Jade Group, Inc. · TSE:3558

Jade — Locondo — Investor Presentation (February 2020)

18 slides from Jade's investor presentation, February 2020

  1. Slide 1: Investor presentation – LOCONDO (3558)

    Investor presentation – LOCONDO (3558) 1

  2. Slide 2: Today’s presentation can be downloaded

    Today’s presentation can be downloaded LOCONDO corporate page: https://www.locondo.co.jp/ir You can also download an analyst report in English below from the end of March Shared Research: https://sharedresearch.jp/ 2

  3. Slide 3: LOCONDO Service Video (4:27)

    LOCONDO SERVICE VIDEO (4:27) https://www.youtube.com/watch?v=cOVn7Wji7nA 3

  4. Slide 4: Board Members

    BOARD MEMBERS Inside (50%) Yusuke Tanaka (CEO) Kenji Fujiki (Sales) Jun Tamura (Control) • Ex-McKinsey • Ex-Washinton shoes • Ex-Tohmatsu • UC Berkeley MBA • Shoes expert (shoe • CPA (Haas: 07-09) fittter) Legal Mgmt Finance Outside (50%) Satoshi Hirota Minoru Tanaka Tomoya Suzuki • Lawyer (Japan /

  5. Slide 5: LOCONDO Portfolio: “Mutually Complementary”

    LOCONDO PORTFOLIO: “MUTUALLY COMPLEMENTARY” • Provides total solution of IT & • Recognized as No.1 free return logistics services to realize shipping (“try at home”) EC Omni Channel • No.1 brand assortment of • Infrastructure sharing realizes ladies’ shoes (2,500 brands) high quality & low costs Sha

  6. Slide 6: GMV (M JPY)

    GMV （M JPY） GMV of fiscal year 2019 +18% (March 2019 – Feb 4,797 2020) will be 18 – 18.5 bn JPY 4,065 683 290 Others 480 LOCOCHOC 272 284 380 BOEM 591 312 342 314 295 348 374 577 LOCOMALL 323 14 13 205 371 539 223 529 585 364 306 489 19 20 445 18 26 281 228 463 305 317 260 285 206 232 414 420 432 38

  7. Slide 7: EBIT (M JPY)

    EBIT （M JPY） 140 141 123 TV CM 38 24 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q -170 -160 -192 -231 -222 -333 （CM costs） 300 234 416 239 362 149 102 Source: Data Sheet 7

  8. Slide 8: EC # of active users (K)

    EC # of active users (K) M&A of Mobacolle TV CM start 300 LOCOMALL 291 265 249 231 220 213 213 214 221 145 170 192 52 85 120 578 605 LOCONDO 0 0 19 536 497 439 386 332 264 271 266 260 256 246 243 251 257 275 289 304 2015 2Q 3Q 4Q 2016 2Q 3Q 4Q 2017 2Q 3Q 4Q 2018 2Q 3Q 4Q 2019 2Q 3Q 1Q 1Q 1Q 1Q 1Q So

  9. Slide 9: EC average basket size (per order)

    EC average basket size （per order） 13,486 12,638 12,061 11,914 11,344 11,731 11,406 11,720 LOCONDO 10,665 10,870 10,93510,776 10,736 10,355 10,564 10,0959,862 9,439 9,093 8,139 8,234 8,129 7,617 7,800 7,569 7,644 7,350 7,307 7,267 7,138 6,972 7,264 6,954 6,977 7,030 6,646 6,073 LOCOMALL 2015 2Q 3Q 4

  10. Slide 10: EC return rate

    EC return rate Basket size ↓ × （1 - Return rate ↓）= Actual basket size ↑ 42% 40% 40% Basket size: 13,486 34% 34% LOCONDO 33% JPY 32% 30% 30% Actual basket size: 29% 29% 27% 27% 27% 26% 7,821 JPY 26% 26% 25% 25% Basket size: 10,564JPY 16% 15% Actual basket size: 13% 7,923 JPY LOCOMALL 9% 9% 9% 8% 8%

  11. Slide 11: EC # of brands

    EC # of brands 2,458 2,327 2,365 2,167 2,193 2,097 2,126 1,872 1,878 1,907 1,926 1,772 1,796 1,545 1,414 1,335 1,278 1,019 1,064 2015 2Q 3Q 4Q 2016 2Q 3Q 4Q 2017 2Q 3Q 4Q 2018 2Q 3Q 4Q 2019 2Q 3Q 1Q 1Q 1Q 1Q 1Q Source: Data Sheet 11

  12. Slide 12: e-3PL # of shipment (00,000 pieces)

    e-3PL # of shippment （00,000 pieces） Warehouse capacity became bottleneck now, but e-3PL volume will increase after movement of new warehouse (April, 2020) 71 CAGR + 135% 61 52 46 39 36 13 9 8 6 2 3 2 3 0 2016 2Q 3Q 4Q 2017 2Q 3Q 4Q 2018 2Q 3Q 4Q 2019 2Q 3Q 1Q 1Q 1Q 1Q Source: Data Sheet 12

  13. Slide 13: Brand – 1: Exclusive Agency Model – MANGO –

    BRAND – 1: EXCLUSIVE AGENCY MODEL – MANGO – LOCONDO is the exclusive channel of MANGO in Japan (incl. management of BOEM platform) MANGO @ LOCONDO Japan.mango.com (powered by our BOEM platform) 13

  14. Slide 14: Brand – 2: Original D2C Model

    BRAND – 2: ORIGINAL D2C MODEL Factories Influencers (Instagram, YouTube) MISUZU (wholesale) M&A in Oct, 2018 Designers LOCONDO (EC) EC consultants (w big data) Original Original Original Consumers brand 1 brand 2 brand 3 14

  15. Slide 15: Example: D2C Brand (w/o influencers): Viola & Emma

    EXAMPLE: D2C BRAND (w/o influencers): Viola & Emma • Real leather (本革) • Made in Japan • European design …BUT • 9,800 JPY (>$100) 15

  16. Slide 16: Non-consolidate P&L (2016 – 2020)

    Non-consolidate P&L (2016 – 2020) GMV 8.0 9.4 13.5 12.6 (3Q) GMV 2020 20.0 – 22.5 B (B JPY) (+ 18%) (+ 42%) (+ 26%) (GMV) 3,000 16% × 15% 14% 2,500 13% 12% 12% 12% 2020 16% 2,000 (margin) 1,189 10% = 1,500 613 8% 3.2 – 4.0 B 2020 6% (margin) 1,000 0 0 － 4% 1,311 1,187 2.0 B 500 1,089 2020 885 2% (Fi

  17. Slide 17: Mid to Long-term Rough Image [Not Authorized]

    MID TO LONG-TERM ROUGH IMAGE [NOT AUTHORIZED] CAGR Market insights GMV (B JPY) • Market size of shoes is 1,400 B 100 JPY + 15% + 19% • EC penetration rate is expected to + 22% 50 be around 15% now and to be 30 increased to around 30%: US & 20 EU level 2020 2022 2025 2030 • As NO.1 Shoes EC player, w

  18. Slide 18: END

    VISION END 18

Locondo — Investor Presentation (February 2020) on 6ix