Zozo, Inc. · TSE:3092
Zozo — Q1 FY2018 Earnings Presentation
42 slides from Zozo's earnings presentation, July 2018
Slide 1: START TODAY CO.,LTD.
g START TODAY CO.,LTD. BASHA bhOF4 2O1OHSAM 1H REBMSEH
Slide 2: FY2018 1Q Highlights
19/03HA 10/\1 77 & FY2018 1Q HIGHLIGHTS ROR + ee DGRS 704.08 (BIEL 18.2%38) . SSEFIE68. 7A (26.4% i) BRAIAR *ZOZOTOWNS3 Mian 683.148 (AAEIIALL18.0%#) Styay7 642.680 (A 17.8%#) BMY av7 0.48 (fl 8.2%ik) ZOZOUSED 40.0f%A (fl 21.3%%%) * PBS 1.148 + OM 3,953 (IS.6% ik) . FIIH rR M8,122F) (114.8% it) *#ZO
Slide 3: Business Results
Slide 4: Overview of the FY2018 1Q
19/03#8 1Q [Bit RRORE OVERVIEW OF THE FY2018 1Q 03 (fr : BAF) a=1=| 18/03H8 10348 19/03H8 1 Qi By ETAL RALL Oates ERE BARS 59,574 70,406 18.2% 360,000 19.6% ALS 21,451 26,552 23.8% 147,000 18.1% 5 LAB FRE 19,844 24,251 22.2% ff URS LE 33.3% 34.4% 1.1% co PER | 11863 | 18876 | 549% | ff URS LE 19.9%
Slide 5: Overview of Each Quarter
afc JU BR eOUR (OF OVERVIEW OF EACH QUARTER 04 (4a : BAA) 18/03#A 19/03#A RB Al oe 2 Ae BS Ae 4 Oe 1 Ae MBB | 59574 | 60,082 77,931 | 73,555 | 70,406 ay El BALL 40.9% 35.9% 25.5% 14.9% 18.2% ZkS 21,451 21,242 28,220 27,517 26,552 Rees 11,863 13,684 16,476 15,770 18,376 BE fel A Ee 35.0% a 4 8.3% oo
Slide 6: Increase-Decrease Analysis of Operating Profit (YoY)
BRNROW MA (AAT HLL) INCREASE-DECREASE ANALYSIS OF OPERATING PROFIT (YoY COMPARISON) REA F RAR +2718 AIS +7.9f% + FO LIS BaMRSRA +1458 ERA a 79.8f8 + RA ALLO BE pases —15.78 - AE CHEEMETT | pee ara pe ait —11.6% ~ ZOZOSUIT “fi xmreaeris | ARES -6.4f8 "EA + SLARRHAMIC AES BAS 4th + TS —12.5f% 05 ERA a
Slide 7: Consolidated Balance Sheet
te AA BOA RE CONSOLIDATED BALANCE SHEET 06 (St : AAA) SBE SE geaeue SBE SE gasetine Goi 5831 8) Qeestooa) 2018 SAS1B) (201808308) RE 53,574 50,216 RHA 27,243 49,283 36, BBS 24,571 17,790 55, MMB - 24,000 36. Bi 2,194 2,709 HER 2,659 2,738 Bese 17,138 16,714 BSE 29,902 52,021 aVEERE 5,668 5,664 EBA 4
Slide 8: ROE and Net Profit Margin
ROEO HES - 4HARFIZSS WER) ROE AND NET PROFIT MARGIN 70% 60% 50% 40% 30% 20% 10% 0% ROE © 4eAMFIZSSe Oa) 55.5% 72.7% 57.4% 56.0% (38) 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 19/03 (sti) 07 10% 9% 8% 7% 6% 5%
Slide 9: Transaction Value
inn Ria O Hee TRANSACTION VALUE 08 + BARR ation (ZOZOTOWNS) 105¢at 4.9 Bian SEA: 0.7% 4,000 JUVRE 3,500 BtoBs3= PBE 3,000 {§§) ZozouseD 705.4 i | BML av7 9.0% 2,500 = ME 60%, Baty ay 7 5.9% Ritvay 2,120.9 5.9% oi 91.2% 2.9% 2,000 Ti 6.1% 1,595.0 0.1% 0.1% 90.5% 1900 1,290.5 mo SOx, 1,146.7 13.7% o4%
