Syuppin Co., Ltd. · TSE:3179
Syuppin — Q2 FY2017 Earnings Presentation
28 slides from Syuppin's earnings presentation, November 2016
Slide 1: Presentation Materials 2Q FY March 31, 2017
Presentation Materials 2Q FY March 31, 2017 Syuppin Co., Ltd. www.syuppin.co.jp (Securities Code: 3179) All Rights Reserved, Copyright (C) Syuppin Co., Ltd.
Slide 2: Corporate Information
Corporate Information Name Syuppin Co., Ltd. Securities Code 3179 Representative Naohiko Ono Head Office 3F Nikko Bldg., 14-11 Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, Japan Date of August 2005 Establishment Business Safe and secure online trading of valuable used items No. of Employees 185 (as o
Slide 3: Highlights: Comparison with the Plan
Higlights: Comparison with the Plan First half of FY March 31, 2017: Sales fell below the plan, but operating income exceeded the plan. Second quarter: Online sales of used items exceeded the plan, but sales of new items fell short, and both net sales and operating income in the second quarter ended
Slide 4: Highlights: Trend in monthly net sales by sales channel
Higlights:Trend in monthly net sales by sales channel （Million yen） Trends in monthly net sales by sales channel 1,600 EC売上 Online net sales 店舗売上（免税除く） Store net sales (excl. duty-free sales) 1,400 免税売上 Duty-free sales 1,200 1,000 800 600 400 200 0 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. F
Slide 5: Highlights: Trends in Net Sales by Channel (Details)
Highlights：Trends in Net Sales by Channel (Details) Trends in monthly sales of new items and used items by sales channel （Million yen） Online net sales Store net sales (Million yen） (excl. duty-free sales) Duty-free sales （Milllion yen） All Rights Reserved, Copyright (C) Syuppin Co., Ltd. 4
Slide 6: Highlights: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales (%) Sales of used items remained strong Dec.: Due to strong performances of Rakuten Market store, which has large share of new items, and Yahoo! Japan Shopping store Mar. Apr.Due to launch of large new camera items and strong performance of Ra
Slide 7: Review of the 2Q for the Fiscal Year Ending March 31, 2017
Review of of the 2Q for the Fiscal Year Ending March 31, 2017 （Million yen） FY03/2016 Q2 FY03/2017 Q2 YoY% Change from Actual Share Actual Share Change Plan plan(target) Net sales 10,961 11,161 101.8% 11,888 ▲727 Gross profit 1,852 16.9% 1,917 17.2% 103.5% SGA expenses 1,418 12.9% 1,444 12.9% 101.8%
Slide 8: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment （Million yen） FY03/2016 Q2 FY03/2017 Q2 Segments/Sales Channel YoY% Actual Actual Change Remarks Online net sales 4,576 5,660 123.7% Online net sales grew steadily. Store net sales 3,406 2,523 74.1% Store net sales declined due to a substantia
Slide 9: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses The ratio of SGA expenses to net sales was reduced from a year earlier and the previous quarter. （Million yen） FY03/2016 Q2 FY03/2017 Q2 Year-on-Year Change Ratio to net Ration to net Actual sales Actual sales Ratio to net sales (ＰＴ) Value Personnel expenses 491 4
Slide 10: Quarter-on-Quarter Change in Balance Sheet
Quarter-on-Quarter Change in Balance Sheet （Million yen） FY03/2017 Q2 FY03/2016 Q1 Actual Change Current assets 4,993 4,984 ▲8 Merchandise 3,117 3,142 +24 Non-current assets 1,018 990 ▲28 Total assets 6,012 5,975 ▲36 Current liabilities 2,498 2,466 ▲31 Non-current liabilities 685 531 ▲154 Total liab
Slide 11: Trends in Quarterly Net Sales by Segment
Trends in Quarterly Net Sales by Segment （Million yen） 6,017 5,623 5,726 5,779 5,535 5,337 5,083 4,703 4,350 4,145 3,844 3,597 3,465 3,510 3,332 2,849 2,815 FY03/2013 FY03/2014 FY03/2015 FY03/2016 FY03/2017 All Rights Reserved, Copyright (C) Syuppin Co., Ltd. 10
Slide 12: Trends in Quarterly Net Sales by Sales Channel
Trends in Quarterly Net Sales by Sales Channel (Million yen) FY03/2013 FY03/2014 FY03/2015 FY03/2016 FY03/2017 All Rights Reserved, Copyright (C) Syuppin Co., Ltd. 11
Slide 13: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin The gross margin and operating margin increased, and both the operating income and profitability rose year on year. （Million yen） FY03/2012 FY03/2013 FY03/2014 FY03/2015 FY03/2016 FY03/2017 All Rights Reserved, Copyright (C) Syup
Slide 14: Trends in the Quarterly Number of Online Members & Members' Attributes
Trends in the Quarterly Number of Online Members & Members’ Attributes 296,583 Regional distribution of online members 288,340 (as of the end of Sep. 2016) 280,187 272,073 （%） ■ Kanto） 264,398 ■ Chubu 257,068 ■ Kinki 250,344 ■ China 242,493 ■ Shikoku 235,242 （23.0） ■ Kyushu & Okinawa 228,164 ■ Hokka
