Fiscal Year Ending March 31, 2023 (FY2022)

Consolidated Financial Results for the First Six
Months of the Fiscal Year Ending March 31, 2023

November 4, 2022
Joshin Denki Co., Ltd.

1

[Table of Contents]◼ Major Initiatives in the First Half of the Fiscal Year Ending
March 31, 2023 (FY2022)◼ Earnings Summary for the First Six Months of the Fiscal YearEnding March 31, 2023 (FY2022)◼ Full-year Forecast for the Fiscal Year Ending March 31, 2023
(FY2022)◼ Progress in the Medium-term Management Plan “JT-2023”◼ Sustainability Management◼ Sales Topics

2

Major Initiatives
in the First Half of the Fiscal Year Ending March 31, 2023 (FY2022)
Announced

Details

2022/10/1

Opening of the AEON MALL Toki store on Tuesday, October 42022/9/30

Publication of the Integrated Report

2022/9/19
2022/9/12

2022/8/23

Endorsed the paternity leave project and developed a corporate culture where employees can enjoy
both child rearing and work
Academia-industry partnership project between Joshin and BAIKA Women’s University
At the Joshin Ibaraki Store and the Minoh Q’s MALL Store, counters filled with the ideas ofstudents and representing a new set of values were createdSelected as a business operator earning decarbonized points in the “Survey and Study Project for
Decarbonized Point Granting System for Promoting Environmentally Conscious Consumption Actions”
of the Osaka Prefectural Government

2022/8/8

First electronics retail store in Japan to participate in the “United Nations Global Compact”

2022/7/28

22 Joshin Denki stores in the Kansai region adopted carbon-neutral city gas of Osaka Gas

2022/7/19

Absorption-type merger of a consolidated subsidiary (Joshin Shuhan Co., Ltd.)

2022/7/8
2022/6/23
2022/6/16
2022/5/30

Awarded the Certificate of Appreciation for Outstanding Contribution for the eighth consecutive
year for Joshin’s part in the “Small Rechargeable Battery Recycling Power-up Campaign”
Supporting the disabled with home appliance coupons and offering coupons to “MIRAIRO ID,” thedigital physical disability certificates
Expanded childcare leave for male employees to 28 days, the same as post-natal paternity leave,out of which the taking of 14 days leave within 8 weeks from birth became mandatory
Participation in the “Decarbonized Point System Promotion Platform” of the Osaka Prefectural
Government
3

Earnings Summary for the First Six Monthsof the Fiscal Year Ending March 31, 2023 (FY2022) −1
Consolidated Income Statement (First Half)(Million yen)First six months of
FY2021 (Apr.–Sep.)
Actual% of net
results
salesFirst six months of FY2022 (Apr.–Sep.)% of net
sales

Forecast

Actualresults% of netsales

Actual vs.
forecast

YoY

200,822100.0%

202,000

100.0%

197,918

100.0%(1.4%)(2.0%)

159,576

79.5%

-

-

160,125

80.9%

0.3%

-

36,993

18.4%

-

-

35,63418.0%(3.7%)

-

4,253

2.1%

-

-

2,158

1.1%

(49.3%)-

Gross profit

49,244

24.5%

-

-

51,193

25.9%

4.0%

-

Selling, general andadministrative expenses

43,938

21.9%

-

-

47,089

23.8%

7.2%

-

Operating income

5,305

2.6%

4,000

2.0%

4,104

2.1%

(22.6%)

2.6%

Ordinary income

6,073

3.0%

4,000

2.0%

4,119

2.1%

(32.2%)

3.0%

Net income (*1)

4,064

2.0%

2,700

1.3%

3,006

1.5%

(26.0%)

11.3%

Net sales
Of which, sales atstoresOf which, sales in EC
business

Of which, other sales*1 Profit attributable to owners of parent

4Earnings Summary for the First Six Monthsof the Fiscal Year Ending March 31, 2023 (FY2022) −2
Factors for changes in operating income: Vs. previous year
(Billion yen)

Operatingincome for
FY20205.3

GrossprofitAdvertisingexpenses

1.9

(0.0)

Logistics
expenses(2.1)

Personnel
expenses

(0.4)

