Marketenterprise Co.ltd · TSE:3135
Marketenterprise Co.ltd — Q1 FY2022 Earnings Presentation
41 slides from Marketenterprise Co.ltd's earnings presentation, Nov 12, 2021
Slide 1: Results of Operations for the First Quarter of the Fiscal Year Ending June 30, 2022
Results of Operations for the First Quarter of the Fiscal Year Ending June 30, 2022 November 12, 2021 株式会社マーケットエンタープライズ MarketEnterprise Co., Ltd. 証券コード：3135 Securities code: 3135
Slide 2: Agenda
1) 1Q FY6/22 Results of Operations 2) Progress of Medium-term Management Plan by Business Segment 3) FY6/22 Forecasts 1
Slide 3: Agenda
1) 1Q FY6/22 Results of Operations 2) Progress of Medium-term Management Plan by Business Segment 3) FY6/22 Forecasts 2
Slide 4: Executive Summary
Executive Summary 1Q results on target. Medium-term Management Plan is moving ahead smoothly. Second-hand Online: Purchases were steady but sales declined due to sales timing differences. Second-hand Services for Individuals: The number of purchase requests has also turned up and the Medium-term Man
Slide 5: Consolidated Income Statement Summary (YoY Change)
Consolidated Income Statement Summary (YoY Change) First quarter sales and earnings were consistent with the plan YoY change (Million yen) 1Q FY6/21 1Q FY6/22 Amount % Net sales 2,870 2,607 -262 -9.2% Operating profit 163 (165) -329 - Ordinary profit 160 (161) -321 - Profit attributable to owners of
Slide 6: Quarterly Sales and Operating Profit
Quarterly Sales and Operating Profit Sales declined from the 4Q of FY6/21; profit was down (Million yen) (Million yen) Net sales Operating profit 3,500 200 3,000 2,870 2,758 163 2,756 2,607 150 2,490 2,500 100 2,000 50 42 0 1,500 (50) (44) 1,000 (100) (107) 500 (150) (165) 0 (200) 1Q FY6/21 2Q FY6/2
Slide 7: Our Perception of 1Q Operating Profit (Loss)
Our Perception of 1Q Operating Profit (Loss) Operating profit, adjusted for the impact of inventory build-up and the outlook for future earnings growth in the mobile & telecommunications business, is in the black for practical purposes. (Million yen) 121 11 0 55 (165) *1 Arrived at by dividing the i
Slide 8: Consolidated Income Statement Components (Vs. 4Q 6/21)
Consolidated Income Statement Components (Vs. 4Q 6/21) Substantial marketing investments in the second-hand online and mobile & telecommunications businesses 4Q FY6/21 results 1Q FY6/22 results (Million yen) Change (A) (B) Net sales 2,756 2,607 -5.4% Gross profit 956 878 -8.2% Total SG&A expenses 1,
Slide 9: Agenda
1) 1Q FY6/22 Results of Operations 2) Progress of Medium-term Management Plan by Business Segment 3) FY6/22 Forecasts 8
Slide 10: Second-hand Online Business
Second-hand Online Business 9
Slide 11: Second-hand Online Business Quarterly Performance
Second-hand Online Business Quarterly Performance Sales declined due to the impact of the seasonal nature of the second-hand services for individuals and delays in sales of agricultural machinery associated with the establishment of additional purchasing bases. Operating profit declined due to incre
Slide 12: Second-hand Online Business
Second-hand Online Business 1) Second-hand Services for Individuals 2) Machinery (Agricultural Equipment) 3) Oikura 11
Slide 13: Second-hand Services for Individuals Quarterly Sales and Inventory Levels
Second-hand Services for Individuals Quarterly Sales and Inventory Levels Sales declined from previous quarter due to the seasonality and the amount of inventory was up as purchases were steady. Net sales Inventory (Million yen) (Million yen) 1,600 300 1,360 1,399 1,384 1,400 245 1,191 1,229 250 1,2
Slide 14: Growth Strategy for Second-hand Services for Individuals
Growth Strategy for Second-hand Services for Individuals (Excerpt from the Medium-term Management Plan Presentation Material) Shift to a policy of increasing the number of purchases and take actions to establish a system for improving purchase rates. Increase in More purchase purchasing requests cap
Slide 15: Progress in Second-hand Services for Individuals: Purchase Request Trends
