Slide 1: FY2021 Business Results
FY2021 B U S I N E S S R E S U LT S May 14, 2021 Full-year Financial Results for the Fiscal Year Ended March 31, 2021 Vega corporation Co., Ltd. / Securities code: 3542 Copyright 2021 VEGA corporation. All Rights Reserved.
Slide 2: Agenda
1 Overview of Financial Results for the Fiscal Year Ended March 31, 2021 2 Report on LOWYA Business 3 Report on DOKODEMO Business 4 Appendix Copyright 2021 VEGA corporation. All Rights Reserved. 1
Slide 3: Overview of Company-wide Businesses
Overview of Company-wide Businesses Leverage the know-how, which we acquired through LOWYA’s D2C business, for DOKODEMO Exercise the power of creative content and technology to promote the two businesses Products Customers Process Furniture Sales Attract and interior In Japan (e-commerce website Del
Slide 4: Financial Highlight
Financial Highlight Net sales 5,066 million yen (135.8% YoY) 4Q Operating profit 417 million yen (406.7% YoY) Results Overview Full Net sales 19,313 million yen (142.3% YoY) year Operating profit 1,824 million yen (1,567.0% YoY) Achieved full-year forecasts for both sales and profit LOWYA The flagsh
Slide 5: Overview of Financial Results for the Fiscal Year Ended March 31, 2021
1 Overview of Financial Results for the Fiscal Year Ended March 31, 2021 Copyright 2021 VEGA corporation. All Rights Reserved. 4
Slide 6: Statement of Income (4Q)
Statement of Income (4Q) Net sales increased 35.8%, Operating profit increased 306.7% (Million yen) Three months Three months ended Sales ratio ended Sales ratio Change YoY Mar. 31, 2020 Mar. 31, 2021 Net sales 3,729 100.0% 5,066 100.0% +1,336 135.8% Gross profit 2,140 57.4% 3,063 60.5% +922 143.1%
Slide 7: Statement of Income (Full Year)
Statement of Income (Full Year) Achieved increases of 42.3 % in net sales and 1,467.0% in operating profit (Million yen) Fiscal year Fiscal year ended Sales ratio ended Sales ratio Change YoY Mar. 31, 2020 Mar. 31, 2021 Net sales 13,570 100.0% 19,313 100.0% +5,743 142.3% Gross profit 7,687 56.7% 11,
Slide 8: Progress Against Full-year Financial Results Forecast
Progress Against Full-year Financial Results Forecast Achieved the full-year financial results forecast for all indicators. Full year progress rate (Million yen) Progress rate Lower limit Upper limit (Lower limit – Upper limit) Actual results of forecast of forecast 19,313 97 –107% Net sales 18,000
Slide 9: Net Sales / Full Year & Quarterly
Net Sales / Full Year & Quarterly Net sales for the full year grew by 42.3% YoY to 19,313 million yen Net sales for the three months ended Mar. 31, 2021, grew by 35.8% to 5,066 million yen Gross margin continued at a high level of 60.0% for the full year and 60.5% for the three months ended Mar. 31,
Slide 10: Operating Profit / Full Year & Quarterly
Operating Profit / Full Year & Quarterly Operating profit grew significantly YoY to 1,824 million yen for the full year and 417 million yen for the three months ended Mar. 31, 2021 Operating profit (million yen) YoY+306.7% Full YoY+1,467.0% Quarterly 748 year 1,824 1,824 409 417 417 249 102 116 71 7
Slide 11: Increases and Decreases in Operating Profit
Increases and Decreases in Operating Profit / Full Year & Quarterly Full Quarterly (Million yen) year Positive factor Net Sales Net Sales Cost of sales Negative factor Cost of sales Delivery Delivery expenses expenses ↓410 Selling ↓1,826 expenses Selling expenses ↓106 ↓591 Personnel Personnel expens
Slide 12: SG&A Expenses Ratio / Quarterly
SG&A Expenses Ratio (against Net Sales) / Quarterly (%) 57.2 57.4 56.8 56.5 55.4 55.5 2.6 2.9 1.9 54.2 53.9 2.1 1.8 2.5 51.7 2.5 3.3 1.2 51.4 2.8 1.9 3.3 50.4 2.1 1.6 0.6 4.7 2.4 4.5 1.0 4.6 14.7 12.6 44.9 0.8 11.8 12.5 12.6 11.9 10.6 1.0 3.0 10.7 10.4 0.6 9.3 10.3 8.1 12.5 11.5 11.1 11.6 12.2 11.6
Slide 13: Balance Sheet
Balance Sheet Decrease in inventory due to control of import timing in response to rising marine container transportation costs (Million yen) Previous fiscal Current fiscal Previous fiscal Current fiscal year year year year (as of March 31, (as of March 32, (as of March 31, (as of March 32, 2020) 20
