Consolidated Business Results

Transcription

1 FY2013 April 1, 2013 December 31, 2013 Consolidated Business Results

2 01 FY2013 3Q Highlights Overview for the consolidated business result Total Transaction value:81.1billion yen (+19.2% increase / yoy), Operating profit:8.6billion yen (+58.1% increase/ yoy) No change in the initial corporate plan for the whole financial year. Online shopping mall business Transaction value of the mall business: 70.2 billion yen (+16.9% increase / yoy) The number of shops : 581 shops (492 shops / March, 2013) Annual number of purchasers (January, 2013 ~ December, 2013), 3.00 million ( 2.48 million / FY2013 total) Several efforts focused on our original roots (e.g. search function improvement) led the increase of both UU and CVR. Aggressive attempts for the next step such as the new online mall LABOO development. E commerce consulting business Transaction value of e commerce consulting business:10.9 billion yen(+36.6% increase / yoy) The number of clients' websites entrusted: 25 sites (25 sites / March, 2013) Steady performance of existing websites entrusted. The sales volume derived from clients websites that have been entrusted since the preceding term contributed entirely to the transaction value in this quarter. Profitability Operating profit ratio(to the total transaction value):10.6% (the year earlier period, 8.0%) Negative factors: Free shipping service offering and starting up of new logistics facilities caused the increase in the degree of fixed cost burden. Positive factors: Revision of the promotional strategies and inexecution of ZOZOCOLLE Topics Started the new service WEAR (October,2013) Launched ZOZOMARKET, a new online market opened in ZOZOTOWN (January,2014)

3 Business Performance

4 03 Overview of the Third quarter FY2013 Consolidated income statement (includes transaction value) Item FY2013 3Q FY2012 3Q YoY Change(%) Target( ) Progress Rate(%) (million) Transaction value 81,139 68, % 108, % Net sales 27,776 25, % 36, % Gross profit 23,582 20, % - - (% Transaction Value) 29.1% 29.6% -0.6% - - SG&A 14,942 14, % - - (% Transaction Value) 18.4% 21.6% -3.2% - - Operating profit 8,640 5, % 10, % (% Transaction Value) 10.6% 8.0% +2.6% 9.5% - Recurring profit 8,672 5, % 10, % Net income 5,468 3, % 6, %

5 04 Increase decrease analysis of operating profit (YoY comparison) Drop in gross profit margin ratio 4.4 bn Influenced by free shipping offer Outsourcing expence bn Inexecution of ZOZOCOLLE Other 0.1 bn Increase of Variable expence due to the decline of unit price per shipment Profit increase effect bn Increase of SG&A due to the increase of transaction value 2.8 bn Revision of promotion strategies bn Cost increase caused by new logistics facilities'operation. Transaction Value FY2012 3Q:68.0bn FY2013 3Q:81.1bn Operating Profit 8.6 bn Operating Profit 5.4 bn FY2012 3Q FY2013 3Q

6 05 Consolidated balance sheet (million) FY2012 FY2013 (as of Dec 31, 2013) FY2012 FY2013 (as of Dec 31, 2013) Current assets 20,655 24,080 Current liabilities 10,426 12,649 cash and deposits 12,037 12,551 Deposit received for consignment sales 5,444 8,590 Merchandize inventory 1, Noncurrent liabilities Noncurrent assets 3,217 6,388 Total liabilities 11,099 13,634 Tangible assets 1,538 3,470 Shareholders' equity 12,385 16,365 Intangible assets 725 1,250 Treasury stock -3,660-3,276 Investments and other assets 953 1,667 Total net assets 12,773 16,835 Total assets 23,873 30,469 Total liabilities and net assets 23,873 30,469

7 06 Transaction Value Gross transaction value of new shops opened in Q3 FY2013 Online mall business ( purchased stock & consignment sales ) : 2.5 billion, (accounts for 3.7% of the total) E commerce consulting Purchased stock Consignment sales % 11.8% 9.1% % % 7.5% 19.0% 78.1% 79.1% 13.5% 7.5% ( bn) % 67.5% 27.3% 79.0% 73.5% 30.5% 68.8% 69.5% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 3Q

