Joshin Denki : Notice of revisions to targets in Medium-term Management Plan
May 07, 2021 at 05:19 am EDT
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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.
Joshin Denki Co.,Ltd. is a Japan-based company mainly engaged in the retail business of home electric appliances and related business. The Company mainly engaged in the sale of home appliances, information and communication equipment, entertainment products, housing equipment, and related products. The Company is also engaged in the provision of product delivery, installation and maintenance services, property and casualty insurance and life insurance agency services, music and video software rental services, buying and selling used books services, and the provision of management guidance and products to franchise contractors. The Companyâs shop brands include Joshin, J&P, DISC PIER, Joshin OUTLET, Mother Pier, Mega Watch, BOOK-OFF, and TSUTAYA.