Overview Total Transaction Value · 2014. 10. 31. · Overview ・Total transaction value :...
Transcript of Overview Total Transaction Value · 2014. 10. 31. · Overview ・Total transaction value :...
Overview・Total transaction value : 56.0billion yen (+ 13.1% increase / Yoy) Operating Profit 6.0 billion (+11.1% increase / Yoy).・For Operating Profit, we have over achieved our corporate plan (not disclosed).
Total Transaction Value・Mall business Total transaction value : 48.3billion yen ( + 12.0% / Yoy).
Purchased Stock Business (Selected Items) : 370 million yen (-88.6% / Yoy)Purchased Stock Business (Used Clothing): 1.4 billion yen( + 55.2% / Yoy)
・Consignment business :46.5 billion (+ 19.5% / Yoy)・E-commerce Consulting Business Total Transaction Value : 7.7billion yen (+ 20.3% / Yoy).
Profitability・Operating profit margin (to total transaction value) : 10.8% (11.0% for FY2013).・Positive factors : Control over promotion strategies as well as increase in gross profit due to change in the sales mix・Negative factors : New logistics facilities caused an increase in fixed cost burden.
Topics・Merged Girl’s fashion site “LABOO” into ZOZOTOWN.(2014, end of July)・We have linked “Beauty Navi” to WEAR, introducing more than 800 salon staff as coordinators. (September)・Launched WEAR in 21 countries including the U.S. , U.K., Singapore, Malaysia. (September)・Having the first major update for WEAR, ~the Recommend Function~. (October)・Updating shipping cost policies, as well as offering free same day shipping, starting from October 1st . (October)
FY2014 Corporate Plan・Total transaction value : 132.4billion yen (+15.5% increase / Yoy) Operating profit: 13.71billion yen + (10.7% increase / Yoy)・The renewal for ZOZOTOWN, which we plan to have during the second half of the fiscal year will play an important roll.
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Item FY2014 2Q FY2013 2Q YoY Change(%) Target ProgressRate(%)
Transaction value 56,073 49,572 +13.1% 132,400 42.4%
Net sales 17,620 17,467 +0.9% 41,700 42.3%
Gross profit 16,796 14,438 +16.3% - -
(% Transaction Value) 30.0% 29.1% +0.9% - -
SG&A 10,753 8,996 +19.5% - -
(% Transaction Value) 19.2% 18.1% +1.1% - -
Operating profit 6,043 5,441 +11.1% 13,710 44.1%
(% Transaction Value) 10.8% 11.0% -0.2% 10.4% -
Recurring profit 6,082 5,454 +11.5% 13,720 44.3%
Net income 3,913 3,467 +12.9% 8,430 46.4%
(million)
3
Improvement in gross margin ratio
+0.4bn
Profit increase effect +1.8bn
Increased SG&A costs due to growth in
Transaction Value▲1,1bn
Operating expenses for new logistics facilities
▲0,6bn Others +0.05bn
Operating Profit 6,0bn
Operating Profit5,4bn
Transaction Value
FY2013 1Q:24,300mn
FY2014 1Q:56,000mn
FY2013 2Q FY2014 2Q
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(million)
FY2013FY2014 2Q
(as of September 30, 2014)
FY2013FY2014 2Q
(as of September 30, 2014)
Current assets 26,970 27,640 Current liabilities 12,710 11,011
cash and deposits 17,711 18,639 Deposit received for
consignment sales 7,071 6,274
Merchandize inventory 321 509 Noncurrent liabilities 1,250 1,317
Noncurrent assets 6,217 6,177 Total liabilities 13,961 12,329
Tangible assets 3,232 3,123 Shareholders' equity 18,695 21,000
Intangible assets 1,150 995 Treasury stock -3,276 -3,276
