Jade Group, Inc. · TSE:3558
Jade — Q1 FY2025 Earnings Presentation
44 slides from Jade's earnings presentation, Jul 12, 2024
Slide 1: JADE GROUP FY2025 1Q IR Presentation
JADE GROUP FY2025 1Q IR PRESENTATION ※ This material is translated by AI technology 2024.7.12
Slide 2: Summary
01 SUMMARY 2
Slide 3: GMV increased by 54.8%
SUMMARY ① GMV increased by 54.8% • Due in part to the impact of the MAGASEEK M&A, the GMV increased sharply by 54.8% to 11.5 billion yen. Considering that the first quarter figures for MAGASEEK only include the two months of April and May, we believe that we are making steady progress (progress rate
Slide 4: Operating income also progressed steadily, progress rate at 28%
SUMMARY ② Operating income also progressed steadily progress rate at 28% (vs plan) • In terms of operating income, the Group's operating income was boosted by the effects of the MAGASEEK PMI (more detail later), as well as the strong performance of Fascinate and TCB jeans, which were acquired throug
Slide 5: Business expansion through M&A and improved profitability are in great shape
SUMMARY ③ Business expansion through M&A and improved profitability are in great shape • As disclosed on July 4, MAGASEEK has been growing significantly every month due to the effect of PMI , resulting in an increase of approx. 150 million yen in profit for the first two months. Since the resolution
Slide 6: Debt-free again in next FY; strengthen shareholder return policy
SUMMARY ④ Debt-free again in next FY. Consider strengthen our shareholder return policy. • We expect to be able to repay all of the bank loans procured for the M&A by the end of the next fiscal year, as operating cash flow is expected to be significantly enhanced by the PMI of the M&A. • Repayment o
Slide 7: MAGASEEK PMI Progress
MAGASEEK PMI Progress 【Operating Income (million JPY): Unaudited Preliminary Figures】 89 56 6 March (7)April May (20) (21) FY24 FY25 7
Slide 8: Visualization graph of operating income of 4 Bn yen in FY26
Visualization graph of operating income (OI) of 4 Bn yen in FY2６ (unit: JPY 100MM) OI FY24 16.9 Action taken Logistics Integration 4.4 4.9 Pre-execution IT Integration 0.0 6.6 Organizational Integration 9.0 0.7 Reduction in common expenses 0.0 2.5 Cost related to M&A 10.0 OI after cost reduction 20.
Slide 9: BOEM International for mid- to long-term growth, launched
BOEM International" for mid- to long-term growth, launched 9
Slide 10: Results
02 RESULTS 10
Slide 11: FY 2025 1Q Financial Summary
FY 2025 1Q Financial Summary GMV up 54.8% YoY due to the M&A effect, and EBITDA was up 11.4% as the integration of MAGASEEK proceeded smoothly, despite an increase of approx. 60 MM yen in the amortization of goodwill from the M&A and relocation-related expenses. Operating income was down 55 million
Slide 12: FY 2025 1Q GMV of each business area
FY 2025 1Q GMV of each business area Platform business led the growth by the M&A of MAGASEEK May 31, 2023 May 31, 2024 GMV Net Sales YoY YoY GMV ratio (％) (％) GMV ratio Net Sales Net Sales JPY MM (％) JPY MM JPY MM (％) JPY MM EC mall 4,238 57.0 1,887 6,433 55.9 2,338 51.8 23.9 Our own E-malls 3,704 4
Slide 13: GMV (before offset)
GMV（before offset） GMV increased by 54.8% YoY due to M&A （JPY MM） TTL +54% Our own EC +57% BOEM/ECS +115% Brand +12% 11,517 Other EC +11% LOCOCHOC etc △3% 7,440 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2023 1Q 2023 2Q 2023 3Q 2023 4Q 2024 1Q Our own EC Other EC BOEM/ECS LOCOCH
Slide 14: Net Sales
Net Sales Net Sales also up by + 37.1% （JPY MM） 4,693 3,650 3,424 3,202 3,160 3,122 2,813 2,589 2,598 2,310 2,376 2,300 2,150 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q (Note) In the case of purchased inventory, the selling price is record
Slide 15: SG&A
SG & A The SG&A to GMV ratio improved by 1.4% as the effects of PMI are gradually beginning to be realized. The main drivers of the improvement are logistics efficiency and effective advertising allocation. Approx 60 MM yen of the other increase is due to increased amortization of goodwill and reloc
Slide 16: Operating Income
Operating Income Despite an increase in relocation expenses and amortization of goodwill, operating income for the first quarter was ０.5 Bn yen, steady compared to the plan. EBITDA was +66 MM yen 821 （JPY MM） 772 651 585 538 482 423 393 378 347 350 350 319 309 303 254 260 221 206 173 164 120 115 87
