tuesday, december 10, 2019 newartholdings securities code · 2020-06-22 · the ultimate in cutting...

Ⓒ 2019 NEW ART HOLDINGS Co., Ltd.

Tuesday, December 10, ２０１９

ＮＥＷＡＲＴＨＯＬＤＩＮＧＳ

Securities code: ７６３８

A corporate group serving beauty(art) and health

2

Corporate philosophy


A s e v e r y o n e ’s d r e a m

c o m p a n y g r o u p ,

ＮＥＷＡＲＴ l e a d s y o u t o

b e a u t y, h e a l t h , a n d

h a p p i n e s s


1. Company Profile

3


１．Overview

Company NameＮＥＷＡＲＴＨＯＬＤＩＮＧＳ

＊Company name changed from NEW ART on October 1,

2018

ＨｅａｄＯｆｆｉｃｅGinza Swim Building 1-15-2 Ginza,

Chuo-ku, Tokyo

Establishment September 1994

ＣａｐｉｔａｌＳｔｏｃｋ 2,617 million yen

RepresentativeChairman and President

Yukio Shiraishi

N u m b e r o f

e m p l o y e e s699 (Consolidated as of March 31, 2019)

Conso l i da ted

s a l e s

17,585 million yen

(Consolidated FY ending Mar 31, 2019)

B u s i n e s s

d e s c r i p t i o n

● Sales and production of bridal jewelry

● Operation of esthetic salons

● Purchase and sale of fine arts

● Manufacture and sale of golf clubs, etc.

G r o u p

c o m p a n i e s

Consolidated subsidiaries: 9 companies

(4 domestic and 5 overseas)

4

A s e v e r y o n e ’ s d r e a m

c o m p a n y g r o u p ,

ＮＥＷＡＲＴ l e a d s y o u

t o b e a u t y , h e a l t h ,

a n d h a p p i n e s s

【Corporate philosophy】


２．History

1994

1998

2000

2004

2014

Established Israel subsidiary

Israel Shiraishi，Ltd.

1995

Established

Registered tothe over-the-counter market

Cima Bridal Co., Ltd.

2001

Cima Co., Ltd.

JASDAQ listed 2015

2018

Change Company name NEW ART HOLDINGS

NEW ART Co., Ltd.

2016

・New Art La Parler Co., Ltd. joined the group

・Single B Co., Ltd. (currently New Art Crazy) joined the group

・Made Shanghai Dongmei Beauty Co., Ltd. a subsidiary

・ Established New Art Cima Co., Ltd.

Became a holding

company

2017

・ Established Taiwan Parler Co., Ltd.

Established a holding company in 2017 along with business expansion

5

・ Established Xinyi (Shanghai) Jewelry Co., Ltd.

・ Established Taiwan Shinmei Co., Ltd.

・Established New Art Fintech Co., Ltd.

・Established HONG KONG NEW ART LIMITED

・Made ASIA Contemporary Art Investment

Fund Ltd. a subsidiary Change Company name

Change Company name

Change Company name


3. Business ① Organization and business domain

6

【 Holding company 】⇒Control & support group companies


【Bridal jewelry 】New Art Cima

【Other (Sports)】New Art Sports

【Art】New Art Fintech

【Whole body beauty】New Art La Parler

Japan

Overseas

【Hong Kong】ＨｏｎｇＫｏｎｇＮｅｗＡｒｔ．，Ｌｔｄ．

Taiwan Parler

【Taiwan】Taiwan Shinmei

【China】Xinyi (Shanghai) Jewelry

【 Israel 】Israel Shiraishi, Ltd.

Shanghai Dongmei Beauty

【Hong Kong】ASIA Contemporary Art

Investment Fund Ltd.


3. Business ② Sales composition

Mainstay bridal jewelry business

accounts for 71% of total sales and 94% of profit

Bridal jewelry

Whole body beauty

Art business

Other business

With 2 brands

● Ginza Diamond Shiraishi

● Exelco DiamondWholesale and retail

sales of paintings

Sports related business

Outer circle: Sales

Inner circle: Segment profit

7

EY 2018

http://www.parler.co.jp/ladys/


４． Main Business Overview

① Bridal Jewelry Business 1/3

➀ Ginza Diamond Shiraishi

One of the Japan's largest

bridal jewelry stores

stick to diamonds

1

4 5

32 5Points

Quality

Professional

Design

Service

Order System

Diamond quality/ quantity

Expert in everything

Produce design

Full service

Original order system

8

● Operated by New Art Cima


Ginza Main

Store

Hokkaido / Tohoku

３ stores

Kanto

１３ stores

Chubu / Hokuriku / Shin-Etsu

１２ stores

Chugoku/ Shikoku

４ stores

Kyushu

６ stores

Kansai

７ stores

49 locations(As of November 20, 2019)

