FY 2010 Financial Results Presentation Materials · FY 2010 Financial Results Presentation Materials 3 Unit: mn yen FY 2009 Ratio FY 2010 Ratio Yoy plan Vs. Factors Net sales 71,091

FY 2010FY 2010Financial Results Presentation MaterialsFinancial Results Presentation Materials

May 11, 2011BOOKOFF Corporation Ltd.BOOKOFF Corporation Ltd.

Ordinary profit fell short of forecast in the fiscal year ended Ordinary profit fell short of forecast in the fiscal year ended March 31, 2011 on the impact of the March 31, 2011 on the impact of the Great East Japan Earthquake.Great East Japan Earthquake.Added to the expected effects of Added to the expected effects of ““the application of asset retirement obligations,the application of asset retirement obligations,”” the Group the Group recorded an unanticipated recorded an unanticipated ““loss on disaster,loss on disaster,”” resulting in lower income on higher sales. resulting in lower income on higher sales.

FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials 11

Immediate performance is improving due to factors including a reImmediate performance is improving due to factors including a recovery of disastercovery of disaster--stricken areas. stricken areas. New stores are getting off to a strong start, and our policy on New stores are getting off to a strong start, and our policy on opening new stores is unchanged.opening new stores is unchanged.We plan to continue to open 4 We plan to continue to open 4 –– 5 BOOKOFF SUPER BAZAAR stores annually.5 BOOKOFF SUPER BAZAAR stores annually.

Earnings forecasts for the fiscal year to March 2012 are slightlEarnings forecasts for the fiscal year to March 2012 are slightly conservative due to ongoing y conservative due to ongoing uncertainty about the earthquakeuncertainty about the earthquake’’s impact on consumption, but we anticipate gains in both sales s impact on consumption, but we anticipate gains in both sales and income. and income. Ordinary profit is forecast to reach Ordinary profit is forecast to reach ¥¥3.5 bn, matching the Group3.5 bn, matching the Group’’s alls all--time high. time high.

FY 2010FY 2010Consolidated Financial Results SummaryConsolidated Financial Results Summary



Unit: mn yen

FY 2009 Ratio FY 2010 Ratio Yoy Vs. plan Factors

Net sales 71,091 100.0% 73,345 100.0% 103.2% -2,655New emphasis on gross margin. Earthquake’s negative impact on existing store sales: approx. ¥900 mn.

Gross profit 40,081 56.4% 41,442 56.5% 103.4% -Declining trend in gross margin ratio due to business mix comes full circle. Slight gain from 2H onward as product-specific gross margin ratios improve.

SG&A 37,269 52.4% 38,694 52.8% 103.8% -Amid progress in cost reductions, prior investments made in Reuse Business personnel. Cost cut benefits seen in 2H but full-year gains are slight.

Operating income 2,811 4.0% 2,748 3.7% 97.8% -552 Improved gross margin ratio largely offsets

missed portion of sales target. However, ordinary profit misses target as earthquake-related sales decline in Tohoku and Kanto regions.

Ordinary profit 3,137 4.4% 3,157 4.3% 100.6% -443

Extraordinary gain 119 0.2% 139 0.2% 116.8% - 【Extraordinary Losses】

・¥626 mn loss on adjustment for changes of accounting standard for asset retirement obligations (included in initial forecast)

・Loss on disaster: ¥275 mn (not in initial forecast)

Extraordinary loss 634 0.9% 1,628 2.2% 256.9% -

Net income 1,378 1.9% 568 0.8% 41.2% -632 Net income declines as ordinary profit misses target due to earthquake’s impact and extraordinary losses caused by asset retirement obligations, loss on disaster are recorded.EPS（yen） 76.96 31.57 -45.39

FY 2010 Consolidated Financial Results SummaryFY 2010 Consolidated Financial Results Summary

Consolidated Statements of IncomeConsolidated Statements of Income


Unit: mn yen

FY 2009 Ratio FY 2010 Ratio Change Factors

Cash/deposits 4,832 13.2% 6,631 17.0% +1,799

Cash and deposits rise on ¥2.0 bn in temporary bank loans taken to ensure business stability following the earthquake.

Inventories 9,072 24.8% 9,481 24.2% +408 Inventories rise on business expansion (inventory turnover rate consistent with previous year’s)

Current assets 17,374 47.5% 19,333 49.4% +1,959Noncurrent assets 19,175 52.5% 19,773 50.6% +598 （Noncurrent Assets）

Asset retirement obligations: + ¥427 mn;systems development/goodwill/guarantee deposits: + ¥671 mn;stocks of subsidiaries & affiliates (consolidation) : -¥584 mn

Total assets 36,549 100.0% 39,107 100.0% +2,558

Current liabilities 14,738 40.3% 16,631 42.5% +1,893 Short-term loans payable: + ¥2,240 mn

Accounts payable-trade: -¥ 411 mn

Noncurrent liabilities 9,096 24.9% 9,738 24.9% +641 Asset retirement obligations: + ¥1,135 mn

Long-term loans payable: -¥437 mn

Total liabilities 23,834 65.2% 26,369 67.4% +2,534Net Assets 12,714 34.8% 12,738 32.6% +23


Consolidated Balance SheetConsolidated Balance Sheet

Interest-bearing debt = Short-term loans payable + current portion of long-term loans payable + long-term loans payable + long-term accounts payable – other (installment)

Interest-bearing debt 15,801 43.2% 17,574 44.9% +1,773 -¥227 mn year-on-year, excluding temporary bank loans

(¥2.0 bn)


Unit: mn yen

FY 2009 Ratio FY 2010 Ratio Yoy Factors

BOOKOFF Business 47,724 67.1% 50,001 68.2% 104.8%【BOOKOFF Business】

・New stores fuel growth at directly operated stores・Online sales increase【Reuse Business】

・New stores fuel growth at directly operated stores・Yoy gain at existing stores (102.9%)【Packaged Media Business】

・Existing rental, new merchandise stores decline Yoy・Closures of unprofitable new book stores

Reuse Business 8,940 12.6% 9,761 13.3% 109.2%

Packaged Media 13,462 18.9% 12,943 17.6% 96.1%

Other 963 1.4% 638 0.9% 66.2%

Corporate/Adjustments - - - - -

Total 71,091 100.0% 73,345 100.0% 103.2%


Performance by SegmentPerformance by Segment＜＜SalesSales＞＞

FY 2009 Margin FY 2010 Margin Yoy Factors

BOOKOFF Business 4,288 9.0% 4,724 9.4% 110.2% 【BOOKOFF Business】

・Increased earning power of new stores, increased profitability of existing stores【Reuse Business】

・Prior investment in personnel 【Packaged Media Business】

・Gross margin ratio improvement and cost cuts offset sales drop ・Closures of unprofitable stores【Corporate】

・Portion of expenses shifted to other segments (transferred from BOOKOFF Business): -80; Allowance for doubtful accounts: -50; taxes -50; Strengthening of HQ: -30

Reuse Business 128 1.4% -116 -1.2% -

Packaged Media -27 -0.2% 30 0.2% -

Other 49 5.1% 9 1.4% 18.5%

Corporate/Adjustments -1,626 - -1,898 - -

Total 2,811 4.0% 2,748 3.7% 97.8%

＜＜Operating incomeOperating income＞＞


Unit: mn yen

FY 2009 FY 2010 Change Factors

Income before income taxes 2,622 1,668 -954 Due to the recording of retirement asset obligations & a loss on disaster

Depreciation & amortization 1,958 2,348 +390 Factors arising from increased capital investment for store openings

Loss on disaster - 275 +275 Damaged to goods/allowance for repairs resulting from the Great East Japan Earthquake

Loss on adjustment for changes of accounting standard for asset

retirement obligations- 626 +626 One-time extraordinary loss caused by change in accounting

principles

Impairment 311 365 +54Change in current assets/liabilities -55 -731 -786 Inventories: -¥277 mn (business expansion)

Income taxes paid/other -574 -1,007 -433 Income taxes (including refunds): -¥378 mn

Operating Activities 4,262 3,544 -718Change in noncurrent assets &

guarantee deposits -1,248 -1,272 -24 Investment in store openings and computer systems

Outlays for store acquisitions -294 -786 -492 Acquisition of 14 franchise stores (mainly in Chukyo region)

Other -363 -12 +351 (FY 2009) Stocks of subsidiaries & affiliates: -¥258 mn

Investing Activities -1,905 -2,070 -165Operating activities + investing activities 2,356 1,473 -883Financing activities -1,955 264 +2,219 ¥2.0 bn in temporary bank loans following the earthquake

Cash & cash equivalents 4,711 6,505 1,794 Cash and deposits rise temporarily on temporary loans


Consolidated Cash FlowsConsolidated Cash Flows

3,243 3,371

4,509

3,820 3,717

837

3,300

2,0402,348

1,9581,756

1,3541,003

2,336

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 (est.)

