Don Quijote Holdings
Results for FY June 2015
AAugustt 17,17 2015

0Earnings summary
Consolidated(Millions of yen)

12 months to Jun. 2015
ActualShare

YoY

12 months to Jun. 2014
ActualShare

Net sales

683,981100.0%

111.7%

612,424100.0%

Gross profit

181,74126.6%

112.9%

161,018

26.3%

SGA

142,63820.9%

112.6%

126,726

20.7%

Operating profit

39,1035.7%

114.0%

34,292

5.6%

Recurring profit

40,1605.9%

113.2%

35,487

5.8%

Net profit

23,1483.4%

107.8%

21,471

3.5%

147 09147.09107 1%
107.1%EPS(Y )EPS(Yen)137 34137.34• Consolidated and same store sales surged 11.7% and 4.6% YoY respectively. We successfully carried out sales promotion measureswhile thinking of consumption tax hike as a once-in-a-lifetime opportunity to expand our business and market share.
Expansion in tourists
tourists' sales pushed up the overall sales strongly
strongly.
• GPM went up 0.3pts YoY to 26.6%. Price-competitive daily necessities such as food and sundry goods helped to expand our customer
base. We cleared slow-moving inventories aggressively towards the end of the year as more spot-purchased items and tourists'sales contributed to increase gross profit.
• SGA to sales ratio fell 0.2pts to 20.9%. Personnel cost, supplies expenses and depreciation expenses increased as a record-high of
33 new stores were opened. Personnel cost went up mainly due to an increase in man-hour triggered by the expansion in our shares indaily necessities and tourists’ sales. The cost increase was more than offset by the growth in sales and GPM.
• OP grew an all-time high of 14.0% YoY. Sales and OP went up for the 26th consecutive year.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

1Same-store sales
125.0%

120.0%= Customer traffic= All stores= Customer spending= Existing stores

115.0%

110.0%

105.0%

100.0%

95.0%

90.0%

85.0%
2013
Jun
Jun.

2012
Dec
Dec.

Existing stores2014 May

2013
Dec
Dec.

2014
Jun
Jun.

2014
Dec
Dec.

2015
JulJul.

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

2015 Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Sales

100.7%

99.5%

101.4%

102.3%

105.0%

108.3%

107.1%

104.3%

106.7%

109.4%

89.5%

114.2%

108.5%

104.4%

108.1%

Customer traffic

102.4%

100.9%

101.7%

100.6%

103.5%

105.2%

103.8%

100.0%

101.2%

105.6%

94.6%

105.3%

103.2%

99.8%

102.0%

pg
Customer spending

98.4%

98.6%

99.8%

101.7%

101.5%

102.9%

103.1%

104.2%

105.4%

103.7%

94.6%

108.5%

105.1%

104.6%

106.0%

Existing store No.

195

194

196

196

196

195

196

200

203

204

205

205

207

208

207

• DQ SSS, traffic and basket spend rose 4.6%, 1.9% and 2.7%. The first, second, third and fourth quarter SSS grew 2.8%, 6.3%, 0.6% and8 9% respectively
8.9%
respectively. SSS guidance : up 1
1.0%
0% in 1H
1H, flat in 2H and up 0
0.5%
5% for the full yearyear.
• Post-tax-hike strategies generated better-than-expected results by boosting consumption, not relying only on tourists' sales.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

2

Sales breakdown by product category
12 months to Jun. 2015

Consolidated(Millions of yen)

ActualShare

12 months to Jun. 2014

YoY

ActualShare

Home electrical appliances56,902

8.3%

104.5%

54,4698.9%

Miscellaneous household goods

153,87922.5%

113.0%

136,203

22.2%

Foods

208,578,30.5%

115.5%

180,619,29.5%

Watches & fashion merchandise

141,66820.7%

107.0%

132,395

21.6%

Sporting goods & leisure goods

36,812

5.4%

106.4%

34,5885.6%

Oth products
Otherd t

62 09262,0929 1%
9.1%

119 9%
119.9%

51 80251,8028 5%
8.5%

Total retail store business

659,93196.5%

111.8%

590,076

96.3%

Rent income

18 20018,2002 7%
2.7%

106 5%
106.5%

17 092
17,0922 8%
2.8%

Other business

5,850

0.8%

111.3%

5,256

0.9%

683,981100.0%

111.7%

612,424100.0%Total• Home appliances• Household goods• Foods: Smart phone accessories and POSA cards took the lead. Cooking and grooming appliances were robust
contributors such as coffee machines and shavers.
: Consumables performed steadily such as detergents and shampoos. Tourists helped the skyrocketed sales incosmetics and drugs.
: They became more popular among many generations, resulting in robust sales in almost all product groups suchas snacks,snacks dail
daily delidelivered,
ered processed food and drinksdrinks.

