Zozo, Inc. · TSE:3092
Zozo — Start Today Co.,ltd. — Q2 FY2017 Earnings Presentation
42 slides from Zozo's earnings presentation, October 2017
Slide 1: START TODAY CO.,LTD. FY2017 2Q Results
g START TODAY CO.,LTD. RASHAZ—hhoF4 2018%3AH BOWER RAMBSAH
Slide 2: FY2017 2Q Highlights
18/03HH2Q /\f 77 & FY2017 2Q HIGHLIGHTS 01 Ea + GR 196A (ATEIHBLLS8.3%38) . SFA SBA (II30.6%1#) Ban MRSRARAD BY L. BURR CHS BAAR *ZOZOTOWNS3¢ MicnRS 1,164.118FA (AERIHALL39.9%1#) BtyayT7 1,097.68 ((40.9%#) BMY av7 0.918 FA (lAl13.5% isk) ZOZOUSED 65.5/8F ([127.2%3#) Mia Mf 3,664 (15.0%) . Wri 8,186
Slide 3: Business Results
Slide 4: Overview of the FY2017 2Q
18/03H4 2Q3its Rio WR OVERVIEW OF THE FY2017 2Q 03 (iz : BAA) IAB 17/O3#A 2Q S48 | 18/03H8 2Q S48] AI ERIBALE Stee ETERS BRS 86,495 | 119,656 38.3% | 270,000 44.3% StS 31,566 42,694 35.3% | 100,000 42.7% bares | 28,604 | 39,378 | 37.7% | oo ae st RS Ht 33.1% 32.9% 0.2% - - — RER | 18,016 | | 25,547
Slide 5: Overview of Each Quarter
Hie mOWR (Fe) OVERVIEW OF EACH QUARTER 04 (Hit : BAA) 17/034 18/03 BT Ai O+e Bo w+ SOs 4 + AiO om Mane 42,284 44,210 61,595 | 64,000 59,574 60,082 Be Alles 5,011 5,576 8,703 6,992 7,981 5,850 Bi <F [a] BALE 34.2% 70.2% 83.8% 16.3% 59.3% 4.9% Wie lt 11.9% 12.6% 14.1% 10.9% 13.4% 9.7%
Slide 6: Increase-Decrease Analysis of Operating Profit (YoY)
BRANROW MAA (Ata HLL) INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT (YoY COMPARISON) 05 BARB 1918 ere ete +1118 SEAM eR 10.218 On tea *PB7OST MARRS *PBIFLF 1-79 ooo — | RUM RUMI 10.118 +40.518 [om 31] ERILOBME BEWUES 17/03H92Q : 864{8 18/03H92Q : 1,196f8 Bae AUzS > 105.818 BR Fa 138.3f8 (GB) 17/03
Slide 7: Consolidated Balance Sheet
te AA BOA RE CONSOLIDATED BALANCE SHEET 06 (M4 : HBF) ADEMSEHER eesti APEAAEHEE eae (20174£3A318) coeessoon) (2017473A31 8) ot eoseOR) HSE 45,641 46,361 tS 23,906 21,842 35, Bie 22,068 | 21,152 3% samamve! 11,536 11,698 36, He 1,177 1,613 HEA 1,945 2,031 eae 10,079 11,606 Sfeaet 25,851 23,873 BVBERE
Slide 8: Cash Flows
MRmt yy Ya: TOO CASH FLOWS O07 (#4 : BAF) mB goin | gpeoaey | ATER aE RMS 8 7,336 6,548 -788 (YEA) ABS OKO SMM ABIL LS (4ER) MRL AM AMRORS q - - - (498) PBI OAT KR RE ayy ya7o— 278 1,989 1,710 (i) BNEsheTO mows RAPS iaSh IC eae + oe -2,915 -5,428 -2,512 (488) SOs RERVURSE 0) Re Ree 15,540 | 21,263 |
Slide 9: ROE and Net Profit Margin
ROEO HES - 4HARFIZSS WER) ROE AND NET PROFIT MARGIN 70% 60% 50% 40% 30% 20% 10% 0% ROE © 4eAMFIZSSe Oa) 55.5% 72.7% 61.4% co) 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (sti) 08 10% 9% 8% 7% 6% 5%
