Showa Holdings Co., Ltd. Business Briefing Session …4 Summary of the business performance in FY...
Transcript of Showa Holdings Co., Ltd. Business Briefing Session …4 Summary of the business performance in FY...
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Showa Holdings Co., Ltd.
Business Briefing Session
27 July 2020
Consolidated 5 Businesses
6 Businesses in Group
Sport
Food
Entertainment
Digital Finance※
※Commercial Credit and Finance PLC (CCF),
a listed company in Sri Lanka is our equity method affiliate.
Resort
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6 Businesses in Group
Rubber
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Report for FY 2020
Overview of Group Businesses
Impact and countermeasures
against the Covid-19 epidemic
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Summary of the business performance in FY 2020Stagnant consolidated profits, though factors vary from business to business
Negative factor
1. Sales in the Digital Finance, the company's largest business,
declined as it reduced disbursement until August of last year to
cope with legal risks.
2. Legal costs drove down profits (Digital Finance).
Neutral factor
3. Sport business continued in slump from 2017.
4. Rubber business continues to be sluggish.
Positive factor
5. Progress in improving operational efficiency in the Digital Finance
business and reducing expenses.
6. Profits in the food business expanded.
7. Profits in the entertainment business have improved.
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Impact of Covid-19 epidemic in Q4Diversified businesses hedge a certain amount of risk
The impact of countermeasures against the Covid-19 epidemic in each country
1. Digital Finance Business: Lockdown led strict restrictions on operations.Provision of 290 million JPY in special allowance for doubtful accounts to cover future increases in bad debt.
2. Sport Business: Revenue decreased due to self-restraint and school closure.
3. Food Business: Sales declined, but the effects of business improvements overcame the impact.
4. Entertainment business: No impact due to remote work has been promoted for a long time.
5. Rubber business: No impact.
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Prospect for the future business performanceExpecting recovery in Q2 (July-September period)
1. Digital Finance Business: The recovery of overdue loans is
progressing faster than expected. Sales activities have already
resumed.
2. Food Business: Profit increasing continuously.
3. Rubber Business: While there are concerns about the impact of
the recession, the increase of sales expected as a competitor is
withdrawing form the market.
4. Sport Business: A steady recovery has been in place since June.
5. Entertainment Business: Several projects in Q1 delayed.
Expecting recovery in following quarters due to strong
performance of the titles that the company in charge.
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0
4,500
9,000
13,500
18,000
3,903 3,9033,126 3,361
5,956
7,405
8,703
10,786
12,21812,753
13,242
15,01815,479
Consolidated Revenue
JPY Million
8
-1,000
0
1,000
2,000
3,000
4,000
▲ 136▲ 261
▲ 421▲ 547
366
758
413674
2,261
3,557
1,599
968
▲ 131
Consolidated Operating Profit
JPY Million
9
-1500
-1000
-500
0
500
1000
1500
2000
▲2,412
▲1,297
155
▲3,260
2,037
101
▲ 43
92
364 376
▲3,427
▲ 311
▲602
Consolidated Net Profit
JPY Million
Showa Holdings Co., Ltd.アジアを開拓し続けるコングロマリット 10
Overview of each Business
Group Lease PCLStrategy to be the leading leasing company in ASEAN 11
Digital Finance Business
Remain close to our customers and contribute to their life improvement and foster their entrepreneurship
spirit with innovative finance products
Digital Finance - Leasing Business(Optimization of "Glocal Digital Finance")
Leasing and Hire Purchase
➢ Providing financial support to the customers who acquire assets such asmotorcycles, three-wheeled motorcycles and tractors.
➢ Expanding business network in collaboration with business partners such as motorcycle dealers.
➢ Providing financial support by establishing a point of sale (POS) at a partner's store or sales channel.
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Digital Finance - Lending Business(Optimization of "Glocal Digital Finance")
Microfinance, Asset back loan and Entrepreneur loan
➢ Providing small-scale secured and unsecured loans directly to customers.➢ Operating and owning small branches as sales channels.➢ Providing finance service at customer house in local villages in addition to
the operation in the branches.
