Jade Group, Inc. · TSE:3558
Jade — Q3 FY2025 Earnings Presentation
46 slides from Jade's earnings presentation, Jan 14, 2025
Slide 1: JADE GROUP FY2025 3Q IR Presentation
JADE GROUP FY2025 3Q IR PRESENTATION ※ This material is translated by AI technology 2025.1.14
Slide 2: Summary
01 SUMMARY 2
Slide 3: GMV progress against plan and MAGASEEK M&A effect
• GMV was 37.0 billion yen (67% progress against the plan of 55.0 billion yen, an increase of 92%). As a result of the MAGASEEK M&A, GMV increased significantly from the previous year (22.1 billion yen in the previous year, growth rate: +68%), but the progress rate was short of the benchmark of arou
Slide 4: LOCONDO revenue at d fashion and MAGASEEK
LOCONDO revenue at DF (d fashion) and MG (MAGASEEK) MAGASEEK has revamped its website in Week 40 (W40) in addition to the inventory linkage, but the sales growth of LOCONDO store are slow. On the other hand, d fashion has not yet revamped its site (scheduled for summer 2025), but sales of LOCONDO st
Slide 5: Operating income progress and forecast revision
• Operating income was 1.0 billion yen (60% of the 1.7 billion yen forecast (1.7 billion yen in the previous year).) Since many of the MAGASEEK integration costs were expected to be incurred in the first half (especially warehouse transfer costs), the progress rate itself was not bad, and operating
Slide 6: Revision of FY2025 plan
Revision of FY 2025 plan Due to lower GMV at MAGASEEK & d fashion and manufacturing defects at Reebok, we have revised our forecasts for GMV and operating income. FY 25 FY25 FY 24 (Actual) (original plan) (Revised plan) GMV 28.7Bn 55.0Bn 50.0Bn × Marginal profit rate 18.3% 14.0% 15% ー Fixed cost 3.6
Slide 7: Operating income visualization and cost reduction actions
Visualization graph of operating income (OI) of 4 Bn yen in FY2６ “Action taken” increased by 670 million yen compared to 2Q due to the integration of logistics and IT and internalization of outsourcing costs. The cost reduction project itself is progressing well. (unit: JPY 100MM) OI FY24 16.9 Actio
Slide 8: Net cash
Net cash (cash minus loans payable) (JPY 100MM) Net cash also increased significantly as profitability improvement through PMI is progressing, despite M&A of MAGASEEK, Fascinate, Brandeli, and TCB Jeans (35%), as well as share buybacks totaling 840 million yen. We are ready for further M&A and aggre
Slide 9: FY2026 outlook and five themes
• Since GMV of MAGASEEK and d fashion is still sluggish and there are several BOEM sites operated by MAGASEEK that will terminate their services due to M&A, the plan for the next fiscal year (FY2026) is expected to require revision if the current status remains unchanged. • Initially, we had project
Slide 10: FY2026 plan scenarios
FY2026 plan Due to the struggling GMV of MAGASEEK & d fashion and the partial termination of BOEM site operated by MAGASEEK triggered by M&A, GMV is expected to continue to struggle and operating income is expected to fall from the original plan level in the next fiscal year if the current situation
Slide 11: FY26 Plan: five themes
FY26 Plan The following five themes are considered necessary to raise the level of Plan 3, 2, and 1, while keeping Plan 4 (45 billion yen / 1.5 - 2.0 billion yen) as the bottom line for FY 2026. It is important to “revive d fashion,” which has a large GMV. The current site, which is running on the o
Slide 12: Results
02 RESULTS 12
Slide 13: FY2025 3Q Financial Summary
FY 2025 3Q Financial Summary GMV increased by 67.8% yoy due to the effect of M&A. Although the company recorded an expense of approx. 470 million yen due to the amortization of goodwill from M&A, transfer-related expenses, and upfront expenses at RBKJ, the Magaseek integration is progressing smoothl
Slide 14: FY2025 3Q GMV of each business area
FY 2025 3Q GMV of each business area Platform business led the growth by the M&A of MAGASEEK Nov 30, 2023 Nov 30, 2024 GMV Net Sales YoY YoY GMV ratio (％) (％) GMV ratio Net Sales Net Sales JPY MM (％) JPY MM JPY MM (％) JPY MM EC mall 11,811 53.5 4,646 19,189 51.8 6,258 62.5 34.7 Our own E-malls 10,38
Slide 15: GMV (before offset)
GMV（before offset） GMV increased by 58% YoY due to M&A. Brand decreased due to SixTONES during last 3Q （JPY MM） TTL +58% 12,715 Our own EC +70% BOEM/ECS +117% Brand - 7% Other EC +11% LOCOCHOC etc - 2% 8,005 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2023 1Q 2023 2Q 2023 3Q 2023
Slide 16: Net Sales
Net Sales Net Sales also up by + 29.9% （JPY MM） 4,693 4,819 4,740 3,650 3,424 3,202 3,160 3,122 2,813 2,589 2,598 2,310 2,376 2,300 2,150 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q (Note) In the case of purchased inventory,
