Slide 1: FY2024 2Q Consolidated Business Results
FY2024 2Q (Semi-annual) ZOZO,Inc. With an easy-to -understand CONSOLIDATED BUSINESS RESULTS explanation by CFO Yanagisawa and VP of IR !
Slide 2: Highlights
FY2024 2Q ZOZO, Inc. HIGHLIGHTS "ZOZOMETRY" now allows for highly accurate body measurements without the need for a ZOZOSUIT! We look forward to inquiries from interested businesses!
Slide 3: FY2024 2Q Highlights
FY2024 2Q HIGHLIGHTS Gross Merchandise Value 279.1 billion yen (+7.9% YoY / Achievement rate 45.8%) Gross Merchandise Value (excluding other GMV) 260.8 billion yen (+7.9% YoY / Achievement rate 45.6%) Operating Profit 30.4 billion yen (+ 5.3% YoY / Achievement rate 47.5%) Operating Profit Margin 11.
Slide 4: Overview of Each Quarter
OVERVIEW OF EACH QUARTER million FY2 0 2 3 FY2 0 24 1Q 2Q 3Q 4Q 1Q 2Q Gross Merchandise Value Gross Merchandise Value (excluding other GMV) YoY % Net sales SG&A YoY (%) (% Gross Merchandise Value) Operating profit YoY (%) (% Gross Merchandise Value) * The percentages are calculated by dividing each
Slide 5: Business Results
FY2024 2Q ZOZO, Inc. BUSINESS RESULTS ZOZOMAT for Kids, designed for children aged 4 and up, was released at the end of August. It s available for free delivery, so feel free to order!
Slide 6: Increase-Decrease Analysis of Operating Profit (YoY Comparison)
INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT (YoY COMPARISON) Changes other than expenses Changes in expenses Other gross Increase in fixed costs profit increases Increase in sales from advertising business +2.1 -2.5 + 0.9 Increase in shipping income (The new shipping policy Increase in the number
Slide 7: Selling, General and Administrative (SG&A) Expenses
SELLING, GENERAL AND ADMINISTRATIVE(SG&A) EXPENSES million FY2 023 2Q FY2 024 2Q YoY Increase / decrease factors Amount % to the Gross MerchandiseValue Amount % to the Gross MerchandiseValue % to the Gross MerchandiseValue Payroll and staff costs(*) Payroll costs for employee Transition of the numbe
Slide 8: Actual Promotion-Related Expenses
ACTUAL PROMOTION-RELATED EXPENSES and web advertising on social media, etc. the cost increase are the free shipping measures fiscal year, the main factors contributing to Compared to the same quarter of the previous Actual promotion-related expenses: The sum of advertising expenses and point-related
Slide 9: Operating Profit and Operating Profit Margin (Quarterly)
OPERATING PROFIT AND OPERATING PROFIT MARGIN (QUARTERLY) 20,000 Operating Profit Operating Profit Margin (% to the Gross Merchandise Value) 30% YoY 18,000 17,425 16,767 11 .6% 16,000 1 5,862 1 5,895 25% 14,312 14,381 14,580 14,000 13,068 12,897 20% 12,000 11,785 10,000 1 2 .3 1 2 .9 1 2 .0 15% 1 2 .
