FY 202４

Financial Presentation

May 1７, 202４
＜Cautionary Statement Regarding This Document＞

Forward-looking statements are based on the information available to Valor and its consolidated subsidiaries
when preparing this presentation. Various factors in the future may cause our actual results to be materiallydifferent from any future results expressed or implied by these forward-looking statements.

Message from President
Developing an Outstanding Presence as a Destination Company
Approximately seven years ago, we began experimenting with a new store model, adapting quickly
to environmental changes such as population decline and the COVID-19 pandemic. The core of thistransformation has been the shift towards “Destination Stores.” Our group has been remodelingand expanding fresh produce sales floors while working on product improvement initiatives, such as
the renewal of our private brand. All these efforts are aimed at transitioning to a store model where
the unique product and category offerings themselves serve as the motivation for customers tovisit. This shift, "from number of stores to product strength" as a fundamental policy, has increased
our store competitiveness, allowing us to attract customers from beyond our usual market area andexpand our support base.
Additionally, our newly formulated “Valor Group New Medium-TermThree-Year Business Strategy" (FY2025 to FY2027) continues to set“Connect 2030–Connecting Products, Customers, and Society" as its
strategic goal. Through its implementation, we aim to grow into a“Destination Company." These plans are steps towards clearly defining
our future vision as “Valor Group Vision 2030" and “Sustainability Vision
2030."To achieve “management that is conscious of the cost of capital andstock prices," we will also focus on management with a greater
consciousness of the balance sheet.
The Valor Group will continue to strengthen its governance system anddevelop alongside all our stakeholders. We ask our shareholders andinvestors for their continued support and look forward to yourexpectations for our further challenges.

©2024 Valor Holdings Co.,Ltd.

President & Director

Takayuki Koike
2

Key Points➢ Summary of FY2023 Financial Results
・ Operating revenues reached a record high for 29 consecutive FYs.

・ Profits increased to the second-highest level in history.
The increase in personnel expenses due to wage increases was covered byan increase in gross profit by the top line of our main businesses (SMexisting stores +5.6%, DgS existing stores +5.1%).
・ The annual dividend will be increased to ¥65 (+ ¥7 YoY) to strengthenshareholder returns.

➢ FY2025 Forecast
Operating revenues: ¥840.0 billion
Ordinary income: ¥26.4 billion

Operating income: ¥23.5 billion
NIA: ¥12.3 billion*NIA: Net income attributable to owners of parent➢ Performance Plan for FY2027（Final year of the new medium-term three-year business strategy)

Operating revenues: ¥910.0 billion
Ordinary income: ¥30.0 billion©2024 Valor Holdings Co.,Ltd.

Operating income: ¥27.2 billion
NIA: ¥14.0 billion
3

Contents
Ⅰ．Summary of FY2024 Financial Results

Ⅱ．FY2025 Forecast
Ⅲ．Valor Group New Medium-Term Three-YearBusiness Strategy
Ⅳ．(Reference) Segment Overview©2024 Valor Holdings Co.,Ltd.

4

FY2024 Consolidated Business Results➢➢➢

Operating revenues achieved a record high （29 consecutive FYs）
SM and DgS drove sales and profits, resulting in increased revenue and profit.
A significant increase in net income growth rate achieved through the strengtheningof investment management (Reduced impairment losses by ¥1 billion YoY.
(Yen in millions, except for EPS）

FY24

FY22

FY23

Results

Results

Forecast

Results

Operating
Revenues

732,519759,97７

772,000

807,795

+6.3%

+4.6％

Operatingincome21,20520,062

20,50022,844+13.9％+11.4％

Ordinary income

24,14023,04923,30025,604+11.1%

+9.9％

NIA

9,014

7,603

9,300

11,945+57.1%+28.4％*YoY

vs. Plan*EBITDA is calculated based on operating income + amortization (CF basis)

EBITDA*

41,43440,754-EPS

167.87141.61214.17©2024 Valor Holdings Co.,Ltd.