Slide 17: SG & A
SG & A The effects of PMI are gradually starting to show, and the SG&A ratio to GMV improved by 2.5 points. The main drivers of this improvement were the streamlining of logistics and the effective allocation of advertising. Of the increase in SG&A expenses, approximately 470 million yen was due to
Slide 18: Operating Income
Operating Income Due to the approx. 140 million yen in relocation expenses and advance payments for expenses at RBKJ, operating income for the 3Q was JPY 516MM (-257MM), and EBITDA was JPY 707MM (-113MM). EBITDA is +21MM without those factors. 842 （JPY MM） 821 772 707 651 EBITDA increased+21MM witho
Slide 19: Operating Income – YoY analysis
Operating Income – YoY analysis （JPY MM） Operating income decreased due to an increase in amortization of goodwill, an increase in relocation expenses, and the upfront expenses at RBKJ, but EBITDA excluding special factors increased. 3,351 ▲1,814 ▲534 ▲435 ▲4 1,570 ▲359 1,029 ▲418 ▲326 2024 3Q GMV G
Slide 20: Balance sheet and equity ratio
BS Repayment of short-term loans from FIs has been completed in Dec, and maintained high soundness with equity ratio of 45.4% (39.1% considering Non-controlling interests) （JPY MM） Current Assets 10,314 Current Liabilities 6,965 Deposits received Cash and cash equivalents 3,363 3,017 for consignment
Slide 21: EC mall: number of active users
EC mall : number of active users (unit; K) The number of members increased by the M&A. We will reinstate by maximizing the effectiveness of cross-selling. 242 248 255 1,710 322 348 349 356 359 346 339 313 288 287 296 261 247 237 300 306 297 283 1,629 1,559 265 291 691 740 783 833 792 788 809 829 813
Slide 22: EC mall: average shipping price
EC mall : Average shipping price (Shipping basis) Our own E-malls increase by 5% and other E-malls decreased by 4%. The price basically stays in a reasonable range. （JPY） 11,871 11,263 11,205 11,247 10,614 10,907 10,593 10,240 10,435 9,797 10,074 9,955 9,321 9,401 9,026 8,082 8,010 7,559 7,658 7,560
Slide 23: EC mall: return rate
EC mall : Return rate Return rate of our own E-malls have been steady at around 20%. Expected to improve significantly with the addition of MAGASEEK and d fashion in the future. 30% 29%29% 27% 27% 27% 26% 26%26% 25%25%25% 23% 22% 22% 22% 22% 22% 22% 21% 21% 21% 21% 20% 20%20% 20% 19% 19% 18% 18% 8%
Slide 24: EC mall: number of brands
EC mall : Number of brands Cross-selling between MAGASEEK and LOCONDO started in Oct. and the number of brands (excluding waja) increased to 4,992. 4,992 4,182 3,969 3,838 3,676 3,632 3,506 3,428 3,389 3,344 3,361 3,264 3,283 3,314 3,196 2022 2Q 3Q 4Q 2023 2Q 3Q 4Q 2024 2Q 3Q 4Q 2025 2Q 3Q 1Q 1Q 1Q
Slide 25: Platform: e-3PL shipment quantity
Platform : e-3PL shipment quantity e-3PL shipments remained stable. Continue to aim to become a hub of logistics warehousing in the footwear industry. （10K） 113 106 99 91 92 92 91 87 88 85 81 81 66 63 63 2022 2Q 3Q 4Q 2023 2Q 3Q 4Q 2024 2Q 3Q 4Q 2025 2Q 3Q 1Q 1Q 1Q 1Q ※ NOT including MAGASEEK’s e-3P
Slide 26: Company overview
JADE GROUP Company overview
Slide 27: Company overview
Company overview JADE GROUP, Inc. Address: 30-13, Motoyoyogi, Shibuya, Tokyo Establishment 2010.10.22 CEO: Yusuke Tanaka Number of employees: 126 Listed market: TSE Growth EC Mall Operates EC malls: LOCONDO.jp, FASHION WALKER, BRANDELI, SPORTSWEBSHOPPERS, and waja Platform In addition to inventory c
Slide 28: Group Companies
Group Companies Acquired Mar 2024 Acquired Oct 2022 Acquired Mar 2024 Magaseek Corp ※consolidated RBKJ Corp ※consolidated FASCINATE Co ※consolidated EC EC EC ※Domestic and cross-border EC Comprehensive fashion EC mall with Operation of the official Reebok Selling high brand apparel domestically over
Slide 29: Group Vision: HAPPY FOR ALL
Group VISION HAPPY FOR ALL Make Customers HAPPY Make Employee HAPPY Make Business Partner HAPPY Make Shareholders HAPPY Make Society HAPPY 29
Slide 30: Group Policy: Fast, Faith, Fair
Group POLICY Fast Speedy and flexible movement Faith Earn trust internally and externally through results. Fair Fair, transparent and highly ethical Fun！ Enjoy everything in a positive way! 30
Slide 31: History
Announced M&A - Magaseek History - BRANDELI GMV - FASCINATE - TCB (JPY MM) Alliance with NTT Docomo and Itochu 35,000 M&A M&A - SWS - Reebok 30,000 - waja D2C M&A - FW 25,000 M&A New Warehouse - Misuzu 20,000 - Mobacolle Large TVCM 15,000 LOCOCHOC Mothers Listing 28,697 e-3PL LOCOPOS 24,398 10,000 2
Slide 32: Seven initiatives for SDGs (1/2)
