| BOOKOFF CORPORATION LIMITED (3313) |
 |
|
||||||||
|
 |
|
Company |
BOOKOFF CORPORATION LIMITED |
||
Code No. |
3313 |
||
Exchange |
TSE 1st Section |
||
Industry |
Retail (commerce) |
||
President |
Yasutaka Horiuchi |
||
Address |
2-14-20 Kobuchi, Minami-ku, Sagamihara-shi |
||
Year-end |
March |
||
URL |
|||
|
 |
|
* The share price is the closing price on June 19. The number of shares issued was obtained by subtracting the number of treasury shares from the number of outstanding shares as of the end of the latest quarter.
|
||||||||||||||||||||||||
|
 |
|
|
|
*The forecasted values were provided by the company. From FY3/16, net income is profit attributable to owners of the parent. Hereinafter the same apply.
*Allocation of 3,100,000 shares to third parties in May 2014. This Bridge Report outlines BOOKOFF CORPORATION LTD, which is listed in the first section of Tokyo Stock Exchange, overviews the results for the term ending Mar. 2017, and mentions the outlook for the term ending Mar. 2018. |
| Key Points |
 |
| Company Overview |
|
The BOOKOFF group is composed of BOOKOFF CORPORATION LTD, and 10 consolidated subsidiaries, including BOOKOFF Online,Inc., which operates an E-commerce site, "BOOKOFF Online," hug all Inc., which handles a wide variety of commodities as a reuse business that doesn't limit itself to a store-based business, Booklet Inc., which runs a reuse business in Osaka, Hyogo and Nara, and BOOK OFF U.S.A. INC. which operates a reuse business in the United States.  Management Philosophy and Business Mission CSR ActivitiesBusiness DescriptionReuse Store Business
As the chain headquarters of the reuse store "BOOKOFF" for books, software, etc., they operate the franchise (FC) system and directly managed stores. There are 3 types of directly managed stores, "BOOKOFF," "BOOKOFF PLUS" and "BOOKOFF SUPER BAZAAR." "BOOKOFF PLUS" is a medium-sized complex store where apparel commodities are added to "BOOKOFF," "BOOKOFF SUPER BAZAAR" is a large-sized complex store dealing in a wide variety of commodities such as home appliances (audio and visual devices, computers, etc.), apparel, sporting goods, baby goods, watches, brand bags, jewels, tableware and miscellaneous goods in addition to books and software.As for main subsidiaries, BOOKOFF-with Inc., Booklet Co.Ltd., Reuseconnect Inc. and BOOKOFF OKINAWA Inc. manage "BOOKOFF" stores in Japan. BOOKOFF-with Inc. manages reuse stores for apparel, baby goods, etc. in addition to the above, and is an FC of a reuse chain store, "Kingram," which handles watches, brand bags and jewels. In addition, Booklet Co.Ltd. and BOOKOFF OKINAWA INC. manage reuse stores for apparel, etc. As for overseas business operation, BOOKOFF U.S.A. INC. runs "BOOKOFF" stores in the United States, and SCI BOC FRANCE leases real estate owned in France. Corporate historyHandling More Children's Goods, Sporting Goods, Accessories, Clothing, Etc. In December 1994, the number of "BOOKOFF" stores reached 100, and in December 1996, it joined the HARD OFF franchise (secondhand store for personal computers and AV equipment, and in Mar. 2015, it cancelled the franchise contract.) BOOKOFF began handling secondhand children's goods in Apr. 1999, and secondhand sporting goods in January 2000. In February of the same year, "BOOKOFF" opened the first overseas store, and in Apr. began handling secondhand accessories and clothing. Furthermore, in September of the same year, BOOKOFF joined the TSUTAYA franchise (video rental store), and in October 2014, gave control of the TSUTAYA store to a newly established subsidiary, and the shares of the subsidiary were transferred to Nippon Shuppan Hanbai, Ltd. Aiming to Further Expand its Business with a Capital and Business Tie-up with Yahoo After Being Listed on the TSE
In Mar. 2004, the company listed its shares in the second section of the TSE and opened its first French store in June of the same year. In Mar. 2005, the company was listed in the first section of the TSE, and opened an E-commerce site "BOOKOFF Online" in August of the same year. In November 2008, they acquired management control of Aoyama Book Center and Ryusui Shobou. In September 2009, they opened the first store of BOOKOFF SUPER BAZAAR (large reuse complex store). In December 2011, they began handling secondhand mobile phones, and in Apr. 2013, they established hugall Inc. In Apr. 2014, they signed a capital and business tie-up deal with Yahoo Japan Corporation.