44,595223.02 (Yen）5Factors of Increase/Decreasein Operating Income➢➢

Gross operating profit increased by ¥14.4 billion, with the improvement in the
gross profit margin (26.6% → 26.7%)
Utility costs decreased by approx. ¥1.6 billion, while labor costs increased by¥6.3 billion due to wage increases.

(Yen inmillions）

Increasein selling
costs
Increasein labor
Increase
costs
in
gross
operatingprofitDecreasein utility
costs

Increasein facility
costs

Increase inother admin.
costs

FY23
Results©2024 Valor Holdings Co.,Ltd.

FY24
Results6

Quarterly Results➢ In Q3, despite the high performance in the previous year, wesecured increased profits and set a new record for operating
profit (¥7.2 billion).
Results

H1

Q3

YoY

(Yen in millions）

Q4

計

H1

Q3

Q4

計

Operatingrevenues

399,140

211,434

197,220807,795

+6.5%

+5.8%

+6.4%

+6.3%

Net sales

386,512204,826

191,262782,601

+6.7%

+5.9%

+6.5%

+6.4%

Gross profit

102,410

54,16052,678209,249

+6.6%

+6.1%

+9.0%

+7.1%

GOP

115,038

60,76758,636234,443

+6.1%

+5.7%

+8.3%

+6.6%

Total expenses

103,896

53,54854,154

211,599

+5.1%

+5.8%

+7.2%

+5.8%

Operating income

11,142

7,219

4,482

22,844 +16.5%+5.5%+22.7%+13.9%

Ordinary income

12,643

7,943

5,017

25,604 +13.8%

+9.0%

+7.8%

+11.1%

Ratio to operating revenues

YoY difference

Gross profit（vs. Net sales)

26.5%

26.4%

27.5%

26.7%

0.0%

+0.1%

+0.6%

+0.2%

GOP

28.8%

28.7%

29.7%

29.0%

△0.1%

0.0%

+0.5%

+0.1%

Total expenses

26.0%

25.3%

27.5%

26.2%

△0.4%

0.0%

+0.2%

△0.1%

Operating income

2.8%

3.4%

2.3%

2.8%

+0.2%

0.0%

+0.3%

+0.2%

Ordinary income

3.2%

3.8%

2.5%

3.2%

+0.2%

+0.1%

0.0%

+0.1%

©2024 Valor Holdings Co.,Ltd.

7

Operating Results by Segment※ For details, see p.19 ➢➢➢➢Supermarket Business: Increased profits due to the strong performance of existing stores (+5.6%) and the success of new storesin Osaka and Aichi Prefectures.
Drugstore Business: Increased revenue and profits driven by the remodeling of 30 stores and the strong performance of PB
products, leading to higher sales and improved gross profit margins for existing stores.
Home Improvement Center Business: Despite the subsidiary acquisition of HC Ant and deepening market dominance, revenue andprofits decreased due to a decline in customer numbers.
Sports Club Business: Increased revenue and reduced operating losses due to the increase in the number of members.

* “Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and others have been applied from the beginning of FY2022

Operating revenues
FY22

FY23

Results

Results

Results

Supermarket
business

405,537

421,838

Drugstore business

152,474

Home improvement
center business(Yen in millions）

Segment profit
FY22

FY23

YoY(%)

Results

Results

Results

454,217+7.7%

14,90813,374

18,614+39.2%

160,947

170,870

+6.2%

2,950

4,317

5,444

+26.1

122,947

124,962

123,995(0.8%)

5,061

4,620

3,844

(16.8%)

Sports club business

9,847

9,439

10,072

+6.7%

(559)

(1,159)(842)

Loss reduced

Distribution-related
operations

10,451

11,373

16,348+43.7%

3,206

3,296

3,664

+11.2%

Others31,26031,41432,291

+2.8%

2,510

1,635

(546)

Operating loss

(6,872)(6,022)(7,335)

21,20520,062

22,844.

