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HUB Co., Ltd.
Financial Results for the Fiscal
Year ended February 2015
Corporate Presentation
HUB CO., LTD.
JASDAQ 3030
You’ll never walk alone. HUB CO., LTD. 2
Financial Results for
FY2/15
Business Forecast for
FY2/16
Progress of Medium-Term
Management Plan
You’ll never walk alone. HUB CO., LTD. 3
FY2/15 Management Policy
Motion Take initiative as a professional by
clarifying our role and responsibilities
to gain a foothold
You’ll never walk alone. HUB CO., LTD. 4
Sales and ordinary income achieved the plan
• Net sales 9,168 million yen (up101.9% vs. plan)
• Ordinary income 655 million yen (up 109.2% vs. plan)
Existing-store sales up 103.8% YoY
Membership exceeded 200,000 people
Opened 3 new restaurants (Initial plan 4 restaurants)
○
◎
△
Highlights
Results improved steadily.
Measures for consumption tax hike
Soccer event
○
△
○
You’ll never walk alone. HUB CO., LTD. 5
Business Environment
Harsh business environment continues while there was a slight improvement in the whole market
Changes in sales of HUB (existing-stores) and pub and beer hall (market)
representing fiscal 2000 as 100
65.0
75.0
85.0
95.0
105.0
115.0
125.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
HUB (existing-store)
Pub/beer hall (market)
93.9
98.3 95.4
99.7 96.9 100.6 100.5 99.5 95.0
96.5
99.1
103.0 100.5
97.8 104.2
103.7
102.4 98.8
97.0
97.4 106.1
101.6
106.3
79.1
125.9
98.5
100.0
101.9
103.2
103.8
Source:Food Safety and Security Foundation
(%)
Achieved 100% of YoY sales
for 5 consecutive years!
You’ll never walk alone. HUB CO., LTD. 6
FY2/15 Sales of Existing Stores YoY
Domestic pub industry’s situation remains tough
Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Full-year
2012 133.1 104.9 105.4 115.5 100.4 114.3 102.3 99.2 102.2 99.2 102.4 104.0 106.3
2013 109.0 103.2 104.6 96.8 101.4 94.9 98.5 99.9 106.0 104.5 107.6 96.5 101.9
2014 94.8 (102.4)
103.9 (102.1)
106.8 (102.2)
110.9 (101.8)
102.6 (100.5)
101.3 (103.2)
102.3 (101.0)
108.0 (104.5)
102.8 (102.4)
101.3 (100.3)
106.0 (102.0)
107.0 (101.9)
103.8 (102.0)
Reference: Average number of 13 listed companies of restaurant (pub) industry (investigation by HUB from each company’s webs ite)
Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Full-year
2012 126.5 103.0 101.0 100.6 94.8 99.8 99.4 95.9 98.6 95.8 97.0 97.8 100.8
2013 99.0 97.9 100.4 97.9 98.0 99.2 96.2 94.6 99.7 98.6 99.9 91.6 97.7
2014 96.0 100.3 100.2 95.2 97.6 98.9 99.2 101.4 98.6 97.8 98.3 105.5 99.1
HUB
Industry avg.
(%)
(%)
* Figures in ( ) are numbers excluding extraordinary factors such as effect of events and advantage and disadvantage due to the day of week
Consumption
tax hike
You’ll never walk alone. HUB CO., LTD. 7
Number of card members exceeded 200,000
Total number of members are 205,624 and increasing steadily
69,222 79,263 85,190 95,082 107,767 119,045 136,775
154,679 170,819
187,144 3,432
7,990 11,456
14,535 16,260
17,563
18,480 28.8
31.1 33.0 32.2 33.3
35.0 36.6 37.3
37.6 39.1
25.4
29.1
33.3 35.0
37.7
38.3 39.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
-30,000
20,000
70,000
120,000
170,000
220,000
FY11 1H FY12 2H FY12 1H FY12 2H FY13 1H FY13 2H FY14 1H FY14 2H FY15 1H FY15 2H
HUB members
Pct. of net sales
82 members
Pct. of net sales
(%) (Person)
82
membership
HUB
membership
You’ll never walk alone. HUB CO., LTD. 8
Newly opened 3 restaurants + renovated 1 restaurant
Opened 2 large-scale restaurants, although the number of new restaurant openings did not reach the plan of 4 restaurants
Jun. 2014 HUB Shinjuku Kuyakushodori restaurant
Sep. 2014 HUB Sendai Ichibancho 4-chome restaurant
Nov. 2014 HUB Shibuya Center-gai restaurant
Dec. 2014 HUB Shinjuku Nishiguchi O-guard restraurant
New openings
Renovated
HUB Shinjuku
Kuyakushodori
restaurant
HUB Sendai Ichibancho
4-chome restaurant
HUB Shibuya Center-
gai restaurant
HUB Shinjuku Nishiguchi
O-guard restraurant
294.21 ㎡
231.4 ㎡
125.62 ㎡
119.01 ㎡
You’ll never walk alone. HUB CO., LTD. 9
Closed 3 restaurants
Closed 3 restaurants due to rebuilding
HUB Shinjuku Yasukunidori restaurant
HUB Ueno restaurant HUB Kyoto Kyogeki restaurant
Apr. 2014 Closed HUB Shinjuku Yasukunidori restaurant (Operated for 13 years)
Reopening plan: Undecided
Jan. 2015 Closed HUB Ueno restaurant (Operated for 15 years)
Reopening plan:October 1, 2016
Jan. 2015 HUB Kyoto Kyogeki restaurant (Operated for 22 years)
Reopening plan: Undecided
You’ll never walk alone. HUB CO., LTD. 10
Effect of Consumption Tax Hike
The number of customers increased steadily even after the consumption tax hike
Source: Average of listed 13 companies in the restaurant industry (investigated by HUB from each companies’ website)
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.
