FY2012 (6/11-5/12) Interim Results Explanatory Meeting
January 19, 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

1H FY2012
Consolidated Results(06/2011 – 11/2011)2

1. 1H FY2012 Consolidated Profit and Loss Statement
Increase
Increasein
inprofits
profitsin
inspitespiteof
ofplanplanforfordecrease,decrease,due
dueto
tobetter-than-expected
better-than-expectedsales.
sales.
1H FY2012

1H FY2011(consolidated)(million yen)

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

75,35020,592
16,258
4,333
4,476
2,466

(consolidated)
Share
(%)

100.0
27.3
21.6
5.8
5.9
3.3

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

83,811
22,087
17,568
4,519
4,679
2,614

Share
(%)

YoYchange(%)% ofprojection
(%)

100.0

111.2

102.1

26.4

107.3

102.5

21.0

108.1

100.1

5.4

104.3

113.1

5.6

104.5

113.1

3.1

106.0

115.3

June 1-November 30, 2011
June 1-November 30, 2011
April 1-September 30, 2011
June 1-November 30, 20113

2. 1H FY2012 Consolidated Balance Sheet(million yen)
May 31, 2011(consolidate)November 30, 2011(consolidated)

Main
Maincauses
causesof
ofchanges
changes
ChangeTotal assets

62,626

62,770＋143

Current assets

36,55935,694▲864

Fixed assets

26,067

27,075＋1,008Total liabilities

30,104

28,635 ▲1,469

Current liabilities

27,16926,662▲507

Fixed liabilities

2,934

1,973▲961

Total net assets

32,521

34,134 ＋1,612

Total liabilities
and net assets

62,626

62,770*End of 1H CREATE SD HOLDINGS CO., LTD.
CREATE SD CO., LTD.
Welllife Co., Ltd.
SALON DAY

TotalTotalassets
assetsOpening
Openingofof17
17newnewstores,stores,etc.
etc.
Fixedassets+1,008millionyen
Fixed assets +1,008 million yen

Total
Totalliabilities
liabilities

AccruedAccruedbenefits
benefits-930-930million
millionyenyen

Total
Totalnet
netassets
assetsDeclineDeclinedueduetoto1,002
1,002million
millionyenyeninindividends
dividends
NetNetprofit
profit2,614
2,614million
millionyen
yen＋143

November 30, 2011
November 30, 2011
September 30, 2011
November 30, 20114

3. 1H FY2012 Consolidated Statement of Cash Flows(million yen)

November30, 2011(consolidated)

Major
Majorbreakdown
breakdown

Net profit before taxes for 2Q 4,659 million yen
Net profit before taxes for 2Q 4,659 million yen
Depreciation
993 million yen Depreciation
993 million yen
 Corporate taxes paid
2,708 million yen
 Corporate taxes paid
2,708 million yen

Cash flow from operating
activities

1,678

Cash flow from investing
activities▲2,006

Cash flow from financing
activities▲1,051

Change in cash and cash
equivalents▲1,379Opening balance of cash andcash equivalents

15,463

Closing balance of cash andcash equivalents

14,084* Accounting period

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

Cash flows related to opening new stores:Cash flows related to opening new stores: Purchase of fixed tangible assets
 Purchase of fixed tangible assets
1,357 million yen
1,357 million yen

Repayment of long-term loans 49 million yen
Repayment of long-term loans 49 million yen
Dividends
1,002 million yen
 Dividends
1,002 million yen
June 1-November 30, 2011
June 1-November 30, 2011
April 1-September 30, 2011
June 1-November 30, 20115

Results for Each BusinessCompany

6

1. 1H FY2012 Profit and Loss Statement(Create SD)
1H FY2011(million yen)

1H FY2012
Share(%)(million yen)

Share(%)

YoY
change(%)% ofprojection(%)

Net sales

74,965100.0

83,369

100.0

111.2

102.2

Gross profit

20,50827.4

22,117

26.5

107.8

102.6

SG&A
expenses

16,37721.8

17,747

21.3

108.4

100.3

Operatingprofit

4,131

5.5

4,370

5.2

105.8

112.9

Recurringprofit

4,235

5.6

4,484

5.4

105.9

112.8

Net profit

2,324

3.1

2,544

3.1

109.5

115.0

7

2. Sales

Create SDFor
Forexisting
existingstores,
stores,sales
salesroserose3.1%,
3.1%,numbernumberofofcustomers
customers2.5%,2.5%,
andaveragespending
percustomer
0.2%
comparedtotheprevious
and average spending per customer 0.2% compared to the previousyear
year
UpwardUpwardtrend
trendininsales
salesandandnumbernumberof
ofcustomers
customersfor
forvarious
variousreasonsreasonsincluding
includinghand-distributed
flyers
and
price
cuts
startingin
thesecond
halfofFY2011
hand-distributed flyers and price cuts starting in the second half of FY2011
Monthly change in sales in existing storescompared to the previous year

Impact of
the earthquake(％)
120.0FY2011

115.0

FY2012

110.0
105.0
100.0
95.0
90.0
85.0
80.0

Shift toward measures for boosting ofsales and number of customers

Concentrated on improving
gross profit margin

・Hand-distributed flyers
・changed shelving layout
・lowered sale prices on popular products• Eliminated budget pleasing sales• Stopped distributing new store flyers, etc.