➀ Ginza Diamond Shiraishi

9

４．Main Business Overview


Overseas

７stores


４．Main Business Overview


Hokkaido / Tohoku

２ stores

Kanto

８ stores

Chubu / Hokuriku

７ stores

Chugoku/ Shikoku

１ store

Kyushu

６ stores

Kansai

４ stores

② Exelco Diamond

Operating flagship shop of

prestigious diamond brand "EXELCO"

２９ Locations

ＥＸＥＬＣＯ -

The ultimate in

cutting technology

●Founded in 1919

●Founded by

Marcel Tolkowsky –

Father of the ideal round

brilliant cut

●Loved by fans all over

the world as world’s

top cutter

10

● Operated by New Art Co., Ltd.

Overseas

１store

（As of November 20, 2019）


Hokkaido / Tohoku

１ store

Kanto

１３ stores

Chubu/ Hokuriku

５ stores

Kansai

４ stores

Chugoku/ Shikoku/Kyushu

2 stores

（As of November 20, 2019）

Esthetic salon "La Parler"

nationwide● Operated by New La Parlet

● Founded in 1978 as a pioneer of esthetic salon

● Offering advanced technology and heartwarming

space

● Quick focus on men's esthetics

⇒ Opened first salon in Shizuoka as soon

as the company was founded

● Also promoting overseas expansion

11

4. Main Business Overview

② Whole body beauty

２７ Locations

Overseas

２ stores



Main products: Japanese contemporary arts, such as Yayoi

Kusama’s and Yoshitomo Nara’s

・ Wholesale and retail sales of paintings

12

● Support activities at Karuizawa New Art Museum

Art business

Other (sports) business

Power of “beauty” that reaches five senses

Offering «Functional-Art»

Through sports equipment

・ Current brand “CRAZY” for golf clubs and shafts

・ Releasing new brand later this year

・ Aiming to expand into other sports businesses in medium to long term

・Started art fund business in Hong Kong

Subsidiary ASIA Contemporary Art Investment Fund Limited

4. Main Business Overview

③ Art and other (sports) business

● Transcending traditional gallery and shop

● A space to present and sell art works and

experiment place of new arts, regardless of

old and new artists


2. Our Current State

13


1. Consolidated financial results for

year ending March 2019 ① Highlights

Record HighestSales, operating profit and ordinary profit

Significant increase

in sales and profits

１７,５８５ million yen

Up 22.8％

From last year

S a l e sO p e r a t i n g

I n c o m e

Income before

income tax

N e t i n c o m eattributable to parent

company shareholders

２,５２６ million yen

Up 210.2％

From last year

２,３８８ million yen

Up 229.3％

From last year

９１６ million yen

Up 872.8％

From last year

14


1. Consolidated financial results for year

ending March 2019 ② Results by Segment

※From the third quarter of the fiscal year ending March 31, 2019, the names of “jewelry business” and “esthetic business” segments will be changed to “bridal jewelry

business” and “whole body beauty business.”

15

Sales of each segment

2018/3

2019/3

（単位：百万円）

Bridal jewelry Whole body beauty Art Other

Year-on-Year

＋28.2％Year-on-Year



＋4.9％●Domestic sales

continued strong

・Increased shop customers due to

TV commercial and web ads

・ Increased closing rate due to

improved salesperson skills

●Overseas sales progressing

steadily due to increase of new

stores

●Achieve

profitability

Structural reforms:

・ Store integration

・ Review customer base

・ Product configuration

change

・ Cosmetics business

・ Review ad expenses,

etc.