Slide 10: Number of Total Buyers
NUMBER OF TOTAL BUYERS Number of total buyers = Active members and guest buyers who made at least one purchase within a year buyers increased steadily compared to Q1. summer heat. However, the number of annual heavily impacted by the severe lingering In Q2, growth in September was sluggish, Guest bu
Slide 11: Number of Shops on ZOZOTOWN
NUMBER OF SHOPS ON ZOZOTOWN Attracting new brands is going well. 1,80 0 Consignment sales Outright Purchase / Production & Sales 1,70 0 1,605 1,595 1,605 1,621 1,60 0 1,564 1,581 1,554 1,562 28 29 29 31 1,523 1,532 28 28 28 29 1,552 1,577 1,566 1,576 1,590 27 1,526 1,534 1,536 25 1,50 0 1,498 1,505
Slide 12: Average Retail Price
AVERAGE RETAIL PRICE Average retail price a limited rise in the average retail price. and winter items did not increase, leading to to last year, demand for higher-priced new autumn Due to more severe lingering summer heat compared = Gross Merchandise Value of the ZOZOTOWN Business / Number of piece
Slide 13: Average Order Value
AVERAGE ORDER VALUE Average order value compared to last year more, which were well received by customers free-shipping measures for orders of 12,000 yen or in combined purchases due to more frequent that of average retail price, driven by an increase The growth rate of average order value outpaced
Slide 14: Consolidated Business Forecast and Dividend Forecast for FY2024
CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2024 FY2024 Plan YoY Gross Merchandise Value billion yen Gross Merchandise Value (excluding other GMV) billion yen Net sales billion yen Operating profit billion yen Operating Profit Margin (% to the Gross Merchandise Value) Ordinary profit
Slide 15: ZOZO
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Slide 16: Use of AI technology / automation initiatives
Use of AI technology / automation initiatives 16
Slide 17: Use of AI technology/automation initiatives
Use of AI technology/automation initiatives Expected impact Sales gain Personalization AI and Measurement technology R&D for new service automation Domain as a service technology Cost reduction Internal operational improvement and efficiency 17
Slide 18: Personalization for ZOZOTOWN and WEAR: Home page module layout
Personalization for ZOZOTOWN and WEAR Home page module* layout Even within the group of women in their 30s, the displayed module content and order will be adjusted based on factors such as browsing history and purchase history. Ms A: Appealing for affordable children's clothing Ms B: Appealing for t
Slide 19: Personalization: Recommendation pages based on the weather
Personalization for ZOZOTOWN and WEAR Recommendation pages based on the weather (temperature) By integrating with the high-precision weather data from Weathernews Inc.,we are able to provide item recommendations based on the current weather (temperature) at the user's location. Leveraging the fact t
Slide 20: Personalization: Content display based on fashion genre assessment
Personalization for ZOZOTOWN and WEAR Content display based on fashion genre assessment results Content, such as outfit images, is displayed based on the results of the fashion genre assessment. Additionally, the system learns from the images the user clicks on, refining the content to better match
Slide 21: Measurement technology as a service
Measurement technology as a service 21
Slide 22: Internal operational improvement: item review monitoring tool
Internal operational improvement and efficiency Case 1 : A tool for monitoring violations of item review guidelines on ZOZOTOWN Developed a tool using generative AI to monitor the content of item reviews on ZOZOTOWN, checking for guideline violations that were previously done manually. Impact Work h
Slide 23: Internal operational improvement: optimal category suggestion tool
Internal operational improvement and efficiency Case2 : A tool for suggesting optimal categories for items listed under "Others" on ZOZOTOWN. A tool was developed to automatically assign items categorized as "Others" due to brand specifications to the most appropriate category by analyzing the item
Slide 24: Internal operational improvement: BI tool for customer support inquiries
Internal operational improvement and efficiency Case3 : BI tool for managing customer support inquiries A tool has been developed to analyze trends in inquiry content based on CSV data from the customer support center, with generative AI performing classification and aggregation. Impact Quick analys
Slide 25: R&D for new service
R&D for new service La b to clarify *"you r style" : niaulab Virtual MORE FASHION Experiences Evolution of ZOZOTOWN The new style FASHION TECH Providing ultimate and WEAR of the stores personalized-styling More Fashion × Better Fashion Tech services at the physical Nationwide - Explore your style. M
Slide 26: R&D for new service
R&D for new service — 4 Hello, new me. ce >
Slide 27: R&D for new service
R&D for new service REVINAL ITEM COLLECTION 03 Items for VRChat AVAILABLE at BOOTH ‘ZOZONEXT 27
Slide 28: ZOZO
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