FY08/15 Earnings Presentation - pdf.irpocket.com · P_12 Full-year FY08/15 Earnings Presentation © JIN CO., LTD. ALL Rights Reserved.. Cash Flows FY08/14 FY08/15 Operating cash flow

October 20, 2015

JIN Co., Ltd.

FY08/15 Earnings Presentation

P_2 Full-year FY08/15 Earnings Presentation© JIN CO., LTD. ALL Rights Reserved..

Disclaimer

Forward-looking statements contained within this presentation are based upon assumptions deemed reasonable by the company at the time of writing, and may differ significantly from actual results due to a wide range of factors.

P_3 Full-year FY08/15 Earnings Presentation© JIN CO., LTD. ALL Rights Reserved..FY08/15 Earnings Results

FY08/15 Highlights

Sales JPY40.7bn (+12.6%)

OP JPY3.6bn (+20.6%)

Comp. store sales -4.1%(Full-year average)

(YoY change in parentheses)


(40.0)

(20.0)

0.0

20.0

40.0

60.0

80.0

8/12 2/13 8/13 2/14 8/14 2/15 8/15

Comparable store sales grow

th (%)

Comparable Store Sales

FY08/15 Earnings Results

FY08/13 FY08/14 FY08/15

Comp. store sales (FY08/15 average) -4.1%

+31.4％ -21.4％ -4.1％


Store Count

267 Stores 287Stores

As of Aug. 31, 2014 As of Aug. 31, 2015

+7.5%


*Figures are for domestic directly managed JINS specialty eyewear stores


Eyewear Sales Composition

Units Sold

(Units)

FY08/15 FY08/15FY08/14FY08/14


Prescription Prescription Prescription(Non-PC)

Prescription(Non-PC)

Nonprescription

Nonprescription

Nonprescription (Non-PC)

Nonprescription (Non-PC)

JINS PC (Prescription) JINS PC

(Prescription)

JINS PC (Packaged)

JINS PC (Packaged)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000 Prescription/Nonprescription PC/Non-PC


Gross Profit Margin

72.5% 74.5%

FY08/14 FY08/15

+2.0pp



SG&A-to-Sales Ratio

64.2% 65.7%

FY08/14 FY08/15

+1.5pp



Key Changes in SG&A Expenses

1. Advertising expensesFY08/14 FY08/15

JPY2.9bn (8.2%) JPY1.8bn(4.5%)

YoY change versus sales

-3.7pp

2. Personnel expensesFY08/14 FY08/15

JPY7.1bn (19.7%) JPY8.8bn(21.7%)

YoY change versus sales

+2.0pp

3. Rental expenses

FY08/14

JPY4.9bn (13.7%) JPY6.5bn(16.1%)+2.4pp


FY08/15YoY change versus sales

(Figures in parentheses are versus sales)


Operating Profit

JPY3.58bnFY08/15

(+20.6％ YoY)



Key Changes in Financial Position1. Inventory

JPY2.7bn JPY3.7bnYoY change

+12.6%

2. Net assets

JPY12.4bn JPY13.9bn

+35.4%

YoY change

As of Aug. 31, 2014 As of Aug. 31, 2015

As of Aug. 31, 2014 As of Aug. 31, 2015


* Increase from overseas consolidation JPY460mn.Domestic increase JPY520mn.


Cash FlowsFY08/14 FY08/15

Operating cash flow

Investmentcash flow

Financial cash flow

JPY2.8bn JPY4.3bn

-4.2bn -2.8bn

-0.5bn

Cash and equivalents

JPY3.2bn JPY4.8bn

YoY change

+JPY1.5bn

+1.4bn

+1.1bn

+JPY1.6bn

-1.6bn


Includes JPY600mn at beginning of the period from consolidation of new subsidiaries


FY08/16 Earnings Forecasts

FY08/16 Earnings Forecast



+20.9%

YoY change

Sales

OP

Net income

JPY48.5bn

4.3bn

2.3bn

FY08/16


+20.0%

+19.2%


Forecast Estimates

■Functional Eyewear・JINS PC・Sports・Moisture・Pollen Cut・Reading

■Prescription eyewear


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

(Units)

