Marketenterprise Co.ltd · TSE:3135
Marketenterprise Co.ltd — Q3 FY2021 Earnings Presentation
36 slides from Marketenterprise Co.ltd's earnings presentation, May 14, 2021
Slide 1: Results of Operations for the Third Quarter of the Fiscal Year Ending June 30, 2021
Results of Operations for the Third Quarter of the Fiscal Year Ending June 30, 2021 May 14, 2021 MarketEnterprise Co., Ltd. Securities code : 3135
Slide 2: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 1
Slide 3: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 2
Slide 4: Executive Summary
Executive Summary Overview Amidst an uncertain external environment, we have turned this fiscal year into an investment period for the next fiscal year and beyond. Operating income decreased as a result of accelerated investment in human resources and systems. Note: The details of the investment are d
Slide 5: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 4
Slide 6: Quarterly Consolidated Statement of Income (For the Nine-month Period)
Quarterly Consolidated Statement of Income (For the Nine-month Period) Increase in sales but decrease in operating profit. Nine months ended Nine months ended YoY Change Unit: million yen Mar. 31, 2020 Mar. 31, 2021 Amount Percentage Net sales 7,885 8,119 +233 +3.0% Gross profit 3,019 2,922 (96) (3.2%
Slide 7: Quarterly Consolidated Statement of Income (By quarter)
Quarterly Consolidated Statement of Income (By quarter) Operating loss in the third quarter Unit: million yen Q1 Q2 Q3 Net sales 2,870 2,758 2,491 Gross profit 1,103 955 864 SG&A expenses 939 912 972 SG&A expense ratio 32.7% 33.1% 39.0% Operating profit 163 42 (107) Operating profit to net sales 5.7% 1
Slide 8: Results by Business Segment (For the Nine-month Period)
Results by Business Segment (For the Nine-month Period) Decrease due to deterioration of lower profit in 3 businesses and increase in adjustments. Unit: million yen Nine months ended Nine months ended Amount of change Percentage change Mar. 31, 2020 Mar. 31, 2021 Net sales 7,885 8,119 +233 +3.0% Seco
Slide 9: Results by Business Segment (By quarter)
Results by Business Segment (By quarter) Unit: million yen Q1 Q2 Q3 Net sales 2,870 2,758 2,491 Second-Hand Online 1,665 1,690 1,476 Media 169 134 115 Mobile & Telecommunications 1,086 953 909 Elimination for inter-segment transactions (51) (21) (9) Segment profit 163 42 (107) Second-Hand Online 228
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Maintain financial soundness. Unit: million yen As of Jun. 30, As of Mar. 31, Change Main factors 2020 2021 Current assets 3,068 2,778 (290) Due to the increase in collection of receivables posted in Cash and deposits 1,255 1,576 +321 the 4Q FY6/20 Accounts receivable-trade
Slide 11: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 10
Slide 12: SG&A expenses
SG&A expenses Accelerate investment in labor costs, system development, and other areas for the future while promoting efficiency in marketing expenses. Unit: million yen Nine months ended Mar. 31, Nine months ended Mar. Amount of change Percentage change 2020 31, 2021 Total SG&A expenses 2,576 2,824
Slide 13: Personnel investment
Personnel investment Expanded staff, mainly in Second-Hand Online business and system development division. Nine months ended Nine months ended Unit: person Amount Mar. 31, 2020 Mar. 31, 2021 Permanent employees 164 242 +78 Second-hand Online 117 151 +34 For Individuals 109 121 +12 Agricultural Equi
Slide 14: Investment in system development
Investment in system development System development capacity grow due to the start of offshore base in Vietnam. Unit: million yen 400 350 343 300 250 236 195 211 200 150 129 230 116 100 173 81 148 50 117 65 82 6 35 0 2020.6 1Q Q2(Six month) Q3(Nine months) Q4(Full year) 2021.6 1Q Q2(Six month) Q3(Ni
Slide 15: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 14
Slide 16: Business Portfolio
Business Portfolio Second-Hand Online Media Mobile & Telecommunications For individuals Platform Telecommunication Platform For corporate Service Brand Second-hand Hobby 15
Slide 17: Second-Hand Online
Second-Hand Online For individuals Platform For corporate 16
Slide 18: Second-hand Online business Quarterly Business Results
Second-hand Online business Quarterly Business Results Sales decreased QoQ due to restrained marketing expenses and seasonality. For lower sales and accelerated investment, Income down. Net sales Segment profit Unit: million yen Unit: million yen 2,000 250 1,666 1,691 99 88 1,476 200 1,500 264 260 80
Slide 19: Second-hand Online business Quarterly Purchase Result for individuals
Second-hand Online business Quarterly Purchase Result for individuals The number of purchase requests decreased as a result of marketing expenses control. On the other hand, the purchase amount remained steady. Unit: requests Unit: million yen The trend of purchase request and purchase amount 140,00
Slide 20: Second-hand Online business Quarterly Sales Result for individuals
