Vega Corporation Co., Ltd. · TSE:3542
Vega — H1 FY2025 Earnings Presentation
35 slides from Vega's earnings presentation, November 2024
Slide 1: Quarterly Financial Results for the Six Months Ended September 30, 2024
For the Six Months Ended September 30, 2024 Quarterly Financial Results Vega corporation Co., Ltd. Securities code: 3542
Slide 2: INDEX
Overview of Quarterly Financial Results 1 for the Six Months Ended September 30, 2024 2 Report on LOWYA Business INDEX 3 Report on DOKODEMO Business Financial Results Forecast for the Fiscal Financial results briefing materials 4 Year Ending March 31, 2025 2
Slide 3: Overview of Quarterly Financial Results for the Six Months Ended September 30, 2024
Overview of Quarterly Financial 1 Results for the Six Months Ended September 30, 2024 Financial results briefing materials
Slide 4: Financial Highlights (H1)
Financial Highlights (H1) As a result of the shift to a profit-oriented management policy from 2Q of the previous fiscal year and the efforts made in each business operation, operating profit significantly improved to 294 million yen (1,058.7% YoY), although net sales decreased to 7,123 million yen
Slide 5: Net Sales
Net Sales Due to the profit-oriented measures taken since 2Q of the previous fiscal year, access count and distribution declined, with H1 net sales of 7,123 million yen (90.1% YoY) and 2Q net sales of 3,525 million yen (94.0% YoY). Semi-annually Quarterly (Million yen) (Million yen) YoY 90.1% YoY 94
Slide 6: Operating profit
Operating profit From 2Q of the previous fiscal year, each business implemented profit-oriented measures, resulting in H1 operating profit of 294 million yen (1,058.7% YoY) and 2Q operating profit of 92 million yen (147.7% YoY). Semi-annually Quarterly (Million yen) (Million yen) YoY 1,058.7% 469 29
Slide 7: Causes of Increase/Decrease in Operating Profit (H1)
Causes of Increase/Decrease in Operating Profit (H1) In the LOWYA business, in an effort to improve profitability, the Company worked on optimizing advertising expenses and other initiatives. As a result, the Company improved operating profit. Causes of increase/decrease in operating profit (YoY) (M
Slide 8: Balance Sheet
Balance Sheet The Company continued to be debt free and maintained a high equity ratio of 79.6%. (Million yen) As of March 31, As of September As of March 31, As of September 2024 30, 2024 2024 30, 2024 Current assets 6,153 5,758 Current liabilities 1,586 1,386 Cash and deposits 1,750 2,006 Debt obl
Slide 9: ROE/Profit Margin, Dividend per Share
ROE/Profit Margin, Dividend per Share The Company plans ROE of 12.4%, profit margin of 4.2% and to pay a dividend of 11 yen per share for the fiscal year ending March 31, 2025. Its policy is to implement continuous dividend payments with a target DOE of 2.0% and the remainder is to be invested in gr
Slide 10: Sustainability
Sustainability Of ESG, the Company conducted activities related to the environment and society. It will also continue making various studies, including considering measures to reduce CO2 emissions and strengthen governance. Donation of photographed goods Adoption of environmentally friendly material
Slide 11: Report on LOWYA Business
Financial results briefing materials 2 Report on LOWYA Business
Slide 12: Major Indicators (H1)
Major Indicators (H1) In 2Q of the previous fiscal year, the Company changed its policy to focus on profit and optimized promotion expenses and advertising expenses. As a result, net sales were 6,949 million yen (90.3% YoY). Membership of the flagship store and the number of engagement accounts grew
Slide 13: Net Sales
Net Sales The Company optimized promotion expenses and advertising expenses, resulting in H1 net sales of 6,949 million yen (90.3% YoY) and 2Q net sales of 3,442 million yen (94.3% YoY). Semi-annually Quarterly 94.3% (Million yen) (Million yen) YoY 90.3% YoY 7,695 4,381 4,151 6,949 4,001 4,017 4,045
Slide 14: Monthly Net Sales
Monthly Net Sales From 2Q of the previous fiscal year, the Company optimized promotion expenses and advertising expenses in an effort to improve profitability. One year has passed since the start of the initiative, and the YoY rate has recovered to around 100%. From 3Q onward, the YoY rate is expect
Slide 15: Operating Profit
Operating Profit The Company optimized promotion expenses and advertising expenses, resulting in H1 operating profit of 296 million yen (457.8% YoY) and 2Q operating profit of 95 million yen (122.5% YoY). Semi-annually Quarterly (Million yen) (Million yen) YoY 457.8% 462 296 YoY 122.5% 266 200 146 1
Slide 16: Number of Customers/Average Basket Value
Number of Customers/Average Basket Value The Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, the number of customers decreased from the same quarter of the previous year. Average basket value is on an upward trend due to the effect of
Slide 17: Gross Profit Margin Ratio/Exchange Rate
Gross Profit Margin Ratio/Exchange Rate Gross profit margin ratio was 49.7% (up 2.1 pt YoY) due to the reduction of promotion expenses and the effect of price pass-throughs. Although the yen appreciated sharply at the second quarter end, there was no significant impact on current earnings due to the
Slide 18: SG&A Expenses and SG&A Expense Ratio