2. Our Business ②Seven initiatives for SDGs (1/2) ① Think of energy ⚫ Using LED at warehouse ⚫ Implemented “BIGASSFANS” at all floors ⚫ Control air conditioner at 28℃, and heater at 20℃ ② Think of recycle ⚫ Using recycled plastics for palette at the warehouse ⚫ Providing eco-leather (made by scrap l
Slide 33: Seven initiatives for SDGs (2/2)
2. Our Business ② Seven initiatives for SDGs (2/2) ⑤ Gives back ⚫ Providing open space for Yachiyo citizens ⚫ Build new bus lane together with Yachiyo city and bus company. Providing a rest area for the drivers ⑥ Equality and diversification ⚫ Fair evaluation system with 50 competencies ⚫ Diversific
Slide 34: Platform ecosystem
JADE GROUP has 3 businesses connected complementary and the ecosystem creates our own competitiveness. Sharing inventories: Sell offline Growth driven by the structure inventories at EC • In-house operation enables Sharing infrastructure: Share logistic & us to realize state of art, Contents IT infr
Slide 35: Profit structure and break-even point model
③ profit structure – Break-even point Model- A business model in which the operating profit on sales improves once sales exceeds the break-even point. (1) GMV, (2) Marginal profit ratio (= gross margin ratio – variable cost ratio) and (3) Fixed costs are Key Performance Indicators for the Profit cos
Slide 36: 1. EC Mall
1. EC MALL In the EC mall business, the company operates its own mall as well as other companies' malls that open stores on Rakuten and Yahoo! We promote business expansion by maximizing two aspects of our business: "customer attraction" through effective advertising and "product lineup" including c
Slide 37: Sales accumulation model
② sales accumulation model A model that builds up sales through the cycle below. New buyers → repeat customers → expansion of active user base → enhancement of product lineup → increase in new visitors More visitors from search engine(SEO) Approx. 31% *1 of new customers re-purchase as item lineup a
Slide 38: 2. Platform
2. PLATFORM In addition to inventory centralization as a hub for logistics warehouses, the company provides a wide range of systems and services to realize data centralization through DX (Digital Transformation). We are also promoting the introduction of the "ALL-IN-ONE Package," which will implemen
Slide 39: 3. Brand
3. BRAND In the brand business, in addition to the agency business, the Spanish fast fashion "MANGO", the main business is the brand operation business (EC, stores, wholesale) of Reebok Japan, which we acquired in October 2022. product development ✓ （only shoes） EC operation ✓ ✓ Store operation ✓ Wh
Slide 40: Mid-term Plan and Long-term Vision
04 Mid-term Plan and Long-term Vision 40
Slide 41: EC ratio in the fashion market
① EC ratio in the fashion market The current EC ratio in the domestic fashion market is about 21%. It is expected to increase to approx. 35% in 2030, where the EC market size will be approx. 3.5 trillion JPY. Fashion Market Fashion EC Market and EC ratio （100MM） （100MM） 160,000 40,000 40.0% 136,790
Slide 42: MTB and LTV: GMV target of 100 billion yen in FY31
MTB and LTV ①GMV （before offset） ① Overwhelming 2nd position driven by the acquisition of shares in MAGASEEK ② By the effect of the business alliance with NTT Docomo, Inc. and ITOCHU Corporation, Aiming for GMV of 100 billion yen in FY31. JPY: 100MM 630 CAGR 1000 Approx. + 12% 500 450 243 287 212 20
Slide 43: MTB and LTV: GMV by business and core initiatives
MTB and LTV ①GMV（before offset） Achieve 100 billion yen in transaction volume through a portfolio of three businesses that are complementary to each other and each have competitive advantages: EC mall business, platform (B2B) business, and brand business. FY31 CAGR FY24（actual） FY25(plan） estimate)
Slide 44: MTB and LTV: Fixed costs
MTB and LTV ②Fixed costs Fixed costs for FY26 are planned to be "5.5 billion yen" due to acquisition of MAGASEEK shares and warehouse expansion. However, 6 billion yen in FY31 will remain unchanged. (JPY 100MM) 60 60 55 35 30 8 24 7 2 1 7 10 8 1 7 14 16 9 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 45: MTB and LTV: Operating income
MTB and LTV ③Operating Income ■Operating Income (Plan) (JPY 100MM) FY31 100Bn * 16% - 6Bn = 10Bn 100 1.5 – 4Bn 16.9 15 8 9.9 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 45
Slide 46: Forward-looking statements disclaimer
• This document contains forward-looking statements that are based on current plans, estimates, forecasts or projections by JADE GROUP Inc. as well as JADE GROUP Inc.’s business and industry trends. • These forward-looking statements are subject to various risks and uncertainties. • Known or unknown