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Overview (Digital Finance Business)
Overview➢ Conservative reduction of new disbursement of loans was made, due
to ongoing lawsuits.➢ After winning a major court case in Thailand in August 2019, the
company has shifted back to a policy of business expansion and new contracts are on the rise.
Impact of COVID-19 epidemic➢ Temporary suspended operations and implementation of strict credit
criteria was made after lockdown in many countries in Southeast Asia, as countermeasures against the epidemic of Covid-19.
➢ Provided special allowance for NPL (around 288 Million JPY).➢ Operation resumed from early May. Along with the relaxation of
restrictions in each countries. Improvement of debt collection is under way.
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Revenue (Digital Finance Business)
1,537
2,948
4,834
6,966
8,566 9,079
9,546 9,447
8,179
0
2,000
4,000
6,000
8,000
10,000
12,000
JPY Million
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Segment Profit (Digital Finance Business)
641
1,032 817
1,000
2,651
4,010
2,497
1,611
415
415
288
0
900
1,800
2,700
3,600
4,500
JPY Million
Shift to business re-growth policy from August 2019
4,190
3,130
2,736
3,523
3,817
3,380
900
1,800
2,700
3,600
4,500
964
1,339 1,287
1,550
1,730
400
800
1,200
1,600
2,000
1,456
1,219
2,110
1,915
1,617
500
1,000
1,500
2,000
2,500
1075
871
13451291
1142
300
600
900
1200
1500
Thailand GL motorcycleNumber of new contract
Thailand TNB motorcycleAsset back loan
Number of new contact
CambodiaHonda motorcycle
Number of new contract
MyanmarHonda motorcycle
Number of new contract
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➢ After winning the case in Thailand, new policy to reboost the disbursement was set.
➢ Anticipating gradual growth of portfolio after release of lockdown.
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Digital Finance BusinessCarefully seek a growth trajectory
➢The recovery of overdue loans is progressing faster
than expected.
➢Provision of 290 million JPY in special allowance.
➢Sales activities have already resumed.
➢Despite the strong competitiveness over our
competitors, the company has adopted a policy to
monitor carefully economic trends and other
factors for future expansion.
ASUKA Foods Co., Ltd.「ちょっと食べる」喜びを毎日世界へ 19
Food BusinessTo deliver "Happiness with small bites"
all around the world everyday
Food Business (From a producer of Japanese
Sweets to a well-known Brand)
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Overview (Food Business)
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Overview➢ Up to last year: Excessive product numbers have reduced production
efficiency.This year: Improving profitability by narrowing down to priority products.
➢ Up to last year: Low productivity due to the shortage of the skilled workers.This year: Improving productivity through successful measures to recruitfull-time employees.
Significantly increased profitability through improvements in both products and human resources.
Impact of COVID-19 epidemic➢ Revenue is declining due to the impact of Covid-19 epidemic, as a result of
the above measures, improvement of profits is realized more than that.➢ Increasing visibility by focusing on branding through social media.
2018 - 2022
Revenue (Food Business)
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4,576 4,756
4,483 4,681
4,859 4,830 4,563
4,354 4,353
0
2,000
4,000
6,000
JPY Million
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Segment Profit (Food Business)
▲ 17
80
-20
0
20
40
60
80
100
Successful business transformation undertaken after consolidation in 2019, with significant improvement in profitability.
JPY Million
▲ 1.6
▲ 15.4
9.612.9
28.6 29.3
-16
0
16
32
JPY Million
※Food consolidation from 1 October 2018
Total segment profit in the financial year
Quarterly segment profit
Progress of branding through social media
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Branding thorough social media has progressed, increasing awareness of the company's products is expected to make a
significant contribution to earnings growth over the medium to long term.
https://twitter.com/tw_asukafoods
3.30million view
Highest record in May
Covered
in the Yahoo news Japan!