Slide 10: Transaction Value (Quarterly)
Boo Mike Owe (2 TRANSACTION VALUE (QUARTERLY) 09 Bi $F Pel A He i) ao +18.2% 800 BtoB 773.3, 7 PRR 29% 139.55, 104.0 62% 2.9% 0.0% 0.0% 6.2% {§§) zozoused 00% . 0.1% 615.9, ,, 640 0, ase / 02% oan s07 26 gg 2% 595.754, 600.8 o0% 20.8% 57% “ 9) 67% 6.6% 27% ee 26% 90.8% 1% Bets .7 ee 0.1% [lll son ee
Slide 11: Net Sales
sTLAORE NET SALES 120,000 Ott 110,000 suTEe 100,000 BtoBaee 90,000 PBI 80,000 {§§) zozoused 76,393 | ceeres rst 70,000 1.398 BB sava7 12,875 60,000 54,422 L 3,192 193 50,000 6 3,256 38,580 41,182 P| 3.286 40,000 | 35,050 1573 1,766 603 , 4,477 pore sc 30,000 2976 mgs «= I 6 " s77 5:38: 766 55,253 8,
Slide 12: Net Sales (Quarterly)
TlLaOHKE (B NET SALES (QUARTERLY) 1 1 35,000 4 Oth iii 35 Pel Ae 9 JURE +23.8% 30,000 BtoB 28.220 , 27,517 PBHE 2.713 2,957 ie) " 2,988 25,000 {0 zozousep oot ¢ ; 481 22,699 460 BM owxs07 22127 FF ow is 21,451 21,242 “ete oo 113 ’ 2,054 ° et: ie) 20,000 B etss.7 305 0 ve 37 37 3,968 3,605 330 Be 44
Slide 13: Operating Profit and Operating Profit Margin
BRtlat : SRNR ORME) ORB OPERATING PROFIT AND OPERATING PROFIT MARGIN 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 20.0% B Seis BRA (%) (ei) ron 32,669 i { 16.0% 26,284 1 I 11.7% H H 10.8% 11.1% 12.1% 1 1 12.0% 12.4% ! ! 8.9% | 17,756 KN | 8.3% 15,084 8.0% 12,388 ! ! 8,529 5,874 ' ' 4.0% 0
Slide 14: SG&A Expenses
AR BO AER SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES 1 3 (tt: A) 18/03#f 1Q 19/03#f 1 ai) EAB Ba EB oH WIRE 28 HURL | MUR LL MB 3,534 5.9% 4,825 6.9% 1.0% He 1,423 2.4% 1,988 2.8% 0.4% | kX-YICBw eee FAL—y a> hal MARCH MEDS EBSA ALEOMM BEAD) 2,110 | 3.5% 2,836 | 4.0% | 0.5% | mano re cre5
Slide 15: SG&A Expenses
AR BO AER SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES ARB GE) : RRS LL AIRRBLL +0.4% SEAATES B BUS ICE 5 HERA: 1803HH1Q% 832% > 1903HH1Q%K 991% PBS + LY VIP RA ORME / SATAtOWM - PBS > 1803HH10Q% 18% + 1903HH10QK 61% *IYYIP :1803H1QA 128% > 1903HH1Q# 210% “BAEK :1903H1QK 236 (4E1QM 5 SHR) B
Slide 16: Operating Profit and Margin (Quarterly)
BRAN BRAN NMS) ORB ( = isn Le i >| am ~~ OPERATING PROFIT AND OPERATING PROFIT MARGIN (QUARTERLY) 1 5 15,000 15.0% 14.1% 13.4% 13,000 12.6% 12.4% 120% 11,000 12.6% 10.9% 11.9% 9,720 11.0% 9,118\ 8,934 8,703 9.7% S000 7,981 6,992 7,000 5,850 8.3% 5,011 5,576 —26.4% Q_ 5,874 1,000 (BAR) 3.0% -1,000 Gy
Slide 17: SG&A Expenses (Quarterly)