Slide 10: Transaction Value
inn Ria O Hee TRANSACTION VALUE 09 3,000 _ _ “HASTA Satie RS 2.600 |. Z0ZOTOWNS (BMY ay 7: BES ay 7) ORE 21.218) MRMIRBIC Ae SIE: 1.8% 2,600 JU 2,400 BtoBs 2,120.9 2.200 {9 ZozouseD 4% 2.9% 0.1% 800 Bitvsy7 1595.0 oos% , "0.1% 1,600 O.1% me 0% 1,400 1,290.5 04% 1,200 1,146.7 13.7% 13.4% 3.4% 1,000 9
Slide 11: Transaction Value (Quarterly)
Boo Mike Owe (2 TRANSACTION VALUE (QUARTERLY) E HA) Bi 4 fel Ae +35.9% “ne eis 0109 640 JURE 15. 0.4% 5% 27% ©95.7 600.8 600 BtoBse on || 5.6% 0.1% 0.0% 6.7% 0.1% 2.7% 2.6% 560 [Mi zozouseD 0.1% Mss 5.4% 0.1% 0.1% 520 | Loreres 475.5 ono ° . 2% 480 Bisitiva7 445.2 0.2% AA2.4 90.2% 91.6% 91.9% “ 9 .
Slide 12: Net Sales
sTLAORE NET SALES 11 120,000 4th 110,000 —— 100,000 BtoB ae r t WW zozoused ! 90,000 H || BRYayv7 ! t 80000 | J atyay7 76,393 ! 1 6,731 H 70,000 6 H 1,338 I 60,000 54,422 12.875 3,192 193 42 50,000 6 oss ‘ 38,580 41-182 os 40,000 35,050 , 1,766 693 31,806 , 1,573 4477 , 2,389 | 4016 a aa6 30,000 2,6
Slide 13: Net Sales (Quarterly)
TlLaOHKE (B NET SALES (QUARTERLY) 12 25,000 esi tote : 22,127 22,699 7 UTR a cor reas 21,451 21,242 BtoB 0 co} 2,054 1,772 20,000 a sos 350 } 0 zozousco wat 3,605 330 336 | RMYay7 16.671 3,301 3,257 BEY ay ; 16,180 48 Bi skys YF 15,333 3° 15.386 1,666 48 43 15,000 799 18 521 a: 2,716 a: 11,560 | ee
Slide 14: Operating Profit and Operating Profit Margin
BRtlat : SRNR ORME) ORB OPERATING PROFIT AND OPERATING PROFIT MARGIN 35,000 30,000 25,000 20,000 15,000 10,000 BM S24 BRAUBR (%) 9.6% 7,704 (X47 ao RS) 10.8% 8.9% 12,388 8,529 11.7% 15,084 13 19.0% 15.0% t 1 1 ! 1 1 H 1 ! | ; 11.1% | 11.6% ! 1 1 I 11.0% 1 t 17,756 3.0% (#8) 12/03 13/03 14/03 15/03 -
Slide 15: SG&A Expenses
AR BO AER SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES 1 4 (Bit : BAA) 17/03#A 2Q 18/03HA 2Q BUELL JAB _ _ _ REA 2h IRIS Le 2h WRRBLE | WRB Me 4,356 | 5.6% | 5962] 5.0% | -0.6% MeRNRA D1 6FOA 8314-1 7FOA RIE AEH 3,911 4.5% 5,548 | 4.6% | 0.1% | asin (20179A~) Kemmeset! 2151 | 25% | 3,991 |
Slide 16: Operating Profit and Margin (Quarterly)
BRAN: BRNRE NH MRS) OH (B Le i >| am ~~ OPERATING PROFIT AND OPERATING PROFIT MARGIN (QUARTERLY) 1 5 9,000 8,703 30% BM Sxl 7.981 8,000 : BRA (%) (RMS) a EASE bam 25% 6,992 +4.9% 7,000 6,011 5,850 6,000 20% 5,576 5,011 5,000 4,735 14.1% 15% 4,000 3,733 13.4% S276 12.6% 11.9% 126% 3,000 aw 10.6% , 10