75.0
Jun.

July.

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May.

Jun.

JulyAug.

Sept.

Oct.

Nov.

8

3. Sales by Segment

Create SD

Gross
Grossprofit
profitmargin
margindecreaseddecreased0.9
0.9percentage
percentagepoints
pointsyear
yearononyearyeardueduetotosales
salespromotion
promotionrevival.
revival.
Rose
7.8%
yearonyearonavaluebasis(2.6percentagepoints
greaterthanforecast)
Rose 7.8% year on year on a value basis (2.6 percentage points greater than forecast)

1H FY2012
Sales(million yen)

Medical andhealth products

18,275

Share(%)

YoY
change(%)

21.9 106.9

Cosmetics

14,06216.9 105.8

Food products

29,04834.8 120.8

Daily products

16,012

19.2 109.5

Other5,9697.2 101.3

Total

83,369 100.0 111.2

Strengthening
Strengtheningof
ofpricingpricingcentering
centeringon
onfoodproducts
anddailyproducts
food products and daily productsWorking
Workingfor
forrecovery
recoveryininsales
salesandandnumberofcustomers
number of customers
Medical and health products
Medical and health products
Pharmacy related sales continue to be robust
Pharmacy related sales continue to be robust
For the overall segment, sales rose 6.9% year on year (-0.1% on
For the overall segment, sales rose 6.9% year on year (-0.1% on
an existing stores basis)an existing stores basis)
Cosmetics
Cosmetics
Sales of bath related products rose 7.0% year on year due
Salesof bath related
7.0% year on year due
toimprovementsin theproducts
selectionroseof goods
toimprovements
intheselectionofgoods
For the overall segment, sales rose 5.8%
year on year (-1.7% onFor
theoverallsegment,sales
rose
5.8%
year on year (-1.7% on
an existing stores basis)an existing stores basis)
Food products
Food products
Sales of beverage products increased 30.6% year on year (+20.3%
Sales of beverage products increased 30.6% year on year (+20.3%
on an existing store basis) due to the enhancement of pricing
on an existing store basis) due to the enhancement of pricing
For the overall segment, sales rose 20.8% year on year (11.2% on
For the overall segment, sales rose 20.8% year on year (11.2% on
an existing stores basis)an existing stores basis)
Daily products
Dailyproducts
Sales
grew 9.5% year on year (+1.7% on an existing store basis)Salesgrew distribution
9.5% year on
due to handof year
flyers(+1.7% on an existing store basis)due to hand distribution of flyers* “Other” includes items such as baby products, clothing, pet products, gardening products, and film development services.

9Create SD

4. SG&A Expenses

GrowthGrowthrate
rateofofsalessaleswas
was11.2%,
11.2%,while
whilethethegrowth
growthrate
rateofofselling,
selling,generalgeneralandandadministrative
administrativeexpenses
expenseswas
was8.4%
8.4%
Maintaining
Maintainingprofit
profitstructure
structurebased
basedononcontrolling
controllingexpenses
expensesRose
Rose7.6%
7.6%year
yearononyearyear(0.8%(0.8%higher
higherthan
thanforecast)
forecast)

Personnel
Personnelexpenses
expenses

Advertising
Advertisingexpenses
expensesUtilities
Utilitiesexpenses
expenses

While
Whilethere
therewaswasan
anincrease
increaseininthe
thenumbernumberofofpersonnel
personnel(10.1%),(10.1%),
thenumberof
man-hours
wasmaintained
atthesamelevel
the number of man-hours was maintained at the same levelasasthetheprevious
previousyear
yearononan
anexisting
existingstore
storebasis,
basis,due
duetotothe
theestablishment
establishmentofofappropriate
appropriateman-hours
man-hoursand
andthetheadjustment
adjustmentofof
schedulesschedulesatateacheachstore.
store.

Rose
Rose11.5%
11.5%year
yearononyearyear(3.3%(3.3%lower
lowerthanthanforecast)
forecast)

Hand
Handdistribution
distributionofofflyers,
flyers,which
whichhadhadnotnotyetyetbeenbeenintroduced
introduced
asasofofthe
theprevious
previousyear,year,waswascarried
carriedout
outthisthisyear,year,and
andthetheresults
offlyers
fornewstores
has
beenverified
anumber
results of flyers for new stores has been verified a numberofof
times.
times.The
Thedistribution
distributionareas
areasandandnumbers
numbersare
arebeing
beingreviewed.
reviewed.