8 07 Transaction Value (Quarterly) YOY +15.8% E commerce consulting Purchased stock Consignment sales % 8.3% % 11.8% 9.5% 10.3% % 8.6% % 9.8% % 8.4% 79.0% % 9.5% 78.4% % 13.8% 8.7% 8.2% 78.0% 79.2% 14.3% 6.0% 79.7% % 14.9% 79.0% 80.2% 79.6% 79.6% % % ( bn) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

9 08 Net Sales 36,800 36,000 Others 35,050 33,000 30,000 27,000 E-commerce consulting Consignment sales Purchased stock 31,806 2,662 1,917 2,389 2,976 27,776 1,156 24,000 23,801 1,397 2,854 21,000 1,065 18,000 15,000 17, ,635 16,943 20,968 17,683 12,000 9,000 8, , ,540 6,147 6,000 3,000 2,685 5,448 6,563 10,014 10,701 10,282 8,716 6,082 ( million) 0 08/03 09/03 10/03 11/03 12/03 13/03 14/03 3Q

10 09 Net Sales (Quarterly) 12,000 10,000 8,000 6,000 4,000 Others E commerce consulting Consignment sales Purchased stock 9,686 9, ,057 8, , , ,023 7,191 6, ,972 6,101 5,001 5,170 3,312 5,249 4,684 3,459 4,210 YOY +6.4% 10, ,931 1, ,902 5,531 2,000 2,611 2,503 2,731 2,436 1,646 2,122 2,290 2,657 1,987 2,195 1,899 ( mllion) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

11 10 3,500,000 Number of Total Buyers Number of total buyers = Active members and guest buyers who made at least one purchase within a year Guest buyers = Unique buyers who made a purchase without registering as a member Active members = Members who have made at least one purchase within a year Guest buyers 3,000,173 3,000,000 2,500,000 2,000,000 1,500,000 1,370,295 9,939 Active members 1,515,500 1,719, , ,163 1,961,018 2,058, , ,012 2,352,188 2,234, , ,937 2,489, ,815 2,802,245 2,657, , ,080 1,037,802 1,000,000 1,360,356 1,389,080 1,469,255 1,581,815 1,564,519 1,662,132 1,738,669 1,776,099 1,848,888 1,901,165 1,962, ,000 (members) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

12 11 Number of shops of Mall business Purchased stock Consignment sales (shops) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

13 12 Member Distribution (As of December 31, 2013) Gender ratio Geographical distribution Age distribution Overseas 0.5% Kyusyu/Okinawa 9.1% Hokkaido 3.9% Tohoku 6.1% Chugoku/Shikoku 7.8% Kinki/Tokai 27.3% Kanto39.2% (Tokyo16.1%) Hokuriku/Koshinetsu 6.1%

14 13 Annual Purchase Amount and pieces per Active Member Annual purchase amount Annual purchase pieces 50, ,000 41,467 42,794 43,164 42,885 43,620 42,960 42,608 43,163 43,406 43,700 43, ,000 35,000 30,000 25,000 20, , , ,000 ( ) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q 3.0

15 14 Average Purchase Amount per Shipment and Average Retail Price Average purchase amount per shipment = Transaction value / Number of shipments 18,000 16,000 Average purchase amount per shipment Average retail price 14,000 12,000 10,000 12,536 12,397 14,158 12,381 12,522 11,842 13,421 10,629 10,201 9,376 YOY 7.7% 12,389 YOY 7.0% 8,000 8,410 6,000 4,000 6,733 6,275 6,479 6,210 5,244 7,624 5,955 5,677 5,011 7,089 2,000 ( ) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q The transaction value and number of shipments for ZOZOTOWN charity T shirts in FY2011 1Q are not included. With this point in consideration, average purchase per shipment when above is included: 11,891; average retail price: 6,379

16 15 Number of Shipments 2,500,000 2,302,530 2,367,837 YOY +23.1% 2,183,933 2,054,821 2,000,000 1,725,515 1,636,004 1,774,060 1,500,000 1,268,643 1,243,217 1,487,595 1,347,913 1,000, ,000 (shipments) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

