Jade Group, Inc. · TSE:3558
Jade — Q2 FY2027 Earnings Presentation
45 slides from Jade's earnings presentation, October 2026
Slide 1: FY27 2Q IR Presentation
FY27 2Q IR PRESENTATION Disclaimer This document has been prepared for the purpose of providing information on the business activities, management strategies, and performance trends of JADE GROUP, Inc . (the “Company”), and does not constitute an offer or solicitation to buy or sell shares or any ot
Slide 2: Table of Contents
Executive Summary Business Strategy Future Vision Table of Contents Financial Highlights Company Overview 1
Slide 3: Executive Summary
01. EXECUTIVE SUMMARY GMV JPY23.7Bn YoY +5.9% vs Plan 49.5% Operating profit JPY1.5Bn YoY +45.7% vs Plan 58.8% Net Sales 11.3Bn (+26.4%), EBITDA 1.7Bn (+28.7%), Net Income 0.9Bn (+62.4%) Summary Thanks to strengthened collaboration with d Card members, d fashion grew significantly, and our EC mall b
Slide 4: Key stats: GMV (2Q) +10.8%
01. EXECUTIVE SUMMARY Key stats 1 GMV (2Q) +10.8% For Magaseek and Royal, we also carried out “selection and concentration ” of our businesses during the Post Merger Integration (PMI) process, so GMV (before intercompany elimination; the same applies hereinafter) initially rose right after each M&A
Slide 5: Key stats: Operating profit +45.7%
01. EXECUTIVE SUMMARY Key stats 2 OP +45.7% In terms of business profitability, we position operating profit as our primary KPI, while concurrently treating EBITDA and net income as crucial metrics. While we are proactive in pursuing M&A, we maintain strict discipline in calculating the share acquis
Slide 6: Key stats: ROE 26.3%
01. EXECUTIVE SUMMARY Key stats 3 ROE 26.3% Net income for the Last Twelve Months (LTM) was 1.93 billion yen, and the average shareholders' equity for the same period were 7.34 billion yen. Consequently, our LTM Return on Equity (ROE) stands at 26.3%. Given that an ROE of 10% or higher is generally
Slide 7: Key stats: PER 9.9x
01. EXECUTIVE SUMMARY Key stats 4 PER 9.9x Although we have established our M&A and PMI frameworks, achieved significant growth in operating profit (Key stats 2), maintained high capital efficiency (Key stats 3), and brought GMV back onto a growth curve after completing the selection -and -concentra
Slide 8: Business Strategy
SECTION BUSINESS BUSINESS STRATEGY KEY TAKEAWAY Leveraging the “Trinity” ecosystem to drive continuous M&A and PMI 7
Slide 9: JADE GROUP's Trinity: the cornerstone of our M&A
02. BUSINESS STRATEGY Ripple effects on the PMI JADE GROUP’s “Trinity” — the cornerstone of our M&A By sharing infrastructure, inventory, and expertise, we accelerate and enhance the quality of the integration process for acquired ← Sharing inventories companies, enabling them to return to Sell offl
Slide 10: Why can we succeed in ALL M&As?