HUB 104.1 107.6 103.7 104.6 102.3 106.0 108.7 104.0 101.7 108.1 109.8
Other
companies
avg. 99.8 99.3 94.9 96.9 97.8 98.7 100.0 97.9 97.2 97.8 105.6
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.
HUB 99.9 99.2 106.9 98.0 98.9 96.5 99.4 98.9 99.6 98.0 97.5
Other
companies
avg. 100.1 100.5 99.9 100.4 100.7 100.1 100.9 100.2 100.2 100.1 99.6
Consumption tax hike
HUB has passed on only the 3% Consumption Tax hike to customers in the form of higher prices at a time when many
competitors started reviewing menu prices to take advantage of the tax hike to factor in soaring raw material prices
(%)
(%)
The number of customers at existing-stores YoY
Average customer spend at existing-stores YoY
You’ll never walk alone. HUB CO., LTD. 11
FY2/14 Plan FY2/15
actual YoY Vs. plan
Net sales 8,478 9,000 9,168 108.1% 101.9%
Cost of sales 2,316 - 2,520 108.8% -
Cost rate 27.3% - 27.5% +0.2P -
SG&A expenses 5,502 - 6,034 109.7% -
SG&A expense ratio 64.9% - 65.8% +0.9P -
Operating income 703 604 658 93.6% 108.9%
Operating margin 8.3% 6.7% 7.2% ▲1.1P +0.5P
Ordinary income 707 600 655 92.6% 109.2%
Ordinary income
margin 8.3% 6.7% 7.1% ▲1.2P +0.4P
Net income 427 360 381 89.2% 105.8%
Net income per
share* 113.97 yen 95.94 yen 101.48 yen ▲12.49 yen +5.54 yen
Dividends* 28 yen 28 yen 28 yen ±0 yen ±0 yen
FY2/15 Summary of Operating Results: P/L
No. of restaurants 7 4 3 ▲4 ▲1
(Million yen)
*HUB conducted a 100-for-1 stock split and adopted a unit share system which sets a share-trading unit as 100 shares effective March 1, 2015. Accordingly, net
income per share and dividends are presented assuming that the stock split was conducted at the beginning of the previous fiscal year.
