Syuppin Co., Ltd. · TSE:3179
Syuppin — Q2 FY2019 Earnings Presentation
30 slides from Syuppin's earnings presentation, November 2018
Slide 1: Presentation Materials 2Q March 31, 2019
2018年3月期 第2四半期決算説明会資料 Presentation Materials ２Q March 31 , 2019 All Rights Reserved, Copyright(C) Syuppin Co., Ltd..
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 Employees 191 (as o
Slide 3: Highlights: Comparison with the Plan
Highlights: Comparison with the Plan Net sales rose 13% year on year. The number of online members exceeded 380,000. Online purchases of used products also grew significantly. Profits fell short of the plan and the previous year’s level in the first half due to the impacts of new large-size camera r
Slide 4: Highlights: Trends in planned and actual quarterly figures
Highlights Trends in planned and actual quarterly figures Net sales Operating income Net sales Operating income （Million yen） （Million yen） （Million yen） （Million yen） 3 All Rights Reserved, Copyright(C) Syuppin Co., Ltd..
Slide 5: Trend in monthly net sales by sales channel
Higlights:Trend in monthly net sales by sales channel Online sales and duty-free sales grew steadily. 2014 2015 2016 2017 2018 4 All Rights Reserved, Copyright(C) Syuppin Co., Ltd..
Slide 6: Highlights: Trends in Net Sales by Channel (Details)
Highlights：Trends in Net Sales by Channel (Details) Cross-border online sales 2H of FY18/3: 44 million yen （Million yen） Online net sales → 1H of FY19/3: 160 million yen Sales grew 3.6 times （Million yen） Store net sales （Million yen） (excl. duty-free sales) Duty-free sales （Million yen） 5 All Right
Slide 7: Highlights: Trends in Ratio of Used Items to Total Sales
Highlights: Trends in Ratio of Used Items to Total Sales Net sales of used cameras and watches remained steady. In particular, used watches continued to perform well. 2016 2017 2018 FY03/2017 FY03/2018 FY03/2019 Ratio of 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q used items 43.6% 47.3% 46.5％ 45.2％ 45.1% 46.4% 44
Slide 8: Trends in Quarterly Net Sales by Segment
Trends in Quarterly Net Sales by Segment Net sales increased year on year in the camera, watch and bicycle businesses. （Million yen） FY03/2014 FY03/2015 FY03/2016 FY03/2017 FY03/2018 FY03/2019 7 All Rights Reserved, Copyright(C) Syuppin Co., Ltd..
Slide 9: Trends in Quarterly Net Sales by Sales Channel
Trends in Quarterly Net Sales by Sales Channel Year-on-year comparisons: Net sales increased in every channel. （Million yen） FY03/2014 FY03/2015 FY03/2016 FY03/2017 FY03/2018 FY03/2019 8 All Rights Reserved, Copyright(C) Syuppin Co., Ltd..
Slide 10: Supplementary Material: Trends in Online Purchases of Used Cameras
Supplementary Material: Trends in Online Purchases of Used Cameras Online purchases increased 45% year on year, a record high online purchase value, reflecting the improvement of operation processes for used cameras from purchasing to commercialization due to the expansion of logistical spaces, as w
Slide 11: Supplementary Material: Trends in Receive-First Send-Later Transactions
Supplementary Material: Trends in the Number of Receive-First Send-Later Transactions The numbers of Send-Later transactions and Receive-First transactions both increased approximately 1,000 from 1Q of the current year. （Transactions） FY03/2015 FY03/2016 FY03/2017 FY03/2018 FY03/2019 10 All Rights R
Slide 12: Trends in Quarterly Number of Online Members & Members' Attributes
Trends in the Quarterly Number of Online Members & Membersʼ Attributes ▶ Monthly increases in new members stood continuously at the 3,000 level. ▶The number of online members exceeded 380,000. 382,760 Regional distribution of online members (as of the end of November 2018) 371,318 360,958 （%） 348,51
Slide 13: Year-on-Year Changes in Net Sales and Incomes by Segment
Year-on-Year Changes in Net Sales and Incomes by Segment （Million yen） FY03 FY03/2019 Q1 /2018 Q1 Segments/Sales Channel Remarks YoY% Actual Actual Change Online net sales 7,140 8,276 115.9% ▶EC online net sales grew steadily. Store net sales 2,998 2,838 94.7% Growth in store net sales was affected
Slide 14: Review of the 2Q for the Fiscal Year Ending March 31, 2019
Review of of the 2Q for the Fiscal Year Ending March 31, 2019 ▶Both net sales and gross margins increased more than 10% from the same period of the previous year. ▶Gross margin ratio: down 0.5% → Change in the sales composition due to the strong sales of watches (the ratio of watches in sales increa
Slide 15: Year-on-Year Change in SGA Expenses
Year-on-Year Change in SGA Expenses ▶Promotion expenses: increased due to efforts to improve Send-Later transactions of cameras and strengthen sales measures with incentive program tickets (ratio to sales rose 0.3 percentage points, or 90 million yen higher than the plan) ▶Other expenses: increased