 |
| Fiscal Year March 2017 Earnings Results |
 Sales grew 6.2%, and operating income was 116 million yen (minus 530 million yen in the previous term)
Sales were 81,344 million yen, up 6.2% year on year. The sales of the Reuse Store business grew 3.8% year on year, due to the contribution of large-scale complex stores and the sale from the second half, while the sales of the BOOKOFF Online business rose 16.6% year on year, due to the increase of items and stocks through the enlargement of distribution centers. The sales of the HUGALL business increased 2.3 times year on year.Operating income increased from minus 530 million in the previous term to 116 million yen. Since gross profit rate declined due to the sluggish sales of products with a high gross profit rate, such as books, apparel, and software (music, videos, and games), in the Reuse Store business and the revision to inventory valuation in the HUGALL business, the effects of sales growth was not exerted fully, but there was a significant effect of the reduction in SG&A expenses in the Reuse Store business through the revision to the working hours of part-time staff, etc. There was an ordinary income of 588 million yen, as the company posted an income from the installation of vending machines, etc. of 154 million yen and an income from the recycling of used paper of 465 million yen, but it recorded an impairment loss of 650 million yen and income taxes-deferred of 314 million yen due to the reversal of deferred tax assets. Consequently, net loss was 1,159 million yen. As for the comparison with the revised forecast, the profit from the HUGALL business was 480 million yen lower than the estimate, due to the failure to reach a target operating income and the term-end revision to inventory valuation considering the sales trend, but the profit from the Reuse Store business was 810 million yen higher than the estimate, and the profit from the BOOKOFF Online business was 110 million yen higher than the estimate. The profit from the Reuse Store business exceeded the estimate, because gross profit was 450 million yen higher than the estimate because of the favorable performance of special sale campaigns from Jan. and the curtailment of the cost for part-time workers reduced expenses by 360 million yen.   Operating income grew 55.5% year on year due to the rapid recovery in the second half.
Sales increased 3.8% year on year to 71,150 million yen, thanks to the effects of the opening of new large-scale complex stores, the reorganization of some franchised stores into directly managed ones in the previous term, and the sales campaigns from the second half. The sales of existing stores rose 0.2% year on year, as the procurement and sale of new products got into gear.As for profits, the growth rate of gross profit was only 0.8%, due to the sluggish sales of products with a high gross profit rate, such as books, apparel, and software, at existing stores (gross profit rate: 61.8% → 60.0%), but SG&A expenses dropped 1.4% year on year, thanks to the curtailment of personnel cost through the optimal staffing of part-time workers, the decrease in publicity and advertisement expenses from the previous term, in which the company started handling home appliances, and the drop in the expenses for supplies, and so operating income increased 55.5% year on year. As for new products (home appliances and mobile phones), the procurement amount was 1.8 billion yen (the estimate: 2.2 billion yen) and sales were 4.1 billion yen (the estimate: 4.2 billion yen). Their ratio to the sales of existing directly managed stores in Japan rose from 3.5% in the term ended Mar. 2016 to 6.2% (the short-term goal: 7%). The quantity of cellphones is decreasing, because customers trade in them at carriers. For the purpose of developing the market in a healthy manner, the company established "Reuse Mobile Japan," an association in the cellphone reuse industry, with other enterprises in this field. As a characteristic of the term ended Mar. 2017, the operation of putting in-store products on Yahoo! Auctions got into gear. The company keeps over 2 million products from the BOOKOFF group listed in Yahoo! Auctions (0.4 to 1.5 million products in the second half of the term ended Mar. 2016), and the sales from the auctions now account for about 5% of sales at directly managed stores.     In Nov. 2016, BOK MARKETING SDN. BHD., an overseas affiliate in Malaysia, opened the first reuse store "Jalan Jalan Japan" in the vicinity of Kuala Lumpur, the capital of Malaysia. As part of the exit strategies for products procured at each store inside Japan, the company aims to realize a place where families can enjoy shopping casually, under the concepts: "a wide variety," "affordable," and "large amounts."  BOOKOFF Online business