Rent
expenses

(0.4)

Other

(0.2)

Operatingincome for
FY2021

4.1
5

Earnings Summary for the First Six Monthsof the Fiscal Year Ending March 31, 2023 (FY2022) −3
Consolidated Income Statement (July–September)(Million yen)

1Q, FY2021( Apr.–Jun.)
Actual% of net
resultssales

1Q FY2022 (Apr.–Jun.)
Actualresults% of net
sales

YoY

2Q FY2021(Jul.–Sep.)
Actual% of net
resultssales

Actualresults

2Q FY2022 (Jul.–Sep.)% of net
sales

YoY

97,423100.0%

94,601100.0%(2.9%)

103,399

100.0%

103,316100.0%(0.1%)

76,10578.1%

75,94480.3%(0.2%)

83,471

80.7%

84,181

81.5%

0.9%

18,58319.1%

17,36718.4%(6.5%)

18,41017.8%

18,26717.7%(0.8%)

2,734

2.8%

1,290

1.4%

(52.8%)

1,519

1.5%

868

0.8%

(42.9%)

Gross profit

24,521

25.2%

24,820

26.2%

1.2%

24,722

23.9%

26,373

25.5%

6.7%

Selling, general andadministrative expenses

21,29521.9%

23,429

24.8%

10.0%

22,642

21.9%

23,660

22.9%

4.5%

Operating income

3,225

3.3%

1,391

1.5%

(56.9%)

2,080

2.0%

2,713

2.6%

30.4%

Ordinary income

3,224

3.3%

1,394

1.5%

(56.7%)

2,849

2.8%

2,724

2.6%

(4.4%)Net income*1

1,973

2.0%

1,016

1.1%

(48.5%)

2,090

2.0%

1,990

1.9%

(4.8%)Net sales
Of which, sales atstoresOf which, sales in EC
business

Of which, other sales*1 Profit attributable to owners of parent

6Earnings Summary for the First Six Monthsof the Fiscal Year Ending March 31, 2023 (FY2022) −4
Sales by product (YoY change in major products)(Million yen)

1Q FY2021(Apr–Jun.)

1Q FY2022(Apr.–Jun.)

Actual % of net Actual % of net
results
sales
resultssales

2Q FY2021(Jul.–Sep.)
YoY

First six months of
FY2021(Apr.–Sep.)

2Q FY2022(Jul.–Sep.)

Actual % of net Actual % of net
results
sales
resultssales

YoY

First six months of
FY2022(Apr.–Sep.)

Actualresults% of netsales

Actualresults% of net
sales

YoY

TVs

6,806

7.0%

5,973

6.3% (12.2%)

8,328

8.1%

6,921

6.7% (16.9%)

15,134

7.5%

12,894

6.5% (14.8%)

Refrigerators

6,472

6.7%

6,481

6.9%

0.1%

8,439

8.2%

8,139

7.9%

(3.6%)

14,911

7.4%

14,6207.4%(2.0%)

Washing machinesand vacuum
cleaners

9,783

10.0%

8,651

9.1% (11.6%)

10,385

10.0%

9,958

9.6%

(4.1%)

20,16810.0%

18,6099.4%(7.7%)

Microwave ovens
and cookers

4,506

4.6%

3,871

4.1% (14.1%)

4,461

4.3%

3,871

3.7% (13.2%)

8,967

4.5%

7,742

3.9% (13.7%)

Air conditioners

13,47313.8%

14,742

15.6%

9.4%

13,74313.3%

14,437

14.0%

5.0%

27,21613.6%

29,17914.7%

Personalcomputers

5,676

5.8%

5,023

5.3% (11.5%)

5,210

5.0%

4,724

4.6%

(9.3%)

10,886

5.4%

9,747

4.9% (10.5%)

Mobile phones

5,073

5.2%

6,113

6.5%

20.5%

5,511

5.3%

6,824

6.6%

23.8%

10,584

5.3%

12,937

6.5%

22.2%

Games, models,
toys, musicalinstruments

12,71413.0%

11,06011.7% (13.0%)