Slide 17: SG&A Expenses (Quarterly)
ARS ROHS (MOH) SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES (QUARTERLY) 1000 | EE see xem TOt-Ya MeRe HHRRRS 14,000 18 BESS OSERIURES) 13,561 13,684 12000 11.350 11,863 10,000 , 9,236 9,228 9,193 8,788 8,000 7,444 6,453 6,000 4,000 3.7% 2.3% 1.5% GH) 16/03 1Q 16/03 #2Q 16/03 #3Q 16/03 #4Q 1
Slide 18: Overview of SG&A by Each Quarter
FRE BOAER (MH) OVERVIEW OF SG & A BY EACH QUARTER 1 7 (Sti : BAA) 17/038 18/03#A Patra OOH BODOG Baas Patra Pawel me 2h SHURE te 2h WRRS LH 2H WRRS LH 2h WRRS LH 2h SHURE te 2h SHURE te MB 2,472 | 5.8%] 2,383] 5.4%] 2,935] 4.8%] 2,845] 4.4%] 2,896] 4.9%] 3,065] 5.1% Paes 1,837 | 4.3% | 2,073] 4.7% |
Slide 19: Number of Total Buyers
elie AB aX NUMBER OF TOTAL BUYERS 18 8.000.000 RASH ELIA LMA LAP IF 1 PRBRE TA BAB OSHAM bi =; ic i PIT Eas bs Ba FABAEHHS BERET DTMAL RAL— TBA 6,963,986 PIF 4 FRBBABA ELIAISBLLEMA LS BS 7,000,000 POT 4D 6,734,740 FA RBA 6,324,033 6,000,000 Mivrvr+7sa% 5,783,381 2,372,969 5,252,541 2,550,867 5,000,0
Slide 20: Number of Shops on ZOZOTOWN
ZOZOTOWNE Y ay TROBE NUMBER OF SHOPS ON ZOZOTOWN 1 9 ERY a7 987 1,016 | ELeeers 7 93a «954 : 7 339 867 342 872 , 24 10 800 28 720 685 26 27 600 oun 979 1,009 927 400 811 843 832 “8 658 694 200 (yav7) 0 "16/03 #10 16/03 #2Q 16/03 #33Q 16/03 #4Q 17/03 #1Q 17/03 #2Q 17/03 #3Q 17/03 #4Q 18/03 #1Q 18/03
Slide 21: Active Member Distribution
PIT 4 SABIE ACTIVE MEMBER DISTRIBUTION 20 MS WE Hit th Bina th . Ab AHS.5% TUN - HBB 8.8% 55% ‘Bl - PUBL 7.7% FSF ie BABE 41.0% _ 32.7 (RHI 7.4%) AlE31.8 tt:33.1 50,000 ALBE - AIS 5.8% dW)
Slide 22: Annual Purchase Amount and Pieces per Active Member
PITF(FISRIASEW OFRBASH - FHA RE 50,000 48,000 46,000 44,000 42,000 ANNUAL PURCHASE AMOUNT AND PIECES PER ACTIVE MEMBER SARAH @ FFB RE 48,644 48,556 46,818 47.937 48,275 47,140 tony 4719 46,135 44,279 10.7 10.9 40,000 38,000 36,000 34,000 32,000 (A) 30,000 (8) 16/038810 16/03%2Q 16/0383Q 16/03%84Q 17
Slide 23: Annual Purchase per Existing Active Member
BEEP 77 4 TSRIA SEV OPBBA SE - FRA RE ANNUAL PURCHASE AMOUNT AND PIECES PER EXISTING ACTIVE MEMBER 66,000 64,000 62,000 60,000 58,000 56,000 54,000 REP IT 4 7SR: ERB A aR RERP S1 FU ERRL TSI IT 1 IS OFA Re 60,106 60,929 64,290 63,004 61,770 14.6 22 18 7 16 14 13 12 1 10 16/03%81Q 16/03%2Q 16/03%3Q 1
Slide 24: Number of Shipments
