Marketenterprise Co.ltd · TSE:3135
Marketenterprise Co.ltd — FY2019 Q2 Earnings Presentation
51 slides from Marketenterprise Co.ltd's earnings presentation, 2019
Slide 1: FY2019 2Q Financial Results Briefing
MarketEnterprise Co., Ltd. FY2019 2Q Financial Results Briefing Ending June 30, 2019 Security code TSE:3135
Slide 2: Agenda
Growth Strategy Recognition of the Current Economic Agenda Situation and Future Tactics Financial Highlights FY2019 2Q Earning Forecast 1
Slide 3: Growth Strategy
1 Growth Strategy — MARKET ENTERPRISE
Slide 4: What is MarketEnterprise?
What is MarketEnterprise? We are a company engaged in various businesses to aim to be an "Optimized trading company" based on reuse. MARKET + ENTERPRISE (adventurous creation) 3
Slide 5: What is "Optimized trading company"?
What is "Optimized trading company"? A company that can offer various options to the comsumer seek to smart. 4
Slide 6: What is "Smart Comsumption"?
What is "Smart Comsumption"? 5
Slide 7: The change of comsumer value
The change of comsumer value The sense of resistance against reuse goods has faded. From satisfaction with ownership to satisfaction with use. To the consumption pattern that asks for something that suits themselves The need to turn into money what they bought is high. Consumers who are aware of res
Slide 8: Survey: attitudes toward using reusable products
Q What do you think about using reusable products? Please choose one that is close to your way of thinking. 15-19 years old 7.3% 77.7% 15.0% 0% I want to use reusable products. 20~29 years old 7.9% 76.1% 15.9% 0.2% In some cases, reusable products may be used. 30~39 years old 6.1% 77.6% 16.1% 0.3% I
Slide 9: The change of comsumer value
The change of comsumer value The sense of resistance against reuse goods has faded. From satisfaction with ownership to satisfaction with use. To the consumption pattern that asks for something that suits themselves The need to turn into money what they bought is high. Consumers who are aware of res
Slide 10: Survey: renting or leasing versus owning
Q A. There is no resistance to renting or leasing, that is, to borrow things in exchange for money. B. I would like to buy what I use and make it my own. Rate of answer that it is close to A 50% 2018 41% 42% 1985 39% 38% 38% 38% 40% 37% 36% 37% 34% 38% 34% 34% 30% 26% 30% 31% 21% 20% 16% 18% 13% 13%
Slide 11: The change of comsumer value
The change of comsumer value The sense of resistance against reuse goods has faded. From satisfaction with ownership to satisfaction with use. To the consumption pattern that asks for something that suits themselves The need to turn into money what they bought is high. Consumers who are aware of res
Slide 12: The change of comsumer value
The change of comsumer value 2018 50% 50% 44% 2000 40% 40% 34% 32% 30% 23% 20% 10% Buy cheap and Buy good quality products Choose a product that is economical things even if they are a bit expensive. specific to their own lifestyle. Source : Nomura Research Institute, Ltd. "Changes in Japanese Value
Slide 13: The change of comsumer value
The change of comsumer value The sense of resistance against reuse goods has faded. From satisfaction with ownership to satisfaction with use. To the consumption pattern that asks for something that suits themselves The need to turn into money what they bought is high. Consumers who are aware of res
Slide 14: Reasons for reusing or turning unwanted items into money
Q What is the reason why you want to reuse or turn unwanted items? Please choose one closest to the following. 2.2% 0.9% 15.9% 34.8% Because I want to turn some money Because I can not throw it away Because I want to keep the room tidy Because it is socially good Other No answer 19.7% Source : The C
Slide 15: What is the "Smart Consumer" we think about?