Mn yen

Total capital investment Depreciation



Capital Investment & Depreciation Actual vs. PlanCapital Investment & Depreciation Actual vs. Plan

FY 2011 estimate: FY 2011 estimate: ¥¥3.3 bn in capital investment, 3.3 bn in capital investment, ¥¥2.3 bn in depreciation2.3 bn in depreciationInvestment in new store openings in line with prior FY, but downInvestment in new store openings in line with prior FY, but down yoy due to POS system development, yoy due to POS system development, largelarge--scale acquisition of franchise stores in FY 2010 scale acquisition of franchise stores in FY 2010

Online business launched

Acquired stock in TSUTAYA’s operating company

Took over business operations of new book stores

Accelerated opening of large-scale urban stores and mixed secondhand retail complexes.

New POS system developedAcquired franchise stores (14)


Impact of the Great East Japan Earthquake (1)Impact of the Great East Japan Earthquake (1)


March monthly net sales

BOOKOFF Stores Reuse Stores

Existing storesYoy

No. of closed stores as of

3/31

Existing storesYoy


3/31

Tohoku region 72.7% 7 30.3% 5

Kanto region 86.9% 2 68.5% 1

Other 97.9% - 93.4% -

Total 89.1% 9 73.8% 6

2. Loss on disaster (extraordinary loss) recorded2. Loss on disaster (extraordinary loss) recorded

1. Impact on sales1. Impact on sales

・・Damage to merchandiseDamage to merchandise・・Allowance for repairsAllowance for repairs・・Financial contributions, relief suppliesFinancial contributions, relief supplies・・Recovery personnel costs, compensation for employees on leaveRecovery personnel costs, compensation for employees on leave

Kanto, Tohoku regions account for nearly 70% of both no. of storKanto, Tohoku regions account for nearly 70% of both no. of stores and net saleses and net salesShortened business hours due to scheduled power outages hit saleShortened business hours due to scheduled power outages hit saless

*Data from directly operated stores

Total: Total: ¥¥275 mn275 mn

404

193

803

145228

1,077

3,600

3,1963,003

2,200

510

1,180

3,013

3,157

2,785

1,708

333

943

-600

0

600

1,200

1,800

2,400

3,000

3,600

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Unit: mn yen

-300

0

300

600

900

1,200

1,500

1,800FY initial plan (monthly)Actual (monthly)

FY initial plan(cumulative)Actual (cumulative)




As of 3Q, ¥500 mn short of FY initial plan

Gross margin ratio improvement and cost cuts emerge; clear initial target for 3 straight months starting in Dec.; gap closed to -¥180

mn as of Feb.

¥600 mn set as March target; earthquake

strikes As of 2Q, ¥240 mn short

of FY initial plan

Ordinary profit trends

Ordinary profit trends




～～ BOOKOFF Group InitiativesBOOKOFF Group Initiatives ～～

1. Recovery assistance for member stores in disaster areas1. Recovery assistance for member stores in disaster areas

1. Personnel assistance1. Personnel assistance 2. Financial contributions (2. Financial contributions (¥¥50 mn from the company)50 mn from the company)

2. 2. ””Sell and support programSell and support program””: Started program that allows customers to donate by selling boo: Started program that allows customers to donate by selling books, etc.ks, etc.

As of 5/6:As of 5/6: 8,596 participants, 8,596 participants, ¥¥14.25 mn in donations14.25 mn in donations

3. Provision of books (through NPOs, etc.)3. Provision of books (through NPOs, etc.)

4. Financial contributions made in the company4. Financial contributions made in the company’’s name: s name: ¥¥10 mn (total, through Japan Red Cross)10 mn (total, through Japan Red Cross)

Net SalesBOOKOFF Stores Reuse Stores

Existing storesYoy


3/31

Existing storesYoy


3/31

Tohoku region 72.7% 7 30.3% 5

Kanto region 86.9% 2 68.5% 1

Other 97.9% － 93.4% －

Total 89.1% 9 73.8% 6

BOOKOFF Stores Reuse StoresExisting storesYoy


4/30

Existing storesYoy


4/30

89.4% 1 22.5% －

96.7% 1 100.2% －

97.4% － 112.0% －

96.5% 2 99.2% All stores reopen

＜＜March 2011March 2011＞＞＜＜April 2011April 2011＞＞ *Directly operated store results; no. of stores*Directly operated store results; no. of stores

Major recovery in immediate performance on normalization of busiMajor recovery in immediate performance on normalization of business hours, reopening of closed storesness hours, reopening of closed storesTargeted products particularly strong (April yoy net sales by prTargeted products particularly strong (April yoy net sales by product: comics 104.8%, clothing 108.0%) oduct: comics 104.8%, clothing 108.0%)

* For assumptions behind plan for yoy change in existing store net sales, please see pp. 13-14. * April monthly consolidated ordinary profit up by ¥48 mn (123%) on improved gross margin ratio

Morning meeting on reopening day (4/30), Morning meeting on reopening day (4/30), BOOKOFF SUPER BAZAAR Sendai Izumi BOOKOFF SUPER BAZAAR Sendai Izumi FuruFuru--uchi Store uchi Store

FY 2011FY 2011Consolidated Earnings ForecastConsolidated Earnings Forecast



Unit: mn yen

FY 2010 Ratio FY 2011 Ratio Yoy Change

Net sales 73,345 100.0% 77,000 100.0% 105.0% +3,655

Operating income 2,748 3.7% 3,200 4.1% 116.4% +452

Ordinary profit 3,157 4.3% 3,500 4.5% 110.9% +343

Net income 568 0.8% 1,600 2.1% 281.7% +1,032

EPS (yen) 31.57 88.33 +56.76

FY 2011 Consolidated Earnings ForecastFY 2011 Consolidated Earnings Forecast

Consolidated P/L PlanConsolidated P/L Plan

Please see p.13Please see p.13--14 for assumptions behind plan14 for assumptions behind planNet income to increase as extraordinary losses on Net income to increase as extraordinary losses on ¥¥626 mn in asset retirement 626 mn in asset retirement obligations and obligations and ¥¥275 mn loss on disaster (including provision) disappear 275 mn loss on disaster (including provision) disappear


Assumptions behind Plan by Segment (1): Segment RequirementsAssumptions behind Plan by Segment (1): Segment Requirements


□Overall・Open 4-5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)・Profit increase mainly due to contributions by stores newly opened in FY 2010・Increase number of stores with over ¥100 mn in ordinary profit from 4 to 7 through improvements at existing BSB stores (see p.26)

・Termination of T-POINT service to generate ¥300 mn reduction in 1H operating costs, but half of that amount will be used on chain enhancements, including franchise stores

・Adopt slightly conservative plan due to ongoing uncertainty about the earthquake’s impact on consumption

□□OverallOverall・・Open 4Open 4--5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)5 new BOOKOFF SUPER BAZAAR (BSB) stores (3 stores in FY 2010)・・Profit increase mainly due to contributions by stores newly openProfit increase mainly due to contributions by stores newly opened in FY 2010ed in FY 2010・・Increase number of stores with over Increase number of stores with over ¥¥100 mn in ordinary profit from 4 to 7 100 mn in ordinary profit from 4 to 7 through improvements at existing BSB stores (see p.26)through improvements at existing BSB stores (see p.26)

・・Termination of TTermination of T--POINT service to generate POINT service to generate ¥¥300 mn reduction in 1H operating costs, 300 mn reduction in 1H operating costs, but half of that amount will be used on chain enhancements, inclbut half of that amount will be used on chain enhancements, including franchise storesuding franchise stores

・・Adopt Adopt slightly conservative plan due to ongoing uncertainty about the slightly conservative plan due to ongoing uncertainty about the earthquakeearthquake’’s impact s impact on consumptionon consumption

□BOOKOFF Business・Shift from “pursuit of sales” to “gross margin ratio + productivity,” strengthen measures to improve gross margin ratio for each product

・Yoy change in existing store net sales (forecast): 1H: 97.9%, 2H: 102.7% (see pg.14)・Stores’ gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2% (+0.9% yoy)

□□BOOKOFF BusinessBOOKOFF Business・・Shift from Shift from ““pursuit of salespursuit of sales”” to to ““gross margin ratio + productivity,gross margin ratio + productivity,”” strengthen measures to improve strengthen measures to improve gross margin ratio for each productgross margin ratio for each product

・・Yoy change in existing store net sales (forecast): 1H: 97.9%, 2HYoy change in existing store net sales (forecast): 1H: 97.9%, 2H: 102.7% (see pg.14): 102.7% (see pg.14)・・StoresStores’’ gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2%gross margin ratio (forecast): 1H: 64.1% (+1.1% yoy), 2H: 64.2% (+0.9% yoy)(+0.9% yoy)

□Reuse Business・Tie prior investment to profitability through operational optimization/streamlining, such as structural changes implemented in 2H of previous fiscal year.