Sales were 6,522 million yen, up 16.6% year on year, and operating income was 413 million yen, up 47.0% year on year. Both sales and profit increased, because the area of distribution centers was enlarged from 6,400 tsubo ( = 21,000 ㎡) to 10,700 tsubo ( = 35,000 ㎡) in the previous term, the number of items and stocks in the EC site increased because of the inventory cooperation with BOOKOFF stores, and the constant website improvement contributed. The number of members as of the end of the term is 3.42 million.Considering the sluggish sales of books due to the shortage of stocks in the Reuse Store business, the company curtailed the procurement from directly managed stores from the second quarter. On the other hand, the procurement through the service of buying used items sent via a home pick-up service "Takuhonbin" was healthy, and the ratio of procurement amount through "Takuhonbin" rose, augmenting the procurement cost per item (by 20-30%). In addition, in order to improve its website, the company started review posting in "Booklog," a community site for reviewing books, in Nov. 2016, improved UI and UX for simplifying the purchase order form, launched various campaigns, and started LINE@. HUGALL business Sales channels: B-to-B, EC, and campaign-based sales
Sales were 2,244 million yen (970 million yen in the previous term), and operating loss was 680 million yen (481 million yen in the previous term). The company curbed procurement to rationalize the balances of inventory and cash, and strived to sell off low-priced products through campaigns after opening "Tokyo Used Clothing Countdown Price." Through the expansion of sales channels, sales grew considerably, but a loss augmented, due to the cost for relocation to a large-scale distribution warehouse in Oct. 2016 and the revision to inventory valuation for mainly low-priced products at the end of the term (operating deficit shrinks when the decline in inventory valuation is ignored).Procurement channels are the in-home purchasing, the B-to-B purchasing from other reuse enterprises, department store desks, automated lockers, and home pick-up (in decreasing order).    |
| Fiscal Year March 2018 Earnings Estimates and Business Policies |
 Sales are estimated to grow 0.8% year on year, and operating income was 500 million yen (116 million yen in the previous term)
Sales are forecasted to be 82 billion yen, up 0.8% year on year. The sales of the HUGALL business, which concentrates on services targeted at wealthy customers, are projected to increase 51.5% year on year, while the sales of the Reuse Store business, which is the mainstay of the company, are estimated to decline 0.8% year on year, due to the curbing of the opening of new stores and the drop in sales at existing stores (97% year on year; 95% for books and software), and the growth rate of sales of the BOOKOFF Online business is forecasted to be as low as 1.2%, due to the curtailment of inventory cooperation with stores.Operating income is estimated to expand from 116 million yen in the previous term to 500 million yen. Although the company takes into account the drop in gross profit due to the decline in sales at existing stores in the Reuse Store business and the augmentation of procurement cost due to the weakening of inventory cooperation with stores in the BOOKOFF Online business, the profit and loss of the HUGALL business are expected to improve, as the company will make efforts to boost productivity in the Reuse Store business, etc. Ordinary income is forecasted to rise 61.3% year on year to 950 million yen, assuming the income from the revenues from the installation of vending machines and the recycling of used paper, etc. comparable to those in the previous term. As for dividends, the company plans to pay a term-end dividend of 10 yen/share.  (2) Business policies for the term ending Mar. 2018
The company will concentrate on the "drastic reform of the HUGALL business" and "the improvement in profitability in the Reuse Store business."