SG&A Expenses and SG&A Expense Ratio From 2Q of the previous fiscal year, the Company reduced costs by optimizing advertising expenses in an effort to improve profitability. At the same time, the Company increased costs by opening new actual stores. It resulted in an H1 SG&A expense ratio of 46.1% (
Slide 19: Flagship Store Membership, Age Distribution, Ratio of Male vs. Female
Flagship Store Membership, Age Distribution, Ratio of Male vs. Female Membership of the flagship store is steadily increasing, with strong support from people in their 20s and 30s. Trend in membership of flagship store Age distribution 60 and older 2% (Thousand people) 50 to 59 6% 40 to 49 1,692 12%
Slide 20: New Products
New Products Release products with a focus on our own private brand products that are design- and trend-conscious and pursue affordable prices with cost competitiveness. Furniture Other Smart side table Simple modern bed frame Electric coffee grinder 7,000 yen (tax included) from 29,990 yen (tax inc
Slide 21: Apps and Social Media
Apps and Social Media The internally developed official app and operation of social media function as the key to attracting customers. 1.61 million smartphone app downloads, and more than 1.09 million Instagram followers. They are steadily increasing. Sizes of engagement channels that deliver a uniq
Slide 22: Actual Store Locations
Actual Store Locations The Company opened stores in Yokohama in August 2024, Tokyo in September 2024, and Hiroshima in October 2024. In addition, it plans to open stores in Osaka (Ibaraki) and Shizuoka in November 2024. Also, it has decided to open a store in Aichi (Anjo). Store name : LOWYA MARK IS
Slide 23: Actual Stores: No. 4, No. 5, No. 6
Actual Stores: No. 4, No. 5, No. 6 The Company opened actual stores continuously from August to October 2024. Actual store No. 4 Actual store No. 5 Actual store No. 6 August 2024 September 2024 October 2024 Opened at MARK IS Minatomirai, Opened at Futako Tamagawa Rise Opened at AEON MALL Hiroshima F
Slide 24: Actual Store: No. 4 LOWYA MARK IS MINATOMIRAI Store
Actual Store: No. 4 LOWYA MARK IS MINATOMIRAI Store The Company opened a fourth actual store at MARK IS Minatomirai, Yokohama City, Kanagawa Prefecture, in August 2024. Appearance On the opening day 24
Slide 25: Actual Store: No. 5 LOWYA FUTAKO TAMAGAWA RISE Store
Actual Store: No. 5 LOWYA FUTAKO TAMAGAWA RISE Store The Company opened a fifth actual store at Futako Tamagawa Rise Shopping Center Town front, Setagaya Ward, Tokyo, in September 2024. Appearance On the opening day 25
Slide 26: Actual Store: No. 6 LOWYA AEON MALL HIROSHIMA FUCHU Store
Actual Store: No. 6 LOWYA AEON MALL HIROSHIMA FUCHU Store The Company opened a sixth actual store at AEON MALL Hiroshima Fuchu, Aki District, Hiroshima Prefecture, in October 2024. Appearance On the opening day 26
Slide 27: Introduction of a New Service
Introduction of a New Service The Company plans to launch Oku ROOM®, an in-house developed 3D furniture placement simulation app, in November 2024. The app supports the creation of an ideal room by simulating room coordination with simple operations. Patent Create your ideal room with a smartphone.
Slide 28: Introduction of a New Service
Introduction of a New Service AI automatically generates room coordination using LOWYA furniture to solve your room arrangement problems. You can purchase items you like directly through the official LOWYA app. Lack of uniformity in I don’t know if the interior design I don’t know where to furniture
Slide 29: Report on DOKODEMO Business
Financial results briefing materials 3 Business Report on DOKODEMO
Slide 30: Major Indicators (H1)
Major Indicators (H1) The Company changed its policy to focus on profit from 2Q of the previous fiscal year. As a result, GMV was 1,116 million yen (78.1% YoY), and net sales were 174 million yen (82.9% YoY). Membership and the number of app DLs remained steady. GMV*1 Net sales Membership*2 Number o
Slide 31: GMV and Net Business Income
GMV and Net Business Income The Company optimized promotion expenses and advertising expenses in an effort to improve profitability. As a result, GMV was 546 million yen, and the business balance was a loss of 3 million yen. GMV Net Business Income (Million yen) (Million yen) 24 1,573 1,246 1,198 7
Slide 32: Ratio of GMV by Destination Area
Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for about 90% of GMV. By region By country Middle East 0.7% Oceania 1.3% Europe 1.8% South Korea North America U.S. 0.5% 7.0% Hong Kong 2.9% 6.1 Taiwan 6.8 3 .6% % 84.1 83 .6% Malaysia 0.3% Philippines 0.2% Asia Singapore 89
Slide 33: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast for 4 the Fiscal Year Ending March 31, 2025 Financial results briefing materials
Slide 34: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast for the Fiscal Year Ending March 31, 2025 No change from the forecast disclosed on May 15, 2024. Fiscal year ended Fiscal year ending Increased or March 31, 2024 March 31, 2025 YoY decreased amount Results Forecast Net sales (million yen) 16,063 17,000 +936 105.8% Operatin
Slide 35: IR Inquiries
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 could IR Inquiries cause actual outcomes to dif