Slide 15: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras (Million yen) （％） Up 108.3% Year on year Change in listing to 1st section of TSE in December The receive-first The guaranteed send-later service purchase price launched at the scheme launched end of September in July FY03/2012 FY03/2
Slide 16: Supplementary Material: Trends in the Number of Receive-First Send-Later Transactions
Supplementary Material: Trends in the Number of Receive-First Send-Later Transactions （Transactions） Up 125.6％ year on year FY03/2015 FY03/2016 FY03/2017 All Rights Reserved, Copyright (C) Syuppin Co., Ltd. 15
Slide 17: Current Status of Strategy Implementation: Overall Progress
Current Status of Strategy Implementation: Overall Progress Web Marketing Phase 1: Group-specific approach (introduced in late March 2016) Target e-mail distribution specific to each customer group The e-mail magazine open rate increased from the usual rate of approx. 17% to approx. 40%. e.g. “For
Slide 18: Current Status of Strategy Implementation: Overall Progress
Current Status of Strategy Implementation: Overall Progress Added a page for the “Comurevi” (product user reviews) list and a review search function (August) Functions added • Search through reviews (approx. 5,600) posted • Posting images • Five-grade evaluation for each feature such as operability
Slide 19: Current Status of Strategy Implementation: Overall Progress
Current Status of Strategy Implementation: Overall Progress Added the new function “My Page Dashboard” to the lower part of shopping webpages. It allows users to save items searched or easily check items purchased. Real-time order information is provided on the shopping website (July). [Real-time or
Slide 20: Current Status of Strategy Implementation: by Segment
Current Status of Strategy Implementation: by Segment Improved accessories (PLUS+1 Store opened in April) Cameras Created a homepage dedicated to new and used camera accessories such as tripods, stroboscopes, and filters. Net sales of camera accessories Apr. – Sep. total 270 million yen (up 30% YoY
Slide 21: Future Actions (Second Half of FY March 31, 2017)
Future Actions (Second Half of FY March 31, 2017) Web Marketing Phase 2: One-to-one approach Individual approach to 49,000 customers who registered a wish list using 470,000 products registered (Introduced in October) < Announcements made > Changes in prices of products on their wish list The info
Slide 22: Future Actions (Second Half of FY March 31, 2017)
Future Actions (Second Half of FY March 31, 2017) Continuous increase in convenience Information on the latest new product arrivals is posted on the homepage as the list of new product arrivals (already implemented in November) Information on new product arrivals is provided in a list in a manner
Slide 23: Future Actions (Second Half of FY March 31, 2017)
Future Actions (Second Half of FY March 31, 2017) User participation (CGM) marketing (scheduled for March) Website to help camera lovers to enjoy using their camera after purchasing a camera lens Increase the satisfaction of camera users, increase the customer loyalty of existing members, and in
Slide 24: Future Actions (Second Half of FY March 31, 2017)
Future Actions (Second Half of FY March 31, 2017) Introduction of Itsumademo Anshin Warranty (provisional name) (warranty for as long as a customer wants) (scheduled for late March) Service whereby, after the warranty on products purchased from Syuppin expires, Syuppin extends the warranty for a s
Slide 25: Future actions (from next Fiscal Year)
Future actions (from next Fiscal Year) Web Marketing Phase 3: One-to-one & Recommendation (use big data) Improve the individual approach based on data accumulated in the online business while reducing human intervention. Develop online applications of all shopping and information websites Tran
Slide 26: Summary of Syuppin Strategy
Summary of Syuppin Strategy Syuppin will continue to accelerate the materialization of ideas. 1st and 2nd Q of 3rd and 4th Q of FY ending March 2017 FY ending March 2018 FY ending March 2017 Web Marketing Phase 1 Web Marketing Phase 2 Web Marketing (1) Group-specific approach (7) One-to-one marketin
Slide 27: Image of Earnings
Image of Earnings Growth is driven by earnings from online purchases and sales of cameras and watches. + Earnings from services provided to existing customers + Earnings from information marketing (CGM) (advertising income, paid services, etc.) + Transboundary e-commerce + New types products to sell
Slide 28: Notes on Forward-Looking Statements
Notes on Forward-Looking Statements The materials and information provided in this presentation contain forward-looking statements. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and involve uncertainties. For this reason, the actual outcom