Syuppin Co., Ltd. · TSE:3179
Syuppin — Q1 FY2023 Earnings Presentation
22 slides from Syuppin's earnings presentation, 2023
Slide 1: Presentation Materials 1Q March 31, 2023
Presentation Materials 1Q March 31 , 2023
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 211 (as o
Slide 3: Highlights of 1Q Results (vs. Plan)
Highlights of 1Q Results (vs. Plan) Summary Both net sales and operating income were strong, making progress beyond initial forecasts. ●Net sales: While there was a decline in duty-free sales due to the international situation, online net sales grew greater than expected for both cameras and watches
Slide 4: Trend in Net Sales by Sales Channel (Monthly)
Trend in Net Sales by Sales Channel (Monthly) Online In every month of 1Q, performance was strong and significantly up year-on-year. Physical Stores Despite a recovery trend due to modest easing of the COVID-19 situation, sales were limited Duty- Free Impact due to the international situation includ
Slide 5: Trend in Net Sales by Sales Channel (Quarterly)
Trend in Net Sales by Sales Channel (Quarterly) Summary Online net sales were strong, and overall sales increased 118.2% year on year （Million yen） 12,000 Duty-free sales at stores Temporary closing of 1,355 Store net sales (excl. duty-free sales) camera stores from Online net sales April 25 to May
Slide 6: Trends in Online Net Sales (Details)
Trends in Online Net Sales (Details) Summary Net sales from the Company's websites surpassed the previous year's results by a large margin but declined as a percentage of total sales due to a strong increase in cross-border online sales. （Million yen） 1Q FY03/2022 1Q FY03/2023 Online net sales 6,728
Slide 7: Trends in cross-border online sales, duty-free sales and store sales
Trends in cross-border online sales, duty-free sales and store sales Summary As the demand for cameras and watches was strong in Japan as well as overseas, cross- border online sales were strong, achieving 220% year on year. （Million yen） Duty-free sales 800 New items Used items 600 Cross-border onl
Slide 8: Net Sales by Segment (Quarterly)
Net Sales by Segment (Quarterly) Summary Net sales grew steadily in each business (product category), achieving a record for 1Q alone. Bicycles 194 （Million yen） Stationeries 185 106 12,000 Watches 100 Cameras 231 104 224 4,119 10,000 216 199 165 96 4,002 66 212 129 2,945 124 113 217 87 122 150 2,16
Slide 9: Highlights: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales Summary For cameras, highly anticipated new products were released and new products as a percentage of total camera sales rose, but net sales of used cameras continued to perform strongly. 70.0% 60.8% 61.7% 59.6% 60.0% 58.2% 58.8% 59.9% 60.0%
Slide 10: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras Summary Despite restrictions on activities easing from around spring, the percentage of online sales has maintained a high level. （Million yen） 2,500 Online purchase value (Left axis) 85.9% Online purchase ratio (Right axis) 78.8% 74
Slide 11: Supplementary Material: Trends in Receive-First Send-Later Transactions
Supplementary Material:Trends in the Number of Receive-First Send-Later Transactions Summary Significantly rising 140.9% year on year, also securing adequate inventory of used items. （Million yen） 16,000 the Number of Send-Later Transactions the Number of Receive-First Transactions 14,000 12,000 7,8
Slide 12: Summary of financial results
Summary of financial results Year on year — Overall: Up 118.2％ Online: Up 126.7％ Stores: Up 94.3％ Net sales Online net sales were strong, particularly cameras and watches, which are mainstays. Gross For mainstay cameras and watches, the overall gross margin was 19.7%, up 0.4 points year on margin ye
Slide 13: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses （Million yen） FY03/2022 1Q FY03/2023 1Q Year-on-Year Change Ratio to Factors of increase Ratio to Ratio to net sales Value Actual Actual net sales net sales (ＰＴ) Increase due to base salary raises Personnel expenses 315 3.5% 345 3.2% ▲0.3% +30 Advertising expenses
Slide 14: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment （Million yen） Segments/Sales Channel YoY% FY03/2022 1Q FY03/2023 1Q Remarks （ ）The percentage of sales Change Online net sales 5,207 6,681 128.3% Store net sales 616 930 151.0% ● Both online and store sales were strong. ● Segment profit increa
Slide 15: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin * In 4Q every year, the performance bonus is calculated Summary A high level of 7.9％ was maintained. 1Slim management due to the placement of one office per category, adoption of an online-focused business model and utilization o
Slide 16: Changes in Balance Sheet from End of Previous Quarter
Changes in Balance Sheet from End of Previous Quarter Summary Due to ongoing investments in valuable inventory with a focus on watches, product inventory increased by around 1.4 billion yen. Current liabilities rose by around 1.5 billion yen due to increased short-term borrowings and other items in
Slide 17: Trends in the Quarterly Number of Online Members
Trends in the Quarterly Number of Online Members Summary The number of new online members increased steadily every month, by around 4,000. 582,252 568,813 Existing members 540,394 13,439 540,394 14,689 550,000 New menbers 13,730 527,332 514,460 13,062 500,260 12,872 14,200 500,000 484,121 16,139 468
Slide 18: Attributes of Online Members
Attributes of Online Members Summary Members consist of a wide range of age groups, in which those in their 10s to 30s comprise 41.2％ Women in their 10s to 30s account for a high percentage, 22.8％, reflecting the popularization of social media such as Instagram. Even though the weighting of younger
Slide 19: Quarterly Activeness Ratio of Web Members (Existing Customers)
※ Quarterly Activeness Ratio of Web Members (Existing Customers) Summary The percentage of active members has remained high. The conversion rate improved, in part from the effects of AI-driven content recommendations introduced at the end of March. 7 (Units: people) Number of purchasing members who
Slide 20: Number of Items Registered on the Wish List
Number of Items Registered on the Wish List Summary The number of new registrations remain solid at about 60,000 per month on average. *From January to March, the number of new registrations increased significantly, in part due to new product releases and end-of-financial-year sales. Total registrat
Slide 21: Number of Registrations for E-mails that Communicate Arrivals
Number of Registrations for E-mails that Communicate Arrivals Summary The number of new registrations has grown steadily. In addition to notifications via email and through the app, a LINE-based notification feature was introduced from May. Approx. 410,000 notifications per month on average in 1Q. 5
Slide 22: 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