Progress in Second-hand Services for Individuals: Purchase Request Trends More purchase requests The number of purchase requests has turned up. (Number of requests) Vs. 4Q FY6/21 90,000 89,000 +9.6% 80,000 82,000 82,000 81,000 77,000 70,000 0 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q FY6/21 1Q FY6/22 14
Slide 16: Progress in Second-hand Services for Individuals: Started Purchases from Seniors
Progress in Second-hand Services for Individuals: Started Purchases from Seniors More purchase requests Opened a dedicated web page in September 2021: Stepped up purchases from seniors. 15
Slide 17: Progress in Second-hand Services for Individuals: Purchase Amount Trends
Progress in Second-hand Services for Individuals: Increase in Purchase Amount Trends purchasing Purchase amount was steadily increasing accompanied by increase in purchase requests. capabilities (Million yen) 750 Vs. 4Q FY6/21 727 +5.9% 700 691 686 650 644 646 600 0 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q
Slide 18: Second-hand Online Business
Second-hand Online Business 1) Second-hand Services for Individuals 2) Machinery (Agricultural Equipment) 3) Oikura 17
Slide 19: Machinery (Agricultural Equipment) Quarterly Sales and Inventory Levels
Machinery (Agricultural Equipment) Quarterly Sales and Inventory Levels Sales declined due to a temporary delay in sales associated with the opening of the Kita-Kanto purchasing base but the amount of inventory was up due to steady purchases. Net sales Inventory (Million yen) (Million yen) 350 200 3
Slide 20: Growth Strategies for Machinery (Agricultural Equipment)
Growth Strategies for Machinery (Agricultural Equipment) (Excerpt from the Medium-term Management Plan Presentation Material) Purchases Sales 買取 販売 ・Established the Kita-Kanto purchasing base as the main location for operations in eastern Japan ・Continue selling equipment on YAHUOKU! and increase sa
Slide 21: Progress in Machinery: Establishment of Kita-Kanto Purchasing Base
Progress in Machinery (Agricultural Equipment): Establishment of Kita-Kanto Purchasing Base Purchases Located in Yuki City, Ibaraki. Aim to increase the capacity for buying agricultural equipment in eastern Japan and shipping equipment for cross-border e-commerce. Opening ceremony (October 1, 2021)
Slide 22: Progress in Machinery (Agricultural Equipment): Purchase Amount Trends
Progress in Machinery (Agricultural Equipment): Purchase Amount Trends Purchases Purchases are steady and from 2Q onward are expected to increase along with expanded purchasing capability. (Million yen) 250 225 200 180 Vs. 4Q FY6/21 171 +11.0% 154 150 135 100 50 0 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q FY
Slide 23: Second-hand Online Business
Second-hand Online Business 1) Second-hand Services for Individuals 2) Machinery (Agricultural Equipment) 3) Oikura 22
Slide 24: Three Medium-term Goals for Oikura
Three Medium-term Goals for Oikura (Excerpt from the Medium-term Management Plan Presentation Material) Actively increase the number of merchants for building a stronger customer base and promote UI/UX and system development. Increase in the Improve UI/UX and More customer back-end number of contact
Slide 25: Progress of the Oikura Platform: Collaboration with Local Public Bodies (1)
Progress of the Oikura Platform: Collaboration with More Local Public Bodies (1) customer contact Speed up collaboration toward the realization of a sustainable recycling society. points June 2021: Eniwa City, Hokkaido July 2021: Inabe City, Mie Concluded a collaboration agreement on Signed a compre
Slide 26: Progress of the Oikura Platform: Collaboration with Local Public Bodies (2)
Progress of the Oikura Platform: Collaboration with More Local Public Bodies (2) 顧客接点 customer contact の向上 In October 2021, we started a demonstration experiment in cooperation with points Kawasaki City, the city with the 6th largest population in Japan, to reduce the volume of oversized garbage. 25
Slide 27: Progress of the Oikura Platform: Number of Partner Stores