02. BUSINESS STRATEGY Why can we succeed in ALL M&As? STEP 01 logistics × IT integration JADE PMI STEP 02 MODEL STEP 03 SUCCESS RATE 100% QCD ROI Management 9
Slide 11: Why can we succeed in ALL M&As? Logistics and IT integration
02. BUSINESS STRATEGY Why can we succeed in ALL M&As? Because the functional integration of Logistics and IT is our core JADE GROUP MODEL Type -C: Function Sharing Parent company Logistics × IT M&A company Features Sharing logistics and IT functions for full integration Profit improvement is highly
Slide 12: M&A Investment Criteria and Track Record
02. BUSINESS STRATEGY M&A Investment Criteria Criteria 01 Early Investment Recovery Criteria 02 Sustainable Growth Must recover investment within 3-5 years Must be able to operate profitably not only before and Track Record but also after investment recovery Cumulative net income or after -tax contr
Slide 13: Future Vision
SECTION FUTURE FUTURE VISION Growth Vision and Roadmap Toward FY2031 KEY TAKEAWAY Achieving both scale and profitability in FY2031 12
Slide 14: Long-Term Vision: 100 bn yen GMV and 10 bn yen operating profit
03. FUTURE VISION Long -Term Vision: Aiming for 100 bn yen in GMV and 10 bn yen in operating profit → As the group grows, we will revise our KPI management for operating profit, which is calculated as: GMV * Marginal Profit Rate – Fixed Costs Previously, we counted only sales of “products ” sold thr
Slide 15: Mid Term Plan: Toward JPY 100 Bn GMV
03. FUTURE VISION Mid Term Plan: Toward JPY 100 Bn GMV (CAGR +17%) Growing from 45.9 billion yen in FY2026 to 100 billion yen in FY2031 through 3 business drivers EC MALL GMV - Thoroughly enhancing product lineup and UI/UX + inventory sharing. 1200 - Synergy from NTT Docomo (customer attraction) x I
Slide 16: Contribution Profit
03. FUTURE VISION Contribution Profit Aiming to secure a contribution profit margin of 16% or higher (excluding Royal Logi and Magaseek Hanyu). The FY25 margin was 13.4% due to temporarily elevated warehouse operating costs following the Magaseek integration. 20.0% 19.0% 18.3% 18.0% 17.0% 16.6% 16.0
Slide 17: Indirect Fixed Costs
03. FUTURE VISION Indirect Fixed Costs Thoroughly controlling the upper limit of indirect fixed costs. The policy is to keep it flat at 6 bn yen through FY2031. 70 60 The Mechanism of Profit Generation 60 53 51 While GMV grows significantly (from 45.9 b n yen 50 to 100 bn yen), the increase in indir
Slide 18: Operating Profit Target (FY2031)
03. FUTURE VISION Operating Profit Target (FY2031) Aiming for 10 bn yen in operating profit by achieving 100 bn yen GMV, controlling the contribution margin at 16.0%, and cappi ng indirect fixed costs at 6 bn yen. FY2026 Operating Profit 100 100 459 × 16.1 % - Indirect51 + 1 ≒ 24 80 GMV(JPY 100mn) C
Slide 19: Financial Highlights
SECTION FINANCIAL HIGHLIGHTS FY2027 2Q Earnings Highlights KEY TAKEAWAY Dramatic profitability improvement and a strong financial base due to structural reform and PMI effects. 18
Slide 20: FY2027 2Q Financial Highlights
04. FINANCIAL HIGHLIGHTS FY2027 2Q Financial Highlights Unit: JPY MM / % Marketing initiatives, structural reforms and PMI effects drove steady performance, achieving a GMV of 23.7 bn yen and an operating profit of 1.5 bn yen. FY2026 2Q FY2027 2Q YoY Vs Plan Except Royal Except Royal OP TTL TTL TTL
Slide 21: GMV by Business (FY2027 2Q)