Twitter followers of Asuka Foods
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551 552
5,154 5,101 5,082 5,710 5,645 5,458 5,305 5,299
16,815 17,819 17,382
27,462
29,628
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Apr-19 May Jun Jul Aug Sep Oct Nov Dec Jun-20 Feb Mar Apr May Jun
(Followers)
Nihonbashi-honcho KashidokoroHealth Food
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More delightful More delicious
More healthy Wagashi
Twitter followers of Nihonbashi-honcho Kashidokoro
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942 946 975
1,992 2,121 2,091 2,060 2,247 2,183 2,172
5,472
7,461
11,371
14,211 14,435
0
4,000
8,000
12,000
16,000
Apr-19 May Jun Jul Aug Sep Oct Nov Dec Jan-20 Feb Mar Apr May Jun
(Followers)
Food BusinessTo improve profitability and increase revenue
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➢Expecting maintained high profits with
continuous improvement of productivity.
➢Sales in current quarter is increasing due to
improved recognition in the market.
➢The current policy is expected to continue,
with the aim of further increasing profits
through increased sales.
Showa Rubber Co., Ltd.顧客の「大切」を守る社会の守護者 29
Rubber BusinessThe guardian that protects the "Important asset" of customers
Rubber Business (The guardian that protects
the "Important asset" of customers)
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Rubber Lining Pressing
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Overview (Rubber Business)
Overview➢Sales had been decreased and profit was negative long
term due to shrinking domestic market.
Impact of COVID-19 epidemic➢No impact at the time, but there is a concern about future
impact.➢One of the biggest competitor of rubber lining business
announced their closure of business.http://www.daiki-rubber.co.jp/info/information_200326d.pdf
➢Expecting significant improvement in sales and profits through capturing their market share.
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Revenue (Rubber Business)
2,034 2,018
1,762 1,652 1,600 1,560 1,511
1,665 1,574
0
500
1,000
1,500
2,000
2,500
JPY Million
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Segment Profit (Rubber Business)
▲165
▲ 4
▲ 102▲ 78
▲ 64
▲ 99
▲176
▲ 74
▲ 111
-300
-200
-100
0
100
200
300
JPY Million
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Major rubber lining operators in Japan
Daiki Rubber Industry Co., Ltd.(Scheduled to be closed at March 2021)
Showa Rubber Co., Ltd.
Kyokuto Rubber Co., Ltd.
Ohji Rubber & Chemicals Co., Ltd.
・ ・・・
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Business outlook of Rubber Lining Business
JPY Million
Revenue comparison(Mar-2020)
Revenue and profit outlook(Rubber Lining Business)
※Showa Rubber estimation
217 228
484 862
991
1,249
0
200
400
600
800
0
500
1,000
1,500
Profit
Revenue
1,000
721
141
0
400
800
1,200
Competitor
(Scheduled to close)
Showa Rubber
Rubber lining business
JPY Million
Otherrevenue
Rubber Liningrevenue
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Rubber BusinessIncrease profit through focusing on rubber lining
➢Being mindful of the impact of a possible recession.
➢Expecting sales growth in the profitable rubber
lining business as competitors pull out.
➢Aiming to increase sales and improve profits by
concentrating management resources on the
rubber lining business.
LUCENT Co., Ltd.スポーツコミュニティの活性化 37
Sport BusinessActivation of sports communities
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Sport Business (Be the promoter closest to sports communities)
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Overview (Sport Business)
Overview➢ Tennis Ball Business: Sales initiative to improve profitability stalled,
market share declined.
➢ Tennis Wear Business: Efforts were made and completed throughout the
previous year to normalize excess inventory in FY 2018.
➢ Tennis Club Business: Aggressively expanded the business.
Impact of COVID-19 epidemic➢ Sales of tennis balls, tennis wear, and other products plummeted due to
the suspension of school and tennis club activities and the closure of
sports facilities across the country.
➢ Tennis club partially closed and heavily affected.
➢ Expecting recovery through school reopening and new tennis club opening.