12,20911.8%

15,042

14.6%

23.2%

24,923

12.4%

26,102

13.2%

4.7%

7.2%

7

Earnings Summary for the First Six Monthsof the Fiscal Year Ending March 31, 2023 (FY2022) −5
Balance sheet(Million yen)2022/032022/09

Change(Million yen)

Current assets

107,515

113,543

6,028

Tangible assets

73,30073,527

Intangible assets

2,405

Investments, otherassets2022/032022/09

ChangeCurrent liabilities

78,04686,3188,272

226

Non-current
liabilities

40,72936,703(4,025)

2,358

(47)

Total liabilities

118,776

123,022

4,246

34,19533,155(1,039)Non-current assets

109,902

109,041(860)

Total net assets

98,641

99,562920

Total assets

217,417

222,584

5,167

Total liabilities
and net assets

217,417

222,584

5,167

40,01742,4082,391

Total net interestbearing liabilities*

37,65638,702

1,046(Reference)
Total interestbearing liabilities

Cash flows(Million yen)

*Total net interest-bearing liabilities: interest-bearing liabilities less cash and deposits

2021/092022/032022/09

Change from2021/09

Change from
2022/03

Cash flow from operating activities (a)(1,157)

1,442

4,620

5,777

3,178

Cash flow from investing activities (b)(4,087)(9,573)(3,182)

905

6,391

(Free cash flow (a) + (b))(5,244)(8,131)

1,438

6,682

9,569

Cash flow from financing activities

4,140

1,873

(91)

(4,232)(1,964)

Cash and cash equivalents at end of period

7,513

2,360

3,706

(3,807)

1,346

8

Full-year Forecast for the Fiscal Year Ending March 31, 2023 (FY2022)
Consolidated Income Statement (Full-year forecast)(Million yen)

Full-year FY2021(Apr.–Mar.)
Actualresults

Full-year FY2022 (Apr.–Mar.)% of net
sales

Previous
forecast% of netsales

New
forecast% of net
sales

Previous
Forecast
ChangeYoY

409,508

100.0%

420,000

100.0%

420,000

100.0%

2.6%

0.0%

Operating income

8,884

2.2%

10,0002.4%

10,000

2.4%

12.6%

0.0%

Ordinary income

9,701

2.4%

10,0002.4%

10,000

2.4%

3.1%

0.0%

Net income*1

6,391

1.6%

7,000

1.7%

7,000

1.7%

9.5%

0.0%

Net sales*1 Profit attributable to owners of parent(Forecast for second half)(Million yen)

Second half FY2021(Oct.–Mar.)
Actualresults% of net
sales

Second half FY2022 (Oct.–Mar.)Previous
forecast% of netsales

New
forecast% of net
sales

Previous
Forecast
ChangeYoY

208,686

100.0%

218,000

100.0%

222,081100.0%

6.4%

1.9%

Operating income

3,579

1.7%

6,000

2.8%

5,895

2.7%

64.7%

△1.7%

Ordinary income

3,628

1.7%

6,000

2.8%

5,880

2.6%

62.1%

△2.0%

Net income*1

2,327

1.1%

4,300

2.0%

3,993

1.8%

71.6%

△7.1%

Net sales*1 Profit attributable to owners of parent

9

Progress in the Medium-term Management Plan “JT-2023” −1
FY2022 is the final year of the Medium-term Management Plan “JT-2023”(Million yen)

Targets for the final year (FY2022)(1) Initial
plan(2) Revised
plan(3) Revisedplan

New forecast

ChangeActual vs. plan

435,000

450,000

420,000

420,000--

70,00080,00080,00080,000--Operating income

11,50016,50010,00010,000--Ordinary income

11,50016,50010,00010,000--Equity ratio

45.0% or higher 45.0% or higher 45.0% or higher 45.0% or higher

-

-

ROE

7.0% or higher

9.0% or higher

7.0% or higher

7.0% or higher

-

-

ROA

5.5% or higher

7.0% or higher

5.5% or higher

5.5% or higher

-

-

ROIC

5.5% or higher

7.0% or higher

5.5% or higher

5.5% or higher--

Around 30.0%

Around 30.0%

Around 30.0%

Around 30.0%--

Net sales
Of which, sales in EC
business

Payout ratio*(1) Initial plan released August 7, 2020; (2) Revised plan released May 7, 2021; (3) Revised plan released May 6, 2022

