Business Plan
GP10 Stage Ⅱ
Phase 2

Long-term Business Plan 『GP10』Long term of 10-year business plan to survive in shrinking market
Retail market shrinking in Japan- Population aging, lower birthrates and population decline[GP10] : Plan to keep expanding share in this market

2005-20142015-2024

2025-2034

GP10-Ⅰ

GP10-Ⅱ

GP10-ⅢStrengthening
Department Store Business

Strategy for Dominance in theKansai Region

Developing overseas business

For Dominance in the Kansai Region- Make strong connection with customers’ whole lifestyleby establishing store network (covers from everyday meals to fun shopping)
H2O RETAILING Corporation2

GP10-Ⅱ Phase１
Dpt+2.1(billions of Yen)

Growth of Hankyu Umeda Main Store,Hanshin Umeda Main Store Wing 1 exceeded
expectation

SM(5.8)
Izumiya (1.8)
Hankyu Oasis (1.8)
Food Production (1.3)

OP¥28.0 billion YEN

SC(0.7)

Other(2.0)
Expansion of losses
in unprofitablesubsidiaries¥-7.6 billion YEN

Other(1.1)

OP¥20.4 billion YEN

FY2018FY2018 (estimated)※estimation by segments ​are estimated values ​reflecting segment change

H2O RETAILING Corporation

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GP10-Ⅱ “Strategy for Dominance in the Kansai Region”
Department store Business in the Kansai Region▶Steady growth of share after rebuilding of Hankyu Umeda Main StoreHankyu Main Store

SalesStoresin the Kansai Region

Sharein the Kansai Region

FY 2013

FY 2018¥192.2 billion¥250.7 billion

26％

31％
（billions of Yen）
3,000
300

35.0%

Sales of Hankyu Main Store
30.0%

2,000
200

25.0%

1,000
100

Share in the Kansai Region(Sales of stores in the Kansai)

20.0%

02013

2014

2015

2016

H2O RETAILING Corporation2017

2018

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GP10-Ⅱ “Strategy for Dominance in the Kansai region”
・Become a leading company in the Kansai Region- Core businesses “Department Store Business” and “Supermarket Business”
・Establish a business ecosystem for customers- An alliance network with other companies in different business areas.
Alliance

Education

TravelNursing

Life NetworkHouses

Transportation
Medicalcare

Ceremonies

Retail Network
Finance

Extraordinary/Fun

Daily/Convenient
Alliance

Storesin Urban areas

・Department store
・RSC

Pharmacies
Convenience storesElectronic retail stores
1$ shops
Furniture shops
Restaurant
ECetc..

SupermarketBusinessCommon customer service(loyalty point program, payment, up-coming service)

H2O RETAILING Corporation

Customers in the Kansai Region
Fun shopping/life
Convenient shopping/life

5Strengthen Stores in Urban areas
Strengthen stores in urban high-traffic areas
Umeda (the biggest commercial area) and 4 large commercial areas
to be “Takatsuki Hankyu” in Oct, 2019

Takatsuki

Redevelopment of
Senri Hankyu and SELCY

Senri-chuo
Nishinomiya
KobeUmeda
to be “Kobe Hankyu” in Oct, 2019

Hanshin Umeda Main Store
grand opening in Autumn 2021

© OpenStreetMap contributors

H2O RETAILING Corporation

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Establish platform of Supermarket operation・Establish common platform for supermarket operation to utilize economies of scale
・Increase productivity in whole Supermarket BusinessSupermarket Business in the Kansai Region

Establish platform of supermarket

One of the biggest companies
in supermarket industry in the Kansai Region
Whole market scale
about ¥ 2 trillion

Izumiya SM

Ｈ２Ｏ

Hankyu Oasis
Life Corp.

Flexible store roll-out

Qanat・・・

Mandai Corp.

Logistic center
Product development
Supplier
Factories

Economies of scale

System, Operation, Administration

Integration from 2020

※estimated by H2OSupermarketPlatform

H2O RETAILING Corporation7

Business model conversion of Izumiya GMS stores・Izumiya will be divided into Grocery segment, non-food segment and property management segment
・GMS conversion to new commercial facility＜Joint Venture＞
Health & Beauty Care

Izumiya

Image of model conversion

・Utilize know-how of cocokara fineTenants

Homeproducts

ApparelGrocery
Property management

Tenants(Goods sales/Service)divide＜SC management Company＞
・ Facility management
・Apparel and home products

reconstruction

・Decrease the operation area of non-food section
・Introduction of market suitable tenants＜Supermarket Company＞
Grocery・Apparel・Home products
・Tenants

H&BC

Grocery
Property management

・Focus on core business
H2O RETAILING Corporation8Establish Business ecosystem
Alliance

Education

TravelNursing

Life NetworkHouses

Transportation
Medicalcare

Ceremonies

Retail Network
Finance

Extraordinary/Fun
Stores in
Urban areas

・Department store
・RSC

・Rebuild of Hanshin Umeda Main Store・Start-up of
Kobe Hankyu and Takatsuki Hankyu
・Redevelopment of Senri-chuo

Alliance

Pharmacies
Convenience storesElectronic retail stores
1$ shops
Furniture shops
Restaurant
ECetc..

Daily/ConvenientSupermarketBusiness・Establish platform of Supermarketbusiness
・GMS business model conversion

Common customer service(loyalty point program, payment, up-coming service)

Establish Service platform

Expand an alliance network▶SRS HOLDINGS CO., LTD.
▶cocokara fine Inc.
H2O RETAILING Corporation

9GP10-Ⅱ Phase２ Forecast
GP10-Ⅱ Phase２（FY2019-FY2021)
Consolidated(billions of Yen)FY2021(Forecast)

FY2018Inc./Dec.

926.8

960.0＋33.1

Operating Profit

20.4

25.0+4.5

Ordinary Profit

21.3

25.0+3.6

2.1

12.5

+10.3

Sales

Profit attributable toowners of parent

By segments

FY2021(Forecast)

FY2018Inc./Dec.

・Upfront cost of rebuilding
Hanshin Umeda Main Store・Renovation of Kobe Hankyu
and Takatsuki Hankyu

Department storeBusiness

17.8

16.5(1.3)

SupermarketBusiness(0.4)

5.0＋5.4 ・Establish SM platform

Shopping CenterBusiness

4.2

4.0(0.2)

Other

5.0

6.0＋0.9

Capital Investment（FY2019－FY2021） Approx. ¥95.0 billion
H2O RETAILING Corporation10

GP10-Ⅱ Phase２ Factors of Inc./Dec. of operating profit(billions of Yen)

Other+2.3

25.0

Izumiya GMS
business model
conversion+2.7

20.4
Dpt(1.1)

Credit cardbusiness Other+1.0(0.7)

Dpt+0.9

Rakuhoku,
Senri-chuo
+0.8

18.4

Kobe
Takatsuki(1.2)

FY2018FY2019H2O RETAILING Corporation

FY2021

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H2O and the information providers assume no responsibility for any damage arising from theuse of the information.
Also, H2O holds the copyright to this material, and accordingly, any duplication, reprinting orsimilar act beyond the scope of personal use or any other use permitted by the Copyright
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