Slide 1: MarketEnterprise Co., Ltd. FY2019
MarketEnterprise Co., Ltd. FY2019 Security code TSE:3135
Slide 2: Agenda
ENTERPRISE.
Slide 3: Agenda
ENTERPRISE.
Slide 4: Company Overview
Company Overview Company Name MarketEnterprise Co., Ltd. Established July 7, 2006Business Started November 1, 2004) Stock listing date Listed on TSE Mothers in Jun. 27, 2015 Capital stock 306,375 thousand yen(as of Jun. 30, 2019) Representative President & CEO Yasushi Kobayashi Business Contents Sec
Slide 5: What is MarketEnterprise? What is Optimized trading company?
What is MarketEnterprise? MARKET+ ENTERPRISE (adventurous creation) We are a company engaged in various businesses to aim to be an "Optimized trading company" based on second-hand. What is "Optimized trading company"? A company that can offer various options to the consumer seek to be smart. Smart C
Slide 6: Business Portfolio
Business Portfolio We have built the needed portfolio to provide our service for smart consumers. Second-hand Online Business Media Telecommunication For individuals For professional Second-hand Telecommunication Platform Consumption Acquired February, 2019 Acquired August, 2019 Rental Acquired Janu
Slide 7: Overview of Second-hand Online Business
Overview of Second-hand Online Business Both purchase and sale are available at multiple-channel. We can respond customer's wide range Our base is C to B to C*. But we can accommodate Large-scale project of corporation. Business flow Contact Center Purchasing Base Three purchase methods according St
Slide 8: Second-hand Online Business: Purchasing Vertical Website
Second-hand Online Business: Purchasing Vertical Website We catch up 30 categories centered to niche merchandises and have received over 40,000 purchasing requests per month. 7
Slide 9: Second-hand Online Business: Business Strengths
Second-hand Online Business: Business Strengths primary assessment at our own contact center purchase with three channels We suggest purchasing price and method etc. home delivery over-the-counter door-to-door We develop Purchasing bases all over Japan Standardized operation Reduce psychological and
Slide 10: Media Business: Possessing Media
Media Business: Possessing Media We have these media in the keenly interested field to supply information for smart consumers. Second-hand Telecommunication Consumption Acquired August, 2019 Acquired January, 2019 9
Slide 11: Media Business: Business Model
Media Business: Business Model We have supported the users for matching by providing some contents about the highly interesting field. User Active search Provide the information you want Our own medias send users advertising revenue send users The advertiser company Customerization through our servi
Slide 12: Telecommunication Business: Business Description
Telecommunication Business: Business Description We develop budget SIM service and WiMAX, high-speed telecommunication service, as an option to realize smart consumption in telecommunication necessary in everyday life 11
Slide 13: Telecommunication Cost Percentage in Household Expense
Telecommunication Business: Percentage of telecommunication Cost in Household Expense The percentage of telecommunication cost in each household expense tend to be higher. Telecommunications cost(Left scale) The percentage in Household Expense(right scale) Unit:ten thousand yen Telecommunication cos
Slide 14: Agenda
ENTERPRISE.
