Zozo, Inc. · TSE:3092
Zozo — Start Today — FY2016 Earnings Presentation
42 slides from Zozo's earnings presentation, April 2017
Slide 1: START TODAY CO.,LTD.
g START TODAY CO.,LTD.
Slide 2: FY2016 Highlights
17/O3HR /\T 7T 4b FY2016 HIGHLIGHTS 01 APL + eR, 1208 (RIELC33.0%IH) . BSFIA262A (148.0% 14) -BaWRa, SRBC b(CMMstH t BK. SERINE -ZOZOTOWNS ManDURS 2,049.78 (aL 40.3%18) BityvavyT7 1,919.08 (139.6%#) BMY av7 1.918 F9 (A172. 1% isk) ZOZOUSED 128.718F) ((I61.8%3#) Mian B fh 4,513) (fel11.5% i) . Hite E
Slide 3: Business Results
Slide 4: Overview of the FY2016
17/O3A ie ROWE OVERVIEW OF THE FY2016 03 (fu : BAA) JAB 16/03HA S48 17/O03Hh 2 au HALE ADS Eaves BERS 159,500 212,090 33.0% | 195,000 | 108.8% abs 54,422 76,393 40.4% | 69,030 | 110.7% 25 LA F2S 50,085 69.213 | 382% | - | - SHUR 31.4% 32.6% 1.2% ee 32,328 42,928 328% | - | - SHUR 20.3% 20.2% 0.1% ee
Slide 5: Overview of Each Quarter
Hie mOWR (Fe) OVERVIEW OF EACH QUARTER 04 (St: BA) 16/03#A 17/03#A 188 Bimseee | Boma | BO mtHA | 4 oeRA | 1 sea Bom He Bom HA Fao HA Mooi | 33,271 | 34,142 | 44,526 | 47,559 | 42,284 | 44,210 | 61,595 | 64,000 AUSFIIALE =| 29.5% | 3.7% | 2.7% | 35.7% | 34.2% | 70.2% | 83.8% | 16.3% WMS | 11.2% | 9.
Slide 6: Increase-Decrease Analysis of Operating Profit
BRN BOW MAM (TATRA) INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT (YoY COMPARISON) 05 BE BE +6.918 MEE JOt-Y ap Ail AS + Be —4.6f8 426.118 cme = FL ECMRi © Zot —1.6f8 | BEM ERT Db 4 OF EE Ry VAY -ZOZOUSEDIES | # BRDRSRA +58.5(8 AEDRS 16/03#A : 1,5951% 7 BRA Be Flat 177.5t% 17/03#R : 2,1 201% 262.81
Slide 7: Consolidated Balance Sheet
te AA BOA RE CONSOLIDATED BALANCE SHEET 06 (fz : BAA) 2o16#3A318)| (201738318) (20163318) | (20179891 B) mmm | 24,820 45,641 a 15,374 23,906 56, Be] 11,343 22,068 | 25 | 7 901 11,536 56, mm | 1,191 1,177 aT 1,610 1,945 mene | 10,094 10,079 Amat 16,984 25,851 AVHESE 3,157 3,364 EBA 17,413 29,461 RUBE
Slide 8: Cash Flows
BR yy Ya: TO-ORB CASH FLOWS O07 (Bf : BAA) JAB 16/03#A 17/O03HA BU HALE Rea yERBBESS | 42027 | 18,294 | 6,267 | city sinters HRB S® | 2175 | -2,725 | -550 UBBES® | 23,202 | -4,995 | 18,227 | Wm) serctome RERORSBSM? | 44.495 | 22,151 | 10,655 HARE
Slide 9: ROE and Net Profit Margin
ROEO HES - 4HARFIZSS WER) ROE AND NET PROFIT MARGIN 70% 60% 50% 40% 30% 20% 10% 0% ROE © 4eAMFIZSSe Oa) 55.5% 72.7% 61.4% co) 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (sti) 08 10% 9% 8% 7% 6% 5%
Slide 10: Transaction Value
