Slide 1: Full-year Financial Results
For the Fiscal Year Ended March 31, 2024 Full-year Financial Results Vega corporation Co., Ltd. Securities code: 3542
Slide 2: INDEX
Overview of Financial Results for the 1 Fiscal Year Ended March 31, 2024 2 Report on LOWYA Business INDEX 3 Report on DOKODEMO Business Three-Year Plan (Fiscal Year Ending March 31, 4 2025, to Fiscal Year Ending March 31, 2027) Financial Results Forecast for the Fiscal Financial results briefing mat
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2024
Overview of Financial Results 1 for the Fiscal Year Ended March 31, 2024 Financial results briefing materials
Slide 4: Financial Highlight
Financial Highlight As a result of the shift to a profit-oriented management policy and the efforts made in each business operation, net sales decreased to 16,063 million yen (94.6% YoY), while operating profit significantly improved to 771 million yen (228.1% YoY). Ordinary profit was 790 million y
Slide 5: Net Sales (Full Year & Quarterly)
Net Sales (Full Year & Quarterly) From 2Q, each business implemented profit-oriented measures, resulting in an access count and distribution decline, with full-year net sales of 16,063 million yen (94.6% YoY) and 4Q net sales of 4,251 million yen (94.4% YoY). Full year Quarterly (Million yen) (Milli
Slide 6: Operating Profit (Full Year & Quarterly)
Operating Profit (Full Year & Quarterly) From 2Q, each business implemented profit-oriented measures, resulting in full-year operating profit of 771 million yen (228.1% YoY). Operating profit for the quarter was 469 million yen (381.0% YoY), a record high for the 4Q. Full year Quarterly 4Q Operating
Slide 7: Causes of Increase/Decrease in Operating Profit
Causes of Increase/Decrease in Operating Profit In the LOWYA business, in an effort to improve profitability, the Company also worked to reduce personnel expenses and fixed costs, focusing on reducing advertising expenses. As a result, the Company significantly reduced selling, general and administr
Slide 8: Balance Sheet
Balance Sheet The Company continued to be debt free and maintained a high equity ratio of 77.2%. (Million yen) Previous Fiscal Year Current Fiscal Year Previous Fiscal Year Current Fiscal Year (as of March 31, 2023) (as of March 31, 2024) (as of March 31, 2023) (as of March 31, 2024) Current assets
Slide 9: Cash Flows
Cash Flows Operating cash flow increased due to profit improvement. However, capital expenditures for the opening of actual stores and the purchase of treasury shares resulted in decreases in both investing and financing cash flows. As a result, cash and cash equivalents at the end of the period wer
Slide 10: ROE / Profit Margin, Dividend per Share
ROE / Profit Margin, Dividend per Share ROE of 7.3% and profit margin of 2.5% were achieved due to improved earnings. The Company plans to pay a dividend of 10 yen per share. The Company’s policy is to aim for continuous dividend payments with a target DOE of 2.0%. ROE / Profit Margin Dividend per S
Slide 11: Report on LOWYA Business
Financial results briefing materials 2 Report on LOWYA Business
Slide 12: Major Indicators
Major Indicators The Company changed its policy to focus on profit and reduced promotion expenses and advertising expenses from 2Q. As a result, GMV was 16,055 million yen (93.0% YoY), and net sales were 15,647 million yen (95.9% YoY). Membership of the flagship store and the number of engagement ac
Slide 13: Net Sales (Full Year & Quarterly)
Net Sales (Full Year & Quarterly) From 2Q, the Company reduced promotion expenses and advertising expenses in an effort to improve profitability. As a result, full-year net sales were 15,647 million yen (95.9% YoY), and 4Q net sales were 4,151 million yen (94.7% YoY). Full year Quarterly YoY 95.9% Y
Slide 14: Operating Profit (Full Year & Quarterly)
Operating Profit (Full Year & Quarterly) From 2Q, the Company reduced promotion expenses, advertising expenses, and personnel expenses and fixed costs in an effort to improve profitability. As a result, full-year operating profit was 794 million yen (231.3% YoY), and 4Q operating profit was 462 mill
Slide 15: Monthly Net Sales
Monthly Net Sales From 2Q, the Company reduced promotion expenses and advertising expenses in an effort to improve profitability. As a result, net sales remained at 90% to 100% YoY. (Million yen) FY2023 FY2024 YoY 2,500 105.9% 99.5% 98.4% 100.4% 99.1% 95.6% 93.6% 94.1% 93.3% 90.5% 90.9% 91.4% 2,000
Slide 16: Number of Customers/Average Basket Value