FY24

Elimination or
corporate expenses

Total

732,519©2024 Valor Holdings Co.,Ltd.

759,977

807,795

+6.3%

FY24

YoY(%)+13.9%
8Changes in Management Indicators➢ Profitability, efficiency, and safety have all improved.
➢ We aim to achieve an ROE of 8% and an ROIC of 5.5% (greaterthan the cost of capital) to further improve profitability.
FY22

FY23

FY24

Results

Results

Results

ROA

5.9％

5.6％

5.9%

ROR

3.3％

3.0%

3.2%

Total Asset Turnover

1.8

1.8

1.9

ROE

6.2％

5.0%

7.5%

ROIC*

4.1%

3.7%

4.8%

Equity ratio

36.2％

36.6%

36.9%

D/E ratio

0.8

0.7

0.7

Net D/E ratio

0.6

0.6

0.5

*ROIC is calculated by dividing operating income after tax (using the effective tax rate) by (interestbearing debt + net worth + noncontrolling interests).
©2024 Valor Holdings Co.,Ltd.

9

Impact of Investmentsin the Credit Card Business➢➢➢➢Started accepting applications for the “Lu Vit Credit Card' in April 2023
180,000 applications as of the end of FY24
Planning to invest approx. ¥3.2 billion over 5 years(including the portion to be implemented in FY24).
Expected impacts: 1) the suppression of external outflow costs (estimated to reduce byapprox. ¥13.5 billion over 10 years), 2) business development utilizing the membership base(e.g. retail media and regional collaborations)

ImpactInvestment

Payment Costs (External Outflow) Comparison｜Plan to invest approx. ¥3.2B. over 5 years. ｜Estimated(Before and After Introduction of In-house Card)(Yen in 100 millions)

Systeminvest.
27%

40¥13.5B.

35

cost
reduction

30
25
20

Membership
acquisition
incentive

73%*Achieving profitability for Valor Financial
Services Co., Ltd. is planned for FY27.
©2024 Valor Holdings Co.,Ltd.

1.4

4.7 8.3 11

21 23
13 15 17 19

15
10
5
0

自社カード導入後

未導入
10

Contents
Ⅰ．Summary of FY2024 Financial Results

Ⅱ．FY2025 Forecast
Ⅲ．Valor Group New Medium-Term Three-YearBusiness Strategy
Ⅳ．(Reference) Segment Overview©2024 Valor Holdings Co.,Ltd.

11

FY2025 Forecast➢➢➢

Supermarket Business: Accelerate store openings in the Kansai region, implement the newpricing policy “Low Price Guarantee,” and open urban fresh food supermarkets.
Drugstore Business: Accelerate store openings in metropolitan areas (Nagoya and Kansai),and strengthen food offerings (fresh and prepared foods).
Home Center Business: Increase the proportion of PB products to 20%, and strengthen
specialty stores (for professionals).
（Yen in millions）

FY23

FY24

Results

Results

FY25
Plan

YoY

Operating revenues

759,97７

807,795

840,000+4.0％

Operating income

20,062

22,84423,500+2.9％

Ordinary income

23,04925,604

26,400

+3.1％

7,603

11,94512,300+3.0％

NIA

Existing stores sales growth rate
Supermarkets(0.1％)

+5.6％

+2.0％

Drugstores

+2.9%

+5.1%

+2.0%

Home improvement centers(0.7％)(2.2％)±0%©2024 Valor Holdings Co.,Ltd.

12

Number of Stores and Capital Investment Plan➢➢

Plan to invest in new store openings and renovations, including stores
acquired from Toho Store Co., Ltd.
Plan to start operations at the Hirakata Logistics Center in October 2024.

FY23

FY24

FY25

FY endFY end

316

317

42

Drugstores

ClosedFY end

12

1

328

51

11

-

62

495

507

26

-

533

Home improvement centers

161

168

4

2

170

Sports clubs
(FC)

184

176
(42)

1

-

177

（52）

Pet shops

１１9

124

9

5

128

5

5

-

-

5

1,322

1,348

63

8

1,403

Capital investment

25,99527,12034,367

New investment

13,464

9,691

20,093

Existing stores investment

11,726

13,655

12,453

805

3,775

1,821

（Number of stores）
Supermarkets
Delicatessen Specialty Stores

Others
Total

Others©2024 Valor Holdings Co.,Ltd.