FY08/14FY08/12 FY08/13 FY08/15

FY08/15 FY08/16

（Domestic Unit Sales）

Units Sold


Sales Estimate●Planned new store openings (Net increase)

17stores

●Comp. store sales

+7.8%

*Figures are for domestic directly managed JINS specialty eyewear stores-3 stores

YoY change

-4.1%

FY08/15 FY08/16

FY08/15 FY08/16

20 stores

+11.9％


YoY change

Domestic

Overseas 30 stores 30 stores ±0(China: 29, US: 1) (China: 27, US: 3)


Gross Profit Margin Estimate

●Gross Profit Margin

FY08/15 FY08/16

74.5% 74.5%

YoY change

±0.0％

* Includes effects of foreign exchange rates



FY08/16 Forecast●SG&A expenses

③ Rental expenses (excl. employee housing)

FY08/15 FY08/16 YoY change vs. sales

JPY1.8bn (4.5%) JPY2.6bn(5.4%)

JPY8.8bn (21.7%) JPY10.1bn(21.0%)

JPY6.5bn(16.1%) JPY7.6bn(15.7%)

(figures in parentheses are vs. sales)

+0.9pp

-0.7pp

② Personnel expenses

FY08/15 FY08/16

FY08/15FY08/16

① Advertising expenses

YoY change vs. sales

YoY change vs. sales

FY08/15 FY08/16 YoY change vs. sales

JPY26.7bn (65.7%) JPY31.8bn(65.6%) -0.1pp

-0.4pp


To Magnify Life

FY08/15 Earnings Presentation

DATABOOK

October 20, 2015

JIN Co., Ltd.


(JPYmn, %)

Comments

Amount Vs. sales YoY Vs.estimates Amount Vs. sales Amount Vs. sales

Sales 40,698 100.0 12.6 0.6 36,150 100.0 40,450 100.0 Eyewear store sales rose 0.6pp above plan on a recovery atcomparable stores from 2H.

Gross profit 30,324 74.5 15.8 1.1 26,194 72.5 30,000 74.2The yen weakened more than expected, but this was absorbedby thorough cost management and an increase in the price perglasses. Gross profit margin was +0.3pp above plan.

SG&A expenses 26,739 65.7 15.2 0.5 23,220 64.2 26,600 65.8Newly consolidated US subsidiaries also had an impact, but thecost burden was offset by the recovery in comparable storesales. SG&A ratio was -0.1pp below plan.

Personnel 8,823 21.7 23.8 0.8 7,124 19.7 8,751 21.6 Planned increase in personnel spending with the aim ofimproving store operations. Costs largely in line with plan.

Advertising 1,830 4.5 � 38.8 � 6.0 2,951 8.2 1,947 4.8 Sharp decline YoY after advertising strategy revised.

Rental (excl. company housing) 6,570 16.1 32.3 0.4 4,964 13.7 6,542 16.2 Newly consolidated US subsidiaries also had an impact, but thesales recovery at comparable stores kept the rent ratio in check.

Depreciation (incl. retired assets) 1,915 4.7 22.0 1.3 1,570 4.3 1,891 4.7 Largely in line with plan.

Leases paid 676 1.7 18.7 � 6.7 569 1.6 725 1.8 Below plan owing to thorough cost controls.

Fees paid 2,686 6.6 15.5 � 0.6 2,326 6.4 2,704 6.7 Same as above.

Supplies 1,307 3.2 11.5 14.6 1,173 3.2 1,141 2.8 Spending due to the opening of stores in China had a slightimpact. As a % of SG&A, rose +0.4pp above plan.

Other 2,929 7.2 15.3 1.1 2,540 7.0 2,899 7.2

Operating profit 3,584 8.8 20.6 5.4 2,973 8.2 3,400 8.4Newly consolidated US subsidiaries also had an impact, butoperating profit was JPY184 above plan on sales recovery, andthorough controls of CoGS and SG&A.