Drastic reform of the HUGALL business
HUGALL was launched in Apr. 2013, as a reuse business in which the company buys used items via all kinds of channels and sells them via optimal channels. As the company prioritized the scale expansion, sales grew accordingly, but they faced difficulty in securing a profit. In Oct. 2016, the company secured large-scale distribution warehouses and integrated distribution centers, which had been dotted in the Tokyo metropolitan area, while expecting the growth of the volume of products handled, but products were not distributed enough compared with its costs and revenue worsened. In the term ending Mar. 2018, the company will proceed with the drastic reform by (1) selecting purchase channels, (2) shrinking and rationalizing the scale of distribution centers, and (3) clearing low-priced products in stock through the network of "BOOKOFF," with the aim of making operating income positive.For (1) selecting purchase channels (policy shift from expansion), the company will focus on "in-home purchasing (concierge)" and "department store desks," which are profitable, efficient purchase channels, for which the number of competitors is small, and aim to earn profits by offering "face-to-face services for wealthy customers." For (2) shrinking and rationalizing the scale of distribution centers, the company will reduce fixed assets cost by selecting purchase channels and decreasing the used area for distribution centers by 50% (from 6,000 tsubo ( = 20,000 ㎡) to 3,000 tsubo ( = 10,000 ㎡)). About 1/6 of the used area has been already subleased, and about 2/6 is to be subleased. As usable space will be halved, it will inevitably become necessary to conduct efficient operation. For (3) clearing low-priced products in stock through the network of "BOOKOFF," the company will sell off low-priced products in stock (500 to 3,000 yen), which are not handled in the EC site, via the network of "BOOKOFF" and the campaign channel "Tokyo Furugi."  To enhance the profitability of the Reuse Store business
Since the company is forecasted to face difficulty in selling books and software due to the trend of the brand new product market, it is hard to expect that the environment surrounding existing stores will become favorable. However, some BOOKOFF stores are increasing sales and operating income due to the healthy performance of new products. Such stores include "BOOKOFF Sapporo-Miyanosawa Store (114 tsubo ( = 380 ㎡), in Hokkaido)," where trading cards and hobby goods sell well, and "BOOKOFF Omuta-Funatsu Store (136 tsubo ( = 450 ㎡), in Fukuoka)," where home appliances and cell phones sell well. The company considers that it is essential to enrich its product lineup according to regional characteristics, offer customer services, and control costs appropriately while utilizing the popularity of the "BOOKOFF" brand. In the term ending Mar. 2018, the company will enhance profitability by (1) curtailing the opening of new stores and investment, (2) polishing existing stores, and (3) closing unprofitable stores.For (1) curtailing the opening of new stores and investment, the company will continue the investment in promising fields requiring a smaller investment, such as the addition of products to existing stores and the installation of "comprehensive purchase counters" for buying a variety of products, and curb the number of large-scale complex stores to be opened (the number of large-scale complex stores to be opened in Japan: 6 in the term ended Mar. 2017 → 3 in the term ending Mar. 2018). For (2) polishing existing stores, the company established 5 local sales offices around Japan, for the purpose of conducting swift operation according to regional characteristics. The company has operated its business with organizations (the divisions for managing small, medium, and large stores) according to the store package, but it will shift to the system of managing and operating stores in each region, and brush up individual existing stores by utilizing new products, which was recently introduced, and selling products online. As part of this effort, the company will intensify the education for regional chiefs and general area managers about store operation and management, and the section in charge of human resources development, product-handling teams, and local product-handling leaders diffuse the knowledge and know-how about products inside the company. The company will also deal with the situation in which the inventory conditions and hit products vary with location, store scale, etc. In detail, each regional sales office will implement measures for maximizing their revenue, such as the transportation of stocks from the stores that procure items well to the stores that sell products favorably, and the modification of product lineups according to regional characteristics. Recently, the number of part-time workers has increased considerably as the company started dealing in new kinds of products, and gross profit rate has dropped. The term ended Mar. 2017 saw some recovery, but due to the augmentation of personnel cost, the improvement in productivity is still to be completed. The company will strive to improve productivity by training store clerks, optimize staffing, and support store operation with personnel from the headquarters. For (3) closing unprofitable stores, the company will select candidate stores to be closed in the coming 2 or 3 years. The company will enhance the profitability of business by clarifying the criteria for closing a store and making a decision to close unprofitable stores swiftly. The criteria for closing a store include the profit earning situation, recoverability, geographical factors in strategies for opening stores, and the economic rationality in lease contracts (cancellation penalty, etc.).  (3) Regarding the Group Medium-term Business Plan