04. FINANCIAL HIGHLIGHTS GMV by Business (FY2027 2Q) Unit: JPY MM / % Although the Platform business declined due to the termination of the ECS contract, EC grew on the recovery of Locondo and d fashion, and Brand grew through M&A. Composition ratio FY26 FY27 YoY % EC Mall Locondo, Magaseek, d fashi
Slide 22: GMV (before offset)
04. FINANCIAL HIGHLIGHTS GMV (before offset) Despite the termination of Magaseek ’s ECS (BOEM in JADE Group terms) and other factors, overall GMV grew on the recovery of Unit: JPY MM Locondo, d fashion and M&A effects including Royal. 15,000 11,876 10,714 10,000 5,000 0 2022 2022 2022 2022 2023 2023
Slide 23: Net Sales
04. FINANCIAL HIGHLIGHTS Net Sales Unit: JPY MM 7,000 Quarterly sales reached a 2Q record high following the acquisition of Royal 6,108 6,000 5,735 5,533 4,980 4,819 4,740 5,000 4,693 4,548 4,367 4,419 4,000 3,650 3,424 Differences in revenue recognition criteria 3,202 3,160 3,122 3,000 2,813 purcha
Slide 24: SG&A Expenses and Efficiency
04. FINANCIAL HIGHLIGHTS SG&A Expenses and Efficiency Unit: JPY MM Managed SG&A through realization of PMI, although increased mainly due to cost -increasing factors (Locoport I operation, Royal M &A). Main factors (after offset) (after offset) FY26 FY27 YoY vs GMV vs GMV Labor costs 1,132 5.3% 1,42
Slide 25: Operating profit / EBITDA
04. FINANCIAL HIGHLIGHTS Operating profit / EBITDA Royal ’s M&A drives both operating profit and EBITDA to 2Q record highs EBITDA OP Unit: JPY MM 1,200 1,052 1,039 927 897 900 821 772 735 707 697 710 651 624 621 585 572 600 538 557 516 506 482 467 452 423 393 378 347 350 350 319 303 309 254 260 300
Slide 26: Operating profit – YoY analysis
04. FINANCIAL HIGHLIGHTS Operating profit – YoY analysis Achieved 2Q record profits through cost structure reform Unit: JPY MM 2,500 (+) (-) 896 2,000 339 67 3 1,500 228 2 145 210 1,000 1,470 500 1,009 0 FY26 2Q GMV Gross profit / rent labor cost fixed ads IT depreciation others FY27 2Q variable cos
Slide 27: Financial Health & M&A Mobility (B/S)
04. FINANCIAL HIGHLIGHTS Financial Health & M&A Mobility (B/S) Unit: JPY MM Solid financial base via early PMI profit improvement amid active M&A JPY MM contents TTL assets Liabilities / equity Assets Current 11,059 cash equiv 3,418 / inventories 3,311 Fixed 4,810 tangible 1,559 / intangible 905 / i
Slide 28: EC Mall KPI
04. FINANCIAL HIGHLIGHTS EC Mall KPI *Compared to the first quarter; excludes other shopping malls # of members Active ratio # of active ARPU # of items Ave item price Return ratio (10K) members (10K) (JPY) purchased (yr) (JPY) Locondo 468.2 10.0% 46.5 21,316 3.8 5,609 22.5% (+4.8) (-0.1%) (+0.0) (+
Slide 29: Company Overview: Challenge Conventions, Transform Industries
05 SECTION Challenge Conventions, Transform Industries COMPANY OVERVIEW JADE GROUP, Inc. Company Overview
Slide 30: Company Profile
COMPANY PROFILE Company Profile JADE GROUP, Inc. Group Companies (Formerly: LOCONDO, Inc.) MAGASEEK Fashion E -commerce RBKJ (Reebok Japan) Sports Brand Establishment Stock Exchange FASCINATE High -end Select Shop October 22, 2010 TSE Growth Market TCB Denim Brand BLUE SINCERE Leather Goods Presiden
Slide 31: Corporate Philosophy: Transform Industries
CORPORATE PHILOSOPHY VISION TRANSFORM INDUSTRIES POLICY HAPPY FOR ALL CORE VALUE FAST FAITH FAIR FUN! Move speedily Earn trust internally and Be fair, transparent, Enjoy everything and flexibly. externally through results. and highly ethical. positively!
