Message from President and CEO

When I was in my late twenties, I went to the United States for the first time and stayed there for three years.
I remember that I was truly overcome by the huge land, the cheerful spirit of the people, and the awesome presence of gigantic shopping malls operating at the height of prosperity at that time. There was also the very fresh and strange feeling that everywhere we went, the local people were friendly called out to our Asian family: “Enjoy!”

A quarter-century has passed since that time, and our daily lives have become tremendously convenient. It is also true, however, that I miss those days when things were less convenient and less abundant than they are today. Such a feeling may be deeply connected with the fact that capitalist societies, which continuously pursued economic rationality and increased reproduction, are facing a big turning point.

In 1975, nearly half a century ago, Shoya Honda, the Company’s founder, decided its name would be “Joyful Honda.” He was a striking person with creative ideas and the ability to act. Those are our roots. When society at the time regarded loyalty and working diligently to be the sole principle, our founder had the vision that work should be a joy and we should create dreams together through joy. In that way he incorporated his vision into the Company’s name.
Getting back to those roots, we will work on creating an organization that will not be a tiny, neat group, but will make every effort to achieve exceptional performance in unique ways.

Furthermore, we really want to be deeply rooted in local communities, so that local people in our operational areas can have a sense of attachment to us. We want to become a place that facilitates meeting, communicating, and caring for each other, and to make people feel relaxed. We also aim to serve as a store that can cheer customers up a little through a visit. While keeping our founding principle always in mind, we will take on new challenges every day. Welcome to Joyful Honda!

[Review of FY 2019, the Year Ended June 20, 2019]

At the Joyful Honda Group, we pushed forward with structural reform in the four areas that we have been working on since the previous fiscal year, setting fiscal 2019 from June 21, 2018 to June 20, 2019 as the “Year to finish structural reform” with the aim of further corporate growth and development. The details of our main initiatives and achievements in fiscal 2019 are as follows.

  1. For the “structural reform of business,” we worked to expand the effects from integration with a subsidiary that we implemented in the previous fiscal year in the renovation business, one of our strategic areas.
    In addition, we analyzed issues at the Joyful Honda Chiba Store, which resumed business after being fully renovated in April 2018, and worked on rebuilding our future store management policy. Likewise, we also worked on the next step for our new store formats (a hardware store for business use and a store specializing in sales of pet items), both of which were opened in March 2018.
  2. For the “structural reform of merchandising” we continued with the reform of the merchandising process, including a review of the form and route of transactions and individual goods, to enhance product appeal from the viewpoint of customers.
    In addition, at the Joyful Honda Mizuho Store, we changed the zoning of selling space (lighting, glasses, and clocks and watches) of the store in conjunction with the introduction of five tenant stores in August 2018.
    We also promoted effective marketing measures by improving sales promotion efficiency of flyers using T points and reviewing the methods for providing online flyers.
  3. For the “structural reform of organization,” we worked to speed up ongoing organizational reform and enhance management capabilities in budget implementation through the clarification of organizational functions and areas of responsibility. This included the separation of the purchasing function from the Sales and Merchandising Group and the establishment of a new Merchandising Group at the beginning of the fiscal year to strengthen our sales capabilities.
    In stores, we created cross-sectional sales floors with initiatives including handling of Garden Pavilion products also in Home Center Lifestyle Pavilions and Materials Pavilions.
  4. For the “structural reform of expenses,” we worked to simplify, streamline and centralize store management operations and integrated the administrative functions of certain subsidiaries with the head office for the purpose of optimizing the entire group’s operations.
    We also introduced semi-self-checkouts at 12 stores and completed the introduction of semi-self-checkouts at all our Home Center stores in combination with the existing three stores where such checkouts were introduced before the end of the previous fiscal year.

Despite these initiatives, consolidated net sales for fiscal 2019 were down 449 million yen, or 0.3%, year on year to 148,226 million yen. Meanwhile, operating income was up 418 million yen, or 5.2%, year on year to 8,400 million yen and ordinary income was up 951 million yen, or 10.8%, year on year to 9,751 million yen.
Nevertheless, profit attributable to parent company shareholders was down 1,209 million yen, or 21.6%, year on year to 4,384 million yen, which was mainly due to impairment loss of 2,473 million yen related to Joyful Honda Chiba Store recorded as extraordinary loss.

[Forecast for FY 2020, the Year Ending June 20, 2020]

During fiscal 2020, in our mainstay Home Center business, the Joyful Honda Group will work to develop stores and sales floors that use the interests of customers as the theme for sales floors based on a “field first” approach. In addition, at existing stores we will aim to simultaneously pursue the standardization of all stores and customization for each area to realize the development of stores that are appealing for customers.
The consolidated financial results forecast for fiscal year ending June 20, 2020, was announced on August 2, 2019 as shown below. The Joyful Honda Group will make concerted efforts for the full achievement of the forecast.

Projected Consolidated Business Results for FYE 06/20/2020 (06/21/2019 – 06/20/2020)

(Percentages represent changes from the previous year for the full year, and on a year-on-year basis for quarterly results)

  Net sales Operating income Ordinary income

Profit attributable to the parent company shareholder

Profit per share
2Q (cumulative)
Full year
  • Million yen
  • 75,150
  • 148,740
  • %
  • 0.3
  • 0.3
  • Million yen
  • 4,750
  • 9,125
  • %
  • 13.3
  • 8.6
  • Million yen
  • 5,105
  • 10,010
  • %
  • 5.0
  • 2.7
  • Million yen
  • 3,125
  • 6,375
  • %
  • 107.7
  • 45.4
  • yen
  • 45.14
  • 92.08