Slide 1: FY2024 ZOZO, Inc. Consolidated Business Results
FY2024 ZOZO, Inc. With an easy-to -understand CONSOLIDATED BUSINESS RESULTS explanation by CFO Yanagisawa and VP of IR !
Slide 2: Highlights
FY2024 ZOZO, Inc. HIGHLIGHTS While FY2024 brought its share of unpredictable weather and temperature swings, we are pleased to have achieved our full-year targets!
Slide 3: FY2024 Highlights
FY2024 HIGHLIGHTS Gross Merchandise Value 614.3 billion yen (+7.0% YoY / Achievement rate 100.8%) Gross Merchandise Value (excluding other GMV) 574.6 billion yen (+7.0% YoY / Achievement rate 100.4%) Operating Profit 64.7 billion yen (+7.8% YoY / Achievement rate 100.9%) Operating Profit Margin 11.3
Slide 4: Overview of Each Quarter
OVERVIEW OF EACH QUARTER million FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Gross Merchandise Value Gross Merchandise Value (excluding other GMV) YoY (%) Net sales SG&A YoY (%) (% to the Gross Merchandise Value) Operating profit YoY (%) (% to the Gross Merchandise Value) * The percentages are calculated
Slide 5: Business Results
FY2024 ZOZO, Inc. BUSINESS RESULTS We will continue to place strong emphasis not only on business growth, but also on delivering returns to our shareholders.
Slide 6: Increase-Decrease Analysis of Operating Profit (YoY Comparison)
INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT (YoY COMPARISON) Changes other than expenses Changes in expenses Other gross Increase in fixed costs Increase in sales from profit increases advertising business +3.9 +1.4 Increase in shipping income (The new shipping policy -5.4 increased shipping char
Slide 7: Cash Flows
CASH FLOWS million Reason FY2023 FY2024 YoY for change Increase in profit before income taxes Cash flows from Increase in depreciation operating activities Decrease in working capital Previous fiscal year: Investment in ZOZOBASE TSUKUBA 3 Cash flows from Current fiscal year: Investment investing act
Slide 8: Selling, General and Administrative (SG&A) Expenses
SELLING, GENERAL AND ADMINISTRATIVE(SG&A) EXPENSES million FY2 023 FY2 024 YoY Increase / decrease factors Amount % to the Gross MerchandiseValue Amount % to the Gross MerchandiseValue % to the Gross MerchandiseValue Payroll and staff costs(*) Transition of the number of employees on Payroll costs f
Slide 9: Overview of SG&A by Each Quarter
OVERVIEW OF SG&A BY EACH QUARTER million FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Amount % to the Gross Merchandise Value Amount % to the Gross Merchandise Value Amount % to the Gross Merchandise Value Amount % to the Gross Merchandise Value Amount % to the Gross Merchandise Value Amount % to the Gross
Slide 10: Actual Promotion-Related Expenses
ACTUAL PROMOTION-RELATED EXPENSES web advertising and free-shipping measures. drivers of the increase were increased investment in pared to the same period of the previous year, the main quarters in the fourth quarter to support sales. Com- ment of unspent promotional budget from the first three ing
Slide 11: Number of Total Buyers
NUMBER OF TOTAL BUYERS Number of total buyers = Active members and guest buyers who made at least one purchase within a year spring/summer items. including web advertising and rising demand for improved, supported by active promotional efforts inventory. However, from March onward, acquisition chall
Slide 12: Number of Shops on ZOZOTOWN
NUMBER OF SHOPS ON ZOZOTOWN brand terminations and other factors. quarter due to an increase in shop closures resulting from total number of shops declined compared to the previous met the initial plan. However, in the fourth quarter, the For the full fiscal year, the number of new shop openings 1,8
Slide 13: Average Retail Price
AVERAGE RETAIL PRICE Average retail price year-over-year increase. retail price was positively impacted and showed a slight period of the previous fiscal year. As a result, the average lower ratio of items offered on sale compared to the same experienced a shortage of sale inventory, resulting in a
Slide 14: Average Order Value
AVERAGE ORDER VALUE Average order value more, compared to the previous fiscal year. free-shipping measures for purchases of 12,000 or a higher number of days offering ourwell-received an increase in combined purchases, etc. This was due to Average order value continued to increase, driven by = Gross
Slide 15: Business Plan for FY2025
FY2024 ZOZO, Inc. BUSINESS PLAN FOR FY2025 As I enter my 20th year at ZOZO, I ve found a new and exciting challenge in the acquisition of LYST. I m truly looking forward to what lies ahead! 15