ARS ROHS (MOH) SELLING, GENERAL AND ADMINISTRATIVE (SG & A) EXPENSES (QUARTERLY) 1 6 20,000 20% Mi xen eH) 18,376 18,000 FOE-Yav eee RR BURS) 16,476 15,770 16% 14,000 13,561 13,684 11,863 12,000 11,350 12% 10,000 8,788 9,228 8% 45% 4% 2,000 2.3% (ABR) ie} GH) 17/03 $81Q 17/03 #2Q 17/03 #3Q 17/03 B4Q
Slide 18: Overview of SG&A by Each Quarter
FRE BOAER (MH) OVERVIEW OF SG & A BY EACH QUARTER 17 (36 : BAA) 18/0384 19/03#8 1Q we 31 o+ HA Bova Hh Bowe Boh 51 oF 28 AHR 28 AHR 28 AHR 28 AHR 28 AR Se 3,534 5.9% 3,814 6.3% 4,307 5.6% 4,198 5.7% 4,825 6.9% 1,423 24% 1,465 2.4% 1,469 1.9% 1,299 1.8% 1,988 2.8% 2,110 3.5% 2,348 3.9% 2,837 3.7% 2,8
Slide 19: Number of Total Buyers
elie AB aX NUMBER OF TOTAL BUYERS 18 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 FRA SBBAI FLAIR AL EP IF 14 TERM ETA BARBOSA 7emaaacaunaccorm ss" mass 7,392,126 PIT E- =; LAC PAE Ri fed 7,205,777 7,223,227 FR NABH 6,734,740 6,963,986 Mivrvr+7sa% 6,324,033 1,933,4
Slide 20: Number of Shops on ZOZOTOWN
ZOZOTOWNE Y ay TROBE NUMBER OF SHOPS ON ZOZOTOWN 1,200 1,000 800 600 400 200 cD) 19 BMY avT WM stea7 1,139 1 saad 1,11 ' 5 1 016 1.088 1,105 1,134 1,009 17/03 #1Q 17/03 #2Q 17/03 %3Q 17/03 #4Q 18/03 #1Q 18/03 #2Q 18/03 #3Q 18/03 #4Q 19/03 B1Q RTZIN—-bIDYK [ZOZO (VY) | bY ayTHKEATHY EGA,
Slide 21: Active Member Distribution
PIT 4 SABIE ACTIVE MEMBER DISTRIBUTION 20 B Sxtt Bb BFR AL B5213.5% sent AUN - Hb 8.9% A HALS.5% 200,000 PEL - ABI 7.6% 150,000, BIE 41.0% (FER17.3%) 100,000, 50,000 ALBE - {SH 5.7%
Slide 22: Annual Purchase Amount and Pieces per Active Member
PITF(FISRIASEW OFRBASH - FHA RE ANNUAL PURCHASE AMOUNT AND PIECES PER ACTIVE MEMBER 21 $0,000 SAAS = @ EMMA Ray " 48,000 48,644 46,87 48,556 43975 081 6,870 - 47,119 , 46,000 46,417 46,818 46,707 44,000 12 11.4 11.3 42,000 1 40,000 9.9 = 5 54 hl—-¥-O 10 38,000 MIC kSHD 36,000 9 34,000 8 32,000 (Fa)
Slide 23: Annual Purchase Amount and Pieces per Existing Active Member
BEEP 77 4 TSRIA SEV OPBBA SE - FRA RE ANNUAL PURCHASE AMOUNT AND PIECES PER EXISTING ACTIVE MEMBER 22 88,000 HET 751 TSR: SABRES 1 RULEBBL COS 795198 18 64,290 SEIS A 288 @ FMA 64,000 17 63,004 62,761 61,770 62,000 60,929 61,098 16 60.106 59,569 60,000 15 58,953 14.6 145 14.4 14.2 58,000 14 56,000 1
Slide 24: Number of Shipment
HER OIE NUMBER OF SHIPMENT 23 9,000,000 Beas 8,303,595 8,293,761 8,425,033 8,000,000 BUERIRBLE 7,148,647 y 7,000,000 6,931,318 6787 599 eon 6,000,000 5,886,580 100% 5,391,093 5,000,000 | 4 652,101 80% 4,000,000 54.7% 61.9% 60% 3,000,000 “oes 42.3% 45.9% 32.6% 411% 40% 2,000,000 19.7% 24.1% 1,000,000