Number of Customers/Average Basket Value The Company reduced promotion expenses and advertising expenses in an effort to improve profitability. As a result, the number of customers decreased compared with 4Q in the previous year. Average basket value is on an upward trend due to the implementation o
Slide 17: Gross Profit Margin (Full Year & Quarterly)
Gross Profit Margin (Full Year & Quarterly) Although the yen weakened significantly, gross profit margin continued to improve throughout the year, reaching 48.4% (up 0.5 pt YoY) for the full year and 50.8% (up 4.9 pt YoY) in the 4Q due to the reduction of promotion expenses and the effect of price p
Slide 18: SG&A Expenses and SG&A Expense Ratio (Full Year & Quarterly)
SG&A Expenses and SG&A Expense Ratio (Full Year & Quarterly) In an effort to improve profitability, which started in 2Q, the Company also worked to reduce personnel expenses and fixed costs, focusing on reducing advertising expenses. As a result, selling, general and administrative expense ratio for
Slide 19: Flagship Store Membership, Age Distribution, Ratio of Male vs. Female
Flagship Store Membership, Age Distribution, Ratio of Male vs. Female Membership of the flagship store is steadily increasing, with strong support from people in their 20s and 30s. Trend in membership of flagship store Age distribution (Thousand people) 60 and older 50 to 59 2% 1,800 6% 1,606 40 to
Slide 20: New Products
New Products Release products with a focus on our own private brand products that are design- and trend-conscious and pursue affordable prices with cost competitiveness. Expanding genres and the number of products of home appliances, sundries, etc. Desk Table Other Hemp-like material desk Dresser ta
Slide 21: Apps and Social Media
Apps and Social Media The internally developed official app and operation of social media function as the key to attracting customers. 1.5 million smartphone app DLs, and more than 1 million Instagram followers. Sizes of engagement channels that deliver a unique brand image to a wide range of users
Slide 22: Actual Store Locations
Actual Store Locations Beginning with the opening of the first store in April 2023, the Company opened three stores in FY2023. Store name: LOWYA Kyudai Ito Store Opening date: April 8, 2023 Store location: ITO Lab Plus (Nishi-ku, Fukuoka City, Fukuoka Prefecture) Facility overview: Next-generation r
Slide 23: Actual Store: No. 1 Kyudai Ito Store
Actual Store: No. 1 Kyudai Ito Store April 2023 — First actual store opened in “ITO Lab Plus” in Fukuoka City, Fukuoka Prefecture. Exterior Interior 23
Slide 24: Actual Store: No. 2 NAMBA PARKS Store
Actual Store: No. 2 NAMBA PARKS Store December 2023 — Second actual store opened in “NAMBA PARKS” in Osaka City, Osaka Prefecture. Exterior Interior 24
Slide 25: Actual Store: No. 3 NAGOYA MINATO Store
Actual Store: No. 3 NAGOYA MINATO Store February 2024 — Third actual store opened on the second floor of NAGOYA MINATO TSUTAYA BOOKS, LaLaport NAGOYA minato AQULS in Nagoya City, Aichi Prefecture. Exterior Interior 25
Slide 26: Actual Store: No. 3 NAGOYA MINATO Store — Opening Day
Actual Store: No. 3 NAGOYA MINATO Store — Opening Day At the opening of the NAGOYA MINATO store, the store proved to be a great success, attracting many customers through special collaborative coordination displays and other customer-pleasing projects. Special collaboration coordination with The sto
Slide 27: Amount of Orders Received Around the Store Areas (No. 1 Kyudai Ito Store)
Amount of Orders Received Around the Store Areas (No. 1 Kyudai Ito Store) Since the opening in April 2023, the amount of orders received around the store areas has been stable at more than 100% YoY. (%) Amount of orders received around the store areas FY2023 FY2024 YoY 141.0% 137.2% 140.0% 123.3% 12
Slide 28: Amount of Orders Received Around the Store Areas (No. 2 NAMBA PARKS Store)
Amount of Orders Received Around the Store Areas (No. 2 NAMBA PARKS Store) Since the opening in December 2023, amount of orders received around the store areas has been at more than around 100% YoY. (%) Amount of orders received around the store areas FY2023 FY2024 YoY 120.0% 112.2% 107.3% 102.1% 10
Slide 29: Amount of Orders Received Around the Store Areas (No. 3 NAGOYA MINATO Store)
Amount of Orders Received Around the Store Areas (No. 3 NAGOYA MINATO Store) Opened in February 2024, amount of orders received around the store areas rose to 114.8% YoY. It was 109.0% YoY in March and is expected to remain at the same level. (%) Amount of orders received around the store areas FY20
Slide 30: Sustainability
Sustainability Of ESG, the Company conducted activities related to the environment and society. It will also continue making various studies, including considering measures to strengthen governance. Plastic bottle cap donation Donation of photographed goods Bonuses and salary increases January 2024