Investments and other assets 1,834 2,058 Total net assets 19,227 21,488
Total assets 33,188 33,818 Total liabilities and net assets 33,188 33,818
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(million)
Item FY2014 2Q FY2013 2Q YOY Reasons for the Changes
Cash flows fromoperating activities 3,001 3,517 -516 Increase in corporation tax and
others (current term)
Cash flows frominvesting activities -412 -2,065 1,652 Investment in the new logistic
facilities (preceding term)
Cash flows fromfinancing activities -1,607 -1,067 -539 Increase in payout dividend
(current term)
Cash and cash equivalents
at the end of year18,639 12,613 6,025
Gross transaction value of new shops opened in FY2014 2QOnline mall business ( purchased stock & consignment sales ) : ¥ 430 million, (accounts for 0.9% of the total)
E-commerce consulting
Purchased stock
Consignment sales
21.5
36.6
56.1
80.2
95.8
114.6
132.4
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 2Q
27.3%
68.8%
3.9%
73.5%
19.0%
7.5%
78.1%
12.8%
9.1%
69.5%
30.5%
79.1%
9.1%
11.8%
(¥ bil)
56.079.9%
6.7%
13.4%
13.8%3.2%
83.1%
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E-commerce consulting
Purchased stock
Consignment sales
YOY+14.2%
19.1
21.6
27.2 27.8
24.3 25.2
31.5 33.5
27.2
0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320
340
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
11.8%
79.6%
8.6%
10.6%
79.6%
9.8%
12.6%
79.0%
8.4%
12.1%
78.4%
9.5% 12.1%
79.2%
8.7%
13.8%
78.1%
8.2%
14.3%
79.7%
6.0%
13.4%
81.9%
4.7%
82.7%
14.7%
2.7%
(¥ bil)
28.8
12.9%
3.7%
83.4%
8
E-commerce consulting
Purchased stock
Consignment sales
Others
6,563 10,014 10,701 10,282 8,716
7,667
1,790
3,540
6,147
10,635
16,943 20,968 25,324
13,045
338
1,065
1,917
2,976
4,016
1,997
591
657
1,397
2,662
2,389
1,573
785
10,696
17,159
23,801
31,806
35,050
38,580
17,620
0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
30,000
33,000
36,000
39,000
42,000
45,000
09/03 10/03 11/03 12/03 13/03 14/03 15/03 2Q
41,700
(¥ mil)
9
YOY+3.2%
E-commerce consulting
Purchased stock
Consignment sales
Others
1,646 2,122 2,290 2,657
1,987 2,195 1,899 1,584 723 1,067
4,210
4,684
5,972 6,101
5,249 5,531
6,902 7,640
6,289 6,756
596
608
891
879
881 819
1,153 1,161
1,032
965
738
771
531347
417385
352417
356
429
7,191
8,186
9,686 9,985
8,536 8,931
10,308 10,804
8,401
9,218
0
2,000
4,000
6,000
8,000
10,000
12,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(¥ mil)
2,201 3,236
5,851
7,704 8,529
12,388
6,043
10.2%
8.8%
10.4%
9.6%
8.9%
10.8% 10.8%
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 2Q
(¥ mil)
13,710
Item
FY2014 2Q FY2013 2Q YoY change
Increase decrease factorsAmount %Transaction
value Amount %Transactionvalue
%Transactionvalue
Payroll(*) 2,861 5.1% 2,452 4.9% 0.2% The number of employees in our group has grown from 580 to 618( September, 2014.)
Shipping 2,169 3.9% 1,719 3.5% 0.4% Decreased unit price per shipment ( -3.7% / Yoy) . Same day shipping.
Payment collection 1,382 2.5% 1,173 2.4% 0.1%
Promotionrelated expenses 720 1.3% 816 1.6% -0.3%
Advertising 266 0.5% 498 1.0% -0.5% Promoting our buying services, using TV comercials. (June, 2014)
Reward pointsrelated expenses 454 0.8% 317 0.6% 0.2%
Outsourcing 1,193 2.1% 1,273 2.6% -0.5% Change in outsourcing scope caused budget transfer to personnel fees, also endingsublease had impact.