Slide 17: Operating Income – YoY analysis
Operating Income – YoY analysis （JPY MM） Operating income was limited to -55 million yen through control expenses despite an increase in amortization of goodwill and relocation expenses. 870 ▲282 ▲159 15 ▲159 538 ▲109 482 ▲122 ▲109 2023 1Q GMV Gross Profit ratio Rent Labor Fixed Ads IT cost Deprecia
Slide 18: Balance sheet: equity ratio of 40.6%
BS Maintained high soundness with equity ratio of 40.6% (35.2% considering Non-controlling interests) despite increased loans from financial institutions due to the acquisition of MAGASEEK （JPY MM） Current Assets 11,357 Current Liabilities 8,659 Deposits received Cash and cash equivalents 4,060 3,17
Slide 19: EC mall: number of active users
EC mall : number of active users (unit; K) The number of members increased by the M&A. The company plans to improve the attractiveness of the site and further increase the number of members by quickly achieving inventory linkage. 242 1,710 322 348 349 356 359 346 339 313 288 287 296 261 247 237 300
Slide 20: EC mall: Average shipping price
EC mall : Average shipping price (Shipping basis) Our own E-malls increase by 9% and other E-malls stays at the same level. The price basically stays in a reasonable range. （JPY） 11,263 11,205 11,247 10,907 10,614 10,593 10,074 9,955 10,240 9,797 9,321 9,401 9,026 8,082 8,010 7,559 7,658 7,560 7,574
Slide 21: EC mall: Return rate
EC mall : Return rate Return rate of our own E-malls have been steady at around 20%. Expected to improve significantly with the addition of MAGASEEK and d fashion in the future. 30% 29%29% 27% 27% 27% 26% 26%26% 25%25%25% 23% 22% 22% 22% 22% 22% 22% 21% 21% 21% 20% 20%20% 20% 19% 18% 18% 8% 7% 8% 8%
Slide 22: EC mall: Number of brands
EC mall : Number of brands Number of brands (excluding waja) is now 3,196. Expected to increase significantly by promoting inventory linkage with MAGASEEK this fall. 4,182 3,969 3,838 3,676 3,632 3,506 3,428 3,344 3,361 3,389 3,264 3,283 3,196 2021 2Q 3Q 4Q 2022 2Q 3Q 4Q 2023 2Q 3Q 4Q 2024 1Q 1Q 1Q
Slide 23: Platform: e-3PL shipment quantity
Platform : e-3PL shipment quantity e-3PL shipments remained stable. Continue to aim to become a hub of logistics warehousing in the footwear industry. （10K） 113 106 91 92 92 91 85 87 81 81 66 63 63 2021 1Q 2Q 3Q 4Q 2022 1Q 2Q 3Q 4Q 2023 1Q 2Q 3Q 4Q 2024 1Q ※ NOT including MAGASEEK’s e-3PL (UNSY) – w
Slide 24: Company overview
JADE GROUP Company overview
Slide 25: Company overview
Company overview JADE GROUP, Inc. Address: 30-13, Motoyoyogi, Shibuya, Tokyo Establishment 2010.10.22 CEO: Yusuke Tanaka Number of employees: 126 Listed market: TSE Growth EC Mall Operates EC malls: LOCONDO.jp, FASHION WALKER, BRANDELI, SPORTSWEBSHOPPERS, and waja Platform In addition to inventory c
Slide 26: Group Companies
Group Companies Acquired Mar 2024 Acquired Oct 2022 Acquired Mar 2024 Magaseek Corp ※consolidated RBKJ Corp ※consolidated FASCINATE Co ※consolidated EC EC EC ※Domestic and cross-border EC Comprehensive fashion EC mall with Operation of the official Reebok Selling high brand apparel domestically over
Slide 27: Group Vision: Make Brands Bright
Group VISION MAKE BRANDS BRIGHT ～ Sparkle as JADE ～ 27
Slide 28: Group Policy: Fast Faith Fair
Group POLICY Fast Speedy and flexible movement Faith Earn trust internally and externally through results. Fair Fair, transparent and highly ethical Fun！ Enjoy everything in a positive way! 28
Slide 29: History
Announced M&A - Magaseek History - BRANDELI GMV - FASCINATE - TCB (JPY MM) Alliance with NTT Docomo and Itochu 35,000 M&A M&A - SWS - Reebok 30,000 - waja D2C M&A - FW 25,000 M&A New Warehouse - Misuzu 20,000 - Mobacolle Large TVCM 15,000 LOCOCHOC Mothers Listing 28,697 e-3PL LOCOPOS 24,398 10,000 2
Slide 30: Seven initiatives for SDGs (1/2)
2. Our Business ②Seven initiatives for SDGs (1/2) ① Think of energy ⚫ Using LED at warehouse ⚫ Implemented “BIGASSFANS” at all floors ⚫ Control air conditioner at 28℃, and heater at 20℃ ② Think of recycle ⚫ Using recycled plastics for palette at the warehouse ⚫ Providing eco-leather (made by scrap l
Slide 31: Seven initiatives for SDGs (2/2)
