Slide 1: Mid term plan
Mid term plan
Slide 2: Scope of this document: mid-term plan and 2017 results
We explain mainly mid-term plan between 2018 and 2020 fiscal year in this document. In addition, we explain 2017 fiscal year financial results including its implication to the mid-term plan. 2
Slide 3: Summary 2017 fiscal year
SUMMARY 2017 fiscal year During 2017 fiscal year, because we have improved the 4 points below, we now have strong business platform that enables us to “increase sales and boost profit by pressing the gas pedal (ads investment)”. 1. 【IPO effects (budget control and growth cap)】 During the IPO process
Slide 4: 1. IPO effects (budget control and growth cap)
1. IPO effects (budget control and growth cap) EBIT is +69% and ordinary income is +60%. Achieved business plan. * Net income is – 42% due to reversal of deferred tax assets related to mid-term plan. (Million JPY) Achievement Item 2017 results Plan Growth rate Turnover 9,495 10,083 + 18% 94% Sales 3
Slide 5: 2. Business portfolio
2. Business portfolio In order to boost “inventory sharing” effects, enhanced business portfolio by adding investment business (Corporate Private Equity). Share infrastructure Platform EC business business Inventory sharing Increase sales of EC Best practice Increase Inventory sharing sales of EC Be
Slide 6: #1 Investment: Shaddy group
#1 Investment : Shaddy group Visited head office in Tokyo, Osaka branch, Aichi branch and warehouses of Tochigi, Shiga, Wakayama and Aichi. Designed preliminary plans of increasing (a) productivity, (b) profitability and (c) sales including collaboration between Shaddy group and LOCONDO. Yusuk
Slide 7: 3. Profitability
3. Profitability Contribution margin was increased even after increase of shipping costs. Now, can expect “16%” as usual contribution margin rate. Contribution margin rate 18% 16% Target 14% 12% 10% 8% 6% 4% 2% 0% 2015/1Q 2015/2Q 2015/3Q 2015/4Q 2016/1Q 2016/2Q 2016/3Q 2016/4Q 2017/1Q 2017/2Q 2017/3
Slide 8: Comparison of basket price (average price per shipping)
Comparison of basket price (average price per shipping) One of the reason of our high contribution margin rate is higher average price per shipping than competitors’. We can sell luxury goods because of free return shipping service. Average price per shipping (2017/3Q; JPY) 14,000 12,000 11,720 10,0
Slide 9: 4. Fixed costs control
4. Fixed costs control Fixed costs has been flat since move (March, 2017) and expansion (August, 2017) of warehouse. ※ Include 70 Million JPY as unordinary fixed costs during 2017 1Q. Fixed costs (Million JPY) 350 301 300 279 266 243 250 200 150 100 50 - 2017/1Q 2017/2Q 2017/3Q 2017/4Q Source） DATA
Slide 10: How does LOCONDO press the gas pedal?
How does LOCONDO press the gas pedal? 10
Slide 11: 2018 & 2019 fiscal year plan – Invest into ads
2018 & 2019 fiscal year plan – Invest into ads – • Aggressive ads investment of web ads (variable costs) and TV commercial (fixed costs) ⇒ page 13 ① • Plan turnover of 15 bn JPY (2018 fiscal year) and 22.5 bn JPY (2019 fiscal year). Excluded sales from the mid-term business plan because it fluctuate
Slide 12: 2020 fiscal year plan – Invest into logistics
2020 fiscal year plan – Invest into logistics – • Achieve 30 bn JPY turnover through high recognition & inventory supply platform coming from inventory sharing effects. • Change ads investment level from “investment level (2018 - 19)” to “normal level” and gain 16% of contribution margin rate, the r
Slide 13: Mid-term plan: Turnover 30 bn JPY and EBIT 3 bn JPY in 2020
MID-TERM PLAN “Turnover: 30 bn JPY and EBIT: 3 bn JPY” in 2020 fiscal year. actual actual Mid-term plan Fiscal year (100 M JPY) 2016 2017 2018 2019 2020 Turn over 80 95 150 225 300 - Growth 18% 58% 50% 33% Contribution margin before variable ads costs 15 20 30 45 60 - % of turnover 18% 21% 20% 20% 2
Slide 14: Turnover plan (Million JPY)
Turnover plan (Million JPY) 300 225 150 95 80 2016 2017 2018 2019 2020 14
Slide 15: EBIT plan (Million JPY)
EBIT plan (Million JPY) 30 2 3 0 2016 2017 2018 2019 2020 (10) 15
Slide 16: Breakdown of 15 bn JPY turnover of 2018 fiscal year
Breakdown of 15 bn JPY turnover of 2018 fiscal year (Million JPY) Plan 6 bn JPY as turnover of the first half of 2018 fiscal year and 9 bn JPY as the second half. 90 60 46 49 1st (2017) 2nd (2017) 1st (2018) 2nd (2018) Source） DATA SHEET 16
Slide 17: Turnover driver of 1st half of 2018 fiscal year
Turnover driver of 1st half of 2018 fiscal year. Increase turnover of EC businesses through TV commercial. Growth of EC business during March 2018, 1st month of 2018 fiscal year, is ＋45％. Growth of EC business 50% 45% 45% 40% 37% 35% 35% 30% 25% 22% 20% 14% 15% 10% 5% 0% 1Q (2017) 2Q (2017) 3Q (2017
Slide 18: Turnover driver of 2nd half of 2018 fiscal year
Turnover driver of 2nd half of 2018 fiscal year Plan 9 bn JPY as turnover of the 2nd half of 2018 fiscal year through activities below (now, preparing/developing). • TV commercial effects （planning 51% as recognition during 1st LOCONDO.jp half and 65% as that during 2nd half) • Business alliance wit
Slide 19: Fin
Fin
Slide 20: ...and START !!!
...and START !!!