Slide 1: Full-year Financial Results
May 15, 2023 For the Fiscal Year Ended March 31, 2023 Full-year Financial Results Vega corporation Co., Ltd. / Securities code: 3542 Copyright 2022 VEGA corporation. All Rights Reserved. 1
Slide 2: Overview of Financial Results
Overview of Financial Results 1 for the Fiscal Year Ended March 31, 2023 2 Report on LOWYA Business 3 Report on DOKODEMO Business Financial Results Forecast 4 for the Fiscal Year Ending March 31, 2024 5 Appendix Copyright 2022 VEGA corporation. All Rights Reserved. 2
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2023
1 Overview of Financial Results for the Fiscal Year Ended March 31, 2023 Copyright 2022 VEGA corporation. All Rights Reserved. 3
Slide 4: Financial Highlight
Financial Highlight LOWYA business recovered and secured 103.2% YoY net sales in 4Q Full-year operating profit exceeded the initial forecast and landed within the range of the financial results forecast announced on January 31. Overview of Fiscal year ended YoY Mar. 31, 2023 Company-wide Results GMV
Slide 5: Summary of Financial Results for the Fiscal Year Ended March 31, 2023
Whole Company Summary of Financial Results for the Fiscal Year Ended March 31, 2023 LOWYA business recovered and secured 103.2% YoY net sales in 4Q. Full-year operating profit exceeded the initial forecast and landed within the range of the financial results forecast announced on January 31. (Millio
Slide 6: Net Sales / Full Year & Quarterly
Whole Company Net Sales / Full Year & Quarterly Total net sales for the whole company increased steadily from 2Q onwards due to the recovery of the LOWYA business. Full year Quarterly (Million yen) (Million yen) 20,000 18,371 8,000 16,832 16,973 6,000 5,166 15,000 4,737 4,505 4,372 4,514 4,376 4,094
Slide 7: Operating Profit / Full Year & Quarterly
Whole Company Operating Profit / Full Year & Quarterly Profit progressed faster than initially anticipated due to cost reductions. However, the cost of sales ratio is rising due to ongoing depreciation of the yen in the LOWYA business, and it will be an issue in the first half of the next fiscal yea
Slide 8: Causes of Increase/Decrease in Operating Profit
Whole Company Causes of Increase/Decrease in Operating Profit The Company consolidated distribution bases, improved the efficiency of delivery and advertising, and relocated the Tokyo Office in the LOWYA business. The Company reduced SG&A expenses and improved new businesses by 5.0 pt (853 million y
Slide 9: Whole Company Balance Sheet
Whole Company Balance Sheet Cash and deposits increased significantly due to inventory reduction. Short-term borrowings were fully repaid, making the Company debt free. (Million yen) Previous fiscal year Current fiscal year Previous fiscal year Current fiscal year (as of Mar. 31, 2022) (as of Mar. 3
Slide 10: Report on LOWYA Business
2 Report on LOWYA Business Copyright 2022 VEGA corporation. All Rights Reserved. 10
Slide 11: LOWYA Business Management Indicators
LOWYA Business Management Indicators In 4Q, net sales steadily recovered continuing from 3Q, and net sales of the LOWYA business in 4Q were 103.2% YoY. We focused on profit control at the flagship store in the current fiscal year, and full-year net sales of the flagship store were 91.2% YoY. Members
Slide 12: LOWYA Business Quarterly Net Sales
LOWYA Business Quarterly Net Sales 4Q performance remained strong, and total net sales of the business grew steadily. (Million yen) Net sales Net sales YoY 103.2% 6000 5,138 5000 4,655 4,326 4,428 4,381 4,246 4,013 3,978 4,001 3,919 4,017 4000 3,737 3,532 3,204 3,233 3,045 3000 2000 1000 0 1Q 2Q 3Q
Slide 13: LOWYA Business Total Monthly Net Sales
LOWYA Business Business Total Monthly Net Sales Net sales in the overall LOWYA business have continued to perform well, exceeding 100% YoY each month since October 2022. (Million yen) FY2022 FY2023 YoY 113.0% 2,500 104.2% 106.3% 104.2% 105.7% 102.5% 100.8% 98.6% 98.3% 93.4% 88.6% 2,000 84.3% 1,818 1
Slide 14: LOWYA Business Cost of Sales Ratio (vs. Net Sales)
LOWYA Business Cost of Sales Ratio (vs. Net Sales) Although marine container transportation costs peaked in 2Q and then showed signs of a downward trend, the significant depreciation of the yen resulted in an increased cost of sales ratio. Controlling the cost of sales ratio will be an issue in the
Slide 15: LOWYA Business Quarterly SG&A Expenses Ratio
