Syuppin Co., Ltd. · TSE:3179
Syuppin — Q3 FY2023 Earnings Presentation
23 slides from Syuppin's earnings presentation, Mar 31, 2023
Slide 1: Presentation Materials 3Q
Presentation Materials 3Q March 31, 2023 Copyright 2023 Syuppin Co., Ltd. All Rights Reserved. 0
Slide 2: Corporate Information
Corporate Information Name Syuppin Co., Ltd. Securities Code 3179 Representative Naohiko Ono Head Office Daiwa Nishi-Shinjuku Bldg.3F, 14-11, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, Japan Date of August 2005 Establishment Business Safe and secure online trading of valuable new and used items No.
Slide 3: Highlights of 3Q Results (vs. Plan)
Highlights of 3Q Results (vs. Plan) ●Net sales: Net sales of the watch business in particular declined and fell short of the plan due to the impact of the international situation despite the good performance of the camera and cross-border online sales businesses. ●Gross profit ratio: In the camera b
Slide 4: Trend in Net Sales by Sales Channel (Monthly)
Trend in Net Sales by Sales Channel (Monthly) EC In every month of 3Q, performance was strong and up year-on-year. Stores Sales were up year-on-year and recovered although demand related to year-end shopping was below the forecast. Duty- Free Inbound demand in the watch business continued to be low.
Slide 5: Trend in Net Sales by Sales Channel (Quarterly)
Trend in Net Sales by Sales Channel (Quarterly) Online net sales were strong, and overall sales increased 14.8% year on year. (Million yen) 14,000 Duty-free sales at stores Store net sales (excl. duty-free sales) 12,000 Online net sales 780 1,355 1,796 771 2,162 520 10,000 1,980 602 1,766 1,732 1,85
Slide 6: Trends in Online Net Sales (Details)
Trends in Online Net Sales (Details) Sales on Company's website grew partially because of the effects of the One to One broadcasting in AI Recommended Content. 1Q FY03/2023 2Q FY03/2023 3Q FY03/2023 YoY% Change Online net sales（Million yen） 8,522 8,487 9,589 114％ Percentage of sales on the 78.2% 79.
Slide 7: Trends in cross-border online sales, duty-free sales and store sales
Trends in cross-border online sales, duty-free sales and store sales Demand for cameras continued to be strong in Japan as well as overseas, and cross-border online sales of watches were strong, achieving 164.1% year on year. (Million yen) Duty-free Sales 800 New items 600 Cross-border online sales
Slide 8: Net Sales by Segment (Quarterly)
Net Sales by Segment (Quarterly) The whole business grew steadily and net sales in this 3Q reached a record high compared to previous 3Qs. However, sales in the watch business decreased. (Million yen) Bicycles 14,000 Stationeries Watches 194 106 197 114 Cameras 185 12,000 100 225 233 113 3,154 101 2
Slide 9: Highlights: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales Regarding net sales of used products in the watch business, the ratio of used products was stable. It was not greatly affected by the significant decline in sales in the domestic market. 70.0% 61.7% 60.8% 59.6% 60.0% 59.9% 59.1% 60.0% 58.0% 58
Slide 10: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras The online ratio remained high. AIMD introduced at Introduction of AI (Million yen) the end of March Recommended Content 2,500 Online purchase value (Left axis) Online purchase ratio (Right axis) 80.4% 85.9% 78.8% 74.7% 77.3% 79.8% 8
Slide 11: Supplementary Material: Trends in Number of Receive-First Send-Later Transactions
Supplementary Material:Trends in the Number of Receive-First Send- Later Transactions The number of transactions remained in a good place as the cycle stabilized due to AIMD. (number of replacements) 16,000 Number of send-later transactions 14,000 Number of receive-first transactions 12,000 5,251 5,
Slide 12: Summary of Financial Results
Summary of Financial Results Year on year — Overall: Up 11.4％ Online: Up 20.3％ Stores: Down 10.8％ Net sales Online net sales remained steady, particularly cameras, which is a mainstay. Net sales at physical stores, mainly duty-free sales, decreased. Gross The mainstay camera business remained steady