Decrease
Decrease5.9%
5.9%year
yearononyearyear(7.3%(7.3%lower
lowerthanthanforecast)
forecast)

InInaddition
additiontotoefforts
effortsfor
forenergy
energysaving,saving,initiatives
initiativesarearecontinuously
beingcarriedout
todecrease
theamountcontinuously being carried out to decrease the amountofof
electric
electricpower
powerusage.
usage.The
Theamountamountofofelectric
electricpower
powerbeing
beingused
used
onanexisting
store
basis
wasreducedby
22.6%
yearonyear.
on an existing store basis was reduced by 22.6% year on year.

10105. New Store Openings

Create SD

1717newnewstoresstoreswere
wereopenedopened(of(ofwhich
which44werewerededicateddedicatedprescription
prescriptiondrugdrugstores)
stores)
New store openings by area
Kanagawa
New stores opened
in 1H FY2012

5

Figures in parenthesis are dedicated prescription drug storesTokyo Shizuoka Saitama

Chiba

Gunma

Ibaraki

Total

5（1）

2(2)

00

17（4）

41(1)

NumberNumberof
ofnew
newstores
storesby
byOTC
OTCtypetype(13(13stores)
stores)Suburban
Suburbanstand
standalone:11
alone:11 Shop-in-shop:1
Shop-in-shop:1 UrbanUrbancenter
center:1:1
22storesstoreswere
wereclosedclosed(1(1ininShizuoka,Shizuoka,11ininSaitama)
Saitama)

Kanagawa
Total number ofstores as of the endof 1H FY2012

Tokyo Shizuoka Saitama

Chiba

205（12） 55（5） 58 14(1) 17（3）Gunma

IbarakiTotal

57361（21）* Of the 340 OTC stores,
36 have an attachedpharmacy11

6. Prescription Operations

Create SD
57
57storesstoresat
atthe
theend
endof
of1H
1H

88new
newstores
storesopened
opened(21(21dedicateddedicatedprescription
prescriptiondrug
drugstoresstoresandand36in-storepharmacies)
36 in-store pharmacies)(4(4dedicateddedicatedprescription
prescriptiondrug
drugstoresstoresandand44in-storepharmacies)
in-store pharmacies)

1H FY2012(million yen)

Share(%)

YoYchange(%)

Net sales

3,185

100.0

125.3

Gross profit

1,257

39.5

129.2

Existing
ExistingstoresstorescomparisonscomparisonsSales
118.5%
Sales
118.5%
Prescriptions
108.1%
Prescriptions
108.1%

1H FY2012(Home serviceoperations)(million yen)

Share(%)

YoY
change(%)

Net sales

199

100.0

130.8

Gross profit

11055.5

130.3

Medication
Medicationguidance
guidanceby
byvisitvisit
Collaborationwith22nursing
Collaboration with 22 nursing
facilities
facilities

127. Fee-charging Nursing Home andPreventive Nursing BusinessWelllife
SALON DAY

1H FY2012(million yen)

Net sales
Operating profit
Recurring profit
Net profit

442▲53▲54▲91

Share(%)

100.0
▲12.0
▲12.3
▲20.6

Difference fromprojection(million yen)

▲27▲15▲15▲13* The income statement is based on the simple addition of figures for Welllife Co., Ltd. and SALON DAY CO., LTD.

Preventive nursing business (SALON DAY)
OpenedOpened1010day
dayservice
servicecenterscenterscreating
creatingaanetwork
networkofof2020centers
centers
Number of day service centers at the end of 1H FY2012

Stand-alone
Stand-alonecenters:
centers:14
14 In-store
In-storecenters:
centers:66
13

FY2012 Forecasts(Full Fiscal Year)

14

FY2012 Forecasts (Consolidated)
No
Norevisions
revisionswere
weremademadetotoforecasts
forthefullfiscalyear
forecasts for the full fiscal year
FY2011(consolidated results)(million yen)

Net sales

Share(%)

FY2012(consolidated projection)(million yen)

Share(%)

YoY Change(%)

154,875 100.0 166,445 100.0 107.5

Gross profit41,627

26.9

43,86426.4 105.4

SG&A expenses

33,18421.4

35,946

21.6 108.3

Operating profit

8,442

5.5

7,918

4.8

93.8

Recurring profit

8,744

5.6

8,200

4.9

93.8

Net profit

4,540

2.9

4,491

2.7

98.9

Capital expenditures

6,200 million yen (+17.9% YoY)

Depreciation expense

2,419 million yen (+12.6% YoY)
15