Syuppin Co., Ltd. · TSE:3179
Syuppin — Q2 FY03/2023 Earnings Presentation
30 slides from Syuppin's earnings presentation, Mar 31, 2023
Slide 1: Presentation Materials 2Q
Presentation Materials ２Q March 31 , 2023 Copyright 2022 Syuppin Co., Ltd. All Rights Reserved. 0
Slide 2: Corporate Information
Corporate Information Name Syuppin Co., Ltd. Securities Code 3179 Representative Naohiko Ono 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 235 (as of the end
Slide 3: Highlights of 2Q Results (vs. Plan)
Highlights of 2Q Results (vs. Plan) Net sales and operating income both remained steady. Summary Net sales: Duty-free sales continued to decline due to the impact of the international situation, while the camera, watch, and cross-border online businesses performed well. Gross profit ratio: Overall g
Slide 4: Trend in Net Sales by Sales Channel (Monthly)
Trend in Net Sales by Sales Channel (Monthly) EC In every month of 2Q, performance was strong and up year-on-year. Stores Sales declied due to the impact of the rapid spread of COVID-19. Duty- Free Impact due to the international situation including lockdowns in China continued (Million yen) Store n
Slide 5: Trend in Net Sales by Sales Channel (Quarterly)
Trend in Net Sales by Sales Channel (Quarterly) Summary Net sales at online and physical stores (excluding duty-free stores) were strong, with overall sales up 120% year on year. (Million yen) 12,000 Duty-free sales at stores 1,355 Store net sales (excl. duty-free sales) 1,796 Online net sales 771 5
Slide 6: Trends in Online Net Sales (Details)
Trends in Online Net Sales (Details) With strong growth in cross-border online sales, the ratio of company-owned websites Summary 1Q FY03/2023 2Q FY03/2022 Growth Ratio decreased year on year. Online net sales 8,522 8,487 120％ （Million yen） Percentage of sales on the Company’s 78.2% 79.1％ ＋0.9％ webs
Slide 7: Trends in Cross-border Online Sales, Duty-free Sales and Store Sales
Trends in Cross-border Online Sales, Duty-free Sales and Store Sales As the demand for cameras and watches was strong in Japan as well as overseas, cross-border online sales Summary were strong, achieving 210% year on year. (Million yen) Duty-free Sales 800 New items Used items 600 Cross-border onli
Slide 8: Net Sales by Segment (Quarterly)
Net Sales by Segment (Quarterly) Net sales in all the businesses (product categories) grew steadily, reaching record Summary highs in both 2Q alone and 1H cumulative sales. Bicycles 194 (Million yen) Stationeries 185 106 12,000 Watches 100 Cameras 225 233 113 101 224 4,119 10,000 216 199 165 96 4,00
Slide 9: Highlights: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales Summary With increase in net sales of used products in the watch business, the ratio of used products to total sales increased. 70.0% 61.7% 60.8% 59.6% 60.0% 59.1% 60.0% 58.8% 59.9% 58.0% 57.8% 57.6% 58.3% 57.7% 57.2% 56.5% 57.0% 57.1% 56.1% 5
Slide 10: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras Summary The online ratio remained high. (Million yen) Introduction of AI Online purchase value (Left axis) AIMD introduced at Recommended Content 2,500 85.9% the end of March Online purchase ratio (Right axis) 78.8% 80.4% 74.7% 77.3%
Slide 11: Supplementary Material: Trends in the Number of Receive-First Send-Later Transaction
Supplementary Material:Trends in the Number of Receive-First Send- Later Transaction Summary The number of transactions remained steady as the cycle stabilized due to AIMD. (Million yen) 16,000 the Number of Send-Later Transactions 下取交換件数 14,000 先取交換件数 the Number of Receive-First Transactions 12,000
Slide 12: Summary of Financial Results
Summary of Financial Results Year on year — Overall: Up 115.4％ Online: Up 123.6％ Stores: Up 93.7％ Net sales Online net sales were strong, particularly cameras, which is a mainstay. Gross For mainstay cameras and watches, the overall gross margin was 18.8%, reflecting the effects of AIMD and margin p
Slide 13: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses (Million yen) FY03/2022 1Q + 2Q FY03/2023 1Q + 2Q YoY% Change Factors of increase Ratio to Ratio to Ratio to Actual net sales Actual net sales net sales Value Increase due to higher base pay （ＰＴ） and increase in the number of Personnel expenses 632 3.3% 693 3.2% -
Slide 14: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment (Million yen) Segments/Sales Channel FY03/2022 FY03/2023 YoY% Remarks （ ）The percentage of sales 1Q＋2Q 1Q＋2Q Change Online net sales 10,795 13,355 123.7% Store net sales 1,338 1,985 148.3％ ● Both online and store sales were strong. Segment net
Slide 15: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin Operating margin remained high at 7.0%. Operating margin remained high, thanks to an online-focused business model and the use of AI, as well as One-To-One based streamlined management, to curb and control SG&A expenses. (Million