● In preparation to

launch an art fund as a

new business with

partner companies, in

addition to art sales

【Sports related

business】● Cognitive expansion of

the golf shaft brand

“CRAZY” and strengthen

new product development【IT-related (virtual currency-

related) business】

●Withdrew from business

in December 2018

12 ,538

9 ,777

2 ,773

2 ,676

1 ,875

1 ,476

411

392In million yen


２．FY2019 consolidated financial results forecast ①

〔In Million yen〕

FY 2018

( Actual results )

FY 2019

(Forecast)

Rate of

change

S a l e s 17,585 18,400 4.6%

O p e r a t i n g

i n c o m e 2,526 2,750 8.8%

Income before

income tax 2,388 2,710 13.5%

N e t i n c o m eattributable to parent

company shareholders916 1,770 93.1%

Expect to increase in sales and profits

16


-10

-5

0

5

10

15

20

25

30

'00/3 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 '20/3

0

20

40

60

80

100

120

140

160

180

200

'00/3 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 '20/3

Long-term trends in sales/

operating income (consolidated)

Store

registration

Made La Parlet

subsidiary

17

Sales

Operating income Expecting record highest for the

2 consecutive years

Expecting record highest for the

5 consecutive years

（Hundred

million yen

）

（Hundred

million yen

）

（Forecast

）

（Foreca

st）

2.FY2019 consolidated financial results forecast ②

Ⓒ 2019 NEW ART HOLDINGS Co., Ltd. 18

FY 2018

2nd quarter

FY 2019

2nd quarterChange Change rate

Sales 8,014 9,634 1,620 20.2%

Cost of sales 3,285 3,227 △57 △1.7%

Gross profit 4,729 6,406 1,677 37.2%

Selling, general and

administrative expenses 4,029 4,489 459 11.4%

Advertising expenses 1,142 1,197 55 4.8%

Salary allowance 866 908 42 4.8%

Operating income 699 1,917 1,217 174.2%

Income before income tax 706 1,855 1,148 162.5%

Quarter net income

attributable to parent

company

shareholders

375 1,000 625 166.5%

Operating margin 8.7％ 19.8％ 11.1pt －

〔In million yen〕

3. FY2019 2nd quarter consolidated financial results


１FY２０１９ 2nd quarter Consolidated Results

Sales ９,６３４ million yen, Operating profit １,９１７ million yen

⇒Both sales and operating profit reached record highest

２

３Compared to the full-year consolidated financial forecast,

Sales achieved ５２.３％, operating profit ６９.７％⇒ Full-year earnings forecasts remain unchanged

Mainstay bridal jewelry business continues strong

⇒Both sales and segment profit (operating profit)

reached record highs

Significant profit improvement in whole body beauty business

⇒ Segment income (operating income) reached record highest

４．FY２０１９ 2nd quarter results highlights


Financial year 2019 (Consolidated)

Second quarter

cumulative results

Full-year

earnings forecastProgress

Sales 9,634 18,400 52.3%

Operating income 1,917 2,750 69.7%

Income before income tax 1,855 2,710 68.4%Net income (quarter)

attributable to owners of

parent company

shareholders

1,000 1,770 56.4%

5. FY２０１９ consolidated results forecast and progress

Consolidated performance is in general, steady progress

Sales achieved ５２.３％ and operating profit ６９.７％〔In million yen〕

At the moment, performance forecast for the full year remains unchanged because there

are uncertainties. We will inform you promptly if corrections are required in the future.


3. Future Strategy


1. Medium-term management goal

① Numerical targets

〔In million yen〕

Aiming for 19.5 billion yen sales and 2.95 billion yen operating income

Through profit growth focused management

＜ Consolidated numerical targets ＞

FY 2018 FY 2019 FY2020 FY2021

(Actual

results)(Forecast) (Target) (Target)

Sales17,585 18,400 19,000 19,500

Operating

income2,526 2,750 2,850 2,950

Income before

income tax 2,388 2,710 2,800 2,900

Net income

attributable to owners

of parent company

shareholders

916 1,770 1,830 1,890

22


Sales

2,526 2,750

2,850 2,950

14.4%

14.9%15.0%

15.1%

13.5%

14.0%

14.5%

15.0%

15.5%

2,000

2,500

3,000

3,500

4,000

2019年3月期

（実績）

2020年3月期

（計画）

2021年3月期

（目標）

2022年3月期

（目標）

Operating income

営業利益営業利益率

1. Medium-term management goal

② Basic policy

23

（Million yen）（Million yen）

17,585

18,400 19,000 19,500

15,000

16,000

17,000

18,000

19,000

20,000

2019年3月期

（実績）

2020年3月期

（計画）

2021年3月期

（目標）

2022年3月期

（目標）

Over 20% in

the long term

Further business growth and

maximization of corporate value

Improve brand power

in each segment

Develop new business,

product and service

Actively expand overseas

business (in Asia)

Maximize synergies between businesses

FY2018

(Actual)

FY2019

(Plan)

FY2020

(Target)

FY2021

(Target)

FY2018

(Actual)

FY2019

(Plan)

FY2020

(Target)

FY2021

(Target)

Operating

income

Operating

margin


NEW ART will accelerate overseas expansion and aims to be listed in major Asian markets


ＨｏｎｇＫｏｎｇＮｅｗＡｒｔ Lｉｍｉｔｅｄ

Taiwan Shinmei

Co., Ltd.