Open

(42)

（Yen in millions）※payment basis

13

Cash Flow➢➢

FCF continued to increase from the previous fiscal year due to the increase in operating CF.
The new medium-term business strategy targets a cumulative operating CF of ¥120 billion
over three years.

（Yen in millions）

Cash Flow●Operating CF：¥38.449 B.
・Income before income taxes
increased by ¥3.93 B. (→ increase)
・Changes in inventories decreased by¥1.342 B. (→ increase)●Investing CF：(¥26.055 B.)
・Expenditure for the acquisition ofsubsidiary shares: ¥1.356 B.
(→ decrease)○（Subtotal）FCF：+¥12.393 B.
●Financing CF：(4.558 B.)
FCF
12,393©2024 Valor Holdings Co.,Ltd.

●Net Change in Cash andCash Equivalents：＋7.839 B.

14

Shareholder Return (Dividend Forecast for FY25）➢➢

An annual dividend of ¥65, consisting of an interim dividend of ¥28 and a year-end dividend of¥37 (an increase of ¥7 YoY), marking 14 consecutive years of dividend increases.
Revised shareholder return policy to strengthen returns from three perspectives: 1) increasing
the dividend payout ratio from 25% to 30%, 2) adopting a progressive dividend policy, and 3)
setting a minimum DOE of 2%.

（%）

（Yen）

（%）

70

50

6

45

60

40
5

50

4

40

35

30
25

3

30

2

20

20
15

10
1
0

10

5

0

0
10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3e
1株当たり中間配当金(円)DOE(株主資本配当率)(左軸)©2024 Valor Holdings Co.,Ltd.

1株当たり期末配当金(円)
配当性向(右軸)
15

Contents
Ⅰ．Summary of FY2024 Financial Results

Ⅱ．FY2025 Forecast
Ⅲ．Valor Group New Medium-Term Three-YearBusiness Strategy ※Ⅳ．(Reference) Segment Overview※Please refer to the announcement of the “Valor Group New
Medium-Term Three-Year Business Strategy” disclosed on
May 14, 2024.

©2024 Valor Holdings Co.,Ltd.

16

Contents
Ⅰ．Summary of FY2024 Financial Results

Ⅱ．FY2025 Forecast
Ⅲ．Valor Group New Medium-Term Three-YearBusiness Strategy
Ⅳ．(Reference) Segment Overview©2024 Valor Holdings Co.,Ltd.

17

[Ref.] Business Strategy by Segment➢➢➢

Expenses are expected to increase due to higher utility and labor costs.
Gross profit margin improved due to increased turnover from enhanced fresh produce and a higher PB(Private Brand) composition ratio.
Normalization of campaign costs is anticipated for the credit card business.
Note: The breakdown of sales and profits in the segment plan consists of approximate values; please take this into consideration.

Operating revenues

Segment profit

FY23

FY24

FY25

Results

Results

Plan

YoY

Supermarket
business

421,838

454,217470,000

Drugstore business

160,947

170,870

Home improvement
center business

124,962

Sports club business

FY23

FY24

FY25

Results

Results

Plan

+3.5%

13,374

18,614

19,500+4.8%

178,000

+4.2%

4,317

5,444

5,500

+1.0%

123,995

129,000

+4.0%

4,620

3,844

4,000

+4.1%

9,439

10,072

10,800+7.2%(1,159)(842)(700) improved

Distribution-related
operations

11,373

16,34818,200 +11.3%

3,296

3,664

3,800

Others※31,41432,291

34,000

1,635

(546)

(200) improved

ー

ー

ー

(6,022)(7,335)(8,400)759,977

807,795

840,000

20,062

22,84423,500.
(Yen in millions）

Elimination or
corporate expenses

Total

+5.3%

+4.0%

YoY

+3.7%

+2.9%

※ Includes pet store business, credit card business, etc.
©2024 Valor Holdings Co.,Ltd.