Slide 15: Financial Highlights FY 2019
Financial Highlights FY 2019 Past two fiscal year were for investment. Through it, operating profit increased by 4.7 times (YoY) There was a better landing than two upward revisions. The market of the main field of Second-hand online business was strong. Strategy fields such as agricultural, constru
Slide 16: Financial Highlights FY 2019
Financial Highlights FY 2019 Net sales increased by 33.8 percent (YoY). Operating profit was up 4.7 times. Unit: million yen FY2018 FY2019 YoY Net sales 6,333 8,472 +33.8% Operating profit 96 452 4.7 times Ordinary profit 94 455 4.8 times Profit attributable to owners of parent 31 203 6.4 times 15
Slide 17: Financial Highlights FY 2019
Financial Highlights FY 2019 We have passed over the final revision with all businesses making a profit than expected. Furthermore, the results landed higher than expected in May 2019 Original forecast. The revisions on February 2019 The revisions on May 2019 Result Unit: million yen Unit: million y
Slide 18: The trend of Consolidated Operating profit
The trend of Consolidated Operating profit Past two fiscal year were for investment. Through it, operating profit increased by 4.7 times (YoY) Strategic investment period 452 Unit: million yen 500 400 300 238 200 84 97 96 100 -7 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 17
Slide 19: Change in Operating profit
Change in Operating profit Operating profit rise due to sales increase. Unit: million yen Total Increase Decrease 1,200 930 -247 960 97 -423 720 480 452 240 96 0 Operating profit Sales increase Gross profit Revaluation of SG&A Operating profit FY2018 rate worsens Inventory Growth FY2019 18
Slide 20: Balance Sheet
Balance Sheet Product inventory Unit: million yen As of Jun. 30, 2018 As of Jun. 30, 2019 Change Cash and deposits 939 1,167 +24% Product inventory 218 368 +69% Other current assets 315 624 +98% Non current assets 357 500 +40% Total assets 1,829 2,617 +22% The total of loans payable 388 556 +43% Oth
Slide 21: Sales result by business
Sales result by business Media business and telecommunication business significantly grow. Unit: million yen FY 2018 FY 2019 YoY Second-hand online 5,791 6,359 +10 Media 3 198 71.8 times Non-consolidated net sales 5,794 6,557 +13 Telecommunication 560 2,065 3.7 times eliminations -21 -150 Consolidat
Slide 22: Agenda
ENTERPRISE.
Slide 23: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 22
Slide 24: Second-hand online business: overview
Second-hand online business:overview In addition for individuals, we cultivate professional and platform business. For individuals Platform Rental For professional Acquired February, 2019 23
Slide 25: Second-hand online business: sales
Second-hand online business:sales Revenue was 6,359 million yen and increased by 10 percent (YoY).Record high sales. Unit: million yen 6,600 6,400 +10% 6,200 6,000 5,800 6,359 5,600 5,400 5,791 5,200 5,000 FY2018 FY2019 24
Slide 26: Second-hand online business: sales by field
Second-hand online business:sales by field The main 5 field was strong. Strategic fields such as agricultural, construction, and medical equipments were going up in sales. Second-hand online business:sales by field Change Home appliance +28% Audio +12% Camera +7% Musical instruments +11% PC +28% Agr
Slide 27: Second-hand Online Business: Average Selling Price
Second-hand Online Business: Average Selling Price Increase in average selling price contributed to higher sales. Unit:Yen 32,500 31,500 +7% 30,500 29,500 28,500 27,500 26,500 25,500 FY2018 FY2019 26
Slide 28: Second-hand Online Business: Trend of Purchasing requests
Second-hand Online Business: Trend of Purchasing requests The trend of purchasing requests increased by 21 percent compared with the previous year and almost 40,000 per month in FY 2019. Unit:thousand requests 500 +21% 450 400 350 466 386 300 250 FY2018 FY2019 27
Slide 29: Inventory Turnover Period
Inventory Turnover Period Both inventory amount and turnover ratio increased. Unit:day 20 21.2 25 28.3 30 35 38.3 40 41.5 45 47.2 FY2015 FY2016 FY2017 FY2018 FY2019 28
Slide 30: The Trend of Inventory by Quarter
The Trend of Inventory by Quarter Inventory increased 150 million yen compared with the previous year. Unit: million yen 400 368 350 313 300 291 292 +150 million yan +69% 250 234 218 200 150 100 50 0 2018.3 2018.6 2018.9 2018.12 2019.3 2019.6 29
Slide 31: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 30
Slide 32: Second-hand Online Business: Market Scale 7.6 trillion yen