・Yoy change in existing store net sales (forecast): 1H: 101.9%, 2H: 107.9% (see p.14)・Stores’ gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%（+2.4% yoy)

□□Reuse BusinessReuse Business・・Tie Tie prior investment to profitability through operational optimizatiprior investment to profitability through operational optimization/streamlining, such as on/streamlining, such as structural changes implemented in 2H of previous fiscal yearstructural changes implemented in 2H of previous fiscal year. .

・・Yoy change in existing store net sales (forecast): 1H: 101.9%, 2Yoy change in existing store net sales (forecast): 1H: 101.9%, 2H: 107.9% (see p.14)H: 107.9% (see p.14)・・StoresStores’’ gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%gross margin ratio (forecast): 1H: 64.1%(+0.8% yoy), 2H: 64.5%（（+2.4% yoy)+2.4% yoy)


Assumptions behind Plan by Segment (2): Assumptions behind Plan by Segment (2): Yoy Change in Existing Store SalesYoy Change in Existing Store Sales

Yoy change in Yoy change in existing store existing store

net salesnet sales

1H1H 2H2HFull yearFull year

1Q1Q 2Q2Q 3Q3Q 4Q4Q

BOOKOFFstores

97.8% 97.9% 102.2% 103.2%100.2%

97.9% 102.7%

Reusestores

101.4% 102.4% 103.5% 113.6%104.8%

101.9% 107.9%

(Existing BOOKOFF Stores)(Existing BOOKOFF Stores)Decline in CD sales is a main factor behind drop in IH (book salDecline in CD sales is a main factor behind drop in IH (book sales to rise)es to rise)Strive to improve gross margin ratio, continuing shift from Strive to improve gross margin ratio, continuing shift from ““salessales”” to to ““gross margingross margin”” in FY in FY 2010 2H 2010 2H Strong 4Q gain due to comparison with sales lost in March 2011 fStrong 4Q gain due to comparison with sales lost in March 2011 following the earthquakeollowing the earthquake

(Existing Reuse Stores)(Existing Reuse Stores)1Q reflects impact of delayed resumption of operations in disast1Q reflects impact of delayed resumption of operations in disasterer--stricken areas (BSB Sendai stricken areas (BSB Sendai Izumi FuruIzumi Furu--uchi store reopened on 4/30)uchi store reopened on 4/30)Strong 4Q gain due to comparison with sales lost in March 2011 fStrong 4Q gain due to comparison with sales lost in March 2011 following the earthquakeollowing the earthquake



By segment: Factors behind change in ordinary profitBy segment: Factors behind change in ordinary profit


3,1573,1573,157

3,5003,5003,500BOOKOFF BusinessBOOKOFF Business

Reuse BusinessReuse Business

Packaged Packaged Media BusinessMedia Business Other Other

CorporateCorporate

FY 2010 ActualFY 2010 Actual FY 2011 PlanFY 2011 Plan

Unit: mn yenUnit: mn yen

+200+200

+190+190--4040 --77

SegmentSegment ChangeChange Factors Behind ChangeFactors Behind Change

BOOKOFF BusinessBOOKOFF Business +200+200FY 2010 new stores: +350; new stores: FY 2010 new stores: +350; new stores: --150, T150, T--POINT operating costs: +300; online: +70POINT operating costs: +300; online: +70Franchise chain enhancements: Franchise chain enhancements: --180; new POS system: 180; new POS system: --100; gain on recycled paper sales 100; gain on recycled paper sales --40; other 40; other --5050

Reuse BusinessReuse Business +190+190 Existing stores: +90; FY 2010 new stores: +250, new stores: Existing stores: +90; FY 2010 new stores: +250, new stores: --180; T180; T--POINT operating POINT operating costs: +50; franchise chain enhancements: costs: +50; franchise chain enhancements: --2020

Packaged Media/Other/CorporatePackaged Media/Other/Corporate --4747 TSUTAYA stores: TSUTAYA stores: --40; rise in enterprise tax & depreciable property tax due to bus40; rise in enterprise tax & depreciable property tax due to business iness expansion: expansion: --77

TotalTotal +343+343

+343+343

3,157

1,6001,708

943

333

3,500

2,040

1,100

300

568

- 13- 320- 502

910400

- 40

- 1,000

0

1,000

2,000

3,000

4,000

FY 2011 1Q 2Q 3Q 4Q

Mn yen

Ordinary profit (FY 2010)

Ordinary profit (FY 2011 plan)

Net income (FY 2010)

Net income (FY 2011 plan)


Quarterly Trends (Ordinary profit/Net Income)Quarterly Trends (Ordinary profit/Net Income)


【FY 2010】Loss on adjustment for changes of accounting standard for asset retirement obligations of ¥626 mn results in 1Q deficit

【FY 2011】1Q deficit expected on anticipated extraordinary loss resulting from losses related to store closures, financial contributions to franchise stores, etc.



FY 2011: Match Ordinary profit Record Set in FY 2006FY 2011: Match Ordinary profit Record Set in FY 2006

3,1573,467 3,500

1,600

568

1,900

0

1,000

2,000

3,000

4,000Mn yen

Recurring 2,511 2,966 3,467 2,571 2,672 3,137 3,157 3,500Net 1,423 1,539 1,900 1,044 1,024 1,378 568 1,600

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010FY 2011

(est.)

Trends in consolidated ordinary profit & net income, actual & plannedTrends in consolidated ordinary profit & net income, actual & planned

MediumMedium--Term Growth StrategyTerm Growth Strategy


Infrastructure for “people who don’t

let things go to waste”

Infrastructure for Infrastructure for ““people who donpeople who don’’t t

let things go to wastelet things go to waste””Store package

strategyStore package Store package

strategystrategy

BOOKOFF SUPER BAZAAR(BSB)

BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAAR(BSB)(BSB)

BOOKOFF large-scale urban stores

BOOKOFF BOOKOFF largelarge--scale urban storesscale urban stores


【Sustainable profits】Ordinary profit:

¥10 bnROA15%

【【Sustainable profitsSustainable profits】】Ordinary profit: Ordinary profit:

¥¥10 bn10 bnROA15%ROA15%




Current Status by Package (FY 2010 FullCurrent Status by Package (FY 2010 Full--Year Year Results)Results)

All stores

Store package External view Definition No. of

outlets

Net sales

(store area)

% of net sales(yoy)

1BOOKOFF

SUPER BAZAAR

Comprehensive reuse large-scale mixed-use package

16 10,912(14,502)

20.3%(+3.0pt)

2BOOKOFF

large-scale urban stores

Sales area: 150+ tsubo (450+ m2)Near train stations with 50,000+ passengers (no parking facilities)

23 8,959(5,628)

16.7%(+0.8pt)

3 BOOKOFF standalone stores

BOOKOFF standalone stores excluding 1 & 2 238 24,455

(30,144)45.6%(-3.1pt)

4BOOKOFF-Plus(mixed-use stores other than 1)

Stores combining BOOKOFF and Reuse businesses （Smaller than 1)

35 8,320(10,589)

15.5%(-0.7pt)

5 Reuse Business standalone stores

Reuse Business standalone stores 15 999

(1,898)1.9%

(±0.0pt)

Total 327 53,648(62,761)