Slide 25: Average Retail Price
PIR BOWE AVERAGE RETAIL PRICE 8,000 7,000 6,000 5,000 4,000 3,000 2,000 24 SPAR Td AEKADECHH (ZOZOTOWNEE) DA EURE & AMAR O LTH CHR Z CIC SEM 25% | Beet ail 20% ATE RPBE 15% 5,236 10% 4,858 4,468 4,474 4.203 5% 4,099 , 3,855 3,664 3,953 0% -3.6% 11.8% 2% 8.3% 5.0% 7.2% 1% 11.4% “oe 10% 14.7% -15% -20
Slide 26: Average Purchase Amount per Shipment
FID fay BAM O HES AVERAGE PURCHASE AMOUNT PER SHIPMENT 25 Hy A(t OSE BB OECHSE (ZOZOTOWNSH) OBR € MMO CRTC CICK RH 14,000 Biswas 25% BIEL 12,000 10,143 18% 10,000 ,04 8,680 8955 3530 gigg eS ort 7,9 A1 , 8,1 22 5% 8,000 ° 12.5% A 4.8% “1.7% 6,000 48% 3.8% 4.8% -5% 4,000 9.6% -10.9%| -14.4%| -15% 2,0
Slide 27: Shipment Ratio by Access Terminal
FINA Al HW ta LER THE RATIO OF SHIPMENT VOLUME TO THE TOTAL PURCHASE VOLUME ( by access terminal ) 26 100% PC ONT @AY—bhI4V 90% 0, 9» 83.2% 84.2% 77 5% 79.4% 80.4% 82.1% 80% 75.2% “e 0, 70% 60% 50% 40% som 29.7% og 1% 24.6% ° 223% 205% 19.5% 20% 4 ° 1 7.8% 1 6.7% 1 5.7% 10% 0.4% 0.3% 0.2% 0.2% 0.1%
Slide 28: Business Plan for FY2018
Slide 29: Consolidated Business Forecast and Dividend Forecast for FY2018
19/O3HA BSB M 7 - Acs CONSOLIDATED BUSINESS FORECAST AND DIVIDEND FORECAST FOR FY2018 19/03#Rt BR 3E(%) MaRS 3,60018 A 33.1% che 1,470 FA 49.3% Ee Silas 40018 22.4% BRAN (A Ban IRS) 11.1% HES FSS 40018 22.2% PASTS (Clee T 6 SERA SS 280 fF 38.9% VARS 7) 4 RAEI BS 89.8F] VAS EW ACSS (FE) 36.0F1 28
Slide 30: FY2018 Target by Business Segment
Hin 19/0388 332i Be FY2018 TARGET BY BUSINESS SEGMENT Mica NRE BR ABA LL RE-—bhhoOF TS 3,600 +33.1% ZOZOTOWN##3€ 3,30018 A +25.5% -SitvayT 3,090f% +25.2% * ZOZOUSED 210(8F +31.7% PBS 20018 F — BtoBS 100 FA +32.7% cle AR AU RAL 29
Slide 31: Transaction Value
Pian IR es O HES TRANSACTION VALUE 30 5,000 } - 12.4% % SRDS 12.1% 11.7% 12% 4,500 © SHIRE (WRG) 10.8% 11.1% 10.4% , 4,000 5 oe 3,600 1% 8.8% 3,500 3,000 2,705 8% 2,500 2,120 6% 2,000 1,595 1,500 1,290 4% 958 1,146 1,000 802 561 2% 500 | 366 ar 0 0% (8) 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17/0
Slide 32: Capital Investment
ax iat A OER CAPITAL INVESTMENT 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 31 ax te 4,565 Wh kites 4,100 OnAteeea 2,162 480 825 1,047 1,174 1,107 744 312 409 1,800 466 570 231 353 843 989 113 150 586 786 765 miss | 277 | 322 GG) 11/03 12/03 13/03 14/03 15/03 16/03 17/03 18/03 19/03 (FE)