Second-hand Online Business: Market Scale Second-hand potential market in Japan is 7.6 trillion yen 7.6 trillion yen Source:The Ministry of Economy, Trade and Industry "FY2016 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey) " 31
Slide 33: Second-hand Online Business: Market Scale
Second-hand Online Business: Market Scale C to C market Target 4.4 trillion yen 3.2 trillion yen Air conditioner, Television, Washing machine Apparel and Drying machine, Refrigerator Book Camera and peripherals PC and peripherals Commodity, Household Mobile phone and Smartphone Disk type media and s
Slide 34: Second-hand Online Business: Market Scale
Second-hand Online Business: Market Scale Including the professional market, our target is 4.5 trillion yen and extra. We develop business targeting this vast market C to C market Target Professional market 4.4 trillion yen 3.2 trillion yen 1.3 trillion yen and extra Air conditioner, Television, Was
Slide 35: Second-hand Online Business: Market Scale 4.5 trillion yen
Second-hand Online Business: Market Scale Including the professional market, our target is 4.5 trillion yen and extra. We develop business targeting this vast market C to C market Target Professional market 4.4 trillion yen 3.2 trillion yen 1.3 trillion yen and extra 4.5 trillion yen Air conditioner
Slide 36: Second-hand Online Business: Professional market
Second-hand Online Business: Professional market Low EC ratios = We Actively enter the market where it is difficult for individuals to deal with each other and there is global demand We estimated 30 percent of the domestic market scale as an estimated second-hand market. Agricultural equipment Const
Slide 37: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 36
Slide 38: Platform Oikura
Platform “Oikura" Acquired February, 2019 A nationwide matching platform for buyers and sellers of second-hand products Sellers Purchase request The nationwide member stores of Oikura through Website Recycle shop Pawnshop Find a store Purchase request you want to sell by phone Brand shop Jewelry sho
Slide 39: Platform Oikura
DE MARKET ENTERPRISE Platform “Oikura" 38
Slide 40: Important Strategies: Purchase Request Linkage to Oikura
Important Strategies: Purchase Request Linkage to Oikura Invest in system development to seamlessly send customers to member stores of Oikura. Our current business flow Contact Center Purchasing Base Three purchase methods according Streamlining product High inventory turnover Providing a sense of s
Slide 41: The Trend of Customer Referrals by Oikura
The Trend of Customer Referrals by Oikura After the linkage to Takakuureru.com in July 2019, the customer referrals number drastically increased by 67 percent in the same month for July. The expand and promotion of linkage system will be continuous. Unit: number of customer The Trend of Customer Ref
Slide 42: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 41
Slide 43: Second-hand Online Business: Rental
Second-hand Online Business: Rental We are going to expand the range of items we can deal with and promote to start another service for corporate. 42
Slide 44: Second-hand Online Business: Alliance Cases
Second-hand Online Business: Alliance Cases In addition to conventional purchasing service support and services for members, the network of partnerships with maker and retailers has expanded Purchasing service support Membership service Support of maker purchasing Support for purchasing in retail an
Slide 45: Second-hand Online Business: SDGs
Second-hand Online Business: SDGs We are making various efforts to realize a sustainable world We reduced 7,820 ton CO2 by Implementation of the system of Instrument Donation “Furusato nozei” second-hand trades. provides quality education and promotes learning opportunities. ※“Furusato nozei” is a t
Slide 46: Second-hand Online Business: Contribution to Community
Second-hand Online Business: Contribution to Community Calculate value with our assessment system Effective use of second-hand instruments nationwide at schools and music organizations Participating municipalities Inabe City, Mie from October, 2018 Higashikagura Town, Hokkaido from April, 2019 Kitam
Slide 47: Second-hand Online Business: Future Strategies
Second-hand Online Business: Future Strategies We promote furthermore strengthening of linkage with our platform and existing initiatives. Considering expansion of Strengthening of linkage new fields in the with our platform professional market, Establishment of new purchasing base Expand inventory
Slide 48: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 47
Slide 49: Media Business: Sales
Media Business: Sales Sales increased by 71.8 times. Unit: million yen 200 198 150 71.8 times 100 50 3 0 FY2018 FY2019 48