100.0%

Existing stores

Ordinary profit

% of profit

Profit ratio

923 14.9% 12.1%

1,123 18.1% 15.3%

3,271 52.7% 14.1%

826 13.3% 10.5%

59 1.0% 8.0%

6,205 100.0% 13.3%

Monetary unit: mn yen

*No. of outlets: multiple shops in mixed-use stores treated as 1 outlet

Focus resources on BOOKOFF SUPER BAZAAR and BOOKOFF large-scale urban stores,

increasing both their profitability and % share of sales and income


The More BOOKOFF LargeThe More BOOKOFF Large--Scale Urban Stores become Scale Urban Stores become ““Mega Terminals,Mega Terminals,””the Greater their Profitability & Recoverability the Greater their Profitability & Recoverability


Investment recovery

Store name Opening Sales area Full-year ordinary profit

Total investment

Recovery period (years)

Akihabara Eki-mae store 4/2008 331 tsubo

(1,092.3 m2) ¥208 mn ¥280 mn 3.2

Ikebukuro Sunshine 60-dori store 11/2009 390 tsubo

(1,287 m2) ¥134 mn ¥238 mn 3.7

Average 3.53.5

Investment recovery

No. of stores Average store area (m2)

Average investment

Payback period (years)

4 244 tsubo (805.2 m2) ¥98 mn 5.25.2

BOOKOFF standalone stores

Total investment

Payback period (years)

¥42 mn 5.45.4

* Payback period is calculated based on after-tax results and estimated operating cash flows at time of store opening

*Investment amount = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories

* BOOKOFF standalone store data based on stores opened in FY 2009

＜＜FY 2010 Store OpeningsFY 2010 Store Openings＞＞

Yokohama Vivre store (12/2010)Yokohama Vivre store (12/2010)Sendai Sakurano store (6/2010)Sendai Sakurano store (6/2010)

Akihabara Eki-mae store

Ikebukuro Sunshine 60-dori store

With the exception of the top-class Akihabara/Ikebukuro stores, BOOKOFF large-scale urban stores feature large investments and quick recovery = large contribution to both profit ratios & amounts

Passaggio Nishiarai store(5/2010)Passaggio Nishiarai store(5/2010) Shin Yurigaoka OPA store Shin Yurigaoka OPA store (11/2010)(11/2010)

MediumMedium--Term Growth Term Growth StrategyStrategy StoreStore’’s Meritss Merits

・Most products discounted by 50% or more・Affordable pricing starting at ¥200

1. Low prices

Unlike department stores, brands are not grouped separately. Multiple brands displayed together

3. Sales floor

Staff don’t push customers to buy4. Service

Overwhelming volume of products & variety of brands

2. Product volumes

(Unparalleled breadth of options (= merit of size increase)

(Unparalleled breadth of options (Unparalleled breadth of options (= merit of size increase)(= merit of size increase)

““The fact that prices are lower than The fact that prices are lower than Uniqlo or g.u. is appealing.Uniqlo or g.u. is appealing.”” (Man, 36)(Man, 36)

““New, it costs New, it costs ¥¥10,000, so I could 10,000, so I could purchase only one. But here I can purchase only one. But here I can buy three.buy three.”” (Man, 43)(Man, 43)

““At a regular shop, the target At a regular shop, the target age range and styles are limited. age range and styles are limited. But the range of ages and But the range of ages and brands represented here makes brands represented here makes choosing fun.choosing fun.”” (Woman, 43)(Woman, 43)

““ Department stores are sectioned by Department stores are sectioned by brand, but I like how you can see a brand, but I like how you can see a variety of brands at once here.variety of brands at once here.””(Woman, 24)(Woman, 24)

The store staff donThe store staff don’’t pester t pester me, so I can feel relaxed me, so I can feel relaxed while choosing clothes.while choosing clothes.””(Man, 38) (Man, 38)

Using 4 Values to Offer an Unparalleled Breadth of Options Using 4 Values to Offer an Unparalleled Breadth of Options Using 4 Values to Offer an Unparalleled Breadth of Options

Comments from customers (100 sellers, 101 buyers) visiting BSB stores in April 2011 at Machida Chuo-dori, Route 409 Kawasaki Minato-cho, Omiya Stellartown .

FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials

MediumMedium--Term Growth Term Growth StrategyStrategy CustomersCustomers

Supported both by customers seeking low prices and customers with their own sensibilities who want to enjoy fashion freely

Supported both by customers seeking low prices and Supported both by customers seeking low prices and customers with their own sensibilities who want to enjoy fashioncustomers with their own sensibilities who want to enjoy fashion freely freely

There are quite a few rare soccer uniforms. It’s quite well-known among my soccer buddies. Items that cost ¥18,000 at the regular price are ¥2,000 here, so I can’t help buying them. (Man, 36)

Consumers who dig up rare items that fit their interests

I can try out new genres of clothing. I want to be adventurous. I can choose young people’s brands like Cecil McBee or Tommy Hilfiger without hesitation. (Woman, 40)

Housewives looking to try new brands and genres

If I think it suits me, I go ahead and buy it. Department stores only carry what’s in season, but here I buy things like a different color of something that I used to like. (Woman, 24)

Young consumers who want to enjoy coordinating their own wardrobes

Maternity is temporary, so secondhand is fine. You wear it for just one season, so the clothes in decent condition are enough. (Woman, 31)

Housewives who casually buy secondhand goods as disposable items

I come to buy the brand I like (Vivienne Westwood). I always wear it, so even if it’s secondhand I can feel comfortable buying it. Here they have designs that aren’t currently sold in department stores. (Woman, 28)

I think people have different tastes, so I want to find things that suit me. With secondhand goods, I feel happy thinking I’ve found the last remaining one. (Woman, 42)

Middle-aged consumers who wish to mix-and-match one-of-a-kind clothes

*Photographs shown only as illustrations

Office workers looking to wear only their favorite brands

FY 2010 Financial Results Presentation MaterialsFY 2010 Financial Results Presentation Materials

(14%)

(47%)

(22%)

(18%)

(20%)

(38%)

(10%)

(32%)



More customers are selling items for the first time because it’s possible at BSBMore customers are selling items for the first time because itMore customers are selling items for the first time because it’’s possible at BSBs possible at BSB

Omiya Stellartown Route 409 KawasakiMinato-cho

May 2011 survey of BSB store customers Omiya Stellartown: 51 people, Route 409 Kawasaki Minato-cho: 50 people

Changing Customer Behavior (1)Changing Customer Behavior (1)

First experience selling items is at BSB

A: Has previously sold items at other BO Group stores

B: Has previously sold items at non-BO Group secondhand stores

C: Has previously sold items at both non-BO Group secondhand stores and other BO Group stores

First experience selling items is at BSB

C: Has previously sold items at both non-BO Group secondhand stores and other BO Group stores A: Has previously sold items at

other BO Group stores

B: Has previously sold items at non-BO Group secondhand stores



Because BSB exists, things are reused without being thrown awayBecause BSB exists, things are reused without being thrown awayBecause BSB exists, things are reused without being thrown away

Nagoya MinatoOmiya Stellartown, KawasakiMinato-cho

Changing Customer Behavior (2)Changing Customer Behavior (2)

55 people (55%) 58 people (57%)

35 people (35%)

12 people (12%)

5 people (5%)

34 people (34%)

8 people (8%)

20 people (20%)

Unit: People

* Multiple responses allowed

Used to take to a different secondhand store

Used to take to a different secondhand store

Kept at home

Give to someone

Used to throw away

Used to throw away

Kept at home

Give to someone

Unit: People

* Multiple responses allowed

N = 100 people; May 2010BSB Nagoya Minato store survey

N = 101 people; May 2011BSB Omiya Stellartown, Kawasaki Minato-cho store survey



FY 2010 actual

Net sales Ordinary profit

BSB store name Sales area (m2) Actual Reuse % Yoy Actual Profit

ratio

Higashi Chiba Yuukou 2,874.30 796 39% 102%102% 42 5%

Tama Nagayama 4,811.40 1,017 61% 102%102% 106106 11%

Sendai Izumi Furu-uchi 2,415.60 496 67% 98% 75 15%Route 1 Tamagawa-Ohashi 1,722.60 834 58% 97% 148148 18%

Hiroshima Otemachi 1,937.10 646 55% 103%103% 63 10%Yokohama Seya Minamidai 2,194.50 597 71% 104%104% 95 16%