uy Ht FEO HES NUMBER OF SHIPMENT 8,000,000 nate 7,000,000 AE Ta) HALE 6,000,000 5,000,000 4,000,000 3,330,674 13,007 626 3,000,000 2,000,000 26.8% 1,000,000 (fF) 23 7,148,647 140% 6,931,318 6,787,599 120% 5,886,580 5,391,093 100% 4,871,419 4,652,101 3,901,739 80% 0 5% 62.7% 547% 61.9% 60% 50.9% 2.3%
Slide 25: Average Retail Price
PIR BOWE AVERAGE RETAIL PRICE 24 10,000 9,000 | HRS MS OERRDECH SE (ZOZOTOWNRS) DA SAILS & VRBO MATL CHG C CICK) RH 25% | pee re ail #1000 aE BLL 15% 7,000 5,939 6,000 5,236 5% 5,041 4,922 5,000 4,000 3,000 2,000 4,522 4,468 4,474 3,855 4,099 3,664 4.6% [I] i 5% -5.0% ee por ae p 11.4% 14.7% 9.1% ee
Slide 26: Average Purchase Amount per Shipment
18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 FID fay BAM O HES AVERAGE PURCHASE AMOUNT PER SHIPMENT 25 HH fer fifi (dt PK BAOECHS (ZOZOTOWNE) OMGINRS t HMO AMCRT CCIE RH o8% Bona et HiSE IBALL 25% 10,651 9% 9.605 10,143 1% eal 9.189 8 680 8,955 9530 8,186 7,941 530 8, 5% 2.7% B 3.1% -1.9%| -
Slide 27: Ratio of Shipment Volume by Access Terminal
FINA Al HW ta LER THE RATIO OF SHIPMENT VOLUME TO THE TOTAL PURCHASE VOLUME ( by access terminal ) 26 100% PC ONT @AY-bI4Y 90% 79.4% 80.4% 80% 75.2% 77.5% 71.6% % 69.9% 70% 66.0% ©8.2% 60.4% 62.3% 60% 50% 40% 38.7% 36.9% 33.4% 31.3% 99 7% ; 28.1% 30% ° 24.6% 22.3% 20.5% 19.5% 20% 10% 0.9% 0.7% 0.6%
Slide 28: Business Plan for FY2017
Slide 29: Consolidated Business Forecast and Dividend Forecast for FY2017
18/0334 i FRE tae te 78 - CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2017 Acs 28 18/03#8at i BR (%) Bohs 2,70018 FA 27.3% she 1,00018 FA 30.9% Ee Seng 320f8 Fi 21.7% i FZ 320f8 Fi 21.0% PLEASE (Clee ST S 4 BAAS 22218 A 30.3% TAR 7 1) RAHA Et 71.2F VAM EW ACME (FE) 29F4
Slide 30: Transaction Value
Pian IR es O HES TRANSACTION VALUE 29 4,000 MaRS © SRE WERE) 3,500 12.4% 14% 12% 3,000 10% 2,500 8% 2,000 1,595 6% 1,500 1,290 1,146 958 4% 1,000 802 561 soo | 366 2% ie} 0% () 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (3H)
Slide 31: Breakdown of Total Transaction Value and Each Policy
Sittat Blalte RO Dstt BREAKDOWN OF THE TOTAL TRANSACTION VALUE AND EACH POLICY AB-—bhhyOF TS Maco IRS BE: 2,700fH (IBALL +27.3%) ZOZOTOWN#3 Miao Mike BS : 2,64018A (ARAL +28.8%) -SityavT7 2,460 (arHALE +28.2%) - ZOZOUSED 18012 (aiHALE +39.8%) BtoB# Man ike BR : 60 (AIHA -3.5%) SAM MMMM) er Fl 2638 B
Slide 32: Capital Investment