Rent expense 847 1.5% 351 0.7% 0.8% Annual lease expense for new logistics facilities, 1.25 billion yen (Accrues from Sep 2013)
Depreciation 375 0.7% 167 0.3% 0.4% Increase of depreciation burden due to the new logistics facilitie's operation
Others 1,201 2.1% 1,042 2.1% 0.0%
Total SG&A 10,753 19.2% 8,996 18.1% 1.1%
※Payroll includes salaries, bonuses, legal welfare expenses, welfare expenses, provision for retirement benefits, provision for bonuses, provision for directors' retirement benefits and subcontracting payroll
Operating profit margin (% transaction value)
Operating profit
1,635
1,254
2,574
3,064 2,873
2,568
3,198
3,748
2,883 3,160
8.5%
5.8%
9.4%11.0%
11.8%
10.2%10.1% 11.2% 10.6%
11.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(¥ mil )
Promotion related expense(% transaction value)
SG & A (Quarterly)
(¥ mil)
4,130
5,268 5,291 4,939
4,183
4,813
5,945 6,122
5,167 5,585
4.6%
7.1%
5.4%
3.4%
1.3% 2.0%2.5% 2.2%
1.2% 1.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
Number of total buyers = Active members and guest buyers who made at least one purchase within a yearGuest buyers = Unique buyers who made a purchase without registering as a memberActive members = Members who have made at least one purchase within a year
Guest buyers
Active members
1,564,519 1,662,132 1,738,669 1,776,099 1,848,888 1,901,165 1,962,371 2,036,803 2,127,592 2,217,050
494,012 571,937
613,519 713,815
808,579 901,080
1,037,802 1,178,934
1,278,527 1,305,525
2,058,531 2,234,069
2,352,188 2,489,914
2,657,467 2,802,245
3,000,173
3,215,737 3,406,119
3,522,575
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(members)
399430 451 452 474
517543
605 627 642
40
3939 40
40
3938
1618
17
439469
490 492514
556581
621645 659
0
100
200
300
400
500
600
700
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(shops)
Purchased stock
Consignment sales
WOMEN59%
MEN41%
WOMEN59%
MEN41%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
0 20 40 60 80 100
Average age 31.8
(members)
■Gender ratio ■Geographical distribution ■Age distribution
Overseas 0.7%
Kyushu/Okinawa 9.0%
Kinki/Tokai 27.3%
Hokuriku/Koshinetsu 6.0%
Hokkaido 3.8%
Tohoku 6.0%
Kanto39.5%(Tokyo16.4%)
Chugoku/Shikoku 7.8%
43,620 42,960 42,608 43,163 43,406 43,700 43,646 44,154 43,405 42,972
6.4 6.7 6.7
6.9 7.1
7.2 7.3 7.5 7.4 7.5
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(¥)
Annual purchase piecesAnnual purchase amount
Average purchase amount per shipment = Transaction value / Number of shipments
Average retail price
Average purchase amount per shipment
12,522 11,842
13,421
10,629 10,201 9,376
12,389
10,674 9,791
9,031
6,210 5,244
7,624
5,955 5,677
5,011
7,089
5,773 5,444 4,742
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(¥)
YOY- 5.4%
YOY- 3.7%
YOY+17.5%
1,347,913
1,636,004 1,774,060
2,302,530
2,054,821
2,367,837
2,183,933
2,720,874
2,372,373
2,782,854
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
(shipments)
58.8% 60.2%56.5%
52.8% 52.2% 50.5%
47.1%
44.9% 43.5% 42.8%
13.9%10.8%
7.9% 6.3%4.6% 3.6% 2.8% 2.4% 1.9% 1.7%
27.3% 29.0%
35.6%40.9%
43.2% 45.9%
50.1%52.7%
54.6% 55.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2012 1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2013 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2014 1Q FY2014 2Q
Smart PhonesPC Feature Phones
Business Plan for FY2014 YoY change(%)
Transaction value (\million) 132,400 15.5
Net sales (\million) 41,700 8.1
Operating profit (\million) 13,710 10.7
Recurring profit (\million) 13,720 10.4
Net income (\million) 8,430 8.1
Earnings per share (\) 78.6 -
Estimated dividends per share (\) 28 -
23
(%)
36.6
56.1
80.2
95.8
114.6
132.4
8.8
10.4 9.6 8.9
10.8 10.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0
20
40
60
80
100
120
140
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014(Target)
(¥ bil)
Operating Profit Margin (% transaction value)
Transaction value
24
Start Today