The company has implemented some measures in accordance with the "Group Medium-term Business Plan", which was designed in May 2015, but it judged that it would be difficult to attain the numerical goal in the final fiscal year (term ending Mar. 2020), considering the recent business performance, and then it withdrew the "Group Medium-term Business Plan." However, the group companies will keep taking respective roles under the two mid or long-term business policies: (1) to maximize procurement by taking advantage of the group capability, and (2) to pursue maximum selling efficiency through stores and the Internet. For the foreseeable future, the company aims to invigorate the HUGALL business, make it profitable, and establish a system for earning a consolidated operating income of around 1.5 billion yen based on the stable operation of the Reuse Store business. |
| Interview with President Horiuchi |
|
After graduating from Faculty of Economics of Keio University, President Horiuchi worked at major consulting firms including Central Coopers and Liveland Consulting Co., Ltd. and Tohmatsu Consulting, LLC (current Deloitte Tohmatsu Consulting LLC). In Mar. 2006, he began working at BOOKOFF CORPORATION LTD. where he successively assumed important positions such as Chief Operating Officer/ Executive Managing Director and President and CEO of BOOKOFF Online Inc. In Apr. 2017, he took up the post of President and CEO of BOOKOFF CORPORATION LTD.
 Factors of Decline in EarningsThere are two factors. One is that our actions to pursue "BOOKOFF Reform" were too hasty. The other factor is the launch of the HUGALL business. Actions to pursue "BOOKOFF Reform" "BOOKOFF" had been offering a strong store package. However, the executives including myself had a sense of crisis that BOOKOFF would not have its future if we did not transform our company in the changing trend of times. Based on this risk, we established the "Group Medium-term Business Plan" in May 2015. The keyword was the "BOOKOFF Reform". Because we cannot keep up with the changes of the times with slow transformation, we decided the direction and chose ways to transform rapidly. Our specific actions included change of our trade areas and introduction of new products. Change of trade areas means the utilization of the Internet and posting products in the Yahoo! Auctions, which is the Internet auction service of Yahoo Japan Corporation. As for new products, we introduced home appliances. We still need to refine the home appliances field. In order to cope with the anticipated increasing burden on the operation aspect, we aimed to establish a simple operation using a database. In order to make a profit at stores, it is necessary to follow certain steps in which "humans" and "system" should be established followed by "promotion". In the new products business, inventory can be secured by ordering products to wholesalers. However, in the reuse business, it is necessary to "purchase" used products. This is why "humans" are needed first. Because transforming "BOOKOFF" all at once was the goal of the "Group Medium-term Business Plan", we also aimed at vertical start-up of the home appliances business at all of our stores by establishing a system and increasing the number of part time workers at each store. In addition, we needed to invest in employees and systems to connect our stores with the Yahoo! Auctions  Launch of the HUGALL business We launched the HUGALL business in Apr. 2013 based on the thought that our business may reach the limit just only with store business and may need to begin new businesses. The HUGALL business handles a wide range of products, without being limited to the store-based businesses. This business was launched based on the perspective of how to respond to the expanding reuse business. Our mission was to post a profit within 4 years, and the term ended Mar. 2017 was the 4th year. Although we managed to reduce the loss in the term ended Mar. 2017, we could not achieve gain partially due to the decrease of book value of inventories as a result of prioritizing the soundness of assets. The struggle of stores and the HUGALL business gave a huge negative impact on our business performance during this period. In the term ending Mar. 2018, we will focus on "the drastic reform of the HUGALL business" and "the increase of profitability in the Reuse Store business".  Actions of term ending Mar. 2018I see. So the deteriorated performance was the result of strategic expenditures for reform at once instead of deterioration simply caused by operation. We felt the sign of recovery from posting an operating income of 1.2 billion yen in the second half of the term ended Mar. 2017 despite ultimate losses. Please explain in details "the drastic reform of the HUGALL business" and "the increase of profitability in the Reuse Store business".