Route 2 Kobe Nagata 1,745.70 489 66% 102%102% 64 13%

Machida Chuo-dori 3,161.40 1,323 25% 130%130% 109109 8%Yokohama Higashi Totsuka Olympic 2,065.80 463 72% 106%106% 49 11%

Kawasaki More’s 1,963.50 944 38% 101%101% 166 18%

～FY 2008 Openings 24,891.90 7,611 51% 106%106% 923 12%12%

FY 2011 plan

Ordinary profit

Plan Yoy Profit ratio

76 178% 9%

154154 144% 15%

112112 149% 21%

155155 105% 19%

82 130% 12%

117117 122% 19%

87 136% 18%

159159 145% 12%

63 127% 13%

196196 118% 20%

1,204 130% 15%15%

Hiroshima Yagi 2,491.50 482 54% 38 8%Kamakura Ofuna 2,399.10 652 58% 23 4%Nagoya Minato 4,547.40 990 46% 84 9%

FY 2010 Openings 9,438.00 2,125 52% 146 7%7%

FY 2010 existing store net sales (yoy): 106%; 4 stores achieve FY 2010 existing store net sales (yoy): 106%; 4 stores achieve ordinary profit of ordinary profit of ¥¥100 mn 100 mn FY 2011 plan for 3 more stores to surpass FY 2011 plan for 3 more stores to surpass ¥¥100 mn100 mn

Sendai Izumi Furu-uchi store suspends operations after earthquake (reopened 4/30)Tamagawa-Ohashi affected by Kawasaki Minato-cho new store opening

60 157% 12%47 201% 7%

142142 167% 14%250 171% 11%11%

Unit: mn yen

* Reuse %: Ratio of Reuse business segment’s net sales to store’s overall net sales



-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

01.3期 02.3期 03.3期 04.3期 05.3期 06.3期 07.3期 08.3期 09.3期 10.3期 11.3期

売場面積（坪）

Omiya Stellartown 1,303 Omiya Stellartown 1,303 tsubo (tsubo (4,299.90 m2 )

Route 409 Kawasaki Route 409 Kawasaki MinatoMinato--cho 1,351 tsubo cho 1,351 tsubo ((4,458.30 m2 )

ArakawaokiArakawaoki 1,445 tsubo 1,445 tsubo ((4,768.50 m2)

(Large(Large--scale store pioneer) Tama scale store pioneer) Tama Nagayama: 1,458 tsubo (Nagayama: 1,458 tsubo (4,811.40 m2)

2010 renewal 6,9596,959 tsubo (22,964.70 m2)

in the past 2 years

7,543 7,543 tsubotsubo((24,891.90 m2) in the 9 years up

to FY 2008

Nagoya Minato Sparks Sudden Acceleration Nagoya Minato Sparks Sudden Acceleration in Sales Area Growth in Sales Area Growth

Total: 14,502 tsuboTotal: 14,502 tsubo(47,856.60 m(47,856.60 m2)2)

Existing stores evolving one by one from Existing stores evolving one by one from ““ChukoChuko--GekijoGekijo””-- style to style to ““BSBBSB””--style style

By fiscal year at openingCumulative trends in BSB sales area

By fiscal year at openingCumulative trends in BSB sales area

Nagoya MinatoNagoya Minato1,378 tsubo1,378 tsubo ((4,547.40 m2)

FY ‘00 FY ‘01 FY ‘02 FY ‘03 FY ‘04 FY ‘08 FY ‘09 FY ‘10FY ‘06 FY ‘07FY ‘05

Sales area (tsubo)


FY 2010 New Store OpeningsFY 2010 New Store Openings


BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAAROmiya StellartownOmiya Stellartown

1,303 tsubo (1,303 tsubo (4,299.90 m2)Opening: July 15, 2010 (Thu)

3 months after opening: Cumulative ordinary profit: ¥19 mn

BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAARRoute 409 Kawasaki MinatoRoute 409 Kawasaki Minato--chocho

1,351 tsubo (1,351 tsubo (4,458.30 m2)Opening: October 28, 2010 (Thu)

3 months after opening: Cumulative ordinary profit: ¥29 mn

BOOKOFF SUPER BAZAARBOOKOFF SUPER BAZAARArakawaokiArakawaoki

1,445 tsubo (1,445 tsubo (4,768.50 m2)Opening: November 17, 2010 (Thu)

3 months after opening: Cumulative ordinary profit: -¥4 mn

*Temporary closures and shortened hours due to earthquake result in FY 2010 deficit of ¥12 mn for 3 stores



StaffingStaffing

TrainingTraining

ProfitProfit

SalesSales

AdvertisingAdvertising

QQ・・SS・・CC

【【 Human Asset DevelopmentHuman Asset Development】】・・Hire 3 months in advance, train at flagship storesHire 3 months in advance, train at flagship stores・・Majority promoted to Challenger C or B (*) by time of opening Majority promoted to Challenger C or B (*) by time of opening Make independent operation possible from time of openingMake independent operation possible from time of opening（*）Grades based on the company’s own “Career Path Plan.”

Challenger B: “Able to perform duties according to the manual without instruction.”

Route to securing profitsProfit Pyramid

【【 Sales PromotionsSales Promotions】】1. 1. Analyze targets, sales territories through research data, blogs,Analyze targets, sales territories through research data, blogs, insert insert statusstatus2. 2. Media planning, including message contentMedia planning, including message content3. 3. Verify key message, multiple designs through customer surveysVerify key message, multiple designs through customer surveys

１０１０【【名古屋栄名古屋栄】】現地≒栄への来街者特性の把握１現地≒栄への来街者特性の把握１

◎警察庁生活安全局「栄地区の安心・安全で快適な◎警察庁生活安全局「栄地区の安心・安全で快適なまちづくり計画まちづくり計画平成１９年」平成１９年」

来街者の男女比では、女性が約６割と多い。年齢層だと、２０・３０代で、来街者の男女比では、女性が約６割と多い。年齢層だと、２０・３０代で、こちらも約６割と半数を越える。来訪目的はこちらも約６割と半数を越える。来訪目的は４割が４割が通勤通勤（通学）、（通学）、２割が買物であり、２割が買物であり、交通手段交通手段はは鉄道が６割強と非常に多い。鉄道が６割強と非常に多い。

【【２店舗共通２店舗共通】】投下媒体について５投下媒体について５１６１６

ＴＶＣＭ・交通短期媒体だけでなく、もちろん折込みチラシは近隣商圏に対して、ＴＶＣＭ・交通短期媒体だけでなく、もちろん折込みチラシは近隣商圏に対して、投下、またフリーペーパーなど新聞未購読者にもリーチできるよう出稿する事で、投下、またフリーペーパーなど新聞未購読者にもリーチできるよう出稿する事で、一人でも多くの人にＯＰＥＮ情報を認知してもらうように効率的に費用投下を行う。一人でも多くの人にＯＰＥＮ情報を認知してもらうように効率的に費用投下を行う。（また、ＯＰＥＮ後ＧＷがある事から、そこも第２の山と捉えて費用投下を行う。）（また、ＯＰＥＮ後ＧＷがある事から、そこも第２の山と捉えて費用投下を行う。）

→足元商圏を中心に投下し、→足元商圏を中心に投下し、情報深度を狙う。情報深度を狙う。

→→広範囲にリーチできる媒体。高い効率性から広範囲にリーチできる媒体。高い効率性から

メインの媒体として使用。メインの媒体として使用。

→来街者へ気付きを与え、→来街者へ気付きを与え、ＣＭ連動し、情報波及を狙う。ＣＭ連動し、情報波及を狙う。

【【２店舗共通２店舗共通】】デザイン制作について２デザイン制作について２２９２９

今回の販促で狙う、ターゲット層（２０・３０代男女）にどのような印象を与えるか、今回の販促で狙う、ターゲット層（２０・３０代男女）にどのような印象を与えるか、またその他の層（１０－５０代全般）に今回の新しい打ち出し方が、マイナスのまたその他の層（１０－５０代全般）に今回の新しい打ち出し方が、マイナスの印象を与えないか≒理解できない、他人事等印象を与えないか≒理解できない、他人事等を調査するために・・・を調査するために・・・