You’ll never walk alone. HUB CO., LTD. 12
FY2/15 Ordinary Income YoY
Increase in
personnel
expenses
▲¥121 million
Effect of restaurant
openings in FY2/15
▲¥42 million
FY2/14
Effect of restaurant
openings in FY2/14
+¥120 million
FY2/15
Other
+¥13 million Closing due to
rebuilding
▲¥102 million
Increase in profit due to
increased existing-store sales
+¥159 million
Increased cost
rate ▲¥15 million
Ordinary income
¥707 million
Ordinary income
¥655 million
Increase in cost
due to
maintenance of
existing
restaurants
▲¥64 million
You’ll never walk alone. HUB CO., LTD. 13
BS FY2/14 FY2/15 Difference
Current assets 1,658 2,016 +358※
Total fixed assets 2,644 2,678 +34
Total 4,302 4,695 +393
Current liabilities 1,147 1,375 +228※
Fixed liabilities 676 566 ▲110
Total liabilities 1,823 1,941 +118
Total net assets 2,478 2,753 +275
Total 4,302 4,695 +393
CF FY2/14 FY2/15
Cash flows from
operating activities 768 964※
Cash flows from
investing activities ▲377 ▲346
Cash flows from
financing activities ▲250 ▲277
Cash and cash
equivalents at end of
year 1,303 1,644
(単位:百万円) FY2/15 Summary of Operating Results: B/S, CF
※Due to accrued consumption tax
Net assets:Net income/Dividend paid
(Million yen)
+381 ▲105
+110
You’ll never walk alone. HUB CO., LTD. 14
Financial Results for FY2/15
Business Forecast for
FY2/16
Progress of Medium-Term
Management Plan
You’ll never walk alone. HUB CO., LTD. 15
Assumptions for forecast / FY2/16 Management policy
FY2/16 Management policy
People
To generate the great force, promote to improve individual skills and bring it together
Assumptions for forecast Japan’s economy is showing gradual recover trend. However, the situation remains unpredictable because
prospect of consumer spending is still unclear, and there are concerns about pressure on profits from
difficulty in recruitment and soar in raw material prices
You’ll never walk alone. HUB CO., LTD. 16
TOPICS 2015
■ Reopened HUB Roppongi restaurant
as the “memorial restaurant”
■ Sports event (UK rugby)
■ 35th anniversary
35 years since the establishment in1980
Mar.1980 Opened HUB Sannomiya restaurant
as the first restaurant
(Closed in 1986)
Aug. 1980 Opened HUB
Roppongi restaurant as the
second restaurant
New corner displaying the history of HUB
Current HUB Roppongi restaurant
(The oldest extant restaurant)
You’ll never walk alone. HUB CO., LTD. 17
FY2/15
actual
FY2/16
forecast YoY
Net sales 9,168 9,400 102.5%
Operating income 658 695 105.6%
Operating margin 7.2% 7.4% +0.2P
Ordinary income 655 690 105.3%
Ordinary income margin 7.1% 7.3% +0.2P
Net income 381 410 107.6%
Net income per share※ 101.48 yen 109.20 yen +7.72 yen
Dividend※ 28 yen 28 yen ±0 yen
Existing-store sales YoY 103.8% 100.0% ▲3.8P
New restaurants 3 7 +4
Closing due to rebuilding 3 1 ▲2
Capital investment 464 530 114.2%
(Million yen)
FY2/16 Business Forecast
*HUB conducted a 100-for-1 stock split and adopted a unit share system which sets a share-trading unit as 100 shares effective March 1, 2015. Accordingly, net
income per share and dividends are presented assuming that the stock split was conducted at the beginning of the previous fiscal year.
You’ll never walk alone. HUB CO., LTD. 18
FY2/15 Ordinary income YoY
Increase in
personnel
expenses
▲¥95 million
Effect of restaurant
openings in FY2/16
▲¥56 million
FY2/15
Effect of
restaurant
openings in
FY2/15
+¥164 million
FY2/16
Decrease in
depreciation cost
+¥40 million Closing due to rebuilding
▲¥127 million
Increase in profit due
to increased
existing-store sales
+¥8million
Increase in raw
material cost
▲¥24 million
Ordinary income
¥655 million
Ordinary income (forecast)
¥690 million
Decrease in cost
for maintenance
of existing
restaurants
+¥48 million
Cooperation money from manufacturers etc.
+¥77 million
You’ll never walk alone. HUB CO., LTD. 19
Financial Results for FY2/15
Business Forecast for FY2/16
Progress of Medium-Term Management
Plan
You’ll never walk alone. HUB CO., LTD. 20
Business environment and issues
・Soar in raw material
prices
・Difficulty in recruitment
due to labor shortage/
rise in labor cost
Business environment
Restaurant industry
・Pressure on household
finance due to
consumption tax increase
・Rise in prices of
consumer goods
・Consciousness on
defending livelihoods due
to unclear outlook
Consumer
Current status of the restaurant industry
After a brief period of recovery from 2013, negative trends resurface as customer traffic falls
Competition heats up and goes beyond business sectors and business formats
New store openings slow down as construction costs surge and labor shortages surface
Business model cycle shortens further
Differences in competitive power among companies becomes evident
Exp
an
sio
n
stra
teg
ies
Diffe
ren
tiatio
n s
trate
gie
s
Operate various types of restaurants
Business diversification
Overseas development
Operate only one type of restaurant
Further development of the business
Unique service backed by
excellent human resources
Formation of local
communities
Pursuit of “Valuable price”
Be unique!
