H2O Retailing Corporation Supplementary information to Financial Results

of the Fiscal Year

Ended March 31, 2023

May 11, 2023

I. Consolidated Financial Results of FY2023

  1. Consolidated statements of income Overview of financial results
    Selling, general and administrative expenses Non-operating Income and Expenses Extraordinary Income and Losses
  2. Consolidated Balance Sheet
  3. Consolidated Cash Flow Statements
  4. Capital Investment
  5. Number of employees II. Forecast of FY2024
  1. Forecast of consolidated financial results
  2. Forecast of capital investment

Ⅲ. Non-consolidated results

  1. Hankyu Hanshin Department Stores, Inc.
  2. Izumiya Co., Ltd.
  3. Hankyu Oasis Co., Ltd.
  4. Kansai Super Market Ltd.

H2O Retailing Corporation(8242)

Supplementary information to Financial Results of the Fiscal Year Ended March 31, 2023

I. Consolidated Financial Results of FY2023

1. Consolidated statements of income < Overview of financial results >

（millions of yen）

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Amount

Amount

Amount

YoY

Inc./Dec.

versus forecast

Inc./Dec.

Department Store

347,768

385,095

491,838

27.7%

106,743

1.2%

5,838

Supermarket

292,754

327,205

416,139

27.2%

88,934

0.3%

1,139

Shopping Center

65,024

42,879

35,574

(17.0)%

(7,304)

(5.1)%

(1,925)

Other

33,651

32,928

36,169

9.8%

3,240

(12.8)%

(5,330)

Gross Sales

739,198

788,108

979,723

24.3%

191,614

(0.0)%

(276)

Net Sales

739,198

518,447

628,089

21.1%

109,641

(1.9)%

(11,910)

Department Store

(1,903)

939

10,299

-

9,360

39.0%

2,889

Supermarket

4,086

5,326

5,469

2.7%

143

(14.7)%

(940)

Shopping Center

(757)

391

1,808

361.8%

1,416

10.9%

178

Other

(1,516)

(3,409)

(3,100)

-

309

-

649

consolidation adjustment

(4,347)

(2,506)

(3,089)

-

(582)

-

(389)

Operating Profit

(4,438)

740

11,388

-

10,647

26.5%

2,388

Ordinary Profit

(2,907)

2,346

13,004

454.3%

10,658

30.0%

3,004

Extraordinary income

3,049

27,032

17,563

(35.0)%

(9,469)

Extraordinary losses

24,172

13,792

9,422

(31.7)%

(4,370)

Profit

(24,791)

9,872

16,382

65.9%

6,509

48.9%

5,382

  • The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.
  • After the business integration with Kansai Super Market Ltd. in December 2021, Supermarket business newly includes the results of three companies, Kansai Food Market Ltd., Kansai Super Market Ltd. and Kansai Super Premium Co., Ltd.
  • The above three companies were included in the previous year's results for the fourth quarter.

< Selling, general and administrative expenses >

（millions of yen）

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Amount

Amount

Amount

YoY

Inc./Dec.

Personnel expenses

81,634

84,120

95,014

13.0%

10,894

Rent expenses

36,365

40,468

47,521

17.4%

7,053

Advertising expenses

5,810

7,126

9,066

27.2%

1,940

Depreciation

16,959

16,615

18,436

11.0%

1,821

Business consignment expenses

18,036

19,266

21,119

9.6%

1,852

Sales commission

11,403

6,019

8,779

45.9%

2,760

Transportation costs

14,405

14,114

17,003

20.5%

2,889

Others

31,726

30,208

37,116

22.9%

6,908

Total

216,342

217,939

254,059

16.6%

36,119

* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

1

H2O Retailing Corporation(8242)

Supplementary information to Financial Results of the Fiscal Year Ended March 31, 2023

< Non-operating Income and Expenses >

（millions of yen）

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Amount

Amount

Amount

YoY

Inc./Dec.

Non-operating income

5,062

5,068

4,262

(15.9)%

(805)

Interest income

371

533

541

1.6%

8

Dividend income

1,418

1,062

1,116

5.0%

53

Gain on debt settlement

1,862

1,105

913

(17.4)%

(192)

Foreign exchange gains

401

1,530

873

(42.9)%

(656)

Other

1,008

835

818

(2.1)%

(17)

Non-operating expenses

3,530

3,462

2,646

(23.6)%

(816)

Interest expenses

848

940

962

2.4%

22

Loss on provision for redemption of gift certificates

1,068

729

701

(3.8)%

(28)

Share of loss of entities accounted for using equity method

561

901

281

(68.8)%

(619)

Other

1,052

891

700

(21.4)%

(190)

  • The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.
    < Extraordinary Income and Losses >