ＢＯ新百合ケ丘ＯＰＡで店頭アンケートを実施。ＢＯ新百合ケ丘ＯＰＡで店頭アンケートを実施。（１０－５０代男女対象（１０－５０代男女対象Ｎ５２）Ｎ５２）

Ａ案Ａ案Ｂ案Ｂ案Ｃ案Ｃ案Ｄ案（比較対象案）Ｄ案（比較対象案）

各ポスター案に対して各ポスター案に対して・来店したいと思うか？（遠くても・来店したいと思うか？（遠くてもかか、近くならかを指標に質問）、近くならかを指標に質問）

・洋服を買いに行きたいと思うか？・洋服を買いに行きたいと思うか？

・取り扱い商品が分かるか？・取り扱い商品が分かるか？

・４つに対する順位付け・４つに対する順位付け以上を中心にアンケートを実施。以上を中心にアンケートを実施。

Initiatives 1Initiatives 1



Initiatives 2Initiatives 2 ““Reduce Initial InvestmentReduce Initial Investment””

FY 2009 FY 2009 openingsopenings

FY 2010FY 2010openingsopenings

ChangeChange PointsPoints

No. of openingsNo. of openings 3 stores3 stores 3 stores3 stores NoneNone Sales area per store expands;Sales area per store expands;sales area per new store sales area per new store opened annually increases 43%opened annually increases 43%Sales area (Sales area (㎡㎡)) 9,438㎡ 13,526.70㎡ +4,088.70㎡

Initial investmentInitial investment ¥¥970 mn970 mn ¥¥1,110 mn1,110 mn ++¥¥140 mn140 mnIncreases in proportion to Increases in proportion to expansion of sales area in new expansion of sales area in new storesstores

Initial investment per Initial investment per Tsubo of sales areaTsubo of sales area ¥¥339,000339,000 ¥¥270,000270,000 --¥¥69,00069,000 Initial investment per tsubo of Initial investment per tsubo of

sales area falls 20%sales area falls 20%

Ordinary profit 2 mos. Ordinary profit 2 mos. after openingafter opening --¥¥167 mn167 mn --¥¥167 mn167 mn NoneNone Scale expands but initial deficit Scale expands but initial deficit

is the same; profitability is the same; profitability improves after openingimproves after openingOrdinary profit 3 mos. Ordinary profit 3 mos.

after openingafter opening ¥¥14 mn14 mn ¥¥44 mn44 mn ++¥¥30 mn30 mn

* Initial investment = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories

While promoting creation of largeWhile promoting creation of large--scale stores, scale stores, cut initial investment per tsubo (3.3 mcut initial investment per tsubo (3.3 m22) by ) by 20%20%Sharp improvement in profitability through Sharp improvement in profitability through ““initial investment cutsinitial investment cuts”” x x ““staffing policies/sales promotion staffing policies/sales promotion policiespolicies””



* Data in 2Q materials include Omiya. This time, classified by FY of store opening * Total investment = lease/guarantee deposits + depreciable assets + fixtures and lease assets + inventories* Payback period is calculated based on after-tax results and estimated operating cash flows at time of store opening * BOOKOFF standalone store figures calculated using data on stores opened in FY 2009

2 Initiatives Drive Substantial Improvement in Investment 2 Initiatives Drive Substantial Improvement in Investment EfficiencyEfficiency

FY 2009 store openings

BSB name Sales area (㎡)

Total investment

Payback period(years)

Hiroshima Yagi 2,491.50 ¥220 mn 9.0

Kamakura Ofuna 2,399.10 ¥300 mn 9.3

Nagoya Minato 4,547.40 ¥450 mn 6.6

Average 7.87.8

BOOKOFF standalone stores

Total investment

Payback period(years)

¥42 mn 5.45.4

FY 2010 store openings

BSB name Sales area (㎡)

Total investment

Payback period(Years)

Omiya Stellartown 4,299.90 ¥380 mn 5.6

Route 409 Kawasaki Minato-cho

4,458.30 ¥330 mn 5.2

Arakawaoki 4,768.50 ¥400 mn 6.0

Average 5.65.6

Closing in on investment efficiency of BOOKOFF standalone storesClosing in on investment efficiency of Closing in on investment efficiency of BOOKOFF standalone storesBOOKOFF standalone stores


44--5 New Stores Planned in FY 20115 New Stores Planned in FY 2011

BOOKOFF SUPER BAZAAR Sendai SakuranoBOOKOFF SUPER BAZAAR Sendai Sakurano((Chuo, AobaChuo, Aoba--ku, Sendai City)ku, Sendai City)

Sales Area: 935 tsubo (Sales Area: 935 tsubo (3,085.50 m2)Opening (plan): May 12 (Thu)

Inside largest station-front department store in TohokuAdded Reuse business to BOOKOFF store opened last year


Additional plans to open 1,500 tsuboAdditional plans to open 1,500 tsubo--class class ((4,950 m2) ) roadside BSB in Chukyo & Kanto roadside BSB in Chukyo & Kanto regions regions

BOOKOFF SUPER BAZAAR Sakae SkyleBOOKOFF SUPER BAZAAR Sakae Skyle((Sakae, Naka Ward, Nagoya) Sakae, Naka Ward, Nagoya)

Sales Area: 650 tsubo (Sales Area: 650 tsubo (2,145 m2)Opening: April 21 (Thu)

Opening-day sales: ¥995 mn (Visitors: 5,116 people)Good location next to Maruei Dept. Store,

across the street from Mitsukoshi Dept. Store

415

9,283

385

3,861

1,190

22,797

1,200

90,612

1,296

19,356

0 20,000 40,000 60,000 80,000 100,000

Jewelry (used)

Jewelry (new)

Wristwatches (used)

Wristwatches （new）

Fashion accessories (used)

Fashion accessories （new）

Clothing（used）

Clothing（new）

Books (used）

Books (new）

100 mn yen

2,7523,044

3,1903,397

4,100

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY 2007 FY 2008 FY 2009 FY 2010 FY 2015(est.)

100 mn yen



The reuse market has grown by 10 times over the past 10 years, aThe reuse market has grown by 10 times over the past 10 years, and is seen nd is seen sustaining around 5% annual growth, with clothing continuing to sustaining around 5% annual growth, with clothing continuing to lead the market lead the market (not at the stage to compete for existing share)(not at the stage to compete for existing share)

Reuse fashion (*) Retail market forecastReuse fashion (*) Retail market forecast

Reuse rate（used market/new

market）

Share of co. sales (reuse)

Books 6.7%

Clothing 1.3% 48.4%

Fashion accessories 5.2% 14.9%

Wristwatches 10.0% 3.7%

Jewelry 4.5% 8.7%

Clothing has the potential to reach 5 times current size, assuming the same growth potential for reuse rate as in the maturing secondhand

book market

Clothing has the potential to Clothing has the potential to reach 5 times current size, reach 5 times current size, assuming the same growth assuming the same growth potential for reuse rate as in potential for reuse rate as in the maturing secondhand the maturing secondhand

book market book market Primary distribution

market, which is about 5 times larger

than book

Primary distribution Primary distribution market, which is market, which is

about 5 times larger about 5 times larger than book than book

Market size comparison by new and used itemsMarket size comparison by new and used items

（Source： Estimates based on materials from the Research Institute for Publications & Yano Research Institute Ltd.）

(*(*※※) Reuse fashion: General term covering clothing, fashion accesso) Reuse fashion: General term covering clothing, fashion accessories, wristwatches, jewelry;ries, wristwatches, jewelry;accounts for accounts for 75% 75% of BOOKOFFof BOOKOFF’’s net sales of reuse merchandise s net sales of reuse merchandise