inn Ria O Hee TRANSACTION VALUE 09 SRS Sata - ZOZOTOWNSSE (AMY ay 7+ BAY ay 7) HARE O26 BAMSB(C 5H SHIA: 4.5% 2,400 DUVBE 2.200 BtoBSes= 2,1 20.9 0.4% {9 ZozouseD 2.9% 2,000 6.1% Bree a7 0.1% 1,800 | ees 1,595.0 90.5% 1,600 0.1% 8.3% q 1.400 1,290.5 mae 5% 1,200 1,1 46.7 13.7% 958.9 13.4% Res 3.4% 1
Slide 11: Transaction Value (Quarterly)
JU Bion Mike OEE ( TRANSACTION VALUE (QUARTERLY) Bi 4 fl Ae +34.6% 680 TUVEBR 6 40 O 640 BtoB 615.9 0.4% 0.4% 2.7% 600 {i zozouseD 2.6% 5.6% BW a5 6.7% 0.1% 560 Maps? 0.1% 520 Bisitiva7 91.2% 480 475.5 2% 90.2% 445.2 = 442.1 5.7% 422.8 6.4% 440 9 5.7% 35 6.7% 05% 2.8% 5% 0.4% % BB 5 2%, 400 369.4 oi
Slide 12: Net Sales
sTLAORE 11 NET SALES 4th 80,000 76, 393 JU VEE BtoBSs3E 6,731 70,000 0 WW zozousen 1,338 i ses oF 12,875 60,000 Bete. 7 54,422 3,192 193 6 50,000 3,256 38.580 41,182 = 40,000 , 1,766 35,050 1,573 4.477 698 31,806 2.380 4,016 suas 30,000 2662 [fill2976 = Mumm 2.285 |__| 766 55,253 ; 23,801 1917 577 m
Slide 13: Net Sales (Quarterly)
TlLaOHKE (B NET SALES (QUARTERLY) Bi 4 fel Ae +36.2% 25,000 4th TUVER BtoB 20,000 | { zozoused 3,605 RMYay7 5, a 16,671 ana Bi stea7 16,180 48 15,333 1,136 15,386 39 , 5 15,951 15,000 a9 642 1,521 ‘oe 706 2.716 oe 11,633 11,929 11,560 Be: a i. bess 491 469 10,856 770 mm 146 “ 1,245 1288 487 814 6 10
Slide 14: Operating Profit and Operating Profit Margin
BRtlat : SRNR ORME) ORB OPERATING PROFIT AND OPERATING PROFIT MARGIN 13 30,000 H mea gizg 20.0% BRAM (%) (RRS) 26,284 25,000 16.0% 20,000 9, 11.7% 17,756 28” 10.4% 10.8% —~ . 15,084 15,000 9.6% 8.9% 11.1% 12,388 8.0% 10,000 , 8,529 7,104 5,851 4.0% 5,000 (BBA) 0 0.0% (41703 12/03 13/03 14/03 15/03 1
Slide 15: SG&A Expenses
AR BO AER SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES 1 4 (fr: BAA) 16/03#4 17/03#A AU HALE me 2 WRB LE 2 WHRSLE | WHRBLE WHEE Af 8,166 | 5.1% |10,637] 5.0% -0.1% | Bex BR 1643AK7834—-17F3A RB00Z AEE 6,596 | 4.1% | 8,918 4.2% 0.1% aE Pelco KS BUROLA, NARADA ARIE kemeen! 3867 | 2.4% | 5,456
Slide 16: Operating Profit and Margin (Quarterly)
7,000 6,000 5,000 4,000 3,000 2,000 co) BAe BRA Moe) OB (BAER) OPERATING PROFIT AND OPERATING PROFIT MARGIN (QUARTERLY) 15 9,000 8,703 30% BM SRF aE ARB LE _ +16.3% 8,000 SRA (%) (RBS) 6,992 *" 6,011 9 5,576 20% 4.735 5,011 4, "Tl 4, [ : 15% seo a zs: 14.1% 2,883 ~” — il on OM 3,276 12.6% 11.9% 126%
Slide 17: SG&A Expenses (Quarterly)