Slide 50: Media Business: Trend of Performance by Quarter
Media Business: Trend of Performance by Quarter Income by referrals with increasing of page views goes up steadily. FY2018 FY2019 Unit: million yen 100 100 80 60 56 40 32 20 11 0 0 1 2 0 Q1 Q2 Q3 Q4 49
Slide 51: Media Business: Trend of Page View
Media Business: Trend of Page View Radical expansion centering to telecommunication field. iPhone, Budget SIM, Info BEGINNERS Magazine of Takakuureru.com OUTLET JAPAN Unit: PV 7,000,000 680,000 views per month 3,900,000 views per month, increased by 6 6,000,000 times compared to last year's views 5,
Slide 52: Media Business: Acquisition of SIMCHANGE
Media Business: Acquisition of SIMCHANGE (Acquired August, 2019) The purpose of the acquisition is as follows. Responding to increased demand for second-hand cell phone due to SIM unlock(from September, 2019) The strategy of multi-domain Acquire contents Responding to increased demand due to SIM unl
Slide 53: Media Business: Future Strategy
Media Business: Future Strategy Strengthening the basis of business with expanding market of telecommunication field Catch up needs with SIM unlock trend by Expand fields cooperating with SIMCHANGE Strengthen the competitiveness of our media 52
Slide 54: About Second-hand online business
About Second-hand online business The market size of second-hand online business Platform “Oikura" Other initiative and future strategy Media business Telecommunication business 53
Slide 55: Telecommunication Business: Sales
Telecommunication Business: Sales Sales increased by 3.7 times Unit: million yen 2,500 2,000 3.7 times 1,500 1,000 2,065 500 560 0 FY2018 FY2019 54
Slide 56: Telecommunication Business: Trend of Performance by Quarter
Telecommunication Business: Trend of Performance by Quarter Performance changed radically by aggressive marketing strategy. Sales(left scale) Number of new contracted lines(left scale) Unit: million yen Unit: Line 1,000 9,000 900 8,000 800 719 7,000 700 6,000 600 551 5,000 500 462 4,000 400 312 333
Slide 57: Telecommunication Business: Trend of Number of Possessing Lines
Telecommunication Business: Trend of Number of Possessing Lines The number of our possessing lines went over 30,000 on June 2019, and monthly stock income increased over 100 million yen. Unit: Line 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2017.10 11 12 2018.1 2 3 4 5 6 7 8 9 10 11 12 2019.1
Slide 58: Telecommunication Business: Future Strategy
Telecommunication Business: Future Strategy While acquiring new customers, we will strengthen the business basis with the drastic growth. Catch up needs with ADSL end Strengthen marketing and branding (After 2023) Improving the operation 57
Slide 59: Agenda
ENTERPRISE.
Slide 60: FY 2020 Earning Forecast
FY 2020 Earning Forecast Sales will increase in all three businesses. As to profit, we plan to make an up-front investment in things connecting to growth since the next year and to break our best record of profit. Unit: million yen FY2018 FY2019 YoY Net sales 8,472 10,000 +18.0% Operating profit 452
Slide 61: The Trend of Consolidated Sales
The Trend of Consolidated Sales Our sales continue to increase for 14 years since founding. Sales will reach 10 billion yen Unit: million yen 12,000 10,000 10,000 10,000 8,472 8,000 6,333 6,000 5,631 4,863 3,989 4,000 2,941 1,947 2,000 1,131 288 576 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Slide 62: The Trend of Consolidated Operating Profit
The Trend of Consolidated Operating Profit We expect to continuously update record high profit Unit: million yen 600 Strategic investment period 600 600 500 452 400 300 238 200 84 97 96 100 -7 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 61
Slide 63: Agenda
ENTERPRISE.
Slide 64: About Our IR Activity: meetings with institutional investors
About Our IR Activity: the trend of the number of meeting with institutional investors We are strengthening communication with investors Unit: the number of meeting FY2019 30 26 25 20 15 12 10 4 5 5 0 Q1 Q2 Q3 Q4 63
Slide 65: About Our IR Activity: Our message
About Our IR Activity: Our message We are strengthening communication with investors. You have any questions at today's briefing or need contact, please contact us below. I would like to give you an explanation. ir@marketenterprise.co.jp We look forward to your continued support for our IR activitie
Slide 66: Becoming Optimized trading company based on second-hand
Becoming Optimized trading company based on second-hand 65
Slide 67: Disclaimer
Disclaimer 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