Slide 1: FY2023 2Q ZOZO, Inc. Consolidated Business Results
FY2023 2Q ZOZO, Inc. With an easy-to -understand CONSOLIDATED BUSINESS RESULTS explanation by CFO Yanagisawa and VP of IR !
Slide 2: Management Conscious of Cost of Capital: Background and Current Issues
Action to Implement Management that is Conscious of Cost of Capital and Stock Price Background and Current Issues As for profit return to shareholders, our group has the basic policy for deliberating and implementing profit return by balancing internal reserve through comprehensive consideration of
Slide 3: Management Conscious of Cost of Capital: Response Policy and Goals
Action to Implement Management that is Conscious of Cost of Capital and Stock Price Response Policy and Goals We deemed that maintaining the current level of consolidated dividend payout ratio will lower capital efficiency in the future. Thus, we set out a policy to return surplus funds to sharehold
Slide 4: Management Conscious of Cost of Capital: Specific Measures
Action to Implement Management that is Conscious of Cost of Capital and Stock Price Specific measures The specific measures decided on October 31, 2023 are as follows. As a result of this action, ROE for the fiscal year ending March 31, 2024 is expected to be 53.1%*. * When (2) is acquired up to the
Slide 5: Highlights
FY2023 2Q ZOZO, Inc. HIGHLIGHTS This year's ZOZO CHAM PIONSHIP was very exciting, with Collin Morikawa, who is Jap- anese American, winning the championship and three Japanese players in the top 10 as well!
Slide 6: FY2023 2Q Highlights
FY2023 2Q HIGHLIGHTS Gross Merchandise Value 258.7 billion yen Gross Merchandise Value excluding other GMV 241.6 billion yen Operating Profit 28.9 billion yen Operating Profit Margin 12.0 % Operating profit margin is calculated by dividing operating profit by the Gross Merchandise Value (excluding o
Slide 7: Overview of Each Quarter
OVERVIEW OF EACH QUARTER million FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q Gross Merchandise Value Gross Merchandise Value (excluding other GMV) YoY (%) Net sales SG&A YoY (%) (% to the Gross Merchandise Value) Operating profit YoY (%) (% to the Gross Merchandise Value) * The percentages are calculated by div
Slide 8: Business Results
FY2023 2Q ZOZO, Inc. BUSINESS RESULTS The new "ZOZO WORKSTYLE" started this April. Many employees are working vigor- ously because of the updated personnel system, benefits, and work style.
Slide 9: 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 An increase profit increases +1.0 in fixed costs -1.0 An increase in sales from An increase in the number advertising business An increase in shipping income An increase in + 0
Slide 10: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET p l a n n ed . wh i c h b eg a n o p e ra ti o n s i n Au g u st, p roceed ed a s I nvest m e nts i n t h e n ew d i st ri b u ti o n wa re h o u se, million FY2022 FY2023 2Q FY2022 FY2023 2Q (as of March 31, 2023) (as of September 30, 2023) (as of March 31, 2023) (as of S
Slide 11: Cash Flows
CASH FLOWS FY2022 2Q YoY Reason FY2023 2Q for change Increase in income Cash flows from taxes paid operating activities Increase in prepaid expenses Expenditures for opening Cash flows from a new distribution base investing activities in both the previous and current fiscal years Cash flows from Inc
Slide 12: Selling, General and Administrative (SG&A) Expenses
SELLING, GENERAL AND ADMINISTRATIVE(SG&A) EXPENSES of 2Q . sta rted o pe ra t i o n i n Au g u st, beg a n i n t h e m i d d l e d e p reci a t i o n of t h e n ew d i st ri b u ti o n ce nte r, wh i c h Fu l l -sca l e reco rd i n g of expe n ses fo r re nt a n d million FY2022 2Q FY2023 2Q YoY Inc
Slide 13: Actual Promotion-Related Expenses
ACTUAL PROMOTION-RELATED EXPENSES Actual promotion-related expenses: The sum of advertising expenses and point-related expenses i n c rea sed co m p a red to l a st yea r. po i nt p rog ra m s a n d we b a dve rti s i n g Co nti n u i n g fro m 1 Q, t h e n u m be r of rewa rd 10,000 Advertising exp
Slide 14: Operating Profit and Operating Profit Margin (Quarterly)
OPERATING PROFIT AND OPERATING PROFIT MARGIN (QUARTERLY) 18,000 Operating Profit 17,425 30% Operating Profit Margin (% to the Gross Merchandise Value) YoY 16,000 14,987 1 5,862 +1.3% 14,312 25% 14,000 13,068 12,591 12,897 12,000 11,20 0 1 0,876 11,785 20% 10,000 1 2 .3 1 2 .9 15% 11 .8 1 2 .1 % 11 .