AR eS BO HET SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES 10000) ME meee (mein) 14,000 12,000 11,350 10,000 " 12 9,228 9,193 9,236 8.788 8,000 7,444 6,267 6,672 6,453 6,000 5,167 5,585 4,000 2.6% 1.8% 1.9% m neo s . 1% 0) (915/03 #1Q 15/03 %#%2Q 15/03383Q 15/03384Q 16/03381Q 16/03%2Q 16/03%
Slide 18: Overview of SG&A by Each Quarter
RRS BOW OVERVIEW OF SG & A BY EACH QUARTER aR ( Tu 4 FHA) 17 (Btt : BAA) 16/03#A 17/038 B1 ey Bom HH Asm+y B4 me Bl oe FopOE HH Boe Hama AB SR | MIUS) SAR NUR) AR MURS] SR TUS] S| RR) eR | RE 28 ARH ah SRAM | AFB 1,643 | 4.9% | 1,835 | 5.4% | 2,209 | 5.0% | 2,477 | 5.2% | 2,472 | 5.8% | 2,383 | 5.4%
Slide 19: Number of Total Buyers
elie AB aX NUMBER OF TOTAL BUYERS 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 ie) 0 te) FRB AS BBA FLAG EBAL EP IF 1 FRAME TA BAR OSHA TAMA SHES BSS CT FMA LAI -— TRA ER PIF 4 PSAROBAIEWAICIBULBALESBER FR BARR 5,252,541 Wivor+ 788 4,832,558 4,477,350 4,034,742 2,192,550 3,406,119 292
Slide 20: Number of Shops on ZOZOTOWN
ZOZOTOWNE Y ay TROBE NUMBER OF SHOPS ON ZOZOTOWN 1 9 BMY avT 1,000 | ELeeers 800 934 954 7 7 aso 887 gan 872 24 28 10 720 685 686 685 645 659 26 17 23 30 27 600 18 927 947 400 ait 843 832 865 607 642 662 656 658 694 200 6 () 15/03 3810 15/03 382Q 15/03383Q 15/03384Q 16/03381Q 16/03#2Q 16/03%#3Q 16/0
Slide 21: Active Member Distribution
FIT 4 SB Blt ACTIVE MEMBER DISTRIBUTION M@Sait hit th AUN + ABE 8.8% hE] - PUB 7.8% Abbe - fait 5.9% AbD 3.4% RACS.5% "eoeee BAR 40.9% (HER17.4%) Be th 20
Slide 22: Annual Purchase Amount per Active Member
PITF(FISRIASEW OFRBASH - FHA RE ANNUAL PURCHASE AMOUNT AND PIECES PER ACTIVE MEMBER 21 50,000 13 MASH OER Aaah 47937 48,644 48,556 4g 975 48,000 , 47,140 46,417 46,135 12 aeja00 44,279 43,529 44000 | 43,405 42,972 43.214 7 42,000 10.4 10.5 40,000 10 38,000 9 36,000 34,000 8 32,000 (Fa) (58) 30,000 7
Slide 23: Annual Purchase Amount per Existing Member
BEEP 77 4 TSRIA SEV OPBBA SE - FRA RE ANNUAL PURCHASE AMOUNT AND PIECES PER EXISTING MEMBER 22 BE? 77-1 TSB: SRBSBD D1 FULEBBL CHS 7 IF1 TS ‘6 64,000 SEIS A 288 @ FMA 61,770 62,000 60,929 60,106 14 80,000 58,953 13.6 57,870 13 58,000 56,567 12 56,000 54,544 54556 55,903 54,827 11 2400 54,277 54,356
Slide 24: Number of Shipments
HER OIE NUMBER OF SHIPMENT 23 8,000,000 BE rte % ATERIIBL 6,931,318 7,000,000 120% 6,000,000 5,886,580 5,391,093 100% 5,000,000 4,871,419 4,652,101 80% 4,000,000 3,901,739 62.7%) 3,330,674 ‘ 61.9% 2,994,432 3,007,626 2 54.7% 60% 3,000,000 2,782,854 50.9% 2,557,804 2,372,373 42.3% 9 2,000,000 40% 26.