10

Progress in the Medium-term Management Plan “JT-2023” −2
Dividend and payout ratio
（Yen）
80

60.0%

75

70

75

75
50.0%

60
50

50
40
30

31.4%

50
24.6%

20.9%

Around
30.0%

40.0%

30.0%

22.6%
20.0%

20
10.0%

10
0

0.0%

19/3

20/3

21/3
Dividend

22/3

23/3
forecast

Payout ratio

11

Progress in the Medium-term Management Plan “JT-2023” −3Financial standing（Billion yen）
110

（Times）

0.56

100

0.6

0.49

99.3

90
80

99.5

98.6

89.1

86.0

0.38

0.5

0.39
0.4

70
60
50

0.27
52.7

0.3

47.1

40

35.1

30

40.0

42.4

20

0.2

0.1

10
0

0

19/3

20/3
Net assets

21/3
Interest-bearing liabilities

22/3

22/9

Net D/E ratio*Net D/E ratio: (Interest-bearing liabilities – Cash and deposits) / Net assets
12Progress in the Medium-term Management Plan “JT-2023” −4Store openings and store closings
Prefecture

Type of
store

Gifu

JoshinPrefecture

Type of
store

Apr.

Shiga

JoshinMay

Hyogo

Joshin

Nov.

Osaka

JoshinNew store openings
2022

Oct.

New store opening
due to relocation

2022

250

233
222

220
210

Name
Omihachiman Store⇒ AEON MALL Omihachiman Store
Nada Store⇒ Coop LIVING Konan Store
Nipponbashi Ichibankan
J&P Technoland
Disc Pier Nipponbashi Store⇒ Nipponbashi Store

16

234

234

234

12

9

7

238

237

239

6

5

5

220
5

17

200
190

AEON MALL Toki Store（Number of stores）

240
230

AEON MALL Omihachiman Store opened in
April 2022

Name

232

217

222

225

227

14/3

15/3

16/3
Direct17/3
18/3
Franchise

232

223
5

234

205

215

218

21/3

22/3

180
13/3

19/3
Total

20/3

13

Progress in the Medium-term Management Plan “JT-2023” −5
Number of stores as of September 30, 2022
Region

Pref.
Osaka
Kyoto
Hyogo

KansaiShiga
Nara

Wakayama
Shikoku

Tokushima
Aichi
Gifu

Tokai

Mie
ShizuokaTokyo
Kanagawa

Kanto

Saitama
Chiba
ToyamaIshikawa

Hokushinetsu

Fukui

Niigata
NaganoTotal

JoshinDirect

54
12
38
12
12
8
0
16
6
9
1
3
2
7
5
8
3
2
9
1
208

Franchise

BOOK
OFF

TSUTAYA

5

2
2

1

ＥＣ
business2
3

Physicalstores5

6

4

Joshin operates some BOOK-OFF shops as a franchisee. These shops buy and sell items
for reuse, such as books, CDs, DVDs, video games, apparel, and hobby items.

Joshin is a franchisee of an entertainment shop TSUTAYA, which offers lifestyle choices by
selling new books, stationery, and other goods, and renting movies, music, and comics.

14

Progress in the Medium-term Management Plan “JT-2023” −6New logistics project
The Kansai Ibaraki Fulfillment Center is moving towards unified distribution, and TC*1 andDC*2 operations were shifted there in February 2022.
Shipments of all EC (*3) products from TC and DC began in July, and full-scale operations havecommenced.
●Ibaraki Fulfillment Center specs
・Stocked items : +20% from before move
・EC shipment capacity : +100% from before move・Total inventory amount : −10% from before move・Transport vehicles : −10% from before move・Total floor area : Approx. 116,000㎡
・Five-story seismic isolation structure●Cafeteria inside the Kansai Ibaraki Fulfillment Center*1 TC: Short for Transfer Center (where goods can be relayed)*2 DC: Short for Distribution Center (warehouse type)*3 EC: Short for electronic commerce, which is generally called“online sales” or “net shopping.”

