoY Change(%)

169,790 100.0 183,403 100.0 108.0
45,123 26.6 48,752 26.6 108.0
35,999 21.2 39,027 21.3 108.4
5.3 106.6
9,124 5.4
9,725
5.5 106.0
9,441 5.6 10,005
4,824

2.8

5,572

3.0 115.5

Capital expenditures

6,200 million yen (+23.7% YoY)

Depreciation expense

2,275 million yen (+11.6% YoY)20

FY2013 Projections(Create SD – Drug Stores and Prescription Operations)
FY2012(results)(million yen)

FY2013(projection)
Share
(%)

(million yen)

Share
(%)

YoY change(%)

168,711 100.0 182,176

100.0

108.0

Gross profit

45,15526.8

48,715

26.7

107.9

SG&A expenses

36,301

21.5

39,368

21.6

108.4

Operating profit

8,853

5.2

9,347

5.1

105.6

Recurring profit

9,076

5.4

9,549

5.2

105.2

Net profit

4,765

2.8

5,366

2.9

112.6

Net sales21

FY2013 Projections(Assisted-living Fee-charging Nursing Home and Preventive Nursing Business)

FY2012(results)(million yen)

Net sales

FY2013(projection)
Share
(%)

(million yen)

1,078 100.0

Share
(%)

YoY change
(%)

1,226

100.0

113.7

Operating profit

-79

－

-10

－

－

Recurring profit

-75

－

-18

－

－

Net profit

-146

－

-99

－

－

66day
dayservice
servicecenters
centersare
areexpected
expectedto
toopenopenduring
duringthe
thecurrent
currentfiscal
fiscalyear
year22