18

[Ref.] Supermarket business➢➢

Achieved record-high profit surpassing the third quarter of 2021 during the COVID-19
pandemic.
Valor Co., Ltd: Same-store sales +5.6% (customer count +0.7%) YoY
Started the current period with positive same-store sales due to an increase in customer
count from the new pricing policy “Low Price Guarantee.”(Yen in 100
millions)

SM segment profit

200

186.1

180

161.0

160

149.1
132.1

140
120
100

94.3 90.5

Analysis of full-year results(factors contributing to changes from the plan and fromthe previous year)

Operatingrevenues➢

vs. plan◎

The impact of remodelingon DS is approx. +9%

YoY◎+¥22.3 B. at Valor Co., Ltd.

vs. plan◎

Utility costs, especiallyelectricity, decreased.

◎

Improvement in grossprofit margin at Valor Co.,
Ltd.

60
40
20
0

Operatingincome80

YoY※◎：increase, ○：in line with the plan, △：decrease©2024 Valor Holdings Co.,Ltd.

19

[Ref.] Drugstore business➢➢➢

Achieved record-high profit surpassing the third quarter of 2021 during the COVID-19
pandemic.
Chubu Yakuhin Co., Ltd: Same-store sales +5.1% (customer count +1.0%) YoY
Increase in customer count due to competitively priced food and daily necessities, mainly
PB products.

(Yen in 100
millions)

DgS segment profit
Analysis of full-year results

60.0

54.4

(factors contributing to changes from the plan and fromthe previous year)

43.2

40.0
30.0

43.2
39.8

34.9
29.5

Operatingrevenues

50.0
vs. plan◎

Recovery in cosmetics
sales due to increase inoutings

YoY◎

Remodeling of 30
storesvs. plan◎

Increase in gross profit,
absorbing the rise in laborcosts and other expenses.

YoY◎

Improvement in grossprofit margin +0.2%

10.0
0.0

Operatingincome20.0※◎：increase, ○：in line with the plan, △：decrease©2024 Valor Holdings Co.,Ltd.

20

[Ref.] Home improvement center business➢➢➢Profit increased by approx. ¥400 million, compared to FY20, before the COVID-19 pandemic.
Profit increased by ¥170 million YoY in 4Q alone.
Home Center Ant Co., Ltd., which operates five home improvement centers in Aichi
Prefecture, has become a subsidiary.

Analysis of full-year results

HC segment profit

80(factors contributing to changes from the plan and fromthe previous year)

73.3

70
60
50.6
46.0

50
40

vs. plan△

Poor performance ofgardening, plant, farm supply,and seasonal products due tothe hot summer and mild
winter.

YoY○

Home Center Ant Co., Ltd.
became a subsidiary.

△

Decrease in customer countdue to an increase in
defensive consumption
behavior.

△

Struggles of Time Co., Ltd.
(decrease in gross profit
margin due to an increased
sales composition ratio of
daily necessities and otheritems)

26.2

20
10
0

Operatingincome

30

34.7

38.4

Operatingrevenues(Yen in 100
millions)

vs. plan

YoY※◎：increase, ○：in line with the plan, △：decrease©2024 Valor Holdings Co.,Ltd.

21

[Ref.] Sports club business➢Profit decreased by approx. ¥1.3 billion, compared to FY20, before the COVID19 pandemic.
Junior schools were established as part of a member acquisition strategy, andnew swimming schools were opened.
A new membership category for those under 24 years old was introduced.

➢(Yen in 100
millions)

SpC segment profit
Analysis of full-year results

10
6.7(factors contributing to changes from the plan and fromthe previous year)

5.6

Operatingrevenues

5
0-5

vs. plan◎

Increase in membership,especially among young
people.