• Watches & Fashion : Sales were solid in super brand watches, suitcases and shoes.
• Sports & Leisure: Exercise goods worked well to offset weak outdoor goods sales. Toys contributed.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

3

The number of stores(Number of stores)
Don QuijoteMEGANew MEGAOthers
T t l stores
Totaltini JapanJFY2013

FY2014FY2015165352131252

174372830269183364132292

Overseas31414Grand Total

255

283

306

Domestic opening
Temporary closing
Domestic closure
Net increase

16031322231733
21021• A record 33 new stores were opened : 17 Don Quijote, 12 New MEGA and 4 other formats.
• 10 stores were closed. Store operation was reviewed, converting two stores to Kyoyasudo, one to New MEGA and two toDoit from DQ. Two stores were suspended temporarily for relocation or renovation.
• New stores were opened both in urban centers and local roadside locations. The number of new stores was more thaninitially planned, reaching an all-time high.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

4

Key components in SG&A
Consolidated(Millions of yen)

12 months to Jun. 2015
ActualShare

YoY

12 months to Jun. 2014
ActualShare

Net sales

683,981100.0%

111.7%

612,424100.0%

Salary allowance

51,1587.5%

117.1%

43,695

7.1%

R tRent

19 08819,0882 8%
2.8%

106 9%
106.9%

17 855
17,8552 9%
2.9%Commission paid

16,563

2.4%

107.3%

15,4422.5%

pand amortization
Depreciation

11,672

1.7%

112.2%

10,4021.7%

Others44,157

6.5%

112.3%

39,332

6.5%

SGA

142,63820.9%

112.9%

126,726

20.7%• SGA to sales ratio fell 0.2pts to 20.9%. Personnel cost, supplies expenses and depreciation expenses increased
because of accelerated new store openings.
zPersonnel cost went up mainly due to an increase in man-hour triggered by the expansion in our shares in daily necessities
and tourists’ sales
sales. The cost increase was more than offset by the growth in sales and GPM
GPM.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

5

Sales and profit by business（Millions of yen）

Sales, profit and loss by segment from Jul. 1, 2014, to Jun. 30, 2015
Consolidated

Retail store

Rent income

659,931

18,2005,850

315,796

Total

659,934

Segment profit

21,417

Sales to external customers
Internal sales or transfers
between segments

Others

Total

Adjusted amount

Consolidated

683,981-

683,981

6,308

22,107(22,107)-

33,996

12,158706,088(22,107)683,981

12,714

5,372

39,503(400)

39,103（Millions of yen）

Sales, profit and loss by segment from Jul. 1, 2013, to Jun. 30, 2014
Consolidated
Sales to external customers

Retail store

Rent income

590,076

17,092

5,256

8,812,

Internal sales or transfersb tbetweensegmentst-

Others

Total

Adjusted amount

Consolidated

612,424-

612,424

4,195,

13,007,((13,007)
,)

-

Total

590,076

25,904

9,451

625,431(13,007)612,424

Segment profit

24,381

6,505

3,540

34,426(134)

34,292z

Profit in the retail business was 21.4 billion yen which is our mainstay.

