Syuppin Co., Ltd. · TSE:3179
Syuppin — Q2 FY2016 Earnings Presentation
31 slides from Syuppin's earnings presentation, Nov 16, 2015
Slide 1: Presentation Materials of the Interim Financial Results for FY ending March 2016
Presentation Materials of the Interim Financial Results for the Fiscal Year Ending March 31, 2016 November 16, 2015 Syuppin Co., Ltd. www.syuppin.co.jp (Securities Code: 3179) All Rights Reserved, Copyright © Syuppin Co., Ltd.
Slide 2: Corporate Information
Corporate Information Name Syuppin Co., Ltd. Securities Code 3179 Representative Kei Suzuki Head Office 3F Nikko Bldg., 14-11 Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, Japan Date of August 2005 Establishment Business Safe and secure online trading of valuable used items No. of Employees 187 (as of
Slide 3: Presentation Summary
Presentation Summary Placing focus on e-commerce to make brisk online sales E-commerce is one of our pillars of business and a principal driver of growth. Online purchases and sales were strong. Duty-free sales (inbound consumption) as a secondary source of revenue Given that we deal with one item p
Slide 4: 1. Interim Financial Results for the Fiscal Year Ending March 31, 2016
1. Interim Financial Results for the Fiscal Year Ending March 31, 2016 All Rights Reserved, Copyright © Syuppin Co., Ltd. 3
Slide 5: Interim Financial Highlights: Steady Growth of Online Sales
Interim Financial Highlights: Steady Growth of Online Sales Online sales attained steady growth, acting as a principal driver of growth. Included in store net sales, duty-free sales grew at a higher rate than expected from the previous year’s level. Although duty-free sales of new items are weakenin
Slide 6: Interim Financial Highlights: Change in Sales Portfolio
Interim Financial Highlights: Change in Sales Portfolio Online sales of used items have been strong since late August. While duty-free sales of new items became weaker, online sales of used items, higher in gross margin ratio than new items, were strong. The sales portfolio is now healthier than it
Slide 7: Interim Financial Highlights: Comparison with the Plan
Interim Financial Highlights: Comparison with the Plan In July, the intensive sale we conducted caused income to fall below the planned level. In August and September, the mainstay online business was bullish. For the interim period (from April to September), net sales were as planned, while operati
Slide 8: Review of the Interim Period for the Fiscal Year Ending March 31, 2016
Review of the Interim Period for the Fiscal Year Ending March 31, 2016 Huge growth in sales and income. The decline in the gross margin ratio is the result of two factors: a year-on-year rise in the share of new item sales from April to August, and the discount sales conducted in April and July. (Gr
Slide 9: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment (Million yen) FY03/2015 Q2 FY03/2016 Q2 (cumulative) Segments/Sales Channel (cumulative) YoY% Actual Actual Change Remarks Online net sales 3,401 4,576 134.5% Store net sales 2,868 3,406 118.3% Cameras Online net sales were strong. Segment net
Slide 10: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses A new mission-critical system came into operation, increasing the level of depreciation. The ratio of SGA expenses to net sales fell 0.5 percentage point year on year. (Million yen) FY03/2015 Q2 FY03/2016 Q2 Year-on-Year Change (cumulative) (cumulative) Actual Rat
Slide 11: Quarter-on-Quarter Change in Balance Sheet
Quarter-on-Quarter Change in Balance Sheet (Million yen) FY03/2016 Q2 FY03/2016 Q1 Actual Change Current assets 4,712 4,618 -94 Merchandise 2,860 2,806 -53 Non-current assets 1,077 1,057 -20 Deferred assets 0.1 Total assets 5,790 5,675 -119 Current liabilities 2,652 2,448 -203 Non-current liabilitie
Slide 12: Trends in Quarterly Net Sales by Segment
Trends in Quarterly Net Sales by Segment (Million yen) Share 6,000 5,623 5,535 Bicycles Stationery Watches Cameras 81 5,337 105 1.9% 96 5,083 96 117 2.1% 88 96 5,000 4,703 90 4,350 99 1,491 1,302 23.1% 4,145 77 92 1,259 75 1,283 4,000 3,597 86 3,844 1,131 3,465 3,510 87 81 94 3,332 79 1,095 85 54 60
Slide 13: Trends in Quarterly Net Sales by Sales Channel
Trends in Quarterly Net Sales by Sales Channel (Million yen) 6,000 Duty-free sales at stores Store net sales (excl. duty-free sales) 970 5,000 1,085 Online net sales 1,193 1,047 298 798 4,000 348 1,642 605 1,599 206 325 260 1,365 1,497 108 1,704 1,517 3,000 1,606 123 98 1,392 1,421 1,277 1,547 1,416
Slide 14: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin Normally, operating income reaches its peak in Q3 because of the sales season in December. The sale in July slightly slowed the surge in the operating margin, but overall operating income and the operating margin were both brisk.