Xinyi (Shanghai)

Jewelry Co., Ltd.Shanghai Dongmei

Beauty Co., Ltd.

１００％ owned １００％owned １００％ owned

１００％ owned

Open jewelry stores in Hong

Kong

Bridal jewelry business

Whole body beauty business

Bridal jewelry business Whole body beauty

business

２．Priority measures Overseas business 1/2


【Steps for ＨｏｎｇＫｏｎｇＮｅｗＡｒｔＬtd to get listed in Hong Kong】

1) FY2019: Open Hong Kong store (9/8), Taiwan Taichung store (9/11),

and relocate Shanghai store (combine jewelry and beauty shop 9/27)

2) By 2021：Taiwan ５ stores⇒１３ stores, Hong Kong １store⇒４ stores,

Shanghai １store ⇒３ store (jewelry)

3) Develop cosmetics business in China based on Shanghai beauty salon

store

4) Target for FY2021 consolidated performance: Sales 3 billion yen, operating

income 400 million yen

⇒Aim for listing

【 With a view to expanding into other Asian regions 】Thailand, Vietnam, Indonesia, Singapore

２．Priority measures Overseas business 2/2


Marketing⇒ Cooperate with TV dramas and movies for ads

System improvement ⇒ Brush up on customer service skills and

Become a brand always chosen by customers

Domestic expansion

Overseas expansion

26

Expand business in Asian market focusing on Taiwan, Hong Kong and China (Shanghai)

Opened new stores in Taiwan (Taichung), Hong Kong and China (Shanghai) in September

2019. Progressing smoothly.

Aiming a better profitability and to

become the “No.1 seller in bridal jewelry

industry” to further increase brand value

カット技術の頂点を極めた「ＥＸＥＬＣＯ」「アイディアル・ラウンド・ブリリアント・カット」の発表(1919年）から今年が１００年目。

3. Major initiatives in bridal jewelry business ①

Exelco- The very top of cutting technology

100 year anniversary from the release of Ideal Round Brilliant Cut (1919)

http://www.diamond-shiraishi.jp/

http://www.exelco.com/


Ginza Diamond Shiraishi Shanghai

Hisamitsu store

opened in September 2019

Stores in Japan ～ Newly opened stores

Overseas stores ～ Newly opened stores

27

＜New integrated store＞

Ginza Diamond Shiraishi Hilton Fukuoka Sea Hawk

Exelco Diamond Hilton Fukuoka Sea Hawk

Opened in June 2019

Ginza Diamond Shiraishi

Shinko Mitsukoshi Taichung

Chuko store

Opened in September 2019

Ginza Diamond Shiraishi

Hong Kong SOGO TST store

Opened in September 2019

3. Major initiatives in bridal jewelry business ②


Ginza Diamond Shiraishi New CM

28

Brand movie written by the romance movie master, Isao Yukisada

A shinning moment of proposal in a casual daily life. In episode 1 – “He Is

Running,” the boyfriend kept running toward her with a ring in his hand. Episode 0

– “Paper Ring” depicts the moment, days before episode 1, when the boyfriend

noticed her feelings and determined to “give her a real ring.”


4). Major initiatives for

body beauty business ①

Growth strategy for medium- to long-term

sales expansion / margin improvement -Profit structure reform-

29

➢ Release new services based on whole body beauty / healthy slimming

➢ High-quality & low-cost customer acquisition by high-speed PDCA through the Web

➢ Strengthen in-house customer acquisition (such as owned media) that does not rely on media or advertising

【２】 Reduce cost and generate profit by combining real world and internet marketing

【１】 Increase profitability by maximizing cost effectiveness of ad expenses

➢ Customer visualization and CRM through members app

➢ Improve customer service by digitalizing store operations

➢ Real-time system linking stores (sales) and marketing information



➢ Train staff to have more loyal customers and good reviews

➢ Introduce career improvement system to enable female staffto have a long career