Non-operating profit � 103 � 0.3 135.2 107.4 � 44 � 0.1 � 50 � 0.1 Booked a JPY21mn foreign exchange loss after the yen fell morethan expected.

Recurring profit 3,480 8.6 18.8 3.9 2,929 8.1 3,350 8.3

Extraordinary profit � 182 � 0.4 � 71.3 36.5 � 636 � 1.8 � 134 � 0.3 Booked extraordinary losses on store closings and renovations.

Earnings before income taxes 3,298 8.1 43.8 2.6 2,293 6.3 3,216 8.0

Income taxes 1,395 3.4 33.2 6.1 1,047 2.9 1,316 3.3

Net income 1,902 4.7 52.8 0.1 1,245 3.4 1,900 4.7 FY03/15 net income was largely in line with plan, due to thedirect impact of losses from newly consolidated US subsidiaries.

FY08/14Earnings Results

FY08/15EarningsEstimates


1

Sales

(JPYmn, %)

Amount Composition YoY Amount Composition Amount Composition

Total domestic sales 37,949 93.2 5.0 36,150 100.0 37,850 93.6

Eyewear 35,181 86.4 4.4 33,698 93.2 34,850 86.2

Stores (JINS) 33,776 83.0 5.7 31,959 88.4 33,290 82.3

E-commerce 1,405 3.5 � 19.2 1,738 4.8 1,560 3.9

Accessories 2,767 6.8 12.9 2,451 6.8 3,000 7.4

Men's 1,609 4.0 17.5 1,369 3.8 1,700 4.2

Women's 1,158 2.8 7.1 1,081 3.0 1,300 3.2

Other 0 0.0 - 0 0.0 0 0.0

Total overseas sales 2,749 6.8 - 0 0.0 2,600 6.4

Total consolidated sales 40,698 100.0 12.6 36,150 100.0 40,450 100.0

FY08/15Results

FY08/14Results

FY08/15Full-year forecasts

2

YoY Sales for JINS Stores

(%)

Q1 Q2 Q3 Q4 Total

Eyewear

All stores � 5.5 � 4.1 11.0 20.8 5.8

Comparable stores � 18.5 � 15.4 3.2 12.9 � 4.1

(Reference) Monthly comparable store sales growth in the Eyewear Business over the past three years.

Comparable stores (YoY): Full-year sales declined -4.1% but showed improvement, starting to rise in Q3 on measures to improve products and enhance customer satisfaction.


(%)

(40.0)

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

8/11 2/15 8/12 2/13 8/13 2/14 8/14 2/15 8/15

FY08/12+27.6%

FY08/13+31.4%

FY08/14 FY08/2015

Launch sales of JINS PC,

JINS Moisture

Launch sales ofJINS Pollen Cut Launch sales of JINS Air

Launch sales of JINS PC CLASSIC

Consumption tax

Launch JINS PC, TVcommercial

Launch sales of packaged JINS PC with clear

Launch sales of JINS

Launch sales of ONE

Redefine brand vision

Launch new standard

Eliminateinventory

3

Store Openings and Closings

* Domestic directly managed stores (Number of stores)

Openings Closings Net increase(Reference)Previous

year

Beginningof year

Q1 Q2 Q3 Q4 Net increase Year-end

Eyewear 27 7 20 62 267 10 � 2 12 0 20 287

Men's accessories 3 0 3 1 12 2 1 0 0 3 15

Women's accessories 3 2 1 4 24 1 1 � 1 0 1 25

Total 33 9 24 67 303 13 0 11 0 24 327

(JPYmn) (%)

Full-year Results

Capital investment amount 3,653 Results Previous year YoYNew stores * (33 stores) 1,155 *Includes guarantees and depositsGross profit margins 74.5 72.5 2.0

Renovated (16 stores) 389 Eyewear business 76.3 74.1 2.2

Other 1,321 Accessories business 49.7 49.9 � 0.2

Overseas 788

Domestic store openings and closings

Gross profit margins

FY08/15 Results

Total of 20 eyewear stores opened in FY08/15.