Is the HUGALL business promising? It seems that there are some questionable aspects of continuing the business. For selection of purchasing channels, we will focus on "in-home purchasing" and "department store desks". They are both purchase channels that lead to "face-to-face services for wealthy customers". They are highly profitable and have high asset efficiency characteristics, while there are a relatively small number of competitors. The wealthy customers have expensive and high-quality goods but they did not think about selling them. In their mind, "BOOKOFF" was not a store for them. Although goods that the wealthy customers possess are attractive to reuse business operators, department stores are difficult channels for the reuse business operators to enter. The reuse business also has an image that "it is the business of a pawn store", which does not go well with the department store brands. Our competitors have not broken through the hurdle of keeping the images of department store brands. Fortunately, our "HUGALL" brand was favorably received by some department stores. "In-home purchasing" is also in collaboration with department stores. We visit customers who are introduced by the home sales section of department stores. When we purchase customers' clothes from their closet, the home sales section of department stores will have opportunities to sell new clothes. One of the strengths of HUGALL is that it has cultivated the department store channel, ahead of other companies, and entered into a wealthy market. In other words, it has a channel to reach the wealthy customers. Having said so, even if it is an attractive market, if the business performance does not turn black after cost adjustment, we should not continue. We will determine it this year. Since the market is attractive and has a potential for expansion, I personally want it to have a breakthrough and I believe it can. We will take slow-acting measures to improve the reuse stores on a span of about 2 years and provide Surgical treatment (i.e.: changing external factors) for 1 year to HUGALL. As we explained in the settlement briefing, we will drastically shrink the spaces used at the distribution centers in line with focusing our purchase channels. We had increased purchased goods to fill up the space of the distribution centers, but we ended up just increasing unsalable inventories. Many spaces in the warehouses have just turned to storage spaces. To solve this, we will operate the business using half of the space during this fiscal year.  The HUGALL business has the strength of accessing the wealthy customers. Pardon for my earlier comment as I did not notice such a huge potential. I noticed that the HUGALL business for the term ending Mar. 2018 is anticipating to have a high sales growth (up 51.5% year-on-year) after shifting from scale expansion and significantly reducing the spaces in the distribution center.
Moving the merchandise off the shelf will be done by using "Tokyo Furugi Countdown Price" and the store network of "BOOKOFF". We will sell all the slow-moving merchandise with low price (sales price from 500 to 3,000 yen) except for EC sales within one year. We will try to sell them all by reducing the price. If the actions of this year progress as planned, it seems that we can expect profit from the HUGALL business in the next fiscal year. How about "the increase of profitability in the Reuse Store business"?
We have been working on strengthening business areas such as the Internet and improving merchandise such as home appliances. Each store now has different options to strengthen its profitability. Our sales manager or area manager will communicate with each store to discuss how to take advantage of the Internet and which commodity they should handle, and we will create a system in which the store manager can focus on its operation under each store policy. For example, some stores are successful in selling home appliances, while others are faced with difficulties to sell home appliances. We will give advices to the latter stores to work on different merchandise and create an environment in which they can carefully identify new commodity to sell for 2 to 3 years. Even the stores which have difficulties selling home appliances need to purchase used appliances if customers bring them to sell. They become inventories and these stores could not focus on new merchandise because of the stocks of home appliances. To address this issue, we are establishing a system in which the appliances can be transferred to different stores that have strong capacity to sell home appliances. In the first half of the year, all stores can join the system. In summary, the HUGALL business will shift its focus to "Face-to-face service for wealthy customers" and try to sell all inventories at once. You will also improve the management system so that each reuse store can slowly go through the reform process. How are the franchise stores doing?
Collaboration with Yahoo Japan CorporationHow about the collaboration with Yahoo Japan Corporation (4689)? The ratio of sales through the Yahoo! Auctions among directly-managed stores are hovering around 4 to 5 %. It seems that the results are being produced by better turnover rate of assets.