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1,392 1,388 1,417 1,448 1,396
1,505 1,561
1,376
1,133
0
500
1,000
1,500
2,000
JPY Million
Revenue (Sport Business)
Segment Profit (Sport Business)
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206217
231
206221
193
78
149
79
0
100
200
300
JPY Million
Lucent Tennis Club
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2,821 2,838
2,769
2,863
2,818
3,043
2,500
2,600
2,700
2,800
2,900
3,000
3,100
3,200
Number of members reached highest in June after overcoming COVID-19
Twitter followers of Lucent
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2,504
4,369 4,598
5,860
6,096
1,300
2,600
3,900
5,200
6,500
Apr-19 May Jun Jul Aug Sep Oct Nov Dec 20-Jan Feb Mar Apr May Jun
(Followers)
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Sport Business User communication and expansion of tennis club
➢Social media promotion before the epidemic of
Covid-19 improved brand awareness.
➢Improving deeper communication with users to
regain market share.
➢Strong tennis club business continues to open new
tennis clubs and soft tennis classes.
➢Expecting further expansions of tennis club
business.
Wedge Holdings Co., Ltd.世界の時間を「ワクドキ」で埋め尽くす 45
Entertainment Business
Lets make world full of "WakuDoki"
Entertainment Business("Anywhere door" of entertainment contents)
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Demon Slayer: Kimetsu no Yaiba Official fanbook Kingdom Official Problem Collection My Hero AcademiaOfficial Character Book2 Ultra Analysis
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WIXOSS WXK-11 Reincarnation
Entertainment Business("Anywhere door" of entertainment contents)
Battle Spirits [BS52] Awakening Chapter 1 Reincarnation (Returner)
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Overview (Entertainment Business)
Overview➢ Sales did not grow over the course of the year.➢ Entertainment titles handled in projects such as manga and card
games performed well. As a result, book editing royalties and royalty income increased.
➢ Aiming for full-scale business expansion through further development of overseas business that continued developing.
Impact of COVID-19 epidemic➢ Since remote work has been promoted for a long time, the impact
of the spread of Covid-19 infection is limited.➢Despite the delay of the several projects in Q1, expecting recovery
in following quarters due to strong performance of the titles that the company in charge.
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Revenue (Entertainment Business)
599 605 590 589
508 490
455 456 460
0
250
500
750
JPY Million
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Segment Profit (Entertainment Business)
194
149136
109
5948
▲ 56▲ 80
▲ 6
-100
0
100
200
300
JPY Million
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Revenue & profit improved quarterly
78
111
133
153
0
50
100
150
200
▲ 42
▲ 2
11
41
-60
0
60
120
Segment profit (FY 2020)
Revenue (FY 2020)
JPY Million JPY Million
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Creating a new TCG distribution channels in Southeast Asia
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Phuong NamRetail
Franchise
300,000 people on social media
Title acquisition Distribution channel
"Anywhere door" of
entertainment contents
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Creating a new TCG distribution channels in Southeast Asia
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➢ Obtained the distributorship and sales rights for Southeast Asia from major Japanese TCG publishers.
・HAIKYU!! Volleyball Card Game (Jan 2018~)・WIXOSS (Apr 2020~)・Battle Spirits (Jun 2020~)
➢ Fostering a community of 300,000 TCG fans in Southeast Asia through social media. (Mar 2017~)
➢ Develop franchise with directly managed store in Indonesia. (May 2020~)
➢ Developed sales channel through partnership with a major bookseller Phuong Nam Retail in Vietnam. (Jun 2020~)
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Franchise development in Indonesia
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Indonesia
Franchise stores: 9 stores(Recruitment of member stores started in May 2020)
Directly managed store: 3 stores
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Social media administrationDeveloping largest TCG community in Asia
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29,232
73,781
128,934
173,444
206,456
228,395 240,815
268,741
0
50,000
100,000
150,000
200,000
250,000
300,000
TCGnoheya Facebook page followers(Followers)
5656
26 July 2020
TCGnoheya FB page
followers :
300,765https://www.facebook.com/tcgnoheya/
Social media administrationDeveloping largest TCG community in Asia
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Entertainment Business (Business in Japan
remains strong, Southeast Asia to be profitable)
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➢Several projects in Q1 delayed.
➢The strong performance of the titles that the
company in charge.
➢Continuing to control expenses.
➢New Market Development in Southeast Asia.
➢Accelerate expansion in Southeast Asia while
leveraging the strong performance in Japan.
Showa Holdings Co., Ltd.アジアを開拓し続けるコングロマリット
THANK YOU
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