Sapporo Store Namba Store Shinjuku West Store Kashiwa Store Yurakucho Store Tenjin Build. No.2 Ikebukuro Main Store Nagoya Sta
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Sapporo Namba Shinjuku Store Store West Store Presentation Materials for European Investors May 2007 A B CC Securities Code: 3048 Kashiwa Fujisawa Yurakucho Store Store Store D E F Tenjin Ikebukuro Nagoya Sta. Build. No.2 Main Store West Store G H II Table of Contents 1.Corporate Summary 2.Our Strengths 3.Growth Strategies 4.Reference 1 1. Corporate Summary 2 Corporate Summary Visions To be a group of stores with expertise that propose richer life to customers Position in The 4th largest electric retailer with a market share of 6.3% the industry (Calculated from the forecast of each company for Fiscal 2007) Two types of There are 2 types of electric retailers; “Urban type” and “Suburban type”. electric retailers We are the only one listed company of this “Urban type” Branch policy Store deployment of “Urban type” x “Station front” x “Large scale” Financial We have achieved an increase in revenue and earnings every year since 2004. highlights Projected ordinary income for this fiscal year is 15.7 billion yen Others We were listed on the JASDAQ market in August, 2006. 3 Position in the electric retailer market Forecasts for FY2007 Yamada Denki 144,366.1 Edion 74,029.3 Yamada Denki 17.0% Bic Camera 53,800.0 Others Edion 8.7% Kojima 50,133.5 41.9% Yodobashi Camera 7.1% K’sHD 43,118.0 Bic Camera 6.3% Best Denki 36,897.9 Kojima 5.9% Joshin Denki 31,572.9 K’s HD 5.1% Best Denki 4.3% Yodobashi Camera 60,123.5 Joshin Denki 3.7% (JPY billion) 0 300 600 900 1,200 1,500 Source: Created by us based on the documents disclosed by each company (Nikkei MJ for Yodobashi Camera) Note: Feb/07 consolidated results for Best Denki, Mar/06 non-consolidated results for Yodobashi Camera, August/07 consolidated forecasts for us, Mar/07 consolidated results for others The shares were calculated based on the fiscal ’04 industry market scale of approximately 8.5 trillion yen. 4 Features of Bic Camera – Urban type Large Sales per store Sales per floor space Yodobashi Camera Urban type Yamada Edion Denki K’s Holdings Kojima Joshin Best Denki Denki Suburban type Small Sales floor space per store Large Sales per store Sales per 1㎡ Sales floor space per store Ranking of job seekers (JPY million) (JPY thousand) (㎡) (university students) Bic Camera #257 Bic Camera 18,615 Bic Camera 3,309 Bic Camera 5,626 YD YD YD YC company #354 company 4,780 company 1,383 company 3,457 YD company #902 0 5,000 10,000 15,000 20,000 0 1,000 2,000 3,000 4,000 0 2,000 4,000 6,000 Source: Created by us based on the documents disclosed by each company Note: August/07 non-consolidated forecasts for us, Mar/07 non-consolidated results for YD company 5 Store Deployment Store deployment of “Urban type” x “Station front” x “Large scale” Made Sofmap (2nd section of TSE) our subsidiary in Feb., 2006 Ikebukuro West Exit Store 24 Bic Camera stores ■Sapporo Store (A) Ikebukuro Main Store (H) + Ikebukuro East Exit Camera Build. PC Build. Ikebukuro Main Store 28 Sofmap stores Ikebukuro East Exit General Build. Shinjuku East Exit Store ■Yurakucho Store (F) Takasaki East Exit Store ■Shinjuku West Exit Store (C) (Main Build./Annex) Omiya West Exist Sogo Store ■Kyoto StationStore ■Tachikawa Store Shibuya East Exit Store (Tentative name) Aug., ’07 (Scheduled) Shibuya Hachiko Exit Store Sales floor space: approx. 10,000㎡ Okayama Station Store Kashiwa Store (D) (Tentative name) Nov., ’07 (Scheduled) ■Lazona Kawasaki Store Sales floor space: approx. 8,200㎡ Yokohama West Exit Store Tenjin Build. No.1 ■Fujisawa Store (E) PC Build. Yokohama Station Store Tenjin Build. No.2 (G) ■Namba Store (B) ■Nagoya Sta. West Store (I) Shin Yokohama Store New Shin Yokohama Station Store (Tentative name) Note: Ones in red are stores scheduled to open March, ’08 (Scheduled) Ones with ■ are stores with a sales floor space of 10,000㎡ or more Sales floor space: Approx. 