Jade Group, Inc. · TSE:3558
Jade — FY2025 Q2 Earnings Presentation
39 slides from Jade's earnings presentation, Oct 15, 2024
Slide 1: JADE GROUP FY2025 2Q IR Presentation
JADE GROUP FY2025 2Q IR PRESENTATION ※ This material is translated by AI technology 2024.10.15
Slide 2: Summary
01 SUMMARY 2
Slide 3: GMV was 24.3 billion yen, 44% of the 55 billion yen plan
• GMV was 24.3 billion yen, or 44% of the 55 billion yen plan (+92%). Considering the bias toward the second half of the year and the fact that MAGASEEK has been consolidated from April, we believe that the business is progressing well. • The warehouse relocation from June to August, the warehouse s
Slide 4: Visualization graph of operating income of 4 Bn yen in FY26
Visualization graph of operating income (OI) of 4 Bn yen in FY2６ “Action taken” increased by 570 million yen compared to 1Q due to the integration of logistics and IT and internalization of outsourcing costs. In the second half of the year, we will implement the remaining 920 million yen in measures
Slide 5: Results
02 RESULTS 5
Slide 6: FY 2025 2Q Financial Summary
FY 2025 2Q Financial Summary GMV increased by 72.8% yoy due to the effect of M&A. Although the company recorded an expense of approx. 300 million yen due to the amortization of goodwill from M&A, transfer-related expenses, and upfront expenses at RBKJ, the Magaseek integration is progressing smoothl
Slide 7: FY 2025 2Q GMV of each business area
FY 2025 2Q GMV of each business area Platform business led the growth by the M&A of MAGASEEK Aug 31, 2023 Aug 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 7,937 56.4 3,156 12,861 52.9 4,169 62.0 32.1 Our own E-malls 6,973
Slide 8: GMV (before offset)
GMV（before offset） GMV increased by 93% YoY due to M&A （JPY MM） TTL +93% 12,793 Our own EC +80% BOEM/ECS +225% Brand +15% Other EC +25% LOCOCHOC etc +17% 6,629 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 2024 2Q Our own EC Other EC BOEM/ECS
Slide 9: Net Sales
Net Sales Net Sales also up by + 52.5% （JPY MM） 4,693 4,819 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 2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q (Note) In the case of purchased inventory, the selling p
Slide 10: SG & A
SG & A The effects of PMI are gradually starting to show, and the SG&A ratio to GMV improved by 2.2 points. The main drivers of this improvement were the streamlining of logistics and the effective allocation of advertising. Of the increase in SG&A expenses, approximately 300 million yen was due to
Slide 11: Operating Income
Operating Income Due to the approx. 200 million yen in relocation expenses and advance payments for expenses at RBKJ, operating income for the 2Q was JPY 31MM (-229MM), and EBITDA was JPY 234MM (-75MM). EBITDA is +125MM without those factors. （JPY MM） 821 772 651 585 EBITDA increased+125MM 538 witho
Slide 12: Operating Income – YoY analysis
Operating Income – YoY analysis （JPY MM） Operating income decreased due to an increase in amortization of goodwill, an increase in relocation expenses, and the upfront expenses at RBKJ, but EBITDA excluding special factors increased. 2,036 ▲797 ▲394 ▲347 ▲48 798 ▲240 513 ▲274 ▲218 2023 2Q GMV Gross
Slide 13: Repayment of loans from FIs has progressed, high soundness maintained
BS Repayment of loans from FIs has progressed, and maintained high soundness with equity ratio of 45.7% (39.6% considering Non-controlling interests) （JPY MM） Current Assets 9,172 Current Liabilities 6,435 Deposits received Cash and cash equivalents 2,846 2,852 for consignment sales Inventories 2,67
Slide 14: EC mall: number of active users
EC mall : number of active users (unit; K) The number of members increased by the M&A. We will reinstate by maximizing the effectiveness of cross-selling. 242 248 1,710 322 348 349 356 359 346 339 313 288 287 296 261 247 237 300 306 297 283 1,629 265 291 691 740 783 833 792 788 809 829 813 797 783 7
Slide 15: EC mall: Average shipping price
EC mall : Average shipping price (Shipping basis) Our own E-malls increase by 10% and other E-malls increased by 3%. The price basically stays in a reasonable range. （JPY） 11,263 11,205 11,247 10,907 10,614 10,593 10,435 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 16: 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% 22% 21% 21% 21% 20% 20%20% 20% 19% 18% 18% 8% 7% 8
Slide 17: EC mall: Number of brands
EC mall : Number of brands Number of brands (excluding waja) is now 3,314. 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 3,314 3,264 3,283 3,196 2021 2Q 3Q 4Q 2022 2Q 3Q 4Q 2023 2Q 3Q 4Q 2024 1Q
Slide 18: 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 87 88 85 81 81 66 63 63 2021 2Q 3Q 4Q 2022 2Q 3Q 4Q 2023 2Q 3Q 4Q 2024 2Q 1Q 1Q 1Q 1Q ※ NOT including MAGASEEK’s e-3PL (UNS
Slide 19: Company overview
JADE GROUP Company overview
Slide 20: 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 21: 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 22: Group Vision: HAPPY FOR ALL
Group VISION HAPPY FOR ALL Make Customers HAPPY Make Employee HAPPY Make Business Partner HAPPY Make Shareholders HAPPY Make Society HAPPY 22
Slide 23: Group Policy: Fast Faith Fair Fun
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! 23
Slide 24: 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 25: Our Business: 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 26: Our Business: 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 27: Platform: complementary businesses and ecosystem
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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Mid-term Plan and Long-term Vision
04 Mid-term Plan and Long-term Vision 33
Slide 34: 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 35: MTB and LTV: GMV (before offset)
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 36: 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 37: 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 38: 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 38
Slide 39: Forward-looking statements disclaimer
• 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