Slide 14: Report on LOWYA Business
2 Report on LOWYA Business Copyright 2021 VEGA corporation. All Rights Reserved. 13
Slide 15: 2-1. Report on LOWYA Business
2-1. Report on LOWYA Business Copyright 2021 VEGA corporation. All Rights Reserved. 14
Slide 16: LOWYA Business: Report for the Three Months Ended March 31, 2021
LOWYA Business: Report for the Three Months Ended March 31, 2021 We continued to make smooth progress in the enhancement of the flagship store and the improvement in profitability (Million yen) Three months Three months ended Sales ratio ended Sales ratio YoY Mar. 31, 2020 Mar. 31, 2020 Net sales 3,
Slide 17: LOWYA Business: Cost of Sales Ratio and Delivery Expense Ratio
LOWYA Business: Cost of Sales Ratio and Delivery Expense Ratio Cost ratio maintained even as impact of rising marine container rates begins to appear. Expected to be affected in the fiscal year ending March 31, 2022, and trends need to be monitored closely. (%) Cost of sales ratio 20 Delivery expens
Slide 18: LOWYA Business: Net Sales Ratio by Sales Channel
LOWYA Business: Net Sales Ratio by Sales Channel Flagship store sales increased 75.8% YoY, from 1,464 million yen to 2,574 million yen The proportion of sales at the flagship store rose from 39.8% in the previous 4Q to 51.9% Net sales (Million yen) Flagship store 51.9% Marketplace stores 49.5% 48.7%
Slide 19: LOWYA Business: Change in Monthly Net Sales
LOWYA Business: Change in Monthly Net Sales Strong growth in the three months ended March 31, 2021, supported demand for consumption from staying at home due to the declaration of a state of emergency Net sales FY2020 FY2021 YoY (Million yen) 174.5% 2,500 162.6% 152.9% 149.1% 149.7% 141.6% 144.0% 13
Slide 20: LOWYA Business: Net Sales by Sales Channel
LOWYA Business: Net Sales by Sales Channel The flagship store remained the main sales channel, while marketplace stores also contributed to sales steadily Net sales by sales channel Ratios shown below Rakuten store Amazon are YoY comparisons 0,000 PayPay (*) Flagship store Flagship store 0,000 up 75
Slide 21: LOWYA Business: Management Indicators
LOWYA Business: Management Indicators We maintained high growth in the number of visitors compared to the previous year primarily at the flagship store. The number of new products introduced increased as a result of initiatives for developing LOWYA into a platform Fiscal year ended March 31, 2020 Fi
Slide 22: 2-2. Report on LOWYA Flagship Store
2-2. Report on LOWYA Flagship Store Copyright 2021 VEGA corporation. All Rights Reserved. 21
Slide 23: Enhance Product Lineup: Trial phase starts to make LOWYA a platform
Enhance Product Lineup: Trial phase starts to make LOWYA a platform Started handling about 150 products from 4 brands and will continue to aggressively expand the number of brands and product categories. Copyright 2021 VEGA corporation. All Rights Reserved. 22
Slide 24: Enhance Product Lineup: Making LOWYA a platform
Enhance Product Lineup: Making LOWYA a platform Continue to add brands and products to expand sales. 3,000~ Number of orders, sales, and products of other companies’ brands 10,000 products Number of orders Sales ✔ Distribution is accelerating with the increase in number of products 155 products 1000
Slide 25: LOWYA Business: Renewal of official application / SNS
LOWYA Business: Renewal of official application / SNS LOWYA’s official app - Number of downloads exceeds 300,000 after renewal LOWYA’s official Instagram - Number of followers exceeds 670,000 * As of March, 2021 Official app Instagram ■ Smooth browsing of products ■ Updates on new product informatio
Slide 26: Enhance Customer Attraction: YouTube
Enhance Customer Attraction: YouTube Started “LOWYA BASE,” LOWYA’s official YouTube Channel LOWYA People Uta Tomo! Hana Uta LOWYA's interview-based Life LOG asks 10 questions to people "Sing as you like, with whoever you like." “A room that makes you want to sing," for casual, important, and in our