Slide 31: Report on DOKODEMO Business
Financial results briefing materials 3 Business Report on DOKODEMO
Slide 32: Major Indicators
Major Indicators The Company changed its policy to focus on profit and reduced promotion expenses and advertising expenses from 2Q. As a result, GMV was 2,685 million yen (54.8% YoY), and net sales were 416 million yen (63.7% YoY). Membership and the number of app DLs remained strong. GMV*1 Net sale
Slide 33: GMV and Net Business Income
GMV and Net Business Income Due to the impact of shortages of popular pharmaceuticals and the initiative to improve profitability by reducing promotion expenses and advertising expenses, GMV landed at 611 million yen. However, the revenue structure improved, and the business balance achieved a profi
Slide 34: Ratio of GMV by Destination Area
Ratio of GMV by Destination Area Deliveries to Asia, mainly Taiwan, account for more than 90% of GMV. By region By country Middle East 0.7% Oceania 1.1% Europe 1.5% North America South Korea 5.2% U.S. 0.3% Hong Kong 2.9% 4.4 Taiwan 6.8 4 .8% % 84.0 .6% Malaysia Asia 0.3% Philippines 0.3% 91.5% Singa
Slide 35: Three-Year Plan
Three-Year Plan 4 (Fiscal Year Ending March 31, 2025, to Fiscal Year Ending March 31, 2027) Financial results briefing materials
Slide 36: Background of the Conversion to the OMO Model
Background of the Conversion to the OMO Model Converted to an OMO model by developing actual stores (channels) to build touch points with customers that could not be reached online alone. Work to increase the number of fans and improve customer satisfaction (engagement) by utilizing SNS and strength
Slide 37: Channel: Expansion of Touchpoints
Channel: Expansion of Touchpoints Build a seamless purchasing experience that links online and offline, including SNS. Accelerate the opening of actual stores and increase the number of places where customers can see and come into contact with our products. Flagship store (the Company’s own e-commer
Slide 38: Products: Expansion of Product Genres
Products: Expansion of Product Genres Increase the share of LOWYA products in the living space by expanding product genres, and develop products that meet the needs of a broadening customer base. Home furnishing Enhancement of product lineup General household goods including furniture Complete c
Slide 39: Engagement: Expansion of Fans
Engagement: Expansion of Fans Implement interactive communication measures online and offline for the enjoyment of customers. The Company aims to deepen its fan base by activating communication with customers and developing a community centered on SNS. SNS Actual stores Fan community Surveys of requ
Slide 40: Actual Store Locations (Planned)
Actual Store Locations (Planned) Following the opening of three stores in FY2024, the Company plans to open four to six stores in FY2025. Of these, it has been decided to open two in the Kanto region, and details will be announced later. The Company plans to continue opening new stores in FY2025 and
Slide 41: Three-Year Plan
Three-Year Plan The LOWYA business plans to continue opening new stores in the fiscal year ending March 31, 2025, and beyond to expand the scale of its operations. Target ROE of 15% or more and DOE of 2%. Fiscal year ended Fiscal year ending Fiscal year ending Fiscal year ending March 31, 2024 March
Slide 42: Three-Year Plan: Sales Targets
Three-Year Plan: Sales Targets Aim for a CAGR of 10% or more, mainly through growth in the LOWYA business. The DOKODEMO business continues its R&D phase. Net Sales 500 (Billion yen) 450 CAGR 400 +10% or more Mid-term target 50 350 New Three-Year Plan 300 billion yen 250 22.5 0.5 19.5 200 16 17 0.5 0
Slide 43: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast 5 for the Fiscal Year Ending March 31, 2025 Financial results briefing materials
Slide 44: Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Financial Results Forecast for the Fiscal Year Ending March 31, 2025 In the LOWYA business, the Company will continue to focus on profitability while controlling advertising costs, and plans to open four to six new actual stores. Focus on expanding the OMO-type D2C model. The DOKODEMO business aims
Slide 45: IR Inquiries
Views and forecasts in this document were prepared based on the judgment of the Company at the time of preparation. These statements are based on current expectations, forecasts, and assumptions that are subject to risks, and contain uncertainties that could IR Inquiries cause actual outcomes to dif