• Profit in the tenant leasing business was 12.7 billion yen.
• Profit in other business was 5.4 billion.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

6

Sales, profit and asset by subsidiaries（Millions of yen）

Sales, profit and asset by subsidiaries from Jul. 1, 2014, to Jun. 30, 2015
Consolidated

Don Quijote (1)Doit

Nagasakiya (2)Overseas (3)OthersElimination

Consolidated

Net sales

480,838

17,438150,639

36,44942,519(43,902)683,981

Operating profit

25,435

566

3,984

1,647

11,394(3,923)

39,103

Total asset

392,997

21,78072,82421,751

256,098(259,784)

505,666

Net asset

172 571
172,571

18 48318,48344 25444,25415 525
15,52573 616
73,616(103 082)(103,082)

221 367
221,367

PL/1USD=￥110.64
BS/1USD=￥120.28（Millions of yen）

Sales, pprofit and asset byy subsidiaries from Jul. 1, 2013, to Jun. 30, 2014
Consolidated

Don Quijote (1)Doit

Nagasakiya (2)Overseas (3)OthersElimination

Consolidated

Net sales

423,232

19,879143,449

25,18627,858(27,180)

612,424

Operating profit

21,167

1,203

2,787

1,449

8,010

(324)

34,292

Total asset

347,377

22,57264,476

16,185

165,495(183,970)

432,135

Net asset

157,193

18,64837,186

12,07839,677(71,618)

193,164(1) The numbers are the sum of DQ and DQ Holdings because of the transition to the pure holdings company.
(2) The numbers are only for retail business in Nagasakiya.

PL/1USD=￥100.69
BS/1USD=￥102.06(3) Overseas includes DQ USA and MARUKAI• Don Quijote,j , Nagasakiyagy and Overseas business ggrew their sales and pprofit.
• Doit struggled because of less store count and drop in sales after the tax hike.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

7

Balance Sheet（Millions of yen）
As of Jun. 30, Change from2015
Jun. 30, 2014
175 981
175,981
17 147
17,147

Consolidated
T t l currentt assets
TotaltConsolidated
T t l currentt liabilities
Totalli biliti（Millions of yen）
As of Jun. 30, Change from2015
Jun. 30, 2014
144 576
144,576
30 13230,132

Cash and deposits

49,7177,027

Accounts payable

60,556

5,438

Merchandise

94,580

5,475

Short-term liabilities*

38,59818,654329 685329,685

56 38456,384

Total noncurrent liabilities

139 723
139,723

15 19615,196262,127

49,404Long-term bonds

62,69018,390

Buildings

96,021

18,943Long-term borrowings

25,156(4,874)

Land

150,647

30,967Long-term payables underfluidity

34,023(322)

17,5292,173

Total liabilities

284,299

45,328

7,409

1,077

Net assets

221,367

28,203

Total investments and other assets

50,0294,807

Total shareholders' equity

209,682

22,045

Lease and guarantee deposits

32,817

1,854

Minority interests

9,013

3,194

505,666

73,531

505,666

73,531

Total noncurrent assets
Total property, plant and equipment

Total intangible assets
Goodwill

Total assets

Liabilities and net assets* Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds• Cash & deposits : Aggressive new store openings were financed by bank borrowings and straight bonds while trying to improvegroup-wide cash efficiency.
• Merchandise: Inventories increased due to new store rollouts and the preparation for growing tourists' sales.
Slow-moving
Slowmoving inventories were cleared towards the end of the year.

• Payables associated with the liquidation of receivables : 41.1 billion yen was financed by asset-backed loans.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

8Cash flows and Capital expenditure（Millions of yen）

Consolidated Cash Flows
Cash and equivalents at beginning of period
Cash flows from operating activitiies
Cash flows from investing activities
C h flCashflows ffrom fi
financingi activities
ti iti
Net increase (decrease) in cash and equivalents
Cash and equivalents at end of period

12 months to Jun.
2015

12 months to Jun.
2014

44,10542,520(52,641)
16 176
16,176
7,187
51,292

36,132
39,684(36,593)
4 440
4,440
7,973
44,105

7,973
2,836(16,048)
11 736
11,736(786)7,187（Millions of yen）

Consolidated Capital Expenditures
Capital expenditures
Cash flows*
Net increase (decrease)

Change12 months to Jun.
2015

12 months to Jun.
2014

52,72752727
34,646(18,081)