Progress of the Oikura Platform: Number of Partner Stores Increase in the number In the previous fiscal year, the number of partner stores decreased temporarily following a revision of of our partner store rules which mandated tighter standards for partner stores. merchants This trend was reversed a
Slide 28: Media Business
Media Business 27
Slide 29: Media Business: Quarterly Monthly Average Media Page Views
Media Business: Quarterly Monthly Average Media Page Views 1Q monthly average media page views increased to a record high. (10,000 page views) 1,400 1,284 1,237 1,188 1,200 1,081 1,021 963 1,000 874 900 856 800 600 400 200 0 1Q FY6/20 2Q FY6/20 3Q FY6/20 4Q FY6/20 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q FY
Slide 30: Media Business Results
Media Business Results Net sales and segment profit were higher than 4Q FY6/21. (Million yen) Net sales (Million yen) Segment profit 180 169 160 100 95 140 134 90 126 115 80 120 99 70 67 100 61 60 80 50 44 60 40 30 29 40 20 20 10 0 0 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q FY6/21 1Q FY6/22 1Q FY6/21 2Q FY6
Slide 31: Mobile & Telecommunications Business
Mobile & Telecommunications Business 30
Slide 32: Mobile & Telecommunications Business Strategies: Revise the Profit Structure
Mobile & Telecommunications Business Strategies: Revise the Profit Structure (Excerpt from the Medium-term Management Plan Presentation Material) Shift from one-time sales to recurring revenue to build a steadily larger base for future earnings* WiMAX2+ WiMAX 5G Sales incentive (one time): Small Sal
Slide 33: Progress in Mobile & Telecommunications Business: New Service Subscriptions
Progress in Mobile & Telecommunications Business: New Service Subscriptions New service subscriptions centered on WiMAX 5G increasing steadily. (Number of subscriptions) 8,000 7,000 6,000 5,000 2,600 4,000 7,200 500 3,000 2,000 3,900 3,500 3,400 3,400 1,000 0 1Q FY6/21 2Q FY6/21 3Q FY6/21 4Q FY6/21
Slide 34: Mobile & Telecommunications Business Results
Mobile & Telecommunications Business Results Sales up from previous quarter but profit was lower because of increased advertising expenses for acquiring new subscriptions. Net sales Segment profit (loss) (Million yen) (Million yen) 1,086 1,025 1000 953 909 917 325 233 120 186 138 149 100 80 75 500 6
Slide 35: Progress in Mobile & Telecommunications Business: Future Earnings
Progress in Mobile & Telecommunications Business: Future Earnings Future earnings are expected to increase steadily as planned on the back of increasing recurring-revenue 5G subscriptions. (Million yen) 500 439 450 400 350 318 300 250 200 150 100 50 0 4Q FY6/21 1Q FY6/22 34
Slide 36: Agenda
1) 1Q FY6/22 Results of Operations 2) Progress of Medium-term Management Plan by Business Segment 3) FY6/22 Forecasts 35
Slide 37: FY6/22 Forecasts
FY6/22 Forecasts No revisions to the consolidated forecast (Million yen) FY6/21 results FY6/22 forecasts YoY change Net sales 10,875 12,000 +10.3% Operating profit 54 (400) - Ordinary profit 32 (405) - Profit attributable to owners of (40) (440) - parent 36
Slide 38: FY6/22 Business Strategies by Segment
FY6/22 Business Strategies by Segment Promote the strategies targeted in the Medium-term Management Plan Segment Strategies Second-hand services for Individuals: ・More customers by using more methods to attract purchase requests and covering more product categories ・Increase purchasing capabilities
Slide 39: Medium-term Performance Target
Medium-term Performance Target (Excerpt from the Medium-term Management Plan Presentation Material) Aim to accomplish the earnings plan through sales growth supported primarily by the second-hand online business. Also plan to build a stable profit structure by increasing the volume of future earning
Slide 40: Forward-looking statements and IR inquiries
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 ab
Slide 41: To be an Optimized Trading Company for the creation of Sustainable Society
To be an Optimized Trading Company for the creation of Sustainable Society