What is the "Smart Consumer" we think about? Consumers aware of the absolute value (high satisfaction consumption) and the relative value (resale value) 14
Slide 16: The absolute value and the relative value
Although a small number of consumers were aware of relative value (resale value) … The absolute value The relative value high satisfaction resale value consumption for themselves 15
Slide 17: These consumers are increasing
These consumers are increasing The absolute The relative value value high satisfaction resale value consumption for themselves 16
Slide 18: Smart Consumer
Smart Consumer The absolute The relative value value high satisfaction resale value consumption for themselves 17
Slide 19: Target purchases that are aware of resale value are increasing
Target purchases that are aware of resale value are increasing. Real estates Financial Instruments Investment Noble metals Art-object Luxury goods Car Branded goods Cosumer electrical appliances Interests and Musical instrument Camera Preferences goods general goods 18
Slide 20: Target purchases that are aware of resale value are increasing
Target purchases that are aware of resale value are increasing. Real estates Financial Instruments Investment Noble metals Art-object Luxury goods Car Branded goods Cosumer electrical appliances Interests and Musical instrument Camera Preferences goods general goods 19
Slide 21: The penetration rates of Smartphone
The penetration rates of Smartphone Explosive spread of smartphones contributes to increase of smart consumers Household penetration rate of Smartphone 80% 75.1% 72.0% 71.8% 70% 64.2% 62.6% 60% 49.5% 50% 40% 29.3% 30% 20% 9.7% 10% 2010 2011 2012 2013 2014 2015 2016 2017 Source : Ministry of Internal
Slide 22: Providing services to the growing number of smart consumers
Providing services to the growing number of smart consumers We have built the business portfolio necessary for that. 21
Slide 23: Elements required for business portfolio
Elements required for business portfolio Merchandise and Information Platform IT skills trading method Media 22
Slide 24: Our business portfolio Till 2014
Our business portfolio Till 2014 Merchandise and trading method Information Media General merchandise purchase For individual Platform IT skills 23
Slide 25: Our business portfolio From 2015 to 2016
Our business portfolio From 2015 to 2016 Merchandise and trading method Information Media General merchandise purchase For individual Platform General merchandise trade IT skills 24
Slide 26: Our business portfolio At 2017
Our business portfolio At 2017 Merchandise and trading method Information Media General merchandise purchase Information on trading method For individual Platform General merchandise trade IT skills Information on consumption trends Specific merchandise For corpolate 25
Slide 27: Our business portfolio At 2018
Our business portfolio At 2018 Merchandise and trading method Information Media General merchandise purchase Information on trading method For individual Platform General merchandise trade IT skills Information on consumption trends Specific merchandise For corpolate 26
Slide 28: Our business portfolio From the end of 2018 to Early 2019
Our business portfolio From the end of 2018 to Early 2019 Merchandise and trading method Information Media General merchandise purchase Information on trading method For individual Platform IT skills Marketplace General merchandise trade Data Driven Marketing Information on consumption trends Specif
Slide 29: Our business portfolio
Our business portfolio Merchandise and trading method Information Media General merchandise purchase Information on trading method For individual Platform C to B to C IT skills C to B Marketplace Reuse Business General merchandise trade Data Driven Platform Media Marketing Information on consumption
Slide 30: Recognition of the Current Economic Situation and Future Tactics
2 Recognition of the Current Economic Situation and Future Tactics 29
Slide 31: C to B to C Reuse Business
C to B to C Reuse Business The reuse market have been grown The reuse market size trend CAGR 107% Unit: hundred million yen 17,743 18,000 16,517 15,966 16,000 14,916 14,000 13,594 12,590 11,274 11,443 12,000 10,000 8,000 6,000 4,000 2,000 2009 2010 2011 2012 2013 2014 2015 2016 Source:The Reuse Busi
Slide 32: C to B to C Reuse Business
C to B to C Reuse Business The reuse market have been grown The reuse market size trend CAGR 107% Unit: hundred million yen 17,743 18,000 16,517 15,966 16,000 14,916 14,000 13,594 12,590 11,274 11,443 Stable growth, Productivity improvement 12,000 10,000 8,000 6,000 4,000 2,000 2009 2010 2011 2012 2
Slide 33: C to B Platform