Full-year Results

Quarterly results (net)

Capital investment

4

Balance Sheet

(JPYmn, %)

Amount Composition Amount Composition

Current assets 12,424 50.4 9,817 47.2 2,606

(Cash and equivalents) 4,889 19.8 3,245 15.6 1,644

(Accounts receivable) 2,686 10.9 2,459 11.8 226

(Inventory) 3,770 15.3 2,784 13.4 985

Fixed assets 12,051 48.9 10,970 52.8 1,080

Tangible fixed assets 7,230 29.3 6,004 28.9 1,226

Intangible assets 1,111 4.5 943 4.5 167

Investments and other 3,708 15.0 4,022 19.3 � 313

Deferred assets 185 0.8 0 0.0 185

Total assets 24,661 100.0 20,788 100.0 3,873

Current liabilities 8,320 33.7 6,327 30.4 1,992

(Accounts payable) 1,458 5.9 845 4.1 612

(Short-term debt) 1,108 4.5 228 1.1 880

(Current portion of long-term debt) 1,074 4.4 1,230 5.9 -155

Long-term liabilities 2,361 9.6 2,041 9.8 319

(Long-term debt) 934 3.8 1,078 5.2 -144

Total liabilities 10,681 43.3 8,369 40.3 2,312

Net assets 13,979 56.7 12,418 59.7 1,561Net assets rose by JPY1.56bn due tobooking net income of JPY1.90bn.

Assets and liabilities total 24,661 100.0 20,788 100.0 3,873

Same as above

Key factorsYoY changeFY08/16 Results FY08/14 Results

Cash and cash equivalents rose byJPY1.64bn YoY after bookingJPY1.90bn in net income. Further,product inventories rose JPY985mn YoYon the consolidation of overseassubsidiaries.

Tangible fixed assets rose JPY1.22bnYoY, partly due to the opening of newstores in China.

Accounts payable increased followingthe collection of some inventory fornext period. Current liabilities increasedby JPY1.99bn YoY, due to theconsolidation of overseas subsidiaries.

5

6

Cash Flow Statement



Amount Amount

Operating cash flow 4,310 2,806 1,504

(Net income before income taxes) 3,298 2,293 1,004

(Depreciation expenses, incl. asset retirement) 1,869 1,501 368

(Change in inventory) � 705 596 � 1,301

(Income taxes paid) � 1,206 � 2,080 874

Investment cash flow � 2,848 � 4,255 1,406

(Acquisition of fixed assets) � 2,145 � 2,605 459

(Guarantees and deposits paid) � 464 � 1,081 616

Financial cash flow � 506 � 1,670 1,164

(Change in short-term debt) 525 � 714 1,239

(Financing via long-term debt) 1,091 1,585 � 494

(Repayment of long-term debt) � 1,391 � 1,257 � 133

(Dividends paid) � 239 � 956 717

Cash and equivalents at year-end 4,889 3,245 1,644

YoY

6

(JPYmn)

Includes JPY659mn from new consolidated subsidiaries at the beginning of the term.

Details

Net income before taxes rose byJPY1,004mn YoY, while income taxes paiddecreased by JPY874mn YoY. Value ofinventories decreased by JPY1,301mn YoY,causing operating cash flow to rise byJPY1,504mn YoY.

The opening of 33 stores and therenovation of 16 stores resulted inexpenditures of JPY2,848mn.

Due to the addition of consolidatedsubsidiaries, short-term debt increased byJPY1,239mn YoY.