LOWYA Business Quarterly SG&A Expenses Ratio (against Net Sales) The Company achieved a 7.5 pt (258 million yen) YoY reduction in SG&A expenses in 4Q (3 months) by consolidating distribution bases, improving the efficiency of delivery and advertising, and relocating the Tokyo Office, thereby enhanci
Slide 16: KPI of the Flagship Store (Repeat Members)
LOWYA Business KPI of the Flagship Store (Repeat Members) The 12-month GMV* by repeat members continues to rise as guest purchasers become members and new members turn into repeat members. GMV by member type (LTM*) (Million yen) Repeat members New members Guest purchasers Repeat member order ratio (
Slide 17: In-house App Development and Social Media Operation
LOWYA Business Business Characteristics: In-house App Development and Social Media Operation The internally-developed official app and operation of social media function as the key to attracting customers. The number of TikTok followers surpassed 100,000. Sizes of engagement channels that deliver a
Slide 18: Product Planning and Brand Products
LOWYA Business Business Characteristics: Product Planning and Brand Products Product release with a focus on our own private brand products that are design- and trend-conscious. Continue to expand product genres with other companies’ brands. Major brands of other companies Enhance product lineup Soi
Slide 19: New Measure from FY2023: Physical Store Initiatives
LOWYA Business New Measure from FY2023: Physical Store Initiatives We started a new wholesale business in September 2022 and opened a directly managed store in April 2023. We aim to convert to OMO-type D2C. . Started wholesale sales for the first time since Opened a directly managed store (April 202
Slide 20: Whole Company Sustainability Initiatives
Whole Company Sustainability Initiatives Adopted a 100% recycled material for the outer packaging plastic bags of a new product as part of waste reduction measures Donated furniture and school bags to welfare facilities in Fukuoka Prefecture in November 2022 and February 2023 as part of community ou
Slide 21: Report on DOKODEMO Business
3 Report on DOKODEMO Business Copyright 2022 VEGA corporation. All Rights Reserved. 21
Slide 22: DOKODEMO Business Management Indicators
DOKODEMO Business Management Indicators Memberships and the number of app DLs increased smoothly. Memberships surpassed one million in February 2023. Average basket value grew and GMV continued to grow at a high growth rate. Fiscal year ended Fiscal year ended Item Mar. 31, 2023 YoY Mar. 31, 2022 (c
Slide 23: GMV and Upfront Investments (Net Business Income)
DOKODEMO Business GMV and Upfront Investments (Net Business Income) In 4Q, GMV (Gross Merchandise Value) was sluggish at 83.5% YOY due to changes in the market environment. For the full year, the Company continued to maintain a GMV growth trend while limiting upfront investments as planned. Deficit
Slide 24: DOKODEMO Business GMV
DOKODEMO Business GMV Repeat customer GMV increased, accounting for 84.9% (Million yen) Repeat customer GMV New customer GMV Ratio of repeat customers 83.6% 84.9% 1,573 81.2% 1,600 77.3% 75.1% 1,400 70.7% 72.7% 357 1,246 1,198 1,200 68.5% 65.0% 64.7% 64.9% 64.4% 234 1,021 1,056 196 1,000 56.2% 56.9%
Slide 25: Ratio of GMV by Destination Area
DOKODEMO Business Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for more than 90% of GMV By region By 国別 country Middle East 0.2% Oceania 0.8% Europe 0.9% North America Korea 3.3% US 米国 0.3% Hong 香港Kong 2.9％ % Taiwan 台湾 6.8 5.8％% 84 86.6 .5％ % Malaysia Asia 0.3% Philipp
Slide 26: Financial Results Forecast for the Fiscal Year Ending March 31, 2024
４ Financial Results Forecast for the Fiscal Year Ending March 31, 2024 Copyright 2022 VEGA corporation. All Rights Reserved. 26
Slide 27: FY2024 Financial Results Outlook
FY 2024 Financial Results Outlook The LOWYA business will maintain the strong performance continuing from the second half of the fiscal year ended March 31, 2023 and increase net sales. Assuming that the yen will appreciate over the second half, the full-year cost of sales ratio is expected to be 52
Slide 28: IR Inquiries
IR Inquiries https://www.vega-c.com/contact/ir/ Views and forecasts in this document were prepared based on the judgment of the Company at the time of preparation. These statements are based on current expectations, forecasts, and assumptions that are subject to risks, and contain uncertainties that