Slide 25: Average Retail Price
PIR BOWE AVERAGE RETAIL PRICE 24 10,000 -_ 25% SF A5R BM lt OE RROECRS (ZOZOTOWNS) ORGIES & RIO MA CRT CCIE BH oooo | MM Sees. esfi 20% BEI AALE 8,000 15% 7,000 6,790 10% 6,000 5,939 5% : 5,444 5,538 5.236 ° 5,041 4.922 : 5,000 4,742 ll 4,522 . 4,468 4,474 0% || La 3,855 4,000 46% 5% -41% 4.2% 41% 5
Slide 26: Average Purchase Amount per Shipment
FID fay BAM O HES AVERAGE PURCHASE AMOUNT PER SHIPMENT 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 Bonet AOE ABLE 9,791 H2.1% 13.7% -4.0% 9,605 9,277 Hey fit OERIDOECHSE (ZOZOTOWNSR) OM RMRS € ROMA CRTC CI eH 10,651 9,189 8,680 7,941 LJ | 2.7% 10,143 8,955 sx 25 25% 15% 2.5% -4.8% 19.6% 12.
Slide 27: Shipment Ratio by Access Terminal
FINA Al HW ta LER THE RATIO OF SHIPMENT VOLUME TO THE TOTAL PURCHASE VOLUME ( by access terminal ) 26 100% Pc OENt) @2Y—-h74L 90% 80% 70% 60.4% 59.1% . 57.9% 60% | 54.6% 55.5% - 50% 43.5% 42.8% 40.8% 39.7% 40% 38.7% 30% 20% 10% 19% 1.7% 14% 11% 0.9% -O -O— -— 0% (i) 15/03 81Q 15/03 #2Q 15/03 %3Q 15/
Slide 28: Business Plan for FY2017
Slide 29: Consolidated Business Forecast and Dividend Forecast for FY2017
18/0334 i FRE tae te 78 - CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2017 Acs 28 18/03#8at i BR (%) Bohs 2,70018 FA 27.3% she 1,00018 FA 30.9% Ee Seng 320f8 Fi 21.7% i FZ 320f8 Fi 21.0% PLEASE (Clee ST S 4 BAAS 22218 A 30.3% TAR 7 1) RAHA Et 71.2F VAS EW ASS (PE) 29F4
Slide 30: Transaction Value
Pian IR es O HES TRANSACTION VALUE 29 4,000 MaRS © SRE WERE) 3,500 12.4% 14% 12% 3,000 10% 2,500 8% 2,000 1,595 6% 1,500 1,290 1,146 958 4% 1,000 802 561 soo | 366 2% ie} 0% () 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (3H)
Slide 31: Breakdown of Total Transaction Value and Each Policy
Sittat Blalte RO Dstt BREAKDOWN OF THE TOTAL TRANSACTION VALUE AND EACH POLICY AB-—bhhyOF TS Maco IRS BE: 2,700fH (IBALL +27.3%) ZOZOTOWN#3 Miao Mike BS : 2,64018A (ARAL +28.8%) -SityavT7 2,460 (arHALE +28.2%) - ZOZOUSED 18012 (aiHALE +39.8%) BtoB# Man ike BR : 60 (AIHA -3.5%) SAM MMMM) er FS BE 11.