C to B Platform Market size of Store type reuse business tend to decline Unit: hundred million yen CAGR-2 9,763 10,000 9,460 9,315 7,500 7,955 6,541 5,000 5,676 CAGR+18 2,500 2014 2015 2016 Source:The Reuse Business Journal 2018 32
Slide 34: C to B Platform
C to B Platform The number of businesses(mainly store type) is on the rise. They are seeking to obtain the purchasing opportunity. Unit: companies 10,000 8,000 6,000 4,000 2,000 1972 1974 1976 1979 1982 1985 1988 1991 1994 1997 2002 2007 2014 * 2014 is our estimate including individuals * Since the
Slide 35: C to B Platform
C to B Platform The number of businesses(mainly store type) is on the rise. They are seeking to obtain the purchasing opportunity. Unit: companies 10,000 8,000 6,000 Expansion of purchasable areas through a network of 1,400 stores nationwide 4,000 2,000 Optimization of the annual purchase request of
Slide 36: B to B Reuse Business (for SOHO or Specific field)
B to B Reuse Business (for SOHO or Specific field) Low EC ratios = Actively entering a market where it is difficult for individuals to deal with each other and there is global demand 35
Slide 37: The trend of Page View
The trend of Page View In January 2019, The page views of our owned media reached 4.4 million per month Unit: page view 3,750,000 7 times year on year 2,500,000 1,250,000 2017.5 2017.7 2017.9 2017.11 2018.1 2018.3 2018.5 2018.7 2018.9 2018.11 2019.1 36
Slide 38: Media
Media We will continue to promote Vertical Media Strategy(Local game marketing). Information on consumption trends Information on trading method iPhone WiMAX OUTLET JAPAN For rental beginners For second-hand buying Mandatory to unlock Market size ¥ 800 billion and selling beginners used smartphone J
Slide 39: Used SP market price search service
Used SP market price search service Announced in Sep. 2018 List the number of the transactions and the list price of terminals of major 4 sites such as market app and net auction. 38
Slide 40: Target layer and field expansion
Target layer and field expansion 39
Slide 41: Investment Strategy
Investment Strategy New Business Existing Business Specific Field = Growth Phase Existing Business = Stable growth Growth or Later Flagship website Investment Start up = Incubation Phase Seed or Early Investment Existing Business = Productivity improvement 40
Slide 42: Financial Highlights FY2019 2Q
3 Financial Highlights FY2019 2Q 41
Slide 43: Financial Highlights FY2019 2Q
Financial Highlights FY2019 2Q Significant expansion Profit attributable Unit: Million yen Net sales Operating profit Ordinary profit to owners of parent Six months ended Dec. 31, 2018 Six months ended Dec. 31, 2017 (3) (6) Year on Year 30x 42
Slide 44: Changes in Operating profit
Changes ফা রৠ崷崌嵑崌崰 in Operating profit Operating ੜઽ峕峲峴প்ੜஇ profit rise due to Sales increase. Unit: Million yen Increase Decrease Total ਜ਼؟௲ਐ (28) (206) Operating profit, increase revenue Gross profit rate worsens SG&A Growth Operating profit, Six months ended Six months ended Dec. 31, 2017 De
Slide 45: Inventory by quarter
Inventory by quarter Product inventory was 36% higher than the end Unit: Million yen of the same time last year. +83 million yen As of Dec. 31, 2017 As of Mar. 31, 2018 As of Jun. 30, 2018 As of Sep. 30, 2018 As of Dec. 31, 2018 44
Slide 46: Balance Sheet
Balance Sheet ৌසਏ ਜ਼؟௲ਐ Unit: Million yen Asফাଜ of Jun. 30, 2018 ফাଜ As of Dec. 31, 2018 ੜ Change Cash and deposits ਠস ٫ Product inventories ૹષಛ ٫ Other current assets ৱਓ ٫ Non-current assets ಕৱਓ ٫ Total assets ৱਓ়ੑ ٫ Total loans োস়ੑ ٫ Other liabilities 峇峘ઝ ٫ ઝ়ੑ Total liabilities
Slide 47: Earning Forecast
4 — MARKET ENTERPRISE Earning Forecast
Slide 48: FY2019 Earning Forecast
FY2019 Earning Forecast Profit attributable Unit: Million yen Net sales Operating profit Ordinary profit to owners of parent FY2018 Financial Results A FY2019 Earning Forecast Previous B FY2019 Earning Forecast Revised C Year on Year C/A Compared with Previous Forecast C/B 47
Slide 49: Annual Sales
Annual Sales 13 years of revenue increase Unit: Million yen FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 48
Slide 50: Annual Ordinary profit
Annual Ordinary profit Update record high ordinary profit Unit: Million yen 300 Growth Investment Period period 247 250 227 200 150 100 93 94 86 50 42 9 10 11 4 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 49
Slide 51: MarketEnterprise Co., Ltd. created these materials to assist investors by providing reference information with
MarketEnterprise Co., Ltd. created these materials to assist investors by providing reference information with the goal of greater understanding of our company’ s current situation. The contents of these materials were written based on generally recognized economic, social, etc. conditions at the ti