May 7, 2021

For immediate release

Company name:

Joshin Denki Co., Ltd.

Representative:

Ryuhei Kanatani, Representative Director and President

and Executive Officer

(Securities code: 8173, 1st Section, TSE)

Contact:

Suguru Oshiro, Director and Executive Officer in Charge of

Financial Strategy and General Manager of Accounting

Department

(Phone: +81-6-6631-1161)

Notice of revisions to targets in Medium-term Management Plan

Joshin Denki Co., Ltd. (hereinafter, the "Company") hereby announces revisions to targets for the fiscal year ending March 31, 2023, the final year of the JT-2023 Management Plan, the Company's Medium-term Management Plan previously unveiled on August 7, 2020. The revised targets take into account recent earnings, current consumption trends, and other factors.

1. Revision of targets

Revision of targets for the fiscal year ending March 31, 2023

(¥ million)

FY3/21

FY3/22

(1) Initial target

(2) Revised target

Change

actual

forecast

(FY3/23)

(FY3/23)

(2)-(1)

Net sales

449,121

420,000

435,000

450,000

15,000

(of which, EC business)

71,706

72,500

70,000

80,000

10,000

Operating income

16,550

12,000

11,500

16,500

5,000

Ordinary income

16,555

12,000

11,500

16,500

5,000

(%)

Initial target

Revised target

Change

Equity ratio

45.0 or higher

Unchanged

ROE

7.0 or higher

9.0 or higher

2.0

ROA

5.5 or higher

7.0 or higher

1.5

ROIC

5.5 or higher

7.0 or higher

1.5

Payout ratio

Around 30.0

Unchanged

2. Reasons for revision

We revised our initial targets to comprehensively take into account the following: changes in consumption trends

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owing to the impact of COVID-19, our ongoing efforts to transform sales promotion activities in conjunction with future developments in marketing automation, the streamlining of operations with our new distribution center coming online, improvements in store-based sales productivity owing to the impact of investments, and further market expansion of e-commerce sales.

With the government declaring that another state of emergency shall take effect from April 25, we are taking steps to shorten store operating hours or partially cease operations. In reflecting the impact of these developments, we forecast a YoY decline in both sales and profit in FY3/22, as shown in the table above. For FY3/23, the final year of our medium-term management plan, we plan to once again take up the challenge of achieving record-high sales and profit, as seen last year owing to changes in people's lifestyles, such as teleworking and staying at home, as well as special demand from the government's COVID-19 cash handout.

As we currently cannot predict when the COVID-19 pandemic might end, the impact on earnings up ahead still remains unclear, however this announcement of revised targets reflects our stance on disclosing information to investors as quickly as possible in light of earnings to date. Please note that no changes have been made to any other strategies in our medium-term management plan.

Note about earnings forecasts

The above-mentioned forecasts have been calculated based on currently available information and certain assumptions the Company considers reasonable. The Company offers no guarantee that such forecasts will be achieved. Actual results may differ significantly due to various factors. The Company will endeavor to publicly disclose as quickly as possible any important matters that may arise.

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Joshin Denki Co. Ltd. published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 09:18:17 UTC.