Syuppin Co., Ltd. · TSE:3179
Syuppin — Q2 FY2021 Earnings Presentation
35 slides from Syuppin's earnings presentation, November 2020
Slide 1: Presentation Materials 2Q
Presentation Materials ２Q March 31 , 2021
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 Establishment August 2005 Business Safe and secure online trading of valuable used items No. of Employees 209 (as o
Slide 3: Highlights (Comparison with Plan)
Highlights (Comparison with Plan) Profit increased significantly in the July-September period from the April-June period, severely affected by the COVID-19 pandemic. The gross margin was high and operating income substantially exceeded the initial plan. The number of new online members has been at t
Slide 4: Trend in monthly net sales by sales channel
Higlights:Trend in monthly net sales by sales channel ● Online sales: In mainstream online sales, employees received more days off to reduce the infection risk in April and May. Net sales remained strong mainly from used cameras and watches despite limited resources (limitedcommercialization volume)
Slide 5: Trends in Online Net Sales (Details)
Trends in Online Net Sales (Details) ● Net sales on the Company’s websites remained steady, which strengthened sales from June, adding to the growth, in addition to the contribution of new camera products. Year-on-year comparison of online net sales: 1Q alone: 99.6%; 2Q alone: 118.2%; Percentage of
Slide 6: Trends in Store net sales, Duty-free sales, Cross-border online sales
Trends in Store net sales, Duty-free sales, Cross-border online sales (Details) ● While duty-free sales at physical stores were limited, cross-border online sales steadily grew (strong sales of camera and an increase in sales of watches). Duty-free sales （Million yen） Store net sales 400 (excl. duty
Slide 7: Trends in Quarterly Net Sales by Segment
Trends in Quarterly Net Sales by Segment Consumption Coronavirus tax hike in （Million yen） effect from mid- October Temporary February closing of 10,000 physical Bicycles 121 165 stores from April 11 to 120 124 May 25 Stationeries 133 112 122 121 113 150 217 Watches 121 135 125 8,000 112 125 113 126
Slide 8: Trends in Quarterly Net Sales by Sales Channel
Trends in Quarterly Net Sales by Sales Channel Consumption tax hike in October Coronavirus Temporary （Million yen） effect from closing of mid-February physical 10,000 stores from April 11 to Duty-free sales at stores May 25 Store net sales (excl. duty-free sales) 1,082 786 Online net sales 823 317 8
Slide 9: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales ● Net sales of used items steadily rose and overall net sales exceeded the plan. Sales of new camera products were also strong in and after July and the ratio of new items to total sales increased. 70.0% 61.7% 59.2% 59.6% 59.9% 60.0% 60.0% 58.
Slide 10: Supplementary: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras ● Started a service of online personal identification with AI face authentication. There was a temporary closing of physical stores (including purchases) from April 11 to May 25, and this led to a rise in the online purchase ratio fo
Slide 11: Trends in Receive-First Send-Later Transactions
Supplementary Material:Trends in the Number of Receive-First Send-Later Transactions ● Send-Later and Receive-First transactions increased 158.5％ year on year. Increased substantially in the 2nd quarter thanks to progress in online business enhancement and sales of new full-size mirrorless SLR camer
Slide 12: Review of the 2Q for the Fiscal Year Ending March 31, 2021
Review of of the 2Q for the Fiscal Year Ending March 31, 2021 Decreased year on year due to 1) the temporary suspension of physical store operation between April 11 and May 25, 2) the Net limited duty-free sales, 3) the end of the cashless payment 5% point program at the end of June, and a last-minu
Slide 13: Analysis of Year-on-Year Increase/Decrease in Operating Income
Analysis of Year-on-Year Increase/Decrease in Operating Income ● An increase in expenses was offset by an increase in profit margin despite a decrease in sales affected significantly by the COVID-19 pandemic. Growth in sales and profit is expected in the 3rd quarter and thereafter. 1,124 ‒613 Decrea
Slide 14: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses Factors of increase Gave special holidays that guaranteed employment/wages to employees to FY03/2020 Q2 FY03/2021 Q2 Year-on-Year Change reduce the rise of infection during the period of the declaration of a state of Ratio to Ratio to Ratio to emergency, and shift
Slide 15: Segment Results Year-on-Year Comparison
事業別業績の前年同期比較 FY03/2020 FY03/2021 （Million yen） Segments/Sales Channel YoY% Q2 Q2 Remarks （ ）The percentage of sales Change Actual Actual Online net sales 8,468 9,106 107.5% ● Net sales on the Company’s websites remained strong. Sales at malls Store net sales 3,307 1,249 37.8% were weak due to the ca
Slide 16: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin ● While the impact of the COVID-19 pandemic was strong in the 1st quarter (temporary suspension of physical store operation, etc.), online sales grew in the 2nd quarter, which raised gross margin and operating margin improved to
Slide 17: Year-on-Year Changes in Balance Sheet
Year-on-Year Changes in Balance Sheet ● Purchasing steadily increased from June thanks to a temporary reduction of inventory risk during the first COVID-19 wave when the market outlook was unclear. An investment in valuable inventory amounting to 1.4 billion yen was added at the end of September. （M
Slide 18: Trends in the Quarterly Number of Online Members