➢ Utilize professional knowledge across industries

【４】 Open new stores and sell cosmetics domestically and overseas

【３】 Improve brand value = Strengthen esthetician training

➢ Open new stores in areas not yet entered in Tokyo

➢ Develop new products put in view to domestic andoverseas markets

➢ Develop strategy selling cosmetics starting from Taiwan and Shanghai

“Customer continuity produces high profits”

“New business for external sales of cosmeticswith high profit margins”

４． Major initiatives for

body beauty business ②



５．Major initiatives in art business

Launch art fund

Initiative ①

Grow existing business

Initiative ②

Knowledge and

experience in art

business

③ Art business

・ Improve sales power

・ Improve ability to procure

globally popular artworks

Strengthen

collaboration

with partner

companies ・ Support for activities at the

Karuizawa New Art MuseumStart art fund business in Hong

Kong: Subsidiary ASIA

Contemporary Art Investment Fund

Limited

Financial Technology that produce power of “Beauty”

http://newartlab.jp/


４．Shareholder returns


Year-end

dividend

FY ２０１９１ yen

FY ２０２０２０ yen⇒

３０yen (plan)

［Basic

Policy］

Acquisition of

treasury stock

－

up to

1 billion yen

※1 As a result of the consolidation of shares at a ratio of 1 share per 20 shares

with the effective date of October 1, 2019, the year-end dividend per share for the

fiscal year ending March 2020 is stated at the level after the share consolidation.

※１ ※２

・Give priority to growth investment, which is indispensable for future business

expansion. Commit to maximize shareholders’ profit & corporate value

・Shareholder returns is realized through stock price rise due to improved

business performance and dividends. Acquisition of treasury stock will be

implemented flexibly as a shareholder return policy that contributes to improving

capital efficiency

Dividend per share

(Comparison at the level after

stock consolidation)（Yen）

（Forecast）

33

※2 Acquisition period: May 8, 2019 to May 7, 2020.Percentage of issued shares (excluding treasury stock): 11.35% (upper limit)

Progress rate as of the end of October 2019 38.18% (based on amount)

November 11, 2019

Year-end dividend forecast

was revised (increased).

0.00 0.00

6.00

20.00

30.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2016/3 2017/3 2018/3 2019/3 2020/3

(

1

yen

befo

re the

conso

lidatio

n o

f shares)

（0.

3

yen

befo

re the

conso

lidatio

n o

f shares

）

1. Shareholder returns


２．Shareholder benefits program

We have a special benefit plan for our shareholders so that they can visit our stores and

have a deeper understanding of our products.

【Benefits】

Brands operated by our company

and New Art Cima One kind of gifts according to

the contract amount at any

La Parlet salons

Available at directly managed

stores and online shops

operated by New Art Sports

● Contracts over 100,000 yen:

”La Fureru 4-piece set”

● Contracts over 200,000 yen:

"Aqua Grass Blanc 5-piece Set"

● All products/ esthetic courses

20% OFF (for new customers)

34

15% and 20% discount

on jewelry products

Gift when sign an

esthetic service

contract

20% discount on

purchase of original

golf equipment

Free

admission

ticket to

Karuizawa

New Art

Museum● Ginza Diamond Shiraishi

● Exelco Diamond

http://www.diamond-shiraishi.jp/

http://www.exelco.com/



３．Share price

35

※ As of November 22, 2019

（Yen）

Stock price (end of month) trend［Adjusted to the stock price level after the October 1, 2019 share consolidation]

S h a r e

p r i c e 941 yen M a r k e t

capitalizatio

n

15.6b yen Share unit 100

D i v i d e n d

y i e l d3.19％ E x p e c t e d

P E R8.56

※October 1, 2019

Share consolidation at

a ratio of 1 to 20


(Note) The statements related to business forecasts and future forecasts in this material are forecasts that are determined to be

reasonable based on information obtained at the present time, and include potential risks, uncertainties and other factors. Therefore,

actual results may differ significantly from the forecasts.

Inquiries regarding IR information

Corporate Planning Department, ＮＥＷＡＲＴＨＯＬＤＩＮＧＳ

Tel. 03-3567-8098 Fax. 03-3567-8092

Everyone's dream company group

ＮＥＷＡＲＴ leads you to beauty, health, and

happiness with all the power of art.


tuesday, december 10, 2019 newartholdings securities code · 2020-06-22 · the ultimate in cutting...

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