Slide 15: 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 b a sed o n d eta i l ed cu sto m e r seg m e nta ti o n . We a re focu s i n g m o re e n e rgy o n p ro m oti o n s Guest buyers = Total number of guest purchases within a y
Slide 16: Number of Shops on ZOZOTOWN
NUMBER OF SHOPS ON ZOZOTOWN i n 2Q, i n c l u d i n g cos m eti cs, l uxu ry, a n d h o m e. Th e re wa s a wi d e va ri ety of sto re o pe n i n g s 1,800 Consignment sales Outright Purchase / Production & Sales 1,700 1,600 1,564 1,581 1,554 1,562 29 1,516 1,51 0 1,523 1,532 28 28 28 1,488 1,502 24
Slide 17: Average Retail Price
AVERAGE RETAIL PRICE Average retail price we re wea ke r t h a n i n t h e p revi o u s yea r. 2Q d u e to t h e i nte n se l i n g e ri n g s u m m e r h ea t, ite m s, wh i c h b eg a n se l l i n g i n t h e l a tte r h a l f of seve ra l q u a rte rs b eca u se sa l es of fa l l/wi nte r Th e ra
Slide 18: Average Order Value
AVERAGE ORDER VALUE Average order value co nti n u ed to i n c rea se.t t h e n u m b e r of ite m s p u rc h a sed p e r o rd e r ave ra g e reta i l p ri ce i n 1 Q, I n a d d iti o n to a co nti n u ed i n c rea se i n t h e = Gross Merchandise Value of the ZOZOTOWN Business / Number of shipments
Slide 19: Consolidated Business Forecast and Dividend Forecast for FY2023
CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2023 FY2023 Plan YoY Gross Merchandise Value 580.8 billion yen 6.7% Gross Merchandise Value (excluding other GMV) 535.2 billion yen 6.8% Net sales 200.7 billion yen 9.4% Operating profit 60.0 billion yen 6.3% Operating Profit Margin (% to th
Slide 20: ZOZO
ev An ZOZO
Slide 21: Technology & Data Made by ZOZO
Technology & Data Made by ZOZO ZOZO FIT tv FAANS lab SHP ZOZOMO FBZ 21
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22
Slide 23: ZOZOBASE: Number of production types
Number of production types Order Made-to-order Produce Shipping Deliver ZOZO BASE Participating brands can sell their products without carrying inventory info. BEAUTY&YOUTH / nano-universe / SHIPS / etc... Participating brands as of September 2023 23
Slide 24: Made by ZOZO
Made by ZOZO
Slide 25: Alcon
alcon ¥2,020,000 ova « ¥2,020,000 tr 2,020 ane 2tt, 25
Slide 26: MUJI in ZOZOTOWN
MUJI in ZOZOTOWN Bo yar 2 8 2023.09.01 ri OPEN . Ga
Slide 27: VERSACE
VERSACE Bx ¥14,520 a VERSACE NYEKID ¥315,700 VERSACE Bk ¥16,170 ® VERSACE RIILA ¥86,900 VERSACE Bk ¥12,320 o VERSACE MYERS ¥299,200 VERSACE Ai ¥80,300 VERSACE Bi ¥86,900 VERSACE hohe ¥315,700 = VERSACE Ra=—-h- ¥154,000 27
Slide 28: ZOZONEXT
ZOZONEXT
Slide 29: ZOZO COSME
ZOZO COSME 29
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30
Slide 31: ZOZOFIT
Fil ZOZOFIT 31
Slide 32: ZOZO
ev An ZOZO