15

Sustainability Management -1

Integrated Report 2022 (Fiscal Year Ended March 31, 2022) was released
We have prepared the Integrated Report based on the Integrated Reporting
Framework of the IFRS Foundation to explain to a wide range ofstakeholders, including shareholders and investors, the direction inwhich the Company is heading, key management strategies, businessactivities that are the basis of value creation, and ESG initiatives,among others, as well as to enhance corporate value through constructive
dialogues sustainably.

Apr. 2022

Established a Sustainability Promotion Office

Analysis of climate-related risks and opportunities
The Group considers “Contributing to the creation of an enrichingsociety that is in harmony with the global environment” as a materiality
theme.
In order to appropriately deal with the risks and opportunities related
to environmental issues, the Group, going forward, will disclose
information in line with the items recommended by the recommendation of
the Task Force on Climate-related Financial Disclosures (TCFD), namely,
governance, strategy, risk management, and metrics and targets.
16

Sustainability Management -2
Initiatives related to climate change (carbon neutrality)➢➢➢➢

We promoted the installation of photovoltaic power generation systems at all possible business sites, andinstallation will be complete during FY2023.
Compared to FY2013, we have reduced GHG emissions by 67.6%, thus already achieving the 46% targeted by thegovernment.
The Group calculated emissions for the first time in FY2021 and identified all emissions in scope 3.
Target for sales of environmentally-friendly products: 40% or more in sales composition. In FY2021, we achieved
43.6%.

Ratio of switching to renewable energy
Applicable business sites
All business sites, including tenants
Of which business sites where the Company
contracts directly with the power supplier

Switch ratio *As of Sept. 30, 2022

Carbon neutrality targets

57.4％

Scheduled to achieve 100% by 2040

94.7％

Scheduled to achieve 100% by 2023

Joshin Green Smile Challenge 2050 (excerpt)
Aiming for sustained growth by “contributing to the creation of an enriching society that is in harmony with the global
environment,” the Joshin Group has set the following initiatives and targets in dealing with environmental challenges tobe achieved by 2050.
➢ Raise the percentage of renewable energy sources to 100% (at all business sites, including rented ones) [2040]➢ Raise the percentage of off-grid power to 50% to promote off-grid power generation and consumption➢ Cut 100% of GHG emissions in all categories of Scope 3➢ Rank as the top company in the CDP Climate Change Report [2035]➢ Establish the business model of a circular economy by creating value with business partners
17

Sustainability Management -3
Diversity and Inclusion (D&I)➢➢➢

With the spiritual foundation of “respect for human rights,”
we promote various human resource strategies based on thebasic concept of consistently maintaining “D&I.”
D&I is an initiative to realize job satisfaction and ease ofwork and to create the foundation for opening up businessprospects from multiple perspectives.
As core measures of all human resource strategies, including
D&I, we will strive to heighten the awareness of employees,
represented by the four key terms, “job satisfaction,”“ease of work,” “employee ownership,” and “employee
engagement.”

Major D&I initiatives
Timing

Details

Nov. 2021

Established a Diversity Promotion Office

Apr. 2022

Established a Diversity Council

May 2022

Created a poster with the president’s message on
D&I and displayed it in all divisions

Purpose of establishing the Diversity Council
・Build a mechanism to utilize employees’ voices in management
・Encourage employee retention by forming an internal community
・Create an easy-to-work work environment
・Enhance employee engagement

18

Sustainability Management -4
Endorsement of UN Global Compact➢➢

In July, we signed a statement of support for the UN Global Compact.
Preparations are underway to formulate a human rights policy during FY2022.
We will actively work to establish a human rights due diligence system that aligns withinternational norms.