Second-hand Online business Quarterly Sales Result for individuals Sales is stable. Unit: million yen Sales amount 2,000 1,500 1,000 1,424 1,466 1,481 1,302 1,343 1,109 1,153 500 0 2020.6 1Q 2020.6 2Q 2020.6 3Q 2020.6 4Q 2021.6 1Q 2021.6 2Q 2021.6 3Q 19
Slide 21: Quarterly Purchase Result of Agricultural and Construction equipment
Second-hand Online business Quarterly Purchase Result of Agricultural and Construction equipment Temporary restraint on purchases due to global container shortage. Unit: thousands Unit: million yen The trend of purchase request and purchase amount 5,000 300 4,500 250 4,000 3,500 200 3,000 2,500 150
Slide 22: Quarterly Sales Result of Agricultural and Construction equipment
Second-hand Online business Quarterly Sales Result of Agricultural and Construction equipment Because of the global container shortage, exports declined QoQ, but domestic sales covered the decline. Unit: million yen Sales amount 300 250 200 151 138 145 150 161 100 181 187 166 113 122 50 98 52 0 2020
Slide 23: Second-hand Online business Quarterly Inventory Changes
Second-hand Online business Quarterly Inventory Changes Inventory levels remain high. Unit: million yen Inventory 400 350 300 250 200 376 385 364 339 351 355 358 150 305 100 50 0 2019 Jun. 2019 Sep. 2019 Dec. 2020 Mar. 2020 Jun. 2020 Sep. 2020 Dec. 2021 Mar. 22
Slide 24: Second-hand Online business Quarterly Business Results of Oikura
Second-hand Online business Quarterly Business Results of Oikura Sales remain stable. Net sales Unit: million yen 60 50 48 41 40 40 19 17 30 17 13 20 10 10 10 16 15 13 0 2021.6 1Q 2021.6 2Q 2021.6 3Q Referring fee via Web request Referring fee via telephone request Fixed charge income 23
Slide 25: Media
Media Telecommunication Platform Second-hand Hobby 24
Slide 26: Media business Quarterly Business Results
Media business Quarterly Business Results Sales declined for a decrease in revenue from subsidiary. Stable sales to external customers. Decrease due to increase in personnel expenses from increase in number of employees. Net sales Segment profit Unit: million yen Unit: million yen 200 100 169 80 150
Slide 27: Mobile & Telecommunications
Mobile & Telecommunications Service Brand 26
Slide 28: Mobile and telecommunications business Quarterly Business Results
Mobile and telecommunications business Quarterly Business Results Airtime charges is stable Operating income decreased due to a decrease in sales commissions from fewer new acquisitions Net sales Segment profit Unit: million yen Unit: million yen 1,200 100 1,086 1,000 953 325 909 80 186 141 800 60 60
Slide 29: Agenda
Agenda 1) Executive Summary 2) FY2021 Q3 Performance Overview 3) Investment in the current term 4) FY2021 Q3 Business Climate 5) Earnings Forecast for FY2021 28
Slide 30: Earnings forecast of FY2021
Earnings forecast of FY2021 Revised earnings forecast FY2021 Previous FY2021 Revised Unit: million yen FY2020 Result (A) B/A B/C forecast (B) forecast (C) (19.2%) Net sales 10,904 13,500 14,500 10,910 +0.1% (24.7%) (90.6%) Operating profit 655 730 900 68 (89.6%) (92.4%) (94.4%) Ordinary profit 664 733
Slide 31: Breakdown of revisions to consolidated operating income forecast by segment
Breakdown of revisions to consolidated operating income forecast by segment Unit: million yen 1,000 800 Second-Hand Online (223) 600 Purchasing and selling business for individuals and agricultural equipment (13) Operating profit Oikura (210) Media 400 815 (374) 200 Headquarters Mobile & Telecommunic
Slide 32: The reason of forecast revised
The reason of forcast reviced Overview Downwardly revised earnings forecast due to upfront investment in growth areas and deteriorating profitability of Media and Mobile&Telecommunications. Second-hand Online • For individuals: Sales decreased compared to budget mainly in the low price range due to e
Slide 33: Situation of 4Q
Situation of 4Q Overview Sales showed signs of recovery mainly in Second-hand Online business. Second-hand Online • For individuals: Although the impact of the state of emergency is unclear, both purchases and sales increased QoQ. • Agricultural and Construction equipment: The global container short
Slide 34: Strategies for the next fiscal year and beyond
Strategies for the next fiscal year and beyond We are currently working on a new medium-term management plan that we expect to announce at the information meeting for results of operations in the current fiscal year, which ends in June 2021. At that time, We will again explain the growth strategy of e
Slide 35: ir@marketenterprise.co.jp
Forward-looking statements in this document, such as forecasts of business performance, include forward-looking statements, assumptions and projections that are the basis of our plans. Actual business results may differ substantially due to various factors. For IR-Related Inquiries and Inquiries abo
Slide 36: To be an Optimized Trading Company for the creation of Sustainable Society
To be an Optimized Trading Company for the creation of Sustainable Society 35