Slide 32: Capital Investment
ax iat A OER CAPITAL INVESTMENT 2,500 2,000 1,500 1,000 500 31 axe Wh xitiezoe 2,162 On AREA 2,000 825 1,174 230 1,047 744 1,107 409 570 231 466 1,080 843 150 353 786 765 113 586 277 322 | 153 (iy 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 (sti)
Slide 33: Dividends per Share and Payout Ratio
14% 7) ACS SR OBC 1] OGEB DIVIDENDS PER SHARE AND PAYOUT RATIO 32 35 Wiwscomye 500 41.8% 41.5% 30 eter 40.3% 40.6% ° : 40.7% 35.6% 34.3% 25 20 24.9% 24.8% 241% 9% 8% 21.5% 15 11.3 10 8.3 6.6 5.0 5 23 »| o7 og ‘14 0 re i! (8) 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 (#5E) 18/03 (#%
Slide 34: Future Strategies
Slide 35: Mid to Long-Term Vision
pRB Yay MID TO LONG-TERM VISION 34 HoMkeOPeRae . * 5,000 Banke } Wit FL FORA ra 20XX4E3 Ai HA BGBRS 5,000A BRA 500% A 2,700“ 2,500 2,120 2,000 1,595 sn + 290 = 1,146 958 1,000 802 561 500 366 (Fa) 0 G8) 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 20XX4E3A HA (at) (Be)
Slide 36: Market Expansion Strategy
risa A RRS MARKET EXPANSION STRATEGY ZOZOTOWN ZOZOUSED (CtoBtoC) 35
Slide 37: Reference Data
Slide 38: Corporate Principles
AR-—bhbh OTT BRIS CORPORATE PRINCIPLES 3,928... BOO. PRE ERPDELEI Py YaALToVF TEA (3H 30.7 mm ) TILA Pe aAvak<, HRP KAS. Make the world a better place, Bring smiles to the world. 7097. 632., FER AS RL 37
Slide 39: Major Services
FEBY-EX MAJOR SERVICES AABAROI yy VavjRt 1 k [ZOZOTOWN] (Dry vaveRbe LRARRARD 1 a-Ay bY avevItt bo *954Y a7, 392877» KORG. ils BRS2A BLL, Femmes 1 A2,900RLb SYRTL, FHT. Wie Ee. ECICRb SHERE @ BRT CAR JryvarIyurPTFY [zozo7y v]I + ZOZOTOWNPWEAR ESBS SS © & CHAR PRO FM eA DT SUBS < BIC Hand Sc EP eRe,
Slide 40: Our Subsidiaries
FASHIC DUT OUR SUBSIDIARIES MASHAS—hho st LH VAT LE, WEBS FH 1 + CRM, HRATEAR - REDS MASAITIL YaL 1A-F-SP Spar y yale eRR, PRIS ET IX RRB t RR. RASH TAF EC+4 halt, WEBY—7 74-7, WEBL +3074. ECE? TUT—-Yar oie. 39 Mme s iaattas ZOZOTOWN 33= Be x7 V8H142017% 6 H30A & 60 TH -EART EFELTHVET.
Slide 41: Business Model
EVRAEFIL BUSINESS MODEL ZOZOTOWN#3= Sat vayT7 ZOZOTOWNIC HIE $ S947 OA LIT VY ay SORES ER 5S-ESOEBtEHUA CHP 6EBY ZATOBRELEUBE, = 82a) TORRDRE X SFR ‘BMY ayT7 ZOZOTOWNEN (. 7hit RB. FIU RE X-D-KV EME RUB! MT SAS. RLS = 8a» JORGDRES * ZOZOUSED 1-f-SPSPR py Yale RM, tT II RMS St RA RLS =4 av 7ORRWRS XZ
Slide 42: REEL, SHARE CHRBUE EK EODBH CS"),
REEL, SHARE CHRBUE EK EODBH CS"), KREMAEANCTSENCLHW ECA, REECE S 1 CUS ABP ARO PBC OS EL Td, BAG CAF ARE CISCO & Bt CHM LEED CHW ET. FRCS ESEGMEEBRPAELTS!), RRORMIS CNSOHRKREL CRE SHEP HW ET.