Slide 15: Trends in the Quarterly Number of Online Members & Members' Attributes
Trends in the Quarterly Number of Online Members & Members’ Attributes (Members) Regional distribution of online members 270,000 New members 264,398 (as of the end of September 2015) 260,000 Existing members 257,068 7,551 Kanto (%) 250,344 6,934 ■ (Figure in parentheses indicates the share of 250,00
Slide 16: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras Up 174.4% year on year (Million yen) 700 60.0% Online purchase value (Left) 48.5% 600 Online purchase ratio (Right) 50.0% .45.4% 44.9% 43.4% 500 614 537 40.0% 32.5% 33.9% 32.3% 32.7% 498 400 30.5% 30.3% 30.5% 30.3% 30.2% 29.3% 33.8%
Slide 17: Supplementary Material: Trends in Receive-First Send-Later Transactions
Supplementary Material: Trends in the Number of Receive-First Send-Later Transactions Number of receive-first send-later transactions (Transactions) 2,000 1,800 1,600 1,400 1,200 1,000 1,664 1,760 1,645 800 1,294 600 400 200 17 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY03/2015 FY03/2016 All Rights Reserved, Copyr
Slide 18: 2. Current Status of Actions Implemented
2. Current Status of Actions Implemented All Rights Reserved, Copyright © Syuppin Co., Ltd. 17
Slide 19: Current Status of Actions Implemented (1) All Segments / Cameras
Current Status of Actions Implemented (1) All Segments / Cameras All Segments A new mission-critical system put into operation in April Although there was some trouble shortly after it was introduced, the comprehensive introduction of the new system is meant to increase operational efficiency mainly
Slide 20: Current Status of Actions Implemented (2) Cameras / Watches
Current Status of Actions Implemented (2) Cameras / Watches New online members acquired Launched in April 2015, the online shop on Yahoo! Japan Shopping was proactively used. The Yahoo! Japan Shopping store achieved steady sales growth. Expansion and enrichment of original items Provision of all
Slide 21: 3. Future Actions
3. Future Actions All Rights Reserved, Copyright © Syuppin Co., Ltd. 20
Slide 22: Our Strength: Syuppin Presence
Our Strength: Syuppin Presence Centering on online transactions Speeding up showcasing on the basis of the customer-oriented idea of fully utilizing e-commerce that has no need for real stores Remarkably low SGA expenses Price competitiveness (proper pricing) Convenience in checking large numb
Slide 23: Future Actions: Systems Unique to Specialized Online Site (1)
Future Actions: Systems Unique to Specialized Online Site (1) Mitsumori SNS, a new system unique to the specialized online site, will be launched in December. Mitsumori SNS = E-commerce + Customer service (proposals) + Community functions Bulk purchases of needed items : Opening the way for purchasi
Slide 24: Future Actions: Systems Unique to Specialized Online Site (2)
Future Actions: Systems Unique to Specialized Online Site (2) Features of Mitsumori SNS (*business model patent pending) The staff at the specialty store and customer connoisseurs work together to make a set of items (new and/or used) on the online site, leaving comments (or proposals) that are shar
Slide 25: Future Actions: Active Use of Customers' Transaction Record Data
Future Actions: Active Use of Customers’ Transaction Record Data [Data we own] Data on transaction records, such as purchases and sales of items by 260,000 online members Demand-supply situations of individual items and trends of item prices, etc. (Specifically…) Hot items, trends in prices of used
Slide 26: Future Actions: Implementation of Online Marketing
Future Actions: Implementation of Online Marketing Start taking group-specific approaches in Q4 by effectively using data on customer preferences and purchase records. For the next fiscal year, we will aim to take a one-to-one approach that automatically delivers different information and proposals
Slide 27: Future Actions: Online Marketing - Phase 1
Future Actions: Online Marketing - Phase 1 Group-specific manual approach based on plans and actions (scheduled to start in Q4 of FY03/2017) Introduce BI tools*1 to effectively use CRM*2 - Pick up the information required for sales strategies to sort customers into several groups and manually implem
Slide 28: Future Actions: Online Marketing - Phase 2
Future Actions: Online Marketing - Phase 2 Automated one-to-one approach*3 (scheduled to start in the first half of FY03/2017) Introduce CRM*1 and recommendation*4 e-mail distribution systems - Automatically implement information approaches matched with needs of individual customers mainly on the ba
Slide 29: Earnings Forecast: Online sales to make up for the drop in duty-free sales
Earnings Forecast: Online sales to make up for the drop in duty-free sales Step up efforts to offset the slide in duty-free sales at the store and the shortfall in income with mainstay online sales. Plan Net sales by sales channel (Targets) ＥＣ売上 Online net sales 店舗売上（免税除く） Store net sales (excl. dut
Slide 30: Reference Material
Reference Material (Million yen) Net sales by sales channel (excluding duty-free sales) Net sales by sales channel (including duty-free sales) 2,500 80.0% 2,500 80.0% Store net sales (excl. duty-free sales) Store net sales (incl. duty-free sales) Online net sales Online net sales Ratio of online sal
Slide 31: Notes on Forward-Looking Statements
Notes on Forward-Looking Statements The materials and information provided in this presentation contain forward-looking statements. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and involve uncertainties. For this reason, the actual outcom