17 The Ratio of Shipping Volume to the Total Purchase Volume (by access terminals) 100% 16 PC Mobile Smart Phone 90% 80% 70% 71.5% 75.1% 60% 60.4% 60.0% 58.8% 60.2% 56.5% 52.8% 52.2% 50.5% 50.1% 50% 40% 35.6% 40.9% 43.2% 45.9% 47.1% 30% 28.5% 24.9% 21.2% 22.6% 27.3% 29.0% 20% 10% 18.4% 17.4% 13.9% 10.8% 7.9% 6.3% 4.6% 3.6% 2.8% 0% FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q

18 Operating Profit and Operating Profit Margin (% Transaction Value) 17 12,000 Operating profit Operating profit margin (% transaction value) 10, % 18.0% 10,000 8,000 7,704 8,529 8, % 14.0% 10.5% 10.2% 5, % 6, % 10.4% 9.6% 8.9% 10.6% 10.0% 8.0% 4,000 3, % 2,000 1,764 2, % 2.0% ( mllion) 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 3Q 0.0%

19 18 Selling, General and Administrative (SG&A) Expenses (million) Item Amount Q Q %Transaction value Amount %Transaction value YoY change %Transaction value Payroll(*) 3, % 3, % 0.3% Shipping 2, % 1, % 0.4% Increase decrease factors The number of employee in our group: 473 as of Dec as of Dec 2013 Due to the decreased unit price per shipment ( 7.7%, yoy) arising from free shipment service offering, burden ratio of shipping cost has risen. Payment collection 1, % 1, % 0.1% Promotion related expenses 1, % 3, % -3.7% Moving in line with the initial burget for the whole financial year (2% to the total transaction value) Advertising 1, % 2, % -1.8% Promotional activities for WEAR and LABOO. Reward points related expenses % 1, % -2.0% Point reward campaign has shrinked. Outsourcing 1, % 2, % -0.8% ZOZOCOLLE was held in 2012 only. Rent expense % % 0.4% Depreciation % % 0.2% Annual lease expense for the new logistic facilities is 1.25 billion yen (Accrues from Sep 2013) Increase of depreciation burden due to the new logistics facilities' operation. Others 1, % 1, % 0.2% Total SG&A 14, % 14, % -3.2% Payroll includes salaries, bonuses, legal welfare expenses, welfare expenses, provision for retirement benefits, provision for bonuses, provision for directors' retirement benefits and subcontracting payroll

20 Operating Profit and Operating Profit Margin (Quarterly) (% Transaction Value) 3,500 3,000 Operating profit Operating profit margin (% transaction value) 2,574 3,064 2,873 2,568 3, % 18.0% 16.0% 19 2,500 2, % 2,000 1,500 1, % 1, % 2,060 1, % 9.6% 8.5% 1, % 11.0% 11.8% 10.2% 10.1% 12.0% 10.0% 8.0% 1, % 6.0% 4.0% % ( mllion) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q 0.0%

21 Selling, General and Administrative (SG&A) Expenses (Quartely) 7, % SG & A(Quartely) 6,000 Promotion related expense(% transaction value) 5, % 5,000 4,922 4,869 5,268 5,291 4,939 4, % 14.0% 4,000 3,255 3,502 4,130 4, % 10.0% 3, % 2,000 1, % 5.9% 6.7% 6.3% 4.6% 7.1% 5.4% 3.4% 1.3% 2.0% 2.5% 6.0% 4.0% 2.0% ( million) 0 FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q 0.0%

22 Business Plan For FY2013

23 22 Consolidated Business Forecast and Dividend Forecast for FY2013 Business Plan for FY2013 YoY change(%) Transaction value ( million) 108, Net sales ( million) 36, Operating profit ( million) 10, Recurring profit ( million) 10, Net income ( million) 6, Earnings per share ( ) Estimated dividends per share ( )

24 23 Transaction Value 120 Transaction value Operating Profit Margin (% transaction value) ( bn) 0 FY2009 FY2010 FY2011 FY2012 FY2013(Target) 0.0