2. Our Business ② Seven initiatives for SDGs (2/2) ⑤ Gives back ⚫ Providing open space for Yachiyo citizens ⚫ Build new bus lane together with Yachiyo city and bus company. Providing a rest area for the drivers ⑥ Equality and diversification ⚫ Fair evaluation system with 50 competencies ⚫ Diversific
Slide 32: Platform ecosystem competitiveness
JADE GROUP has 3 businesses connected complementary and the ecosystem creates our own competitiveness. Sharing inventories: Sell offline Growth driven by the structure inventories at EC • In-house operation enables Sharing infrastructure: Share logistic & us to realize state of art, Contents IT infr
Slide 33: Profit structure – Break-even point model
③ profit structure – Break-even point Model- A business model in which the operating profit on sales improves once sales exceeds the break-even point. (1) GMV, (2) Marginal profit ratio (= gross margin ratio – variable cost ratio) and (3) Fixed costs are Key Performance Indicators for the Profit cos
Slide 34: 1. EC Mall
1. EC MALL In the EC mall business, the company operates its own mall as well as other companies' malls that open stores on Rakuten and Yahoo! We promote business expansion by maximizing two aspects of our business: "customer attraction" through effective advertising and "product lineup" including c
Slide 35: Sales accumulation model
② sales accumulation model A model that builds up sales through the cycle below. New buyers → repeat customers → expansion of active user base → enhancement of product lineup → increase in new visitors More visitors from search engine(SEO) Approx. 31% *1 of new customers re-purchase as item lineup a
Slide 36: 2. Platform
2. PLATFORM In addition to inventory centralization as a hub for logistics warehouses, the company provides a wide range of systems and services to realize data centralization through DX (Digital Transformation). We are also promoting the introduction of the "ALL-IN-ONE Package," which will implemen
Slide 37: 3. Brand
3. BRAND In the brand business, in addition to the agency business, the Spanish fast fashion "MANGO", the main business is the brand operation business (EC, stores, wholesale) of Reebok Japan, which we acquired in October 2022. product development ✓ （only shoes） EC operation ✓ ✓ Store operation ✓ Wh
Slide 38: Mid-term Plan and Long-term Vision
04 Mid-term Plan and Long-term Vision 38
Slide 39: EC ratio in the fashion market
① EC ratio in the fashion market The current EC ratio in the domestic fashion market is about 21%. It is expected to increase to approx. 35% in 2030, where the EC market size will be approx. 3.5 trillion JPY. Fashion Market Fashion EC Market and EC ratio （100MM） （100MM） 160,000 40,000 40.0% 136,790
Slide 40: MTB and LTV: GMV
MTB and LTV ①GMV （before offset） ① Overwhelming 2nd position driven by the acquisition of shares in MAGASEEK ② By the effect of the business alliance with NTT Docomo, Inc. and ITOCHU Corporation, Aiming for GMV of 60 to 63 billion yen in FY26 and 100 billion yen in FY31. JPY: 100MM CAGR 630 Approx.
Slide 41: MTB and LTV: GMV by business
MTB and LTV ①GMV（before offset） Achieve 100 billion yen in transaction volume through a portfolio of three businesses that are complementary to each other and each have competitive advantages: EC mall business, platform (B2B) business, and brand business. FY31 CAGR FY24（actual） FY25(plan） estimate)
Slide 42: MTB and LTV: Fixed costs
MTB and LTV ②Fixed costs Fixed costs for FY26 are planned to be "5.5 billion yen" due to acquisition of MAGASEEK shares and warehouse expansion. However, 6 billion yen in FY31 will remain unchanged. (JPY 100MM) 60 60 55 35 30 8 24 7 2 1 7 10 8 1 7 14 16 9 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 43: MTB and LTV: Operating Income
MTB and LTV ③Operating Income ■Operating Income (Plan) (JPY 100MM) FY26 ６0Bn ～ 63Bn * 15% - 5.5Bn = 3.5 ～ 4.0Bn FY31 100Bn * 16% - 6Bn = 10Bn 100 3.5 – 4Bn 5 16.9 17 35 8 9.9 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 43
Slide 44: Forward-looking statements
• This document contains forward-looking statements that are based on current plans, estimates, forecasts or projections by JADE GROUP Inc. as well as JADE GROUP Inc.’s business and industry trends. • These forward-looking statements are subject to various risks and uncertainties. • Known or unknown