Slide 32: More Than Just Shoe E-commerce
WHO WE ARE More Than Just Shoe E -commerce. FASHION TECH COMPANY Three Game -Changing Strengths . Business Expansion In -house Platform: Inventory via M&A IT × Logistics Sharing Acquiring powerful brands and malls Owning the massive warehouse Centralized management of EC, store, like Reebok, MAGASEE
Slide 33: Technology & Infrastructure
TECHNOLOGY & INFRASTRUCTURE Technology & Infrastructure 100% IN -HOUSE AUTOMATION DATA DRIVEN Fully In -house System Warehouse Automation Data Driven Operations Our engineers develop and operate all systems in - AI-driven demand forecasting and real -time Latest material handling equipment installed
Slide 34: Three Business Pillars
JADE ECOSYSTEM Three Business Pillars EC MALL Business Platform Business Brand Business Maximizing Traffic & Sales Logistics & IT Infrastructure Creating Brand Value Operating multiple EC malls including LOCONDO.jp with its Providing proprietary logistics and IT systems to external Directly operatin
Slide 35: Unrivaled Strengths of LOCONDO.jp
EC MALL BUSINESS Unrivaled Strengths of LOCONDO.jp Groundbreaking UX Product Lineup x Growth Cycle of "Try at Home" Agile UI/UX Traffic & Supply Eliminating the biggest anxiety of online Over 5,000 brands combined with weekly shopping: "not knowing if it fits". engineering -led improvement cycles to
Slide 36: Competitive Advantage (Moat)
COMPETITIVE ADVANTAGE Competitive Advantage (Moat) Criteria Major EC Malls / Apparel EC JADE GROUP High Entry Barrier "Shoes" Product Diff. Focus on "Clothing/Goods" ●Strength in "Shoes" (Less size anxiety) Free size exchange & return know -how High operational costs for returns and size exchanges c
Slide 37: Platform Business
PLATFORM BUSINESS Platform Business Inventory Sharing Data integration between EC warehouses and store LOCONDO.jp Official Brand EC External Malls inventory. Own EC Mall Built by BOEM ZOZO / Rakuten etc. Even if a store is out of stock, we prevent "lost sales" BOEM by shipping directly from EC inven
Slide 38: Brand Business: M&A Strategy
BRAND BUSINESS & M&A STRATEGY Brand Business: M&A Strategy 2016 2022 2024 2025 Future TCB jeans Blue Sincere MANGO Reebok Stock Acquisition Subsidiarization Next M&A Exclusive Contract JP Business Acquisition Vertical Integration FASCINATE ROYAL Subsidiarization Subsidiarization JADE ECOSYSTEM MODEL
Slide 39: Group Company Introduction ①
GROUP COMPANY Group Company Introduction ① Holding Company JADE GROUP, Inc. 2010 2012 2023 Founded Renamed to Rebranded to JADE LOCONDO JADE GROUP Business Overview LOCONDO.jp Listed on TSE Growth Market (3558) Group Holding Company Main Functions Integrated group management centered on EC Mall oper
Slide 40: Company Introduction (1): Royal
GROUP COMPANY Company Introduction (1) ROYAL ROYAL COMPANY M&A Overview Acquired as sponsor in Civil Rehabilitation in 2025 (In -house company of JADE GROUP since Oct. 2026 ) Key Businesses Z-CRAFT • EC Mall Business primarily for parallel imports (Mainly Rakuten) • Logistics & Fulfillment Platform
Slide 41: Company Introduction (2): FASCINATE
GROUP COMPANY Company Introduction (2) FASCINATE FASCINATE COMPANY Business Overview Operates high -end select shops based in Shinsaibashi (Osaka) and Kyoto. Handles globally acclaimed designer brands, supported by fashion -forward enthusiasts. KEY HIGHLIGHTS High -End Brands: Carries top brands lik
Slide 42: Company Introduction (3): ARIGATO
GROUP COMPANY Company Introduction (3) Lifestyle Media "Sankyu!" ARIGATO COMPANY Brand Logo Business Overview Acquired "Sankyu!" lifestyle magazine and web media . Operated as an in -house company of JADE GROUP since Oct. 2026. Key Achievements Maintains 100k circulation despite market trends. Achie
Slide 43: Group Company Introduction ②: Reebok Japan
GROUP COMPANY Group Company Introduction ② Reebok Japan RBKJ Corp. Shareholder Structure (Joint Venture) JADE GROUP: 66% ITOCHU Corporation: 34% Establishment History In 2022, following the sale of the Reebok brand from adidas Group to ABG, RBKJ inherited the domestic business operations from adidas
Slide 44: Group Company Introduction ③: MAGASEEK
GROUP COMPANY Group Company Introduction ③ Fashion E -Commerce Platform MAGASEEK Corp. Shareholders & History Acquired from NTT Docomo in 2024. Shareholding : JADE GROUP 81% , ITOCHU Corporation 19% . MAGASEEK Business Overview • EC Mall Business: Operation of d fashion and MAGASEEK malls. • Platfor
Slide 45: Group Company Introduction ④: TCB Jeans
GROUP COMPANY Group Company Introduction ④ TCB jeans TCB JEANS & Co. MADE IN KOJIMA Relationship & Acquisition 35% stake acquired in 2024 (Affiliate) Joined as a member of JADE GROUP's "ANBUR LEAGUE". Generating group synergy while maintaining brand independence. Location & Production Kojima, Kurash