Slide 16: Changes in Balance Sheet from End of Previous Year
Changes in Balance Sheet from End of Previous Year Current liabilities decreased by approximately 1 billion yen due to higher product sales and a reduction in short-term borrowings. (Million yen) End of the Fiscal Year End of 2Q of the Fiscal Year Ending March 2023 Ended March 2022 Actual Value Curr
Slide 17: Trends in the Quarterly Number of Online Members
Trends in the Quarterly Number of Online Members The number of new online members increased steadily every month and is expected to exceed 600,000 in November. 650,000 Existing members 594,588 600,000 582,252 12,336 New members 568,813 13,439 554,124 14,689 550,000 540,394 13,730 514,460 527,332 13,
Slide 18: Attributes of Online Members
Attributes of Online Members Members consist of a wide range of age groups, in which those in their 10s to 30s comprise 41.1％. Women in their 10s to 30s account for a high percentage, 22.9％, reflecting the popularization of social media such as Instagram. Even though the weighting of younger people
Slide 19: Quarterly Activeness Ratio of Web Members
* Quarterly Activeness Ratio of Web Members (Existing Customers) The activeness ratio remained high with a net increase in new members. 7 (number of people) Number of purchasing members who made purchases 6 Activeness ratio 4.79 4.86 4.67 4.67 4.67 5 4.29 4.31 4.30 4.36 4.26 4.14 4.23 4 3.78 26,914
Slide 20: Number of Items Registered on the Wish List
Number of Items Registered on the Wish List *When a registered product is purchased, it is automatically removed from the list The number of new registrations remain solid at about 60,000 per month on average. • From January to March, the number of new registrations increased significantly, in part
Slide 21: Number of Registrations for E-mails that Communicate Arrivals
Number of Registrations for E-mails that Communicate Arrivals The number of new registrations has grown steadily. In addition to notifications via email and through the app, a LINE-based notification feature was introduced from May. In 1H, an average of about 400,000 notifications were sent out per
Slide 22: AIMD x One to One x AI-driven Content Recommendation
AIMD x One to One x AI-driven Content Recommendation The number of notifications delivered in response to personal requests remained steady, utilizing AIMD, One to One, and AI-driven content recommendations. An average of 4 million notifications delivered to customers' smartphones per month. AIMD ×
Slide 23: Actions to Be Taken
Actions to Be Taken Copyright 2022 Syuppin Co., Ltd. All Rights Reserved. 22
Slide 24: BRILLER, a ladies' brand salon
Tuesday, November 1, 2022 BRILLER, a ladies' brand salon Reopened with a hybrid concept of online and offline shopping. New Additions Domestic jewelry market ●HARRY WINSTON ●Cartier forecast for 2022 ●Van Cleef & Arpels ●TIFFANY & Co. ●BVLGARI ●etc BRILLER deals in the world's top five jewelers and
Slide 25: Buyee Introduced: Expand Overseas Sales Channels
Buyee Introduced Expand Overseas Sales Channels November 7, 2022 Started Buyee Connect following eBay and Chrono24 Develop a new cross-border online strategy that will provide a safe and secure transaction experience for Buyee's 3.3 million members in 118 countries around the world. Copyright 2022 S
Slide 26: Camera Market
Camera Market POINT ● Trend of manufacturers Share of new items The industry was revitalized as manufacturers facilitated a major shift to full-sized mirrorless Approx. 8 to 10% cameras from FY2020, putting dedicated camera stores in favorable conditions. ● Market share in Japan (Source: GfK Japan F
Slide 27: Watch Market
Watch Market From September 2021 Strategic expansion of product lineup (Expansion of Rolex-focused lineup) From December 2021 Market of import watches in Japan One of the largest Rolex dealers in Japan Approx. 585.7 billion From November 2022 Opening of ladies' brand salon "BRILLER" Syuppin Approx.
Slide 28: Human Resource Initiatives
Human Resource Initiatives Introduction of RSU for our employees Information about our employees ●Percentage of female managers A high percentage of women in management positions at 16.7%. Average for all Japanese companies: 9.4% *Teikoku Databank, Ltd. (Based on a survey of corporate attitudes towa
Slide 29: SDG Initiatives
SDG Initiatives We are currently promoting initiatives mainly for twelve items. We will seek to cover all the seventeen items in the future. A new creative business handling valuable products New SDG Initiatives New initiatives for the SDGs in 1H ● Creation of original novelty goods that are environ
Slide 30: 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