Slide 1: Quarterly Financial Results
Six months ended September 30, 2023 Quarterly Financial Results Vega corporation Co., Ltd. Securities code: 3542
Slide 2: Index
1 Overview of Quarterly Financial Results for the Six Months Ended September 30, 2023 INDEX 2 Report on LOWYA business 3 Report on DOKODEMO business Financial results briefing materials 2
Slide 3: Overview of Quarterly Financial Results for the Six Months Ended September 30, 2023
Overview of Quarterly Financial Results 1 for the Six Months Ended September 30, 2023 Financial results briefing materials
Slide 4: Financial Highlights (H1)
Financial Highlights (H1) In H1, net sales of LOWYA business were more or less flat YoY, but the DOKODEMO business distribution was slow to grow. As a result, net sales for the whole company amounted to 7,905 million yen (95.4% YoY). Operating profit landed at 27 million yen due to a rising cost of
Slide 5: Quarterly Net Sales and Operating Profit
Quarterly Net Sales and Operating Profit Total net sales for the whole company declined slightly YoY, but operating profit came in at 62 million yen as we worked to curb advertising expenses, among other factors. The LOWYA business saw improvements in gross margin, and the DOKODEMO business faced th
Slide 6: Causes of Increase/Decrease in Quarterly Operating Profit (H1)
Causes of Increase/Decrease in Quarterly Operating Profit (H1) In the LOWYA business, selling, general and advertising expenses fell 268 million yen YoY as a result of curbing advertising expenses in an effort to improve profitability. Causes of Increase/Decrease in Operating Profit (YoY) (Million y
Slide 7: Balance Sheet
Balance Sheet The Company continued to be debt free and maintained a high equity ratio of 79.3%. (Million yen) Current fiscal year Current fiscal year Previous fiscal year Previous fiscal year 2Q 2Q (as of March 31, 2023) (as of March 31, 2023) (as of September 30, 2023) (as of September 30, 2023) C
Slide 8: Report on LOWYA business
Financial results briefing materials 2 Report on LOWYA business
Slide 9: Major Indicators (H1)
Major Indicators (H1) In H1, GMV of the LOWYA business was 8,007 million yen (94.9% YoY) and net sales amounted to 7,695 million yen (97.2% YoY), both down YoY. Membership of the flagship store has continued to grow steadily. The Company opened an actual store in April 2023. GMV*1 Net sales Number o
Slide 10: Quarterly Net Sales
Quarterly Net Sales Net sales amounted to 3,650 million yen (93.1% YoY), supported by the increase in outings due to the shift in the classification of COVID-19 and by the measures taken to curb sales promotion expenses and advertising expenses as a profitability improvement effort. (Million yen) Ne
Slide 11: Business Total Monthly Net Sales
Business Total Monthly Net Sales Net sales for the whole LOWYA business (flagship store + e-commerce marketplace store) were on a downtrend, affected by the measure taken to curb sales promotion expenses and advertising expenses measures as a profitability improvement effort. (Million yen) FY2023 FY
Slide 12: Number of Customers/Average Basket Value
Number of Customers/Average Basket Value The number of customers declined as we efficiently used sales promotion expenses and advertising expenses. Average basket value remained stable. (People) Number of customers Avg. basket value (Yen) 293,983 300,000 30,000 264,427 251,611 250,000 228,016 236,93
Slide 13: Gross Profit Margin (vs. Net Sales)
Gross Profit Margin (vs. Net Sales) Gross profit margin declined 1.0 pt YoY due to the significant depreciation of the yen despite our move to curb sales promotion expenses. However, gross profit margin was on an uptrend from 4Q onward. Improvement in gross profit margin continues to be an issue. (%
Slide 14: Quarterly SG&A Expenses and SG&A Expenses Ratio
Quarterly SG&A Expenses and SG&A Expenses Ratio (against Net Sales) Selling, general and administrative expenses were lowered by 1.7 pt (192 million yen) YoY through optimizing advertising expenses for flagship store and e-commerce marketplace store and revising fixed costs. (Million yen) 1.7 pt red
Slide 15: Flagship Store Membership, Age Distribution, Ratio of Male vs. Female
Flagship Store Membership, Age Distribution, Ratio of Male vs. Female Overall membership of the flagship store is steadily increasing, with strong support from the main target group (people in their 20s and 30s). Trend in overall membership of flagship store Age distribution (Thousand people) 60 and
Slide 16: New Products
New Products The Company released products with a focus on private brand products that are design- and trend-conscious, and has strived to set prices that are affordable, taking advantage of its cost competitive edge. Seasonal merchandise Sundries Other GROONY laying pad Exhaust port cover made by B
Slide 17: 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. The cumulative number of smartphone app DLs exceeded the mark of 1 million. Sizes of engagement channels that deliver a unique brand image to a wide range of users (
Slide 18: Directly Managed Store: No. 1 Kyudai Ito Store
Directly Managed Store: No. 1 Kyudai Ito Store April 2023 — First actual store opened in “ITO Lab Plus” in Nishi-ku, Fukuoka City. The store held events while replacing products each season. Interior Interior 18
Slide 19: Directly Managed Store: Effect of Attracting Customers to Online Store
Directly Managed Store: Effect of Attracting Customers to Online Store Since opening in April, the percentage of online orders received around the store areas has increased. Although having lost momentum from May, the percentage of orders received increased steadily, a gain of approx. 1.0 pt compare
Slide 20: Directly managed stores: No. 2 NAMBA PARKS Store and No. 3 NAGOYA MINATO Store
Directly managed stores: No. 2 NAMBA PARKS Store and No. 3 NAGOYA MINATO Store By the end of FY2023, the Company plans to open a second actual store in Osaka and a third in Nagoya. The Company will continue to study the possibility of nationwide expansion. Store location: NAMBA PARKS (Naniwa-ku, Osa
Slide 21: Community Site (THE 608 HOTEL)
Community Site (THE 608 HOTEL [THE LOWYA HOTEL]) The Company created a fan community to build customer-centered two-way communication. LOWYA’s official fan community Events held only THE 608 HOTEL We hold community-only events such as a product monitoring event, posting campaigns, and questionnaire
Slide 22: 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 strengthen governance. Sea/Beach Cleaning Project Donation of photographed goods August 2023 September 2023 As part of our e
Slide 23: Report on DOKODEMO business
Financial results briefing materials 3 business Report on DOKODEMO
Slide 24: Major Indicators (H1)
Major Indicators (H1) In H1, the DOKODEMO business’s GMV was 1,428 million yen (50.7% YoY), while net sales were 209 million yen (57.3% YoY). Membership and the number of app DLs remained strong. GMV*1 Net sales Membership*2 Number of app DLs*2 1,248 million yen 209 million yen 1,047thousand 1,502th
Slide 25: GMV and Net Business Income
GMV and Net Business Income The GMV of the DOKODEMO business in 2Q landed at 679 million yen partly due to an increase in inbound sales and an inventory shortage of popular drugs. The level of business deficit narrowed compared with 1Q as the Company improved its business efficiency by revising sell
Slide 26: Ratio of GMV by Destination Area
Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for more than 90% of GMV. By region By country Middle East 0.6% Oceania 1.1% Europe 1.5% North America South Korea 5.1% US 0.3% Hong Kong 2.9% 4.2 Taiwan 6.8 5 .0% % 84.7 83 .6% Malaysia Asia 0.3% Philippines 91 .7 % Singapo
Slide 27: 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