Forecast: Continue annual average growth of

about 5%

Forecast: Continue Forecast: Continue annual average growth of annual average growth of

about 5%about 5%



Room to Open 141 New Stores in JapanRoom to Open 141 New Stores in Japan

【エリア分類】大分類中分類小分類市区町村名

横浜・川崎川崎川崎市川崎区川崎市幸区

【小分類ポテンシャル】

小分類商業人口 BO売上 BSB売上館数

【既存店実績】坪数計 BO売上差額達成率既存店店舗数店名会社名店名会社名

川崎ﾓｱｰｽ゙店ﾌﾞｯｸｵﾌｺﾎー゚ﾚｰｼｮﾝ㈱

国道1号多摩川大橋店ﾌﾞｯｸｵﾌｺﾎー゚ﾚｰｼｮﾝ㈱

【複合店実績】坪数計売上合計業態数

2館

457坪 76,159千円 +16,029千円 126.66% 2店

川崎 401,883人 60,130千円 150,325千円

店名

595坪 77,595千円 4

BO川崎モアーズ店BPO川崎モアーズ店BST川崎モアーズ店

BSE川崎モアーズ店

525坪 72,169千円 6

BO国道1号多摩川大橋店

BH国道1号多摩川大橋店

BK国道1号多摩川大橋店

BSP国道1号多摩川大橋店

BST国道1号多摩川大橋店

HO国道1号多摩川大橋店

神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区神奈川区

鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区

港北区港北区港北区港北区港北区港北区港北区港北区港北区

幸区幸区幸区幸区幸区幸区幸区幸区幸区

高津区高津区高津区高津区高津区高津区高津区高津区高津区

中原区中原区中原区中原区中原区中原区中原区中原区中原区

鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区鶴見区

川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区

川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区川崎区

大田区大田区大田区大田区大田区大田区大田区大田区大田区

江東区江東区江東区江東区江東区江東区江東区江東区江東区

川崎野川店

鶴見店

片倉町店

シァルプラット東神奈川店

大倉山店

ライフガーデン綱島店

日吉中央通り店

元住吉店

川崎三の辻店

矢向店

鹿島田店

小杉店池上駅前店大森町駅前店

大森店

横浜日吉本町店

武蔵中原店

川崎大師店(退)

新横浜駅北口店

ｱｸﾛｽﾌﾟﾗｻﾞ東神奈川店

港北綱島西店

鶴見駅東口店

東有馬店

6川崎梶ヶ谷店

武蔵新城店

雪が谷大塚店

川崎ﾓｱｰｽﾞ店

BH国道1号多摩川大橋店雑色駅前通り店(退)

糀谷駅前店

JR蒲田駅東口店

大森駅東口店

6 km6 km6 km6 km6 km6 km6 km6 km6 km


中央大宮さいたま市大宮区さいたま市西区さいたま市北区さいたま市見沼区




大宮中川店ﾌﾞｯｸｵﾌｺｰﾎ゚ﾚｰｼｮﾝ㈱

大宮駅東口店ﾌﾞｯｸｵﾌｺｰﾎ゚ﾚｰｼｮﾝ㈱

1館41,912千円

45,804千円 109.29% 2店

104,779千円大宮 473,539人

+3,892千円391坪

三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町

朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市

志木市志木市志木市志木市志木市志木市志木市志木市志木市

戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市

蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市

南区南区南区南区南区南区南区南区南区

ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市

富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市桜区桜区桜区桜区桜区桜区桜区桜区桜区

中央区中央区中央区中央区中央区中央区中央区中央区中央区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区

西区西区西区西区西区西区西区西区西区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区

見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区

鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市

川口市川口市川口市川口市川口市川口市川口市川口市川口市

草加市草加市草加市草加市草加市草加市草加市草加市草加市

八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市

緑区緑区緑区緑区緑区緑区緑区緑区緑区

越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市

桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市

北区北区北区北区北区北区北区北区北区

上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市

伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町

蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市

岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区

春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市

松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町

野田市野田市野田市野田市野田市野田市野田市野田市野田市

東川口店

蓮田椿山店

鶴瀬店

大宮店

足立舎人店

越谷店

春日部店

ふじみ野駅前店

上福岡店

北本店

みはら店

さいたま新都心店

八潮店

イオンレイクタウン越谷店

大宮宮原店

上尾駅前店

上尾原市店

岩槻店

蓮田店

すばる書店七光

ふじみ野店

さいたま浦和南店

さいたま大宮西店

北上尾店

桶川店

さいたま上小町店

さいたま吉野町店

さいたま深作店

春日部店

白岡店

三郷

階店

南古谷店

浦和店

伊奈店

南桜井店

富士見みずほ台店

志木駅南口店(退)

浦和南元宿店

埼玉上福岡店

17号北浦和店

埼玉伊奈店

川口駅東口店

蕨駅東口店（退）

川口戸塚店

越谷駅前店

草加ﾊﾞｲﾊﾟｽ北越谷店(退)

岩槻ｲﾝﾀｰ店(退)

春日部駅東口店

16号春日部庄和店

埼玉杉戸店

BST浦和花月店

BINGO越谷ﾚｲｸﾀｳﾝ店

戸田新曽店西川口駅東口店

さいたま円正寺店

草加店

草加新田駅西口店

ﾝ川越小仙波店

大宮駅東口店

大宮中川店

17号北上尾店

4号せんげん台店



中央大宮さいたま市大宮区さいたま市西区さいたま市北区さいたま市見沼区




大宮中川店ﾌﾞｯｸｵﾌｺｰﾎﾟﾚｰｼｮﾝ㈱

大宮駅東口店ﾌﾞｯｸｵﾌｺｰﾎﾟﾚｰｼｮﾝ㈱

1館41,912千円

45,804千円 109.29% 2店

104,779千円大宮 473,539人

+3,892千円391坪

三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町三芳町

朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市朝霞市

志木市志木市志木市志木市志木市志木市志木市志木市志木市

戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市戸田市

蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市蕨市

南区南区南区南区南区南区南区南区南区

ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市ふじみ野市

富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市富士見市桜区桜区桜区桜区桜区桜区桜区桜区桜区

中央区中央区中央区中央区中央区中央区中央区中央区中央区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区浦和区

西区西区西区西区西区西区西区西区西区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区大宮区

見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区見沼区

鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市鳩ケ谷市

川口市川口市川口市川口市川口市川口市川口市川口市川口市

草加市草加市草加市草加市草加市草加市草加市草加市草加市

八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市八潮市

緑区緑区緑区緑区緑区緑区緑区緑区緑区

越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市越谷市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市吉川市

桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市桶川市

北区北区北区北区北区北区北区北区北区

上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市上尾市

伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町伊奈町

蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市蓮田市

岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区岩槻区

春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市春日部市

松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町松伏町

野田市野田市野田市野田市野田市野田市野田市野田市野田市

東川口店

蓮田椿山店

鶴瀬店

大宮店

足立舎人店

越谷店

春日部店

ふじみ野駅前店

上福岡店

北本店

みはら店

さいたま新都心店

八潮店

イオンレイクタウン越谷店

大宮宮原店

上尾駅前店

上尾原市店

岩槻店

蓮田店

すばる書店七光

ふじみ野店

さいたま浦和南店

さいたま大宮西店

北上尾店

桶川店

さいたま上小町店

さいたま吉野町店

さいたま深作店

春日部店

白岡店

三郷

階店

南古谷店

浦和店

伊奈店

南桜井店

富士見みずほ台店

志木駅南口店(退)

浦和南元宿店

埼玉上福岡店

17号北浦和店

埼玉伊奈店

川口駅東口店

蕨駅東口店（退）

川口戸塚店

越谷駅前店

草加ﾊﾞｲﾊﾟｽ北越谷店(退)

岩槻ｲﾝﾀｰ店(退)

春日部駅東口店

16号春日部庄和店

埼玉杉戸店

BST浦和花月店

BINGO越谷ﾚｲｸﾀｳﾝ店

戸田新曽店西川口駅東口店

さいたま円正寺店

草加店

草加新田駅西口店

ﾝ川越小仙波店

大宮駅東口店

大宮中川店

17号北上尾店

4号せんげん台店


＜＜Calculation of space for new stores Calculation of space for new stores ＞＞1.1. Classify Japan into 476 urban areas centering on major citiesClassify Japan into 476 urban areas centering on major cities2.2. Calculate potential of each area through statistical analysis Calculate potential of each area through statistical analysis based on national census and commercial statisticsbased on national census and commercial statistics’’ census datacensus data3. Establish possible areas to open new stores, keeping in mind 3. Establish possible areas to open new stores, keeping in mind the companythe company’’s own stores own store--opening standards and opening standards and overlap/competition with existing franchiseesoverlap/competition with existing franchisees’’ sales territoriessales territories

First, develop a First, develop a ““dominantdominant”” strategy prioritizing Kanto & Chukyo regions strategy prioritizing Kanto & Chukyo regions After site setup is complete, raise awareness of both the scale After site setup is complete, raise awareness of both the scale of BSB stores of BSB stores and sales promotions through TV ads and other concentrated efforand sales promotions through TV ads and other concentrated efforts, ts, thereby ensuring superiority over competitors. thereby ensuring superiority over competitors.