The ratio of sales by the Yahoo! Auctions among directly-managed stores is about 5 % on average across the stores, but this figure differs significantly by stores. The figure is about 1% among some large stores with strong sales capacity, because Yahoo! Auctions is not necessary for them to sell store merchandise. Meanwhile, small stores with small business areas have limited customers even if they purchase more goods and have better selection of goods. These stores often sell the store merchandise through the Yahoo! Auctions In other words, the stores can choose the sales method that suits their environment. The store merchandise is also listed on the Yahoo! Auctions. When a piece of merchandise on the Yahoo! Auctions is sold at a store, it is retrieved from the Yahoo! Auctions When a piece of merchandise is sold on-line, it is packed by a store and shipped from the store. There is a circumstance unique to the reuse business. For the retailing industry, fast rotation rate is not a negative element, while for the reuse industry, it is necessary to have a balance between purchase and sale because they are linked. In case of new goods, once they are sold, we just need to order more goods. In case of used goods, we need to purchase goods from the customers to keep inventory stock. Too much sales at Yahoo! Auctions will cause the shortage of stores' inventory, generating a risk of discouraging customers from coming to our stores. Therefore, we keep merchandise for about 2 to 3 months at our stores before we post them in Yahoo! Auctions. It seems that the effect of business collaboration is already present, but the effect of synergy between your company, which is "Real reuse No.1", and Yahoo, which is "Internet reuse No. 1", will be apparent from now on. We are looking forward to seeing your future actions.
To the investorsAt last, please give your message to investors.
As explained in the last page of the financial briefing document, for the time being, we will try to improve our structure to constantly generate a consolidated operating income of 1.5 billion yen and stabilize our operating foundation by leveraging and monetizing the HUGALL business and ensuring stable management of the Reuse Store business. At the same time, we will continue our efforts to refine the source of our strength, "BOOKOFF" brand, and reform "BOOKOFF". Our mission is to satisfy customers regardless of their age or gender. "BOOKOFF" is close to our customers. It is the place where they can sell things they do not need anymore and buy things they need to enrich their lives. We believe that we can grow by being a necessity for customers and making efforts with simple honesty. All the employees at our stores are energetic and have a strong sense of customer service. If customers feel it, they will use our service more, and more customers will lead to efforts of our employees to create "something better". In order to create this virtuous cycle, we will first spend 2 years to create a foundation. My role is to connect the employees' efforts with a victory. Because this is also connected to our customers' satisfaction, I am feeling a heavy responsibility. I would like to ask for your continuous support. I hope this is my last time to apologize. (lol) Thank you so much for giving us detailed explanation for hours. We understand the appeal of the HUGALL business that have successfully developed a purchasing channel to reach the wealthy customers in the last 4 years as well as the difficulty of managing the Reuse Store business in which the merchandise is linked by purchase and sale. The Reuse Store business is in the process of transition from universal policy across the stores to strengthening each store using individual feature. The collaboration with Yahoo Japan Corporation also just began, and full-fledged synergy will appear in the future. We hope the company will soon have a breakthrough.
|
| Conclusions |
|
|
| <Reference: Regarding Corporate Governance> |
 ◎ Corporate Governance Report Updated on Jun. 27, 2016
Our company upholds "Contributions to society through our business activities" as one of its managerial principles, and carries out business activities with the aim of becoming a social, public institution. Under this policy, we consider that it is essential to pursue higher management efficiency for law-abiding management and shareholder value improvement, and receive shareholders' judgment through highly transparent information disclosure. Our basic philosophy and policy regarding corporate governance based on the principles of the corporate governance code are disclosed under the title "Our Approach to Corporate Governance" and available in our website mentioned below. <Reasons for Non-compliance with the Principles of the Corporate Governance Code (Excerpts)>
Our company implements each basic principle of the corporate governance code.
Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation to invest in the shares of this company. The information and opinions contained within this report are based on data made publicly available by the Company, and comes from sources that we judge to be reliable. However, we cannot guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and or opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration.Copyright(C) 2017 Investment Bridge Co., Ltd. All Rights Reserved. |
 |