Slide 16: Year-on-Year Changes in Operating Income
Year-on-Year Changes in Operating Income (i) Decrease in the Increase in profits ratio of personnel (ii) Decrease in (iii) Increases in （Million yen） due to higher net expenses the ratio promotion sales of gross profit expenses and + 49 points provided (iv) Relocation (v) Increase in SGA - 81 expens
Slide 17: Trends in Quarterly Operating Income and Operating Margin
Trends in Quarterly Operating Income and in Quarterly Operating Margin ▶Operating income did not increase in 2Q due to a decline in profitability and an increase in SGA expenses. ▶Efforts will be made to raise income and profitability by increasing sales of new and used items in 3Q and beyond. （Mill
Slide 18: Quarter-on-Quarter Changes in Balance Sheet
Quarter-on-Quarter Changes in Balance Sheet Due to strong purchases, valuable inventory assets increased to approximately 5.3 billion yen. （Million yen） FY03/2019 Q２ FY03/2019 Q1 ctual Change Current assets 7,987 8,428 +441 Merchandise 5,156 5,301 +145 Non-current assets 1,190 1,256 +65 Total assets
Slide 19: Actions taken in the first half
March 31 , 2019 Actions taken in the first half All Rights Reserved, Copyright(C) シュッピン株式会社 Syuppin Co., Ltd.
Slide 20: Future Actions
Future Actions With the platform completed, we will focus on enlarging the wheel of circulation. ► With the platform completed, we will enhance activities in each process of before buying, time of buying and after buying, and enlarge the wheel of circulation. Leverage CGM to increase net sales and p
Slide 21: Actions Taken in The Second Half
Actions Taken in The Second Half One to Oneマーケティング Phase３ One-to-one Marketing approach パーソナルレコメンド Effects of the completion of personalized top pages 越境ECThe activeness ratio of online members (existing customers) increased. *1 Number of members who made purchases: Number of members who Quarterly t
Slide 22: Registration of items on the Wish List & Registrations for arrival emails
Registration of items on the Wish List& Registrations for emails that communicate arrivals One to Oneマーケティング Phase３ One-to-one Marketing approach パーソナルレコメンド Effects of the completion of personalized top pages Registration of items on the Wish List Registrations for emails that communicate arrivals （
Slide 23: Status of Actions Taken: Efforts to Increase the Conversion Ratio
Status of Actions Taken: Efforts to Increase the Conversion Ratio Full-scale implementation of initiatives launched after the end of the previous fiscal year (FY03/2018) • “Map Camera” and “EVERYBODY x PHOTOGRAPHER. Com” are in collaboration. • Postings of EviPhoto images reaches 35,953 as of Septem
Slide 24: Actions Taken in the First Half: Posting of Video Images of Used Items
Actions Taken in the First Half: Posting of Video Images of Used Items We will communicate the appeal of products by posting video images that communicate the stereographic images and movement of items more easily, in addition to current product images, thereby increasing purchase intentions. If
Slide 25: Status of Actions Taken
Status of Actions Taken Improvement of the commercialization system Expanded logistics spaces in March and April 2018 Established a structure to respond to an increase in the volume by improving efficiency in respect to commercialization operations such as changes in organizations and layouts
Slide 26: Status of Actions Taken
Status of Actions Taken The eBay (an overseas mall) of Map Camera grew steadily. Strengthening of the Global Strategy Office Increased staff members to strengthen the structure of the Office. Established a Japan quality branding scheme so that transactions can be made safely and securely for used it
Slide 27: Actions to Be Taken in the Second Half
Actions to Be Taken in the Second Half All Rights Reserved, Copyright(C) シュッピン株式会社 Syuppin Co., Ltd.
Slide 28: Actions to Be Taken in the Second Half
Actions to Be Taken in the Second Half Development of the Phase 4 of the One-to-One Marketing Approach FY03/2017 FY03/2018 FY03/2019 Phase 1.0 Phase 2.0 Phase 3.0 Phase 4.0 Groupings of targets Personal requests Personal Merchandising recommendations Customers are grouped based Syuppin responds to S
Slide 29: Future Actions: Introduction of One-to-one Marketing Phase 4
Future Actions: Introduction of One-to-one Marketing Phase 4 One to Oneマーケティング Phase４ The balance between supply and demand will be checked, マーチャンダイジング and operations for timely purchase and sale price setting will be automated. Demand Demand Supply • Customers register • Customers register items it
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