ax iat A OER CAPITAL INVESTMENT 2,500 2,000 1,500 1,000 500 31 axe Wh xitiezoe 2,162 On AREA 2,000 825 1,174 230 1,047 744 1,107 409 570 231 466 1,080 843 150 353 786 765 113 586 277 322 | 153 (iy 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (sti)
Slide 33: Dividends per Share and Payout Ratio
14% 7) ACS SR OBC 1] OGEB DIVIDENDS PER SHARE AND PAYOUT RATIO 32 35 Wi iascome 30 ACHE 40.3% 406% 41.8% 41.5% 29.0 35.6% 25 22.7 34.3% 20 ; ; 24.1% 249% 24.8% 21.5% 15.6 15 11.3 10 83 6.6 5.0 5 2.3 »|o7 og 14 0 [| |! (RB) 08/03 09/03 10/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (##)
Slide 34: Future Strategies
Slide 35: Mid to Long-Term Vision
pRB Yay MID TO LONG-TERM VISION 34 HoMkeOPeRae . * 5,000 Banke } Wit FL FORA ra 20XX4E3 Ai HA BGBRS 5,000A BRA 500% A 2,700“ 2,500 2,120 2,000 1,595 sn + 290 = 1,146 958 1,000 802 561 500 366 (Fa) 0 G8) 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 20XX4E3A HA (at) (Be)
Slide 36: Market Expansion Strategy
risa A RRS MARKET EXPANSION STRATEGY ZOZOTOWN ZOZOUSED (CtoBtoC) 35
Slide 37: Reference Data
Slide 38: Corporate Principles
ABZ-—bh ho Tt BRB CORPORATE PRINCIPLES 6,032... 838. te en HERB ( FY 31.2 kez ) Hepp eaAvak<, HRP KBs. Make the world a better place, Bring smiles to the world. 10,027. 696., RARE 37
Slide 39: Major Services
FEEY-EX 38 MAJOR SERVICES AABAROI yy VavjRt 1 k [ZOZOTOWN] (Dry VaveRbe LLARRARD 1 a-Ay bY aveLItt bo +1,0162a 77, 603277» KORG. MRMSSSSOHALE, FOS AMIs 1 A2,900RLLE L YRFL. FTL, WHEE ECB SIME * BAT CRIS. . 2Znhea ZOZOTOWN http://zo0z0.jp/ AARRARMDNI Py Yava-F4HKR-bPFTY [WEAR] * ARRAROI Py YavAa-F+H-
Slide 40: Our Subsidiaries
FASHIC DUT OUR SUBSIDIARIES RASAA— hho TT LB VAT LEH. WEBT HY 4 > - CRM, thi bE - REDS PRSHIDVY Vals A-Y-SpPohh7 ry yay eMeaM, Roe € 71 II RHR t RA. RRSHT IAF ECH4 MITE. WEBY— F427, WEBt42. + ECE? 7U7—Y ar oie tt. 39 Mantes FAERIE Bian HAS v AR bh FT uy KT v3EIL201 7H 6 A30A € bo TH-EAERTUKLELEDW
Slide 41: Business Model
EVRAEFIL BUSINESS MODEL ZOZOTOWN#3= Sat vayT7 ZOZOTOWNIC HIE $ 31,0095 OA LIT VY ay PORES tit. 5F-EBOCEB*CELUA CHP SERV ZAIOKELEWBE. RLS = Bay TOMAR X SFA ‘BMY ayT7 ZOZOTOWNE( TC. 7¢RB PIL KX—A— LEME BUM BRET SI. RLS = 8a» JORGDRES * ZOZOUSED 1-f-SPSPR py Yale RM, tT II RMS St RA RLS =4 av 7ORRWRS X
Slide 42: REEL, SHARE CHRBUE EK EODBH CS"),
REEL, SHARE CHRBUE EK EODBH CS"), KREMAEANCTSENCLHW ECA, REECE S 1 CUS ABP ARO PBC OS EL Td, BAG CAF ARE CISCO & Bt CHM LEED CHW ET. FRCS ESEGMEEBRPAELTS!), RRORMIS CNSOHRKREL CRE SHEP HW ET.
Start Today Co.,ltd. — Q2 FY2017 Earnings Presentation on 6ix