Slide 13: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses (Million yen) FY03/2022 FY03/2023 YoY% Change 1Q + 2Q + 3Q 1Q + 2Q + 3Q Ratio to Ratio to Ratio to Factors of increase Actual Actual net sales Change net sales net sales （ＰＴ） Personnel expenses 954 3.1% 1045 3.0% ▲0.1% +91 Increase due to base salary raises Advert
Slide 14: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment (Million yen) Segments/Sales Channel FY03/2022 FY03/2023 YoY% Change Remarks （ ）The percentage of sales 1Q + 2Q + 3Q 1Q + 2Q + 3Q Online net sales 17,443 21,131 121.1% Store net sales 2,314 3,276 141.6％ ● Online net sales performed strongly Se
Slide 15: Trends in Quarterly Operating Profit and Operating Margin
Trends in Quarterly Operating Profit and in Quarterly Operating Margin In the watch business, segment profit in 3Q alone was in the red (-184 million yen), which resulted in an operating margin of 4.9％. Continue to control SG&A expenses by maintaining the streamlined management using an online-focus
Slide 16: Changes in Balance Sheet from End of Previous Year
Changes in Balance Sheet from End of Previous Year Merchandise inventories increased 2.9 billion yen because the purchase of merchandise was enhanced looking forward to year-end shopping. (Million yen) End of 3Q of the Fiscal Year Ending March 2023 End of the Fiscal Year Ended March 2022 Actual Chan
Slide 17: Trends in the Quarterly Number of Online Members
Trends in the Quarterly Number of Online Members The number of new online members increased steadily every month and exceeded 600,000 in November. 650,000 Existing members 607,628 594,588 600,000 582,252 13,040 New members 12,336 568,813 13,439 554,124 14,689 550,000 540,394 13,730 527,332 514,460 1
Slide 18: Attributes of Online Members
Attributes of Online Members Members consist of a wide range of age groups, in which those in their 10s to 30s comprise 40.9％. Women in their 10s to 30s account for a high percentage, 23.0％, reflecting the popularization of social media such as Instagram. Even though the weighting of younger people
Slide 19: Quarterly Activeness Ratio of Web Members
Quarterly Activeness Ratio of Web Members (Existing Customers) * The activeness ratio remained high with a net increase in new members. 7.00 (number of people) Number of purchasing members who made purchases 6.00 Activeness ratio 4.79 4.86 4.67 4.67 5.00 4.29 4.31 4.30 4.36 4.26 4.31 4.14 4.23 4.00
Slide 20: Number of Items Registered on the Wish List
Number of Items Registered on the Wish List *When a registered product is purchased, it is automatically removed from the list The number of new registrations increased steadily at about 60,000 per month on average. Total registrations New registrations 74,521 78,060 77,439 69,656 63,383 66,051 64,7
Slide 21: Number of Registrations for E-mails that Communicate Arrivals
Number of Registrations for E-mails that Communicate Arrivals The number of new registrations has grown steadily. In addition to notifications via email and through the app, a LINE-based notification feature was introduced from May. Looking at the full year, an average of about 400,000 notifications
Slide 22: AIMD x One to One x AI-driven Content Recommendation
AIMD x One to One x AI-driven Content Recommendation The number of notifications delivered in response to personal requests remained steady, utilizing AIMD, One to One, and AI-driven content recommendations. An average of 4 million notifications delivered to customers' smartphones per month. *AI-dri
Slide 23: Notes on Forward-Looking Statements
Notes on Forward-Looking Statements • The materials and information provided in this presentation include so-called forward-looking statements. These statements are based on assumptions that include current expectations, forecasts, and risk factors, which include uncertainties that may cause actual