Slide 27: Results of Initiatives: Recognition survey
Results of Initiatives: Recognition survey LOWYA logo recognition rate rises to 9.1% nationwide LOWYA logo recognition rate 10% 9% 8.0% 8% 7% 9.1% 6.3% 5.8% 6% 5.3% 5% 4.4% 3.8% 4% 3% 2.4% 2% 1% 0% Second half of First half of 14th Second half of First half of 15th Second half of First half of 16th
Slide 28: Results of Initiatives: Growth of the flagship store
Results of Initiatives: Growth of the flagship store While the furniture EC market is growing due to the COVID-19 pandemic, the LOWYA business is growing at a higher rate than market growth. ・YoY sales at the flagship store are higher than the overall furniture EC market, maintaining high growth mom
Slide 29: Results of Initiatives: Change in composition of flagship store sales
Results of Initiatives: Change in composition of flagship store sales At the flagship store, the ratio of sales to non-members is declining as buyers become members. The ratio of sales to repeat members has been on a gradual increase, even before the full-scale implementation of measures to encourag
Slide 30: Report on DOKODEMO Business
3 Report on DOKODEMO Business Copyright 2021 VEGA corporation. All Rights Reserved. 29
Slide 31: DOKODEMO Business: Business Model
DOKODEMO Business: Business Model A platform with all functions necessary for cross-border e-commerce, including settlement, logistics and CS Seller companies are limited to Japanese companies, but products are delivered to users in countries and regions round the world Japan Global Direct delivery
Slide 32: DOKODEMO Business: Management Indicators
DOKODEMO Business: Management Indicators Gross merchandise sales continued to show a high growth rate, while membership and the number of APP DLs increased smoothly The number of products and the number of brands decreased YoY, as handling of reusable products declined due to the partial suspension
Slide 33: DOKODEMO Business: Gross Merchandise Sales (GMS)
DOKODEMO Business: Gross Merchandise Sales (GMS) GMS grew by 184.0% YoY Repeat customer GMS remained high, accounting for 64.4% (Million yen) New customer GMS Repeat customer GMS Ratio of repeat customers GMS 184.0% 700 increase 100.0% 600 80.0% 500 64.8% 64.4% 56.2% 60.0% 400 300 40.0% 200 20.0% 10
Slide 34: DOKODEMO Business: Proportion of Deliveries by Country Based GMS
DOKODEMO Business: Proportion of Deliveries by Country Based GMS Deliveries to Asia, primarily Taiwan, account for 90% of GMS Proportion of deliveries by country France South Korea Middle East 0.6% 0.8% US 0.5% Hong Kong Oceania Latin America 2.7% 0.04% 0.02% Africa Europe 2.1% 9.2% 3.4% North Ameri
Slide 35: Appendix
4 Appendix Copyright 2021 VEGA corporation. All Rights Reserved. 34
Slide 36: Appendix: LOWYA Business / Customer Data
Appendix: LOWYA Business / Customer Data (Male vs. Female, Area Distribution, and Generation Distribution) Showing higher ratio of females in their 30’s, mainly in the Tokyo metropolitan area (January 2021 to March 2021) Ratio of Area Age male vs. distribution distribution female ■ Kanto 41.3% 29 an
Slide 37: Appendix: DOKODEMO Business / Market Scale
Appendix: DOKODEMO Business / Market Scale B to C cross-border e-commerce is a giant, trillion-dollar market Only around 6% of Japanese have experience using cross-boarder e-commerce, but in other regions it is used by more than half the population. Even with a platform specialized for seller compan
Slide 38: IR Inquiries
IR Inquiries vega_ir@vega-c.com Copyright 2021 VEGA corporation. All Rights Reserved. 37
Slide 39: Views and forecasts disclaimer
Views and forecasts in this document were prepared based on the judgment of the Company at the time of preparation. These statements are based on current expectations, forecasts, and assumptions that are subject to risks, and contain uncertainties that could cause actual outcomes to differ materiall