35,56335
563
30,944(4,619)Change17,16417164
3,702(13,462)* Cash flows = Net income + Depreciation
pand amortization + Extraordinary
y loss - Dividend• Cash flow from operating activities was 42.5 billion yen positive.
Positive factors : 39.2 billion yen of income before income taxes and minority interests, 13 billion yen of depreciation and amortization,
4.6 billion yen increase in trade payables. Negative factors : 4.5 billion yen more in inventories and 15.5 billion yen for tax payment.
• Cash flow from financing activities was 16
16.2
2 billion yen positive driven by 30.7
30 7 billion yen of net increase of bonds and 1
1.7
7 billion yen ofshare issued. 12.9 billion yen of net decrease in borrowings and 2.8 billion yen of dividend payment were negative factors.
• Capex was 52.7 billion yen to acquire properties for new stores for this year and years afterwards.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

9

Earnings summary for Q4
Consolidated((Millions of yen)y )3 months to Jun. 2015
Actual3 months to Jun. 2014

Share

YoY

ActualShare

Net sales

174,061

100.0%

115.5%

150,648100.0%

Gross profit

44,20925.4%

112.4%

39,316

26.1%

SGA

38,79422.3%

114.2%

33,962

22.5%

Operating profit

5,415

3.1%

101.1%

5,354

3.6%

Recurring profit

5,357

3.1%

94.5%

5,671

3.8%

Net profit

3,065

1.8%

113.3%

2,706

1.8%

19 36
19.36

112.4%EPS(Yen)

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

1 22
17.22

10

Sales breakdown by product category for Q4
Consolidated(Millions of yen)

3 months to Jun. 2015
ActualShare

3 months to Jun. 2014
YoY

ActualShare

Home electrical appliances

13,151

7.6%

113.0%

11,637

7.7%

Miscellaneous household goods

40,251

23.1%

124.1%

32,429

21.5%

Foods

54,918,31.6%

117.0%

46,924,31.1%

Watches & fashion merchandise

35,10820.2%

114.0%

30,81020.5%

Sporting goods & leisure goods

9,424

5.4%

110.0%

8,566

5.7%

Oth products
Otherd t

15 13615,1368 6%
8.6%

104 0%
104.0%

14 555
14,555

9 7%
9.7%

Total retail store business

167,98896.5%

115.9%

144,92196.2%

Rent income

4,632

2.7%

103.1%

4,493

3.0%

Other business

1,441

0.8%

116.9%

1,233

0.8%

174,061

100.0%

115.5%

150,648100.0%

TotalCopyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

11

Key components in SG&A for Q4
Consolidated(Millions of yen)

3 months to Jun. 2015
Actual3 months to Jun. 2014

Share

YoY

ActualShare

Net sales

174,061

100.0%

115.5%

150,648100.0%

Salary allowance

13,9888.0%

120.7%

11,590

7.7%

R t
Rent

5 044
5,044

2 9%
2.9%

108 7%
108.7%

4 642
4,642

3 0%
3.0%

Commission paid

4,841

2.8%

113.0%

4,285

2.8%

Depreciation and amortization

3,257

1.9%

110.4%

2,949

2.0%

Others

11,6646.7%

111.1%

10,496

7.0%

SGA

38,79422.3%

114.2%

33,962

22.5%

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

12Full year forecast for fiscal June 2016
Consolidated

FY2016 full year forecast(Millions of yen)

Plan

Share

YoY

FY2016 1H forecast
Plan

Share

YoYNet sales

730,000

100.0%

106.7%

368,000

100.0%

107.5%

Gross profit

196,800

27.0%

108.3%

100,000

27.2%

109.1%

SGA

157,000

21.5%

110.1%

76,50020.8%

112.1%

Operating profit

39,8005.5%

101.8%

23,5006.4%

100.4%

Recurring profit

40,8005.6%

101.6%

24,1006.5%

100.2%Net profit

23,3003.2%

100.7%

13,7003.7%

100.0%EPS(Y )EPS(Yen)14147.55-

100 3%
100.3%

86 6
86.76

-

99 %
99.5%

Capital expenditure

40,000-

76.7%

--

-

Depreciation

12 80012,8001 8%
1.8%

109 7%
109.7%---• Full year consolidated forecast : Sales 730 billion yen, OP 39.8 billion yen and 40.8 billion yen for RP.
• DQ SSS forecast : Up 1.0% in 1H, flat in 2H and up 0.5% for full year.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

13