Descente : Presentation Material of the 66th annual General Meeting of Shareholders〔1,638KB〕
June 15, 2023 at 09:16 am
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Management Policy for the Future
Disclaimer: This is an English translation of the original Japanese- language and is provided for reference purposes only. Readers are advised that the company does not guarantee the accuracy of the content contained in this report. In the event of any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.
1
Summary of FY2022 (2nd year of "D-Summit 2023")
1.Established a well-balanced profit structure in 3 markets (Japan/South Korea/China)
Sales and profits were increased in Japan and South Korea, but profits were decreased in China due to COVID-19 and write-down of inventories associated with rebranding
Japan:Achieved ¥4.5B segment income because of the increased revenue and decreased sales losses
South Korea: Increased revenue because higher sales rate of full-price items and optimizing inventory levels
China:Investment and disposition for rebranding
2.¥10.5B consolidated net income was the best in our history
Earning forecast for FY2023: Net income of ¥11.0B
About 20% gain in net income forecasts compared with last year excluding non-recurring gain/loss
3.Increased dividends (¥40 / per share)
¥40 / per share are the best dividends in our history
Dividend forecast for FY2023: ¥44 / per share
2
〇Improve profitability of Japan business
1.Focus on profit, not sales
◎Operating income ¥4.4B increase since FY2018 (Achieved ¥4.7B in FY2022)
(0.1
B ilon Yen)
Net sales and operating income of Japan business
600
519
503
500
493
500
443
400
400
300
200
100
24
47
50
3
▲ 13
▲ 24
0
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
-100
Plan
NOTES: FY2022 = FY ended March, 2023
Net Sales (Product)
Operating Income
3
〇Improve profitability of Japan business
2.Control of production/inventory amount
(Improvements since FY2018)
◎Inventory amount
36% ↓
◎Return/discount rate
8 . 5 % ↓
(0.1
Inventory amount and return/discount rate of Japan business
B ilon Yen)
120
20.0%
110
104
101
18.0%
100
16.0%
80
77
14.0%
67
70
Inventory
12.0%
60
10.0%
amount
8.0%
40
6.0%
20
4.0%
2.0%
0
0.0%
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
Plan
Inventory Amount
Return/Discount Rate
Return/discount rate
NOTES: FY2022 = FY ended March, 2023
4
〇Improve profitability of Japan business
3.Control of expenses (FY2021⇒FY2022)
◎Total expense
4%↑ Change from cost reduction to aggressive investment
・Advertising
23%↑ Resumed investments to strengthen branding
・Logistics
6%↓
Reduced returned items and improved
packaging consolidation
・Personnel
7%↓
Personnel reduction
Advertising, logistics, personnel fee of Japan business
FY2018
FY2021
FY2022
Personnel fee
Logistics fee
Advertising fee
Other
NOTES: FY2022 = FY ended March, 2023
FY2021⇒FY2022
Total expense:
4%↑
Advertising fee:
23%↑
Logistics fee:
6%↓
Personnel fee:
7%↓
5
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DESCENTE Ltd. published this content on 15 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2023 08:15:10 UTC.
DESCENTE,LTD. is a Japan-based company mainly engaged in the sportswear business. The Company is mainly engaged in the manufacture and sale of sportswear and related products. The Company is mainly engaged in the provision of sportswear brands, including descente, le coq sportif, arena, munsingwear, umbro, inov-8, skins, marmot, babolat and srixon. The Company distributes its products within the domestic market and to overseas markets, including Asia, Europe and the Americas. The Company is also engaged in the logistics business and healthcare business.