「Announcement of “Joshin Group Health and Productivity
Management Declaration”
We declare that we will strive to promote the mental and physical health of all employees of
the Joshin Group.
To practice our management philosophy of “Connecting the futures of people and society withsmiles” through the creation of two social values—“supporting and strengthening resiliencein our aging society” and “achieving carbon neutrality in the home”—we have declared ourcommitment to proactively improving the health of our employees and their families, which are
the drivers of this initiative.
Oct. 2022

Established a Health and Productivity Management Promotion Office

Developing a corporate culture where employees can enjoy
both child rearing and work➢➢

From April 2022, the number of days of childcare leave for male employees (paid leave for child care) was expanded
to 28 days. All applicable employees (including directly-employed non-permanent employees) take 14 days or more
within eight weeks from birth to take on the challenge of child-rearing.
We support the paternity leave project of Sekisui House, Ltd. and encourage employees to take paternity leave,through press releases and other means.
19Sales Topics -1
New flagship store opened in Nipponbashi, the site of its founding[Store name]
Nipponbashi Store[Location]
5-9-5 Nipponbashi, Naniwa-ku, Osaka-shi, Osaka[Opening date]November 3, 2022 (Thursday, a national holiday)[Number of employees]
41 * regular employees[Total sales floor area] 5,038 m2[Parking capacity]
90 vehicles[Annual sales]
3.4 billion yen[Sales floor composition] Home appliances, information devices,mobile phones, renovation, Kids Land,
Disc Pier, and MEGA WATCH[Category]New store

20

Sales Topics -2
Selection as business operator earning decarbonized points
by the Osaka Prefectural Government➢➢

As a result of the public solicitation in the project of granting decarbonized
points and studying its effects, Joshin was selected as a business operator earning
decarbonized points.
This project contributes to achieving the following goals among the 17 SDGs.

22 stores in Kansai region adopted carbon-neutral city gas➢➢➢

Joshin concluded an agreement for the supply of carbon-neutral city gas to 22 of
its stores in the Kansai region through Daigas Energy Co., Ltd. (President:
Masayuki Inoue, Head Office: Chuo-ku, Osaka), a wholly-owned subsidiary of Osaka
Gas Co., Ltd., as the distributor.
In FY2021, five stores in the Kansai region and six in the Hokushinetsu region
switched their electricity to Osaka Gas’s “D-Green Premium” electricity, whichis generated entirely from renewable energy sources.
It was the first time Osaka Gas and Daigas Energy supplied carbon-neutral citygas” (“D-Green Premium” and “D-Solar”) to the same company.

21

Sales Topics -3
Academia-industry partnership project(Creating sales floors based on students’ ideas)➢

Joshin partnered with BAIKA Women’s
University (Headquarters: Ibaraki City,
Osaka) to “create new sales floors toaccommodate current changes in the shoppingstyle, as envisioned by students” as partof the academia-industry partnershipproject.

➢

From August 30 (Tue.) to October 31 (Mon.),special sales counters for hair dryers andrice cookers filled with students’ ideas
were set up at two stores in Osaka
Prefecture.

22

Sales Topics -4

Selection as a constituent of FTSE Blossom Japan Sector Relative Index➢➢

Joshin was selected as a constituent of the FTSE Blossom Japan Sector RelativeIndex, an ESG investment index, by a global index provider, FTSE Russell.
The FTSE Blossom Japan Sector Relative Index was selected by the Government
Pension Investment Fund (GPIF), the world’s largest public pension fund, to be
used as a benchmark for ESG investments from March 30, 2022.

「Selection as a constituent of S&P/JPX Carbon Efficient Index➢➢

Joshin was selected as a constituent of the S&P/JPX Carbon Efficient Index,
developed by S&P Dow Jones Indices.
The index tracks the stocks constituting TOPIX, a representative stock index
indicating the trends of the Japanese market, and adjusts constituent weight byfocusing on the disclosure of environmental information and the levels of carbon
efficiency (carbon emissions per unit of revenue).

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Disclaimer
1. Earnings forecasts and other forward-looking contents of this presentation are based on
available information at the time the Company prepared this document. We cannot promise or
guarantee that results will match forecasts.
2. This presentation contains unaudited approximations, which may change.

― Inquiries ―Joshin Denki Co., Ltd. Management Planning Dept.
Head Office: 6-5, Nipponbashi-nishi 1-chome, Naniwa-ku, Osaka City
Telephone: +81-6-6631-1122
FAX: +81-6-6644-3626
Company’s website: https://www.joshin.co.jp/
URL：https://www.joshin.co.jp/
E-mail: keieikikaku@joshin.co.jp

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