7,000㎡ 6 Financial Highlights (Consolidated) Net sales Ordinary income / ratio Net income / ratio JPY billion JPY billion (%) JPY billion (%) 600 16 3.4 2.9 4.0 8 1.3 1.3 1.6 2.6 450 12 2.7 3.0 6 1.2 0.7 0.7 300 538.0 8 2.0 480.4 14.7 15.7 4 6.8 0.8 433.1 11.1 12.7 6.0 150 406.7 4 1.0 2 0.4 2.7 3.0 0 0 0.0 0 0 '04.8 '05.8 '06.8 '07.8 '04.8 '05.8 '06.8 '07.8 '04.8 '05.8 '06.8 '07.8 (Forecast) (Forecast) (Forecast) (Forecasts for the year ending Aug., 2007) ■ Sales ◆Contribution of new stores, effect of consolidating Sofmap -> JPY 538.0 billion, a YOY increase of 12.0% Expected to ■Ordinary income ◆Effect of increase in sales, reduction in SG&A expenses -> JPY 15.7 billion, a YOY be record- increase of 23.3% ■Net income high ◆JPY 6.8 billion, a YOY increase of 13.2% despite extraordinary loss Sales floor space (㎡) 200,000 Increase in sales floor space 160,000 120,000 180,000 80,000 163,409 116,563 118,929 40,000 Continuous growth 0 (Forecast) '04.8 '05.8 '06.8 '07.8 7 2. Our strengths 8 Our Strengths (Summary) Corporate The most vigorous company for 6 consecutive years image ・Over 700 “qualified” expert sales persons (leaders) Expertise ・About 700,000 items Know-how of ・Store making with bodily sensation and experience regarded as important store making ・Enriching various consultation counters ・Net sales per store, net sales per sales floor space and inventory turnover Efficiency ・Stable customer gathering (not only on weekends, but also on weekdays) 9 Aggressive corporate image Nihon Keizai Shinbun(Nikkei) “Corporate Image Research” Year 2006 Ranking “Vigorous company”1 No. for 6 consecutive years Vigorous company Strong sales ability 2nd: Kirin Brewery [Business people research] [General individual research] 1st 3rd: Toyota Motor /1,178 companies Proactive in self- transformation 2nd: Nissan Motor st rd st 1st 3 : Yodobashi Camera 11,1781 1,178 /1,178 companies /companies / Degree of corporate companies recognition 2nd: Yodobashi Camera 2nd: Coca-Cola Japan 1st: Seven Eleven Japan nd 3rd: Fuji TV Network rd th 2 : McDonald’s Japan 3 : Fuji TV Network 4 3rd: FamilyMart /1,178 companies 10 Sales ability supported by expertise Pursuit of high-level of product knowledge and customer service skills ■ More than 700 “qualified” expert advisors (our unique system) ■ 3rd party license recommended - More than 400 Home appliances advisors Association for Electric Home Appliances - Approx. 70 photo masters (3rd grade – EX) International Culture College Association Photo Master License Exam. Committee Advanced / expensive High-level customer service skills product sales ability 11 Attractive store making know-how “Alarm clock” section Theatre PC consultation counter that make customers comfortable “Single-lens reflex camera” section Kitchen Stadium Digital broadcasting consultation counter “Headphone” section Demonstration of washing machines Bulk-buying counter Creation of sales floors Enriching various About 700,000 items where customers can bodily sense and experience Consultation counters 12 Store deployment pursuing efficiency & profitability Highly efficient “Urban type” stores Net sales per store under direct management Net sales per 1㎡ Bic Camera 18,61518,615 Bic Camera 3,3093,309 YD 4,280 YD 1,338 KH 2,298 K 984 KH 813 K 2,214 (JPY million) (JPY thousand) 0 5,000 10,000 15,000 20,000 0 800 1,600 2,400 3,200 * Our net sales are non-consolidated Source: Calculated by us based on the documents disclosed by each company Notes: Aug/06 non-consolidation for us, Mar/06 consolidated for others High Inventory turnover Annual inventory turnover Bic Camera 23.1 YD 9.7 23.1 times* KH 8.1 ⇒ Far better turnover than those of K 7.1 our competitors” Major Supermarket IY 19.0(times) 0 5 10 15 20 25 * Our inventory turnover are non-consolidated Source: Calculated from the documents disclosed by each company * <Sales / (Inventory at beginning of the period +Inventory at end of the period) *1/2> Note: Aug/06 non-consolidated for us, Mar/06 consolidated for Companies YD, KH and K, Feb/06 non-consolidated for Major supermarket IY 13 4. Reference 14 Growth strategies (Summary) We continue to grow capitalizing on our strengths of “Urban type” To open about 2 stores of “Urban type” x “Station front” x “Large scale” per year in Store opening the metropolitan area and major cities across the country To deliberately carry out store renewals and to increase ratio of home appliances Store renewal sales ( = high margin) Net shopping To renew websites, To use common points with actual stores To start a BS digital high-vision broadcast in December, 2007 through our TV shopping subsidiary Nippon BS Broadcasting To introduce “Bic Camera Suica Card” whose points can be converted into Cards electronic money “Suica” which can be used for transportation means Business alliance To promote business alliance with Edion 15 Our future store opening plans Continuous growth by Okayama Station Store opening stores ■First store to be opened in the Chugoku region ◆Scheduled to be opened in Kyoto Station Store November 2007 ◆Sales floor area: Approx. 8,200 ㎡ ■Directly connected with the JR Kyoto station platforms Sofmap Akihabara New Main Build. ◆ Scheduled to be opened in August, 2007 ■New foothold of newly-born ◆Sales floor area: Approx. 10,000 ㎡ Sofmap ◆Scheduled to be opened in September 2007 ◆ Sales floor area: Approx.