Slide 16: Consolidated Business Forecast and Dividend Forecast for FY2025
CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2025 Gross Merchandise Value (excluding other GMV) is expected to increase by 5.0% year over year, and EBITDA is projected to rise by 10.2%. To more clearly reflect the actual earning power after the consolidation of LYST LTD, we have begun
Slide 17: Dividends Per Share and Payout Ratio
DIVIDENDS PER SHARE AND PAYOUT RATIO dend payout ratio of 70% or higher. ending March 2026, the Company plans to maintain a divi- share remains unc1hanged at 107. For the fiscal year of shares before the split, and the planned dividend per fiscal year ended March 2025 will be based on the number eve
Slide 18: FY2025 Target by Business Segment
FY2025 TARGET BY BUSINESS SEGMENT The standalone performance impact of LYST LTD is currently under review and is not reflected in the current forecast. Once the review is complete, we plan to promptly revise and disclose updated figures. Regarding Gross Merchandise Value in the Others segment, the r
Slide 19: Decision on Share Repurchase and Cancellation of Treasury Shares
DECISION ON SHARE REPURCHASE AND CANCELLATION OF TREASURY SHARES As for profit return to shareholders, our group has the basic policy for deliberating and implementing profit return by balancing internal reserve through comprehensive consideration of the following: business performance, financial st
Slide 20: Ana
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Slide 21: Supplementary Information for FY2024 Financial Results
Supplementary Information for FY2024 Financial Results 21
Slide 22: Potential to gain further market share in the future
Potential to gain further market share in the future Population of Japan 123 million Fashion retail market ZOZO's target 10.8 trillion yen population 64 million Number of population Target market 7.5trillion yen, EC penetration : 28% Attracting a broader range of customers 15 million Number of 800 b
Slide 23: Future expansion plans
Future expansion plans Target market within the fashion retail market, 1 Attracting a broader range 7.5 trillion yen of customers ZOZOTOWN 2 Improvement of frequency Cosmetics retail market of purchase per customer *2.3 trillion yen (EC penetration : less than 10%) ZOZO 3 Production support COSME ma
Slide 24: Attracting a broader range of customers
1 Attracting a broader range of customers We are implementing initiatives targeting a specific demographic to strengthen recognition and recall of ZOZO. For young people Ticket purchasers: 2024 Coming in 2025 Approximately half were aged 25 or younger, of which 99% are female. Significantly contribu
Slide 25: Building recognition among women overall
1 Attracting a broader range of customers We have steadily built recognition among women overall, including through physical stores. Q.When you think of buying fashion products,please tell us up to three places/stores/EC sites/apps in the order that comes to your mind. (FA) Survey Results of Women A
Slide 26: Fashion-focused AI agent for emerging traffic channels
2 Improvement of frequency of purchase per customer We view shifts in search behavior as an opportunity, and are developing a fashion-focused AI agent to adapt to emerging traffic channels. User User Knowing what keywords to search for Not sure what keywords to search for Is this what you're trying
Slide 27: WEAR by ZOZO fashion genre assessment
2 Improvement of frequency of purchase per customer On WEAR by ZOZO, we are starting with fashion genre assessment and moving toward enhancing AI agent capabilities to expand how users discover fashion. We have revamped the app to offer a fashion genre assessment for users who struggle to put their
Slide 28: AI agent on LINE and ZOZOTOWN
2 Improvement of frequency of purchase per customer LINE will be added as a new channel for the AI agent, and ZOZOTOWN will implement such capabilities, too. What we aim to become Our challenge ZOZO as the place for fashion An AI agent that helps users Future opportunities find their own "style" to
Slide 29: Production support: growth in styles and items produced
3 Production support The number of styles produced increased by 119.4% year over year, and the total number of items produced rose by 17.8%. By offering comfortable clothing in a variety of sizes and styles to suit individual preferences, we are contributing to a world where everyone including peopl
Slide 30: Expansion of the cosmetics category and its next step