（millions of yen）

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Main contents

Amount

Amount

Amount

Extraordinary income

3,049

27,032

17,563

Gain on sale of non-current assets

13,543

Selling logistics center, former head office

Gain on sale of investment securities

3,819

Selling Takashimaya shares

Gain on gift certificates settlement

134

Izumiya

Subsidy income

66

Compensation payment for store closing

Extraordinary losses

24,172

13,792

9,422

Impairment losses

3,877

H2O Retailing

Loss on store closings

1,699

H2O Shopping Center Development

Loss on retirement of non-current assets

1,600

Hankyu Hanshin Department Stores

Temporary expenses associated

798

Hankyu Oasis

with reforms of human resource systems

Izumiya

Loss related to COVID-19

415

H2O Retailing

Hankyu Hanshin Department Stores

Head office relocation expenses

324

H2O Retailing

Hankyu Hanshin Department Stores

Loss on sale of investment securities

324

Loss on withdrawal of system development

279

H2O Retailing

Expenses for opening new stores

102

Hanshin Umeda Main Store

2

H2O Retailing Corporation(8242)

Supplementary information to Financial Results of the Fiscal Year Ended March 31, 2023

2. Consolidated Balance Sheet

(millions of yen)

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Amount

Amount

Amount

Cash and deposits

49,991

34,724

58,670

Notes and accounts receivable-trade

54,385

59,906

68,572

Inventory

23,339

22,639

21,234

Total current assets

139,291

129,725

161,408

Property, plant and equipment

261,386

301,245

303,253

Intangible assets

16,729

16,443

19,764

Investments and other assets

208,538

207,143

201,997

Total non-current assets

486,653

524,832

525,015

Total assets

625,945

654,558

686,423

(millions of yen)

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Amount

Amount

Amount

Notes and accounts payable-trade

48,996

56,839

63,674

Loans payable and bonds

188,547

175,382

179,267

Total liabilities

396,667

393,620

413,608

Shareholders' equity

192,763

202,030

206,213

Total net assets

229,277

260,938

272,814

Total liabilities and net assets

625,945

654,558

686,423

3. Consolidated Cash Flow Statements

(millions of yen)

Mar. 31,

Mar. 31,

Mar. 31,

2021

2022

2023

Cash flows from operating activities

12,755

6,465

30,295

Profit (loss) before income taxes

(24,030)

15,586

21,146

Depreciation

18,141

17,902

19,159

Impairment losses

14,771

1,881

3,877

Loss (gain) on sale of

(0)

(6,485)

(3,495)

investment securities

Loss (gain) on sale of non-current assets

(56)

(13,624)

(13,511)

Decrease (increase) in trade receivables

(10,365)

(3,420)

(8,655)

Decrease (increase) in inventories

6,248

2,992

1,234

Increase (decrease) in trade payables

5,326

(4,705)

6,807

Income taxes paid

(1,858)

(2,228)

(4,237)

Cash flows from investing activities

(20,761)

(5,203)

5,782

Purchase of property, plant and

(13,952)

(26,304)

(23,925)

equipment

Proceeds from sale of property, plant and

1,429

19,771

13,896

equipment

Purchase of intangible assets

(4,087)

(3,874)

(6,788)

Proceeds from sale of investment

-

9,386

16,828

securities

Long-term loan advances

(4,402)

(4,011)

-

Cash flows from financing activities

31,859

(28,578)

(12,549)

Proceeds from long-term borrowings

70,000

32,000

5,000

Repayments of long-term borrowings

(18,175)

(46,840)

(1,181)

Purchase of treasury shares

(1)

(473)

(8,855)

Dividends paid

(4,018)

(3,093)

(3,080)

Total

23,853

(27,316)

23,528

Cash and cash wquivalents

49,991

33,174

57,020

3

H2O Retailing Corporation(8242)

Supplementary information to Financial Results of the Fiscal Year Ended March 31, 2023

4. Capital Investment

(millions of yen)

Mar. 31,

2023

Main contents

Amount

Department Store

10,468

Renovation of Kobe Hankyu

Supermarket

4,942

New stores opening of Hankyu Oasis

Renovation of Izumiya stores

Shopping Center

1,096

Renovation of H2O Shopping Center Development stores

Other

14,758

Purchase of land and buildings of H2O Retailing

consolidation adjustment

(105)

Total

31,160

5.Number of employees

As of March,2022

As of March,2023

Department Store

4,104

(859)

3,884

(851)

Supermarket

3,910

(12,885)

3,772

(11,408)

Shopping Center

622

(1,410)

609

(1,197)

Other

1,220

(1,737)

1,220

(1,791)

Total

9,856

(16,891)

9,485

(15,247)

  • The number of employees is the operational staff basis (excluding employees seconded to other company, and including employees seconded from other company and executive officers).
  • ( ) shows the average number of temporary employees.

4

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Disclaimer

H2O Retailing Corporation published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 06:47:03 UTC.