Measures by companies
You’ll never walk alone. HUB CO., LTD. 21
Medium-term management policy (FY2/15 through FY2/17)
Basic policy and outline of the strategies
Basic policy Recruit and train powerful workforces with a strong dedication to our corporate philosophy
(Build a strong foundation capable of running a 100-store network)
Conduct renovation and maintenance of
existing restaurants
Priority issue 1 Acquire human resources
Priority issue 3 Create value of menu items
Outlin
e o
f stra
tegie
s
Priority issue 2
You’ll never walk alone. HUB CO., LTD. 22
Priority issue 1:Acquire human resources
As the restaurant network reaches 100, strengthen recruiting activities to hire the
people who are best suited to accomplish strategic objectives. In addition, provide
employees with the best compensation and benefits in the industry to become an
even more attractive place to work
Difficulty in recruitment backed by
economic recovery
【Ratio of personnel expenses】
FY2/14 31.9%
FY2/15 32.9%
●Implemented measures ・Crew: Up hourly wage
⇒ Acquired necessary crew
・Corporate member:Revised the salary
⇒Achieve the highest wage levels in the
industry
Increasing difficulty in recruiting
・Recruitment of crews:Hourly wages are in the
increasing trend
・Recruitment of corporate members: Shorten the
recruitment period by three months by leveraging
the company’s ethics charter
●Measure
Establish the “Recruiting and Training Division”
⇒ Recruit highly capable human resources by
leveraging a team specially established for
recruiting and training new employees
FY2/15 FY2/16
You’ll never walk alone. HUB CO., LTD. 23
Do maintenance of existing restaurants that weren’t previously done
Build a mechanism for regular maintenance
Priority issue 2 : Renovation and maintenance of existing restaurants
Slow down new store openings in order to
achieve a 100-restaurant network by
assuring that existing restaurants are in
best condition. Focus on renovation and
refurbishing of existing restaurants
● Renovation and refurbishing of existing
restaurants
Prioritize refurbishing of restaurants
more than ten years old
⇒ Renovated 18 restaurants
●Renovation and maintenance
of existing restaurants
Do maintenance to restaurants
7 years to 9 years old
FY2/15 FY2/16
You’ll never walk alone. HUB CO., LTD. 24
Restaurant opening plan However decelerate its pace in the previous year, open restaurants at usual pace for FY2/16
■Opened 7 restaurants
① May 29, 2015 HUB Umeda Chayamachi Applause restaurant
② Jun. 2015 HUB Shinyokohama restaurant (provisional title)
③ Jun. 2015 HUB 【Kanto】
④ Oct. 2015 HUB 【Kansai/Chubu】
⑤ Nov. 2015 HUB 【Kansai/Chubu 】
⑥ Dec. 2015 HUB 【Kanto】
⑦ Jan. 2016 HUB 【Kanto】
Maintain new store openings rate to about 10% of existing restaurants.
You’ll never walk alone. HUB CO., LTD. 25
Priority issue 3 Create value of menu items
Reduce purchase cost and improve the ability to procure to realize magazine price and develop killer menu
items creating even more attractive menu items
Soar in raw material prices
●Maintain and reduce purchase cost
・Cost rate
Plan 28.0%
Actual 27.5%
(FY2/14 27.3%)
●Develop killer menu items
●Brush-up of existing menu items
Improve the quality of fish&chips
Raw material prices continue to rise
● Maintain and reduce purchase cost
・Cost rate
Target 27.0%
⇒ Review procurement and renegotiate supplier prices
Cooperation money from
manufacturers
●Brush-up of magazine price menu items
⇒ Brush-up of existing menu items
Develop more menu items
Pursue “Valuable price” further
FY2/15 FY2/16
You’ll never walk alone. HUB CO., LTD. 26
Summary
Mid-term
management plan
FY2/15
FY2/15
actual
Net sales 9,000 9,168
Cost rate 28.0% 27.5%
SG&A
ratio
5,922
65.8%
6,034
65.8%
FL ratio 60.4% 60.4%
Ordinary
income
ratio
600
6.7%
655
7.1%
Net
income 360 381
Dividend* 28 yen 28 yen
Mid-term
management plan
FY2/16
FY2/16
forecast
9,300 9,400
28.0% 27.0%
6,072
65.3%
6,213
66.1%
60.1% 60.5%
670
7.2%
690
7.3%
400 410
28 yen 28 yen
Mid-term
management plan
FY2/17
10,000
28.0%
6,444
64.4%
59.6%
800
8.0%
480
31 yen
(Million yen)
*HUB conducted a 100-for-1 stock split effective March 1, 2015. Accordingly, dividend per share is presented assuming that the stock split was conducted at the
beginning of the previous fiscal year.