7


(JPYmn, %)

1H Progress Full-year Vs. sales Change Full-year Vs. sales

Sales 22,500 26,000 48,500 100.0 19.2 40,698 100.0

Gross profit 16,770 19,340 36,110 74.5 19.1 30,324 74.5

SG&A expenses 15,470 16,340 31,810 65.6 19.0 26,739 65.7

Personnel 4,836 5,333 10,170 21.0 15.3 8,823 21.7

Advertising 1,479 1,149 2,628 5.4 43.6 1,830 4.5

Rental (excl. company housing) 3,566 4,068 7,634 15.7 16.2 6,570 16.1

Depreciation (incl. retired assets) 1,064 1,193 2,258 4.7 17.9 1,915 4.7

Leases paid 349 327 677 1.4 0.2 676 1.7

Fees paid 1,815 1,734 3,549 7.3 32.1 2,686 6.6

Supplies 741 842 1,583 3.3 21.1 1,307 3.2

Other 1,617 1,689 3,307 6.8 12.9 2,929 7.2

Operating profit 1,300 3,000 4,300 8.9 20.0 3,584 8.8

Non-operating profit � 100 � 100 � 200 � 0.4 � 92.9 � 103 � 0.3

Recurring profit 1,200 2,900 4,100 8.5 17.8 3,480 8.6

Extraordinary loss � 100 � 100 � 200 � 0.4 9.4 � 182 � 0.4

Earnings before income taxes 1,100 2,800 3,900 8.0 18.3 3,298 8.1

Income taxes 580 1,020 1,600 3.3 14.6 1,395 3.4

Net income 520 1,780 2,300 4.7 20.9 1,902 4.7

FY08/16 Full-year Earnings Forecasts FY08/15 Results

The company forecasts full-year sales of JPY48.5bn (+19.2 YoY) and operating profit of JPY4.3bn (+20.0% YoY)

7

Earnings Forecast Details (1)

(JPYmn, %)

YoY Change

Sales total (domestic) 89.7 14.6 93.2

Eyewear 83.5 15.1 86.4

Stores (JINS) 79.8 14.5 83.0

E-commerce 3.8 29.5 3.5

Accessories 6.2 8.4 6.8

Men's 3.5 5.6 4.0

Women's 2.7 12.2 2.8

Sales total (overseas) 10.3 81.9 6.8

Consolidated sales total 100.0 19.2 100.0

(%)

FY08/15 Results

Eyewear

All stores 22.2 8.6 14.5 5.8

Comp. stores 14.4 2.7 7.8 � 4.1

33,776

1,158

2,749

Eyewear sales (domestic + overseas) forecast to rise +20.0% YoY.

All/Comparable Store YoY Sales Forecasts

48,500 40,698

1,300

FY08/16 Forecasts

1,405

2,767

1,609

5,000

FY08/15 Results

Amount Composition

37,949

35,181

Comparable store sales growth: 7.8% (forecast)

1H 2H Full-year

Sales forecasts by business

1,820

3,000

1,700

38,680


43,500

Amount Composition

40,500

8

Earnings Forecast Details (2)

(%)

ForecastsFY08/15Results

Vs. Forecasts

Gross profit margin 74.5 74.5 0.0

Eyewear 75.9 76.3 � 0.4

Accessories 52.0 49.7 2.3

(JPYmn)

Capital investment amount 3,085New store openings・store renovations 2,000Overseas 1,085

EBITDA 6,158

Income before taxes 3,900

Depreciation expenses 2,258

*Domestic directly managed stores (Number of stores)

Openings Closings Net Openings Closings Net Net totalStores atyear-end

Eyewear 10 1 9 11 3 8 17 304

Men's accessories 0 0 0 1 0 1 1 16

Women's accessories 0 0 0 0 0 0 0 25

Total 10 1 9 12 3 9 18 345

1H 2H

Gross Profit Margin Forecasts

Full-year Forecasts

Capital Investment

Full-year Forecasts

GPM unchanged YoY.

Store Openings*

9

About Forward-Looking Statements

Forward-looking statements contained within this presentation are based upon assumptions deemed reasonable by the company at the time of writing,and may differ significantly from actual results due to a wide range of factors.

Other Assumptions

Figures are rounded down to the nearest million yen; percentages are calculated based on actual values.

10

Documents

FY08/15 Earnings Presentation - pdf.irpocket.com · P_12 Full-year FY08/15 Earnings Presentation © JIN CO., LTD. ALL Rights Reserved.. Cash Flows FY08/14 FY08/15 Operating cash flow