Kanto (54 areas)Kanto (54 areas) Chukyo (13 areas)Chukyo (13 areas)

195 Kawasaki

113 Omiya

0102030405060708090

100110(100 mn yen)

Packaged Media Business

Reuse BusinessBOOKOFF Business/Corporate



BOOKOFF BOOKOFF BusinessBusiness

Reuse Reuse BusinessBusiness

FY 2010

Position expansion of BOOKOFF SUPER BAZAAR stores and pursuit ofPosition expansion of BOOKOFF SUPER BAZAAR stores and pursuit ofinvestment efficiency as key items. Develop Reuse Business so thinvestment efficiency as key items. Develop Reuse Business so that it becomes at it becomes a future pillar of earnings equal in scale to the BOOKOFF Businea future pillar of earnings equal in scale to the BOOKOFF Business.ss.Target Target ”¥”¥10 bn in ordinary profit,10 bn in ordinary profit,”” ““ROA of 15%.ROA of 15%.””

Ordinary profit: ¥10

bn

<Vision for Medium- term Growth><Vision for Medium<Vision for Medium-- term Growth>term Growth>


Cautionary Statement Regarding ForwardCautionary Statement Regarding Forward--Looking StatementsLooking Statements

Statements made in these presentation materials with respect to Statements made in these presentation materials with respect to BOOKOFF Corporation Ltd.BOOKOFF Corporation Ltd.’’s plans, strategies, and financial s plans, strategies, and financial estimates that are not historical facts are forwardestimates that are not historical facts are forward--looking looking statements made by management based on information available statements made by management based on information available at the time this document was prepared, and the details could vaat the time this document was prepared, and the details could vary ry significantly due to changes in the business environment.significantly due to changes in the business environment.

Supplementary MaterialsSupplementary Materials

FY 2010 Financial Results Presentation Materials 3737

(Online Business)(Online Business)・・4 years since launch, profitable for 2 straight years4 years since launch, profitable for 2 straight years

(FY 2010 results(FY 2010 results：：EC sales: EC sales: ¥¥2.5 bn; ordinary profit: 2.5 bn; ordinary profit: ¥¥20 mn)20 mn)・・500,000 secondhand items currently (inventory: 1 million items);500,000 secondhand items currently (inventory: 1 million items);

1.2 million members1.2 million members・・Mobile site opened in Feb. 2011; develop a structure capable ofMobile site opened in Feb. 2011; develop a structure capable of

¥¥230 mn in monthly sales230 mn in monthly sales

(TSUTAYA Business)(TSUTAYA Business)・・Sales fell due to severe situation for rental, new software Sales fell due to severe situation for rental, new software

products, but profit increased on improved gross margin ratproducts, but profit increased on improved gross margin ratio io and cost cuts and cost cuts (FY 2010 division results: ordinary profit (FY 2010 division results: ordinary profit ¥¥350 mn)350 mn)

(New Book Store Business)(New Book Store Business)・・Promoting closure of unprofitable stores; lossPromoting closure of unprofitable stores; loss--making stores largely making stores largely eliminatedeliminated

・・KnowKnow--how sharing through personnel mobility within Grouphow sharing through personnel mobility within Group

(BOOKOFF Overseas Business)(BOOKOFF Overseas Business)・・FY 2010: Opened W 45FY 2010: Opened W 45thth St (NY) and Del Amo Fashion Center stores, St (NY) and Del Amo Fashion Center stores, replacing existing stores with those in locations with stronreplacing existing stores with those in locations with strong customer appealg customer appeal

・・Amid shift from Amid shift from ““Japanese products for Japanese customersJapanese products for Japanese customers”” to to ““local local products for local customers,products for local customers,”” dominance on U.S. West Coast and dominance on U.S. West Coast and procurement efficiency increaseprocurement efficiency increase

・・Prioritize profitability in FY 2011; firm up Prioritize profitability in FY 2011; firm up operational foundation, including human asset operational foundation, including human asset development and trainingdevelopment and training


Supplementary Materials: Progress and Policies Regarding DevelopSupplementary Materials: Progress and Policies Regarding Development of ment of Other BusinessesOther Businesses

Del Amo Fashion Center storeDel Amo Fashion Center store

W 45W 45thth St, NY storeSt, NY store

BOOKOFF OnlineBOOKOFF Online


Supplementary Materials: BOOKOFFSupplementary Materials: BOOKOFF’’s Gross Profit Improvements Gross Profit Improvement

【【ComicsComics】】List operation (*) introduced at all directly List operation (*) introduced at all directly operated stores in 11/2010. Sales and gross operated stores in 11/2010. Sales and gross margin ratio both rise (no. of products margin ratio both rise (no. of products procured also increases).procured also increases).

【【CDsCDs】】From August, market surveys have been From August, market surveys have been used to thoroughly adjust selling and used to thoroughly adjust selling and purchase prices. As in new products market, purchase prices. As in new products market, sales are declining, but gross profit amount sales are declining, but gross profit amount kept level with previous FY thanks to kept level with previous FY thanks to improved gross margin ratio improved gross margin ratio

Comics

-67

-26-34

+ 8

-16

-43

-20

-5

+ 10

-5

-38-47

-22-32

+ 0 + 2

-28

-12

+ 3

+ 21

+ 4

-11

+ 32+ 33

-100

-80

-60

-40

-20

0

20

40

60

80（Mn yen）

69.0%

70.0%

71.0%

72.0%

73.0%

74.0%

75.0%

Gross margin ratioSales amount: yoy

Gross margin ratio (prior FY)

CDs

-27-37

-22 -18 -23

-51 -53 -51-62

-29

-77

-35-18 -19

-72

+ 36+ 49

+ 5

-6 -2-19

-6

-44

+ 1

-120

-70

-20

30

80

130

180

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Amount

42.0%

47.0%

52.0%

57.0%

62.0%

67.0%

72.0%Gross profit amount: yoy

Amount

（Mn yen）Gross margin ratio

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Sales amount: yoy

Gross profit amount: yoy

Gross margin ratio (prior FY)Gross margin ratio (current FY)

Gross margin ratio (prior FY)

(*) An operation in which popular comic titles that dominate sales are restricted, and selling and purchase prices are established for those items in response to demand. This operation ensures the availability of popular items and increases sales and, by virtue of the effects provided by gross profit mix, improves gross margin ratio.


Supplementary Materials: Status of LossSupplementary Materials: Status of Loss--Making StoresMaking Stores

FY 2010FY 2010 Existing LossExisting Loss--Making Stores (*)Making Stores (*)Segment Response No. of

storesDeficit

amount

BOOKOFFBusiness

FY 2011: Profit expected 1 -1

Impairment completed 1 -10

FY 2011: Extraordinary loss planned 4 -13

BOOKOFF Business total 6 -24

Reuse Business


Closed in FY 2010 10 -44



Reuse Business total 34 -160

Packaged Media Business


Closed in FY 2010 3 -3



Packaged Media Business total 9 -34

OtherClosed in FY 2010 2 -4


Other total 5 -22

Total 54 -241*Excludes stores whose business activities were affected by the earthquake

【【BOOKOFF BusinessBOOKOFF Business】】Disposal of lossDisposal of loss--making stores nearly making stores nearly completecomplete

【【Reuse BusinessReuse Business】】MidMid--sized mixsized mix--use BOOKOFF+ (Plus) stores use BOOKOFF+ (Plus) stores and Reuse Business standalone stores face and Reuse Business standalone stores face uphill battle.uphill battle.Continue to promote reContinue to promote re--packaging into largepackaging into large--scale mixedscale mixed--use stores; shrink deficits.use stores; shrink deficits.

【【Packaged Media BusinessPackaged Media Business】】Majority of propMajority of prop--up efforts completed, thanks up efforts completed, thanks to cost cuts such as closure of lossto cost cuts such as closure of loss--making making new book stores and rent negotiations.new book stores and rent negotiations.

【【OverallOverall】】Extraordinary losses recorded due to 4Extraordinary losses recorded due to 4--year year restructuring effort, but the loss amount is restructuring effort, but the loss amount is expected to shrink in FY 2011, and expected to shrink in FY 2011, and consolidation of lossconsolidation of loss--making stores will making stores will largely end.largely end.Scrap and build to continue amid development Scrap and build to continue amid development of largeof large--scale BSB, etc. stores.scale BSB, etc. stores.

FY 2010 Financial Results Presentation Materials · FY 2010 Financial Results Presentation Materials 3 Unit: mn yen FY 2009 Ratio FY 2010 Ratio Yoy plan Vs. Factors Net sales 71,091

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