Slide 33: Dividends per Share and Payout Ratio
14% 7) ACS SR OBC 1] OGEB 40 35 30 25 20 15 10 DIVIDENDS PER SHARE AND PAYOUT RATIO 32 Bi ieucuese 44.8% 36.0 wy, 41.8% 41.5% a4 40.3% 40.6% 35.6% 34.3% 29.0 40.1% 22.7 0, ba1% 249% 24.8% 21.5% 15.6 11.3 8.3 6.6 5.0 2.3 07 og 14 [| \ —— || 4A) 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03 17
Slide 34: Future Strategies
Slide 35: Medium-Term Vision
mHRE VY av MEDIUM-TERM VISION Mowe pHa OD eamEKsS 44t 7 IL—-FOHHBE 2021 3A HA Mani 7,1 50187 BRA 90018 A 802 958 561 366 1,146 1,290 1,595 2,120 2,705 3,600 5,080 34 7,150 (HH) 10/03 11/03 12/03 13/03 14/03 18/03 16/03 17/03 18/03 19/03 (ati) 20/03 (3+) 21/03 (ate)
Slide 36: Detail of Medium-Term Vision
pH Y 3 athe DETAIL OF MEDIUM-TERM VISION 35 (BAL : BAR) 201943 HA 2020435 HA 20214737 HA at Bi{e KRRE at Bie KRRE at Bi{a KRRE Mai 360,000 33.1% 508,000 41.1% 715,000 40.7% ZOZOTOWN#33€ 330,000 25.5% 408,000 23.6% 485,000 18.9% PBS 20,000 - 80,000 300.0% 200,000 150.0% 35, HA 18,000 - 60,000 233.3%
Slide 37: Reference Data
Slide 38: Corporate Principles
ABZ-—bh ho Tt BRB CORPORATE PRINCIPLES 37 6,820.-.. 991 . BRE EPDt LEIP y Yar IZLE GERA ( HH 31.8 ) th Pe Av ak , HR ic Ke Make the world a better place, Bring smiles to the world. 16,465. 739; EARL
Slide 39: Major Services
FEEY-EX 38 MAJOR SERVICES AABAROI yy VavjRt 1 k [ZOZOTOWN] (Try vaveRbe LLARRARD 1-4-Ay bY aveELItt bo +1,139Y a 77. 682077» KORG. MRM SMOSHALLL, HOSEA 1 A3,100RLLE L SYRTL, FHI. Wie E. ECICAAb SHERE @ BRT CAR . Zhe eS ZOZOTOWN http://zo0z0.jp/ AARRARMDI Py Yavi-F41H%-—bVTY [WEAR] * ARRAROD Py Yava-
Slide 40: Our Subsidiaries
FASHIC DUT OUR SUBSIDIARIES -HIA PASHAS—bhhO FTF I/OV—-X VAT LRA, WEBF H4 /. CRM, tka RASE - REDS RASHID IS aL 1-F-SPopb ry Yay eae), RMetTI—AARAHBSSt RA RABAT IAT ECU halff. WEBY-7F4>% WEBt4+ a5, ECR TUF—-Yar niet BN START TODAY USA, Inc. (aU 74=7) START TODAY Germany GmbH (AvLU > TIAN-bISLK [ZOZO
Slide 41: Business Model
EVRAEFIL BUSINESS MODEL ZOZOTOWN#3= Sat vayT7 ZOZOTOWNIC HET 31,134 OA LST VY ay PORES Rit. bS—-EROEK ERA CAD SHERY ZTORELEWBE BLS = BY ay TORRES X SFB ‘BMY ayT7 ZOZOTOWNEIC TC. SSRB. TIL KX -H-EV EME RUM BT St. RLS = 8 Yay FORADRS * ZOZOUSED 1-¥-SPoRh ry Yar eMe AM), fhe e113 — RASS eR che = AREROM
Slide 42: REEL, SHARE CHRBUE EK EODBH CS"),
REEL, SHARE CHRBUE EK EODBH CS"), KREMAEANCTSENCLHW ECA, REECE S 1 CUS ABP ARO PBC OS EL Td, BAG CAF ARE CISCO & Bt CHM LEED CHW ET. FRCS ESEGMEEBRPAELTS!), RRORMIS CNSOHRKREL CRE SHEP HW ET.