YoY◎

Increase in end-of-period
membership count.

vs. plan△

Missed top-line targets◎

The operating loss was
reduced due to theimprovement in gross profit.

-8.4

-10
-11.6

-15
-20

-19.3

-25

©2024 Valor Holdings Co.,Ltd.

Operatingincome-5.6

YoY※◎：increase, ○：in line with the plan, △：decrease22

[Ref.] Distribution-related business➢Profit increased by approx. ¥900 million, compared to FY20, before the COVID19 pandemic.
Increase in logistics volume, packaging materials, and consumables handlingdue to revenue growth in the supermarket business and the drugstore business.

➢(Yen in 100 Distribution segment
millions)

profit40

36.6

Analysis of full-year results(factors contributing to changes from the plan and fromthe previous year)

27.9

20

10

0

Operatingrevenues30

29.1

vs. plan

Operatingincome32.1 32.1 33.1

vs. plan

YoY

YoY

◎

Increase in sales of major
businesses◎

Contribution from Showa FilmCo., Ltd. and Unidopack Co.,
Ltd., which became
subsidiaries during thecurrent period◎

Reevaluation of unprofitable
logistics and delivery
operations◎

In-house production offlexible packaging materials
at Showa Film Co., Ltd. andUnidopack Co., Ltd.

※◎：increase, ○：in line with the plan, △：decrease©2024 Valor Holdings Co.,Ltd.

23

[Ref.] Breakdown of Impairment Loss➢

In accordance with the "Accounting Standard for Impairment of Fixed
Assets," Valor Holdings and its group recognized signs of impairment insome of its fixed assets, such as stores, due to a decline in profitability, etc.
As a result, we examined the possibility of future recovery and recorded an
impairment loss of ¥4,853 million as an extraordinary loss.
(Yen in millions）

FY22

FY24

FY23

768

1,178

1,452

1,057

1,016

870

Home improvement center business

698

92

786

Sports club business

324

3,192

137

Distribution-related operations

144

-

420

Others

314

459

1,186

Total

3,308

5,939

4,853

Supermarket business
Drugstore business©2024 Valor Holdings Co.,Ltd.

24

[Ref.] Sustainability KPI（to 2050）
Standard

Realizing adecarbonized society

FY24
Final year of current
strategic plans

FY27

FY30
Sustainability
Vision 2030

FY50
Reference（FY20 results*)(FY20 rate)(FY21 rate)

CO2 emissions at own sites

CO2 emissions at own sites（Electricity-derived）（Including nonelectrically derived）

Total greenhousegas emissions in the
supply chain

Total greenhousegas emissions inthe supply chain

10％

40%

ZERO

reduction

reduction(FY17 rate)(FY17 rate)

CO2 emissions
Greenhouse gas emissions

233,486t

Reducing food waste（FY17 results**)

Food waste generated

18,983t(FY17 rate)

35％

45%

55%

reduction

reduction

reduction

Note： * Calculated for 16 companies comprising 84% or more of consolidated operating revenues.
** Calculated by Valor, Tachiya, and Shokusenkan Taiyo, and will be expanded to cover the entire
supermarket business.

Solar panels to be installed to create anduse renewable energy.
©2023 Valor Holdings Co.,Ltd.

Promoting food waste reduction and foodrecycling.
25

Disclaimer•

This material is provided for informational purposes only
and is not intended as a solicitation to take any action. This
material (including performance plans) has been preparedby Valor Holdings based on reliable information currently
available, but it contains risks and uncertainties. We assume
no responsibility for its accuracy or completeness.

•

The copyright of this material belongs to Valor Holdings.
Reproduction or distribution of this material for any reason
without our permission is strictly prohibited.

•

Please use this information at your own discretion. Valor
Holdings assumes no responsibility for any losses that may
be incurred by making investment decisions based solely on
the forecasts, target figures, etc., contained in this material.

©2024 Valor Holdings Co.,Ltd.

26

https://valorholdings.co.jp/