2015 pres English.pdf

HUB Co., Ltd.

Financial Results for the Fiscal

Year ended February 2015

Corporate Presentation

HUB CO., LTD.

ＪＡＳＤＡＱ３０３０

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


FY2/15 Management Policy

Motion Take initiative as a professional by

clarifying our role and responsibilities

to gain a foothold


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

○

△

○


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!


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


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


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 ㎡


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


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


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.


FY2/15 Ordinary Income YoY

Increase in

personnel

expenses

▲¥121 million

Effect of restaurant

openings in FY2/15

▲¥42 million

FY2/14


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


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


Financial Results for FY2/15

Business Forecast for

FY2/16

Progress of Medium-Term

Management Plan


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


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）


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.


FY2/15 Ordinary income YoY

Increase in

personnel

expenses

▲¥95 million


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


Financial Results for FY2/15

Business Forecast for FY2/16

Progress of Medium-Term Management

Plan


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


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


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


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


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.


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


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.


Thank you for your attention.

IR contact

Public Relations & Investor Relations Department, HUB Co., Ltd.

TEL: 03-3526-8690

E-mail：[email protected]


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


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.


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


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

2015 pres English.pdf

Documents

Transcript of 2015 pres English.pdf