Group Total Transaction Value Target : ¥132,400 million (+15.5% year on year)
Mall BusinessTransaction Value Target : ¥114,900 million (+15.8% year on year)
・Consignment Sales Business: ¥110,000 million ( +20.1%, yoy), Purchased Stock Business ¥4,900million (-36.1% yoy)
・ Improving availability of inventories・Expanding our ZOZOUSED Business (Sales target: 4,000 million yen)
E-Commerce Consulting BusinessTransaction Value Target : ¥17,500 million (+13.5% year on year)
・Improving the satisfaction level of existing partners・EC will not include the impact of Stores.jp PRO Business
Operating Profit MarginThe ratio of consolidated operating profit : 10.4 %(to the total transaction value, FY2013 10.8%)
・Increase of fixed cost burden arising from new logistics facilities operation・Increase in personnel (37 new graduates)・Investment relating to promotional activities is planned to be 2.0% of the total transaction value・Investing in fulfillment and system to enrich website functions
Start Today’s mid to long-term target
FY20XX term
Transaction value
Operating profit
36.6 56.1
80.2 95.8
114.6
132.4
500.0
0
50
100
150
200
250
300
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014(Target) FY20XX
(¥ bn)
500 billion
50 billion
Mid to long-term transaction value target
Transaction value
27
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.
28
・We have linked “Beauty Navi” to WEAR. (September,2014)
・Having the first major update for WEAR, ~the Recommend Function~. (October, 2014)
. 4 million downloads. (October, 2014)
Acquired 100% ownership of YAPPA Corporation
We have acquired 100% ownership of YAPPA Corporation, welcoming it as a wholly owned company. (2014, October)
30
・Launched in March, 2014
・STORES.jp PRO enables anyone to develop an online shopping
website easily, at a low cost.
・All fulfillment functions are operated at our warehouse “ZOZOBASE”
(Enabling the brands to have central control over their own site’s inventory, along with
ZOZOTOWN inventory)
・We are currently operating 10 sites.
3.■
total buyers
ZOZOTOWN http://zozo.jp/
Japan's Largest Online Retailer of Apparel and Accessories - ZOZOTOWN
・One of Japan’s largest online shopping site that offers fashion items.
・659 stores offering 2,355 brands. At any given time, more than 210,000 items are available with an average of 1,300 new items added each day.
・System, Design, to fulfillment, we have all functions built in house.
Purchased StockWe operate 17 original stores within ZOZOTOWN, which offer products we purchase from brands. Purchased stock business also includes our consolidated subsidiary CROWN JEWEL’s vintage clothing store “ZOZOUSED”, which offers products we purchase from customers.
Sales include = Transaction value generated by each store
Consignment SalesWe operate 642 shops as consignment sales businesses. This business model allows us to carry a certain amount of products from the brands, while giving us low inventory risk.
Sales include = Transaction value of each store x commission rate
B to B BusinessWe help develop and operate online shops on behalf of various brands, such as “Onward” and “United Arrows”. We currently provide back-end service to 29 stores.
Sales include = Transaction value of these online shops x commission rate
*Our total sales volume consists from the 3 types of businesses above, along with fee revenues from “ZOZOPREMIUM”
(premium membership based services), and “ZOZOCARD” (partner credit card fee revenues)
B to B Business 13.4%
Store Planning &Development Business
6.7%
Store Operation & Administration Business
79.9%
(Transaction value for FY2013)
This material has been created for the sole purpose of introducing the company’s business activities, and not for soliciting investments. The business forecasts and the future outlook described in the material is based on information currently available. The forecast includes uncertainties such as sudden changes, therefore actual results may differ.