Trends in the Quarterly Number of Online Members ● Monthly increase of approx. 5,000 new members continued, a 112.1% increase from the number in the same period of the previous year. ● Needs for product categories carried by the Company (hobby/luxury items) remained unchanged under the COVID-19 coro
Slide 19: 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 42.0％ Women in their 10s to 30s account for a high percentage, 22.2％, reflecting the popularization of social media such as Instagram. ● Even though the weighting of younger peop
Slide 20: Quarterly Activeness Ratio of Web Members
Quarterly Activeness Ratio of Web Members (Existing Customers) ● Hit a record high thanks to progress in online sales improvement, an increase in merchandise items, content expansion, and the effect of new camera products. 7 Number of purchasing members who made purchases 6 Activeness ratio 4.72 5 4
Slide 21: Number of Items Registered on the Wish List
Number of Items Registered on the Wish List ● Average from July to September was 57,634. The number of new items registered per month also steadily increased. 1,500,000 Total registrations New registrations 65,063 68,189 60,730 57,066 57,264 55,573 52,865 57,886 1,200,000 52,328 53,546 51,378 52,180
Slide 22: Number of Registrations for Arrival E-mails
Number of Registrations for E-mails that Communicate Arrivals ● Average from July to September was 1,670. The number of new items registered per month also steadily increased. 70,000 1,763 New registrations in the month 1,684 1,652 Cumulative total of current registrations 1,688 1,827 60,000 1,166 1
Slide 23: Measures for Efforts Made in Fiscal Year Ending March 31, 21
Measures for Efforts Made in Fiscal Year Ending March 31, 2021 Copyright 2020 Syuppin Co., Ltd. All Rights Reserved. 22
Slide 24: Response to the COVID-19 Pandemic
Response to the COVID-19 Pandemic The Company operates its business with a focus on online operation , providing customers with transactions completed on the internet. The Company can provide all its services online and is working to improve. During the declaration of a state of emergency: Provided
Slide 25: Progress of Actions Taken 1
Fiscal Year Ending March 2021 (First Half) Progress of Actions Taken 1 Introduction of online identification using AI facial recognition ahead of the industry All categories facilitates online purchases on a smartphone or computer. Introduced on June 17, 2020 ● User identification is completed with
Slide 26: Progress of Actions Taken 2: Overseas expansion
Fiscal Year Ending March 2021 (First Half) Progress of Actions Taken 2 Everybody × Photographer.com Images posted topped 100,000 Cross-border online sales Providing users with a place for enjoying products after purchase to create Map Camera fans. Overseas expansion of sales areas ▶ GMT: from May 20
Slide 27: Three actions taken in the watch business (GMT)
Fiscal Year Ending March 2021 (First Half) Progress of Actions Taken 3 Three actions taken in the watch business (GMT) ● In an environment affected by the COVID-19 pandemic, provide watches in Japan and overseas (inbound) where demand existed, after improving the online business. Improve the functio
Slide 28: Hybrid System to Accelerate Syuppin's Strengths
Hybrid System to Accelerate Syuppin’s Strengths Introduce the system to three areas where an increase in costs is expected to accelerate the growth of the online sales business in the future 1 Introduced 2 Introduced 3 To be introduced 1 Category = 1 Office EC＋CGM AIMD × One to One Fusion of e-comme
Slide 29: One Category = One Office
FY03/2021 One Category = One Office Present status After relocation Store and e-commerce E-commerce office and store “One Category = One Office is office are apart from each (Fusion of e-commerce and store) created by placing stores and other Staff can work as hybrid human resources offices on one
Slide 30: FY03/2021 EC+CGM
FY03/2021 「EC＋CGM」 Before Only one person Mechanism in which the Largest number of page views of a used item, of websites are enjoyable and which only one piece is available: approx. 1,118 can encourage the next action Many visitors come to the product description page of a even if visitors do not b
Slide 31: EC + CGM First Round: Improving Links to Content
“EC + CGM” First Round: Improving Links to Content-Posting (Completed on October 20) ● Background and purpose of introduction Map Camera is an online store where camera enthusiasts gather, which has approx. 480,000 members (approx. 8 million page views per month). Improved the customer comment secti
Slide 32: EC + CGM Second Round: Concierge
“EC + CGM” Second Round: Concierge (Completed on November 16) Someone who owns the same product answers your question. Concierge People who are actually using the same products answer questions about cameras and lenses. Copyright 2020 Syuppin Co., Ltd. All Rights Reserved. 31
Slide 33: AIMD × One to One
FY03/2021 AIMD × One to One Scheduled for introduction in the 4th quarter Perfecting what can be done online (completed) beyond what can be done in stores AIMD Maximize revenue using automatic assistance for timely and appropriate sale Development of automatic and purchase prices in line with supply
Slide 34: Systemization of Platform
Systemization of Platform Before buying Number of online members: 480,000 X years later (as of September 2020) Number of online members: ●●●，●●● One to One (20XX) Development of the platform Present After buying Time of buying Number of online members: 480,000 The platform will grow by (as of Septem
Slide 35: 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