You’ll never walk alone. HUB CO., LTD. 27
Thank you for your attention.
IR contact
Public Relations & Investor Relations Department, HUB Co., Ltd.
TEL: 03-3526-8690
E-mail:ir@pub-hub.com
You’ll never walk alone. HUB CO., LTD. 28
739
1,829 2,021 2,318
2,567 2,797 3,016
3,265 3,811
4,306
4,989
5,620
6,402
6,811
7,586 8,478
9,168 9,400
10,000
12 97 100
83
192
143 158 144 167
205 241
275
354
560
659 707 655 690
800
0
100
200
300
400
500
600
700
800
900
0
2,000
4,000
6,000
8,000
10,000
12,000
Net sales
Ordinary income
(Million yen) (Million yen)
Plan
Build a base for 3 years
Changes in business results
Reference
You’ll never walk alone. HUB CO., LTD.
2016
4(+1)
2015
4(-1)
29
FY2/16 - FY2/17 Restaurant openings plan
Open in Tokyo area, Kansai area and Nagoya
2016
3
2015
2
Kanto Kansai Nagoya Sendai Total
Existing restaurant 70 10 3 2 85
FY2/16 4(-1) 2 1 0 91
FY2/17 4(+1) 3 1 0 100 (-1) is closing of HUB Shibuya second restaurant due to rebuilding
(+1) is reopening of HUB Ueno restaurant
Existing
restaurant
10 Existing
restaurant
70
Existing
restaurant
2
2016
1
2015
1
Existing
restaurant
3
Reference
You’ll never walk alone. HUB CO., LTD. 30
While securing a certain amount of retained earnings to positively develop business and to prepare for
unforeseen business risk, total amount of dividend will be about 15% of ordinary income and a dividend
payout ratio of less than 50%.
0
5
10
15
20
25
30
35
FY2/08 FY2/09 FY2/10 FY2/11 FY2/12 FY2/13 FY2/14 FY2/15 FY2/16 FY2/17
8 11 11
15
22
26 28 28 28
31
Plan Dividend
forecast
Changes in dividends
Reference
*HUB conducted a 100-for-1 stock split effective March 1, 2015. Accordingly, dividend per share and is presented assuming that the stock split was conducted at
every fiscal year.
You’ll never walk alone. HUB CO., LTD. 31
Business of HUB
Corporate philosophy
To bring the British pub culture to Japan, we will operate an “exciting
culture creation business” that uses these pubs to give customers
memorable experiences.
Employees
Customers
Local
Clients
Owners of properties
Shareholders
・ Achieve the highest wage levels in the industry
・ A workplace where one can work with confidence for a
long time (Turnover rate : 5%)
・Stable dividend
・Sustainable growth
・ A “Community-Based” store with deep roots the
local community (operate J-League support
restaurants)
・Form local communities
・ Hire more handicapped persons
・ Stable business relationship
・ Long-term association (No store closures due to poor
business performance for the past 15 years)
Reference
You’ll never walk alone. HUB CO., LTD. 32
Closing price as of Apr. 13, 2015 Stock price 1,850 yen,
Market capitalization 6,947 million yen
Stock price chart (five years)
Reference
You’ll never walk alone. HUB CO., LTD.
Domestic corporations
51%
Individuals, others 27%
Foreign corporations
19%
Financial institutions
2%
Treasury stock
1%
33
Company name HUB Co., Ltd.
Head quarter 3-14-10 Sotokanda, Chiyoda-ku, Tokyo
Date of establishment May 28, 1998 (foundation:March 1980)
Date of listing April 3, 2006
Representative Tsuyoshi Ohta, president and CEO
Business Description Operating the English pub chain business
Employees 251 (temporary employees: 544)
Number of shares issued 1,251,700 shares(including treasury stock)
Number of shareholders:762
Major shareholder ROYAL HOLDINGS CO LTD 32.84%
KUZE CO LTD 9.75%
KAWACHIYA 9.59%
STATE STREET BANK AND TRUST 505224 6.32%
SCB(Hongkong) SAC・DBS VICKERS HONG KONG LTD 3.67%
TOKAI TOKYO SECURITIES ASIA LTD 2.29%
SHINICHI TAKANO 2.18%
KENICHI KANESHIKA 2.13%
HUB SHAREHOLDERS ASSOCIATION 1.66%
The Master Trust Bank of Japan ,Ltd. (Trust account) 1.54%
Distribution condition
by shareholders
Company Description/Shareholders Situation (as of end-Feb. 2015)
Reference
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