4 Expansion of the cosmetics category and its next step We are set to establish the foundation for category expansion this year. We plan to rapidly expand into overseas inventory items and other item categories. Cosmetics retail market retail retail *2.3 trillion yen market market (EC penetration :
Slide 31: Monetization of technologies (overseas market)
5 Monetization of technologies overseas market) We are working to expand our measurement technologies and related capabilities into Europe. Overseas market ZOZOFIT ? ? We will now move on to the CFO's explanation of our global strategy. 31
Slide 32: External evaluation
External evaluation MSCI ESG RATINGS AAA CDP (formerly Carbon Disclosure Project), Sustainalytics ESG in the area of climate change Risk Rating : Low Risk MSCI Japan ESG Select Leaders Index FTSE4Good Index Series / Dow Jones Best-in-Class MSCI Japan Empowering Women Index (WIN) FTSE Blossom Japan I
Slide 33: Announcement Regarding the Acquisition of Shares in LYST LTD
Announcement Regarding the Acquisition of Shares in LYST LTD
Slide 34: Agenda
Agenda 1 . ZOZO s Global Strategy 2. Overview of LYST 3. The Future Created by Both Companies 4. Transaction Structure 34
Slide 35: ZOZO's Corporate Philosophy
ZOZO’s Corporate Philosophy Inspire the world. Deliver joy every day. 35
Slide 36: The Evolution of ZOZO's Overseas Strategy
The Evolution of ZOZO's Overseas Strategy We have pursued a dual-track approach based on technology assets cultivated in Japan: licensing to overseas platforms and in-house business development. Going forward, by welcoming LYST - a company that shares our vision - into our group, we will enter the e
Slide 37: Overseas Growth Vision
Overseas Growth Vision With LYST now serving as the cornerstone of ZOZO’s global expansion, we’re committed to driving bold, non-linear growth through new business ventures and strategic M&A. New Initiatives ? to Drive Disruptive Growth Expansion of EC and Media in Europe and the U.S. In-house Expan
Slide 38: LYST, A Leading Global Fashion Shopping Platform
LYST, A Leading Global Fashion Shopping Platform A fashion-focused global platform based in the UK, connecting the world's best brands with millions of shoppers in the US, UK and European markets. Corporate Overview Financials FY2023 Name LYST LTD Address Floor 7, The Minster Building 21 Revenue 50,
Slide 39: LYST: An Asset-light Model
LYST: An Asset-light Model LYST is the inventory-free fashion shopping platform that connects global shoppers with the world’s leading brands. LYST curates inventory from 27,000+ brands, using AI-driven recommendations to match customers with the right products. Our business model is performance-bas
Slide 40: LYST's Core Metrics
LYST’s Core Metrics By partnering with the world’s leading brands and retailers, LYST offers unparalleled breadth and depth in fashion, making it the go-to destination for millions of shoppers. FY23’s data Partners Brands Unique SKUs 550 + 27,000 + 97M Annual Unique Shoppers Annual Active Buyers AOV
Slide 41: ZOZO & LYST: Combined Strengths to Drive Growth
ZOZO & LYST: Combined Strengths to Drive Growth LYST and ZOZO are both tech-driven, brand-led e-commerce and media platforms that operate without holding inventory. A vast product catalog covering 27,000 brands Japan’s Largest across luxury, premium, and contemporary fashion. 1 Assortment Adaptive p
Slide 42: Expected Synergies
Expected Synergies The geographic coverage and technological foundations of both companies form an ideal complementary relationship, creating broad synergies in sales, technology, and scale advantages. Japan US, UK & Europe Geography and Price-point Contemporary Luxury & Premium AI SEO & Technology
Slide 43: Win-Win-Win Fashion Experience
Win-Win-Win Fashion Experience ZOZO, together with LYST, aims to redefine the ideal way to enjoy fashion and build a sustainable future where both consumers and the industry can thrive together. The State of Global Fashion E-Commerce The Future we aim Challenges Facing the Industry Intense Shipping
Slide 44: Transaction Structure
Transaction Structure The Company has acquired all outstanding shares of LYST Method of for approximately JPY 22.1 billion Share Acquisition through a newly established subsidiary. The full amount was funded Funding Method from our existing cash and cash equivalents. Schedule The acquisition was com
Slide 45: LYST
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Slide 46: ZOZO
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