25 Breakdown of the Total Transaction Value and Each Policy Start Today Group Total Transaction Value Target : 108,400 million (+13.0% year on year) Conservative plan based on our 15% natural growth rate Planned under assumption of not holding any promotion activities Mall Business Transaction Value Target : 93,200 million (+10.2% year on year) Consignment Sales Business: 84,400 million ( +11.3%, yoy), Purchased Stock Business 8,800million (+1.0% yoy) Expand and deepen the product category, countermeasure against the sales opportunity loss, the expansion of ZOZOUSED E Commerce Consulting Business Transaction Value Target : 15,200 million (+33.8% year on year) Improving satisfaction level of the existing brand partners Close coordination between physical retail stores and online stores Operating Profit Margin The ratio of consolidated operating profit : 9.5 % (to the total transaction value, FY %) New logistics facilities start its operation from November. Amount of capital investment 3 billion yen (planned) Increase in personnel (75 new graduates) In an effort to improve profit ratio by reducing promotional cost ratio 24

26 Future Strategies

27 26 Mid to Long term Vision Start Today s mid to long term target FY20XX term Mid to long term transaction value target Transaction value Transaction value Operating profit 500 billion 50 billion ( billion) FY2009 FY2010 FY2011 FY2012 FY2013 (Target) FY20XX

28 27 Market Expansion Strategy While ZOZOTOWN will continue to focus on the fashion e commerce market, we will expand the depth and breadth of the areas of fashion we cover by continuing to offer e commerce support to fashion brands. Entire apparel market START TODAY s market (mid to long term target) START TODAY s current market Mid to long term transaction value target 500billion E commerce consulting E commerce utilization Consignment sales Purchased stock

29 28 About our new service WEAR Fashion specific mobile app services with the concept WEAR FOR CONNECTION, enables people enjoying communication about fashion and referring to posted styling images. Opened on Thursday 31 th of October, 2013.

30 Reference Data

31 employees (average age 28.5) 2,211 high fashion brands 6,443 shareholders Corporate philosophy Make the world a better place Bring smiles to the world. 6,072 shops across Japan 3.00 million fashion savvy consumers

32 31 Major Online Mall Japan's Largest Online Retailer of Apparel and Accessories ZOZOTOWN ZOZOTOWN One of Japan s largest online shopping sites for fashion items 581 stores offering 2,211 brands. At any given time, more than 210,000 items are available with 1,300 plus new items added a day on average. Store finder function for several boutiques in Japan is also available Users can comment on merchandise and share information via social networking sites such as Twitter, Mixi, GREE and Facebook. Systems, design, logistics and other e commerce functions retained in house. ZOZOTOWN.COM Delivers to 82 countries worldwide. Available in 3 different languages. (Japanese / Chinese (Traditional) / English) The new online shopping mall LA BOO targeting the teens to 20s girls fashion market LA BOO boo.jp/ LA BOO is a mall styled online shopping website where more than 100 online stores of apparel brands that are popular among women in teens and twenties such as moussy, snidel, EMODA, CECIL McBEE and TOPSHOP gather. Opened on Wednesday 25th of September, 2013 LA BOOトップページ

33 32 Store Planning & Development Business (Purchased Stock) We operate 38 original stores such as ZOZOEPROZE and ZOZOPHAGGE on ZOZOTOWN, which offer products we purchase from various brands. Sales = Transaction value generated by each store Store Operation & Administration Business (Consignment Sales) We operate 543 online stores such as United Arrows and BEAMS on ZOZOTOWN, MARC JACOBS on ZOZOVILLA and LA BOO on a consignment basis. This does not involve any inventory risks. Sales = Transaction value of each store x commission rate B to B Business We help develop and operate online shops on behalf of various brands such as United Arrows and Onward. We currently provide back end service for 25 stores. Store Planning & Development Business 9.1% Sales = Transaction value of these online shops x commission rate Store Operation & Administration Business 79.1% *Our total sales volume consist of above sales and that of other businesses including the initial cost for brands consignment shop opening, ZOZOPREMIUM (premium membership fee based services), and ZOZOCARD (partner credit card fee revenues). B to B Business 11.8% (Transaction value for FY2012)

34 33 This material has been created for the sole purpose of introducing the company s business activities, and not for soliciting investment. The business forecasts and the future outlook herein described are based on information currently available. They are subject to uncertainties and therefore change, thus actual results may differ.