fy2017 1q - amazon s3...25% 30% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 fy2015 1q...

FY2017 1Q CONSOLIDATED BUSINESS RESULTS

Overview ・Total Transaction Value : 59,574million yen ( + 40.9% ,Yoy)

・Operating Profit : 7,981million yen ( + 59.3% ,Yoy)

→ Steady growth in both transaction value and operating profit.

Total ZOZOTOWN BUSINESS

Transaction Total Transaction Value : 57,897million yen ( + 43.4% ,Yoy)

Value Consignment Business : 54,548million yen ( + 44.6% ,Yoy)

Purchased Stock Business : 48million yen ( - 23.5% ,Yoy)

ZOZOUSED Business : 3,301million yen ( + 26.9% ,Yoy)

Average Retail Price : 4,099yen ( - 8.3% ,Yoy)Average Purchase Amount per Shipment : 8,530yen ( - 1.7% ,Yoy)

B to B Business : 1,590million yen ( - 5.5% ,Yoy)

Profitability Operating profit margin (to the total transaction value) : 13.4%(11.9% for FY2016 Q1).

Factors improving profitability : Increase in GPM (increase in other revenue segment). Decrease in fixed cost burden

FY2017 1Q HIGHLIGHTS

OVERVIEW OF THE FY2017 1Q

（million￥)

Item FY2016 1Q FY2017 1Q YoY Change(%) Target ProgressRate(%)

Transaction value 42,284 59,574 40.9% 270,000 22.1%

Net sales 15,386 21,451 39.4% 100,000 21.5%

Gross profit 13,799 19,844 43.8% - -

(% Transaction Value) 32.6% 33.3% 0.7% - -

SG＆A 8,788 11,863 35.0% - -

(% Transaction Value) 20.8% 19.9% -0.9% - -

Operating profit 5,011 7,981 59.3% 32,000 24.9%

(% Transaction Value) 11.9% 13.4% 1.5% 11.9% -

Recurring profit 5,035 7,999 58.8% 32,000 25.0%Profit attributable to owners of parent 3,580 5,532 54.5% 22,200 24.9%

(million￥)

FY2016 FY2017Item 1Q 2Q 3Q 4Q 1Q

Transaction value 42,284 44,210 61,595 64,000 59,574

YoY (%) 27.1% 29.5% 38.3% 34.6% 40.9%

Net sales 15,386 16,180 22,127 22,699 21,451

SG&A 8,788 9,228 11,350 13,561 11,863

YoY (%) 36.2% 24.0% 23.5% 46.8% 35.0%

(% Transaction Value) 20.8% 20.9% 18.4% 21.2% 19.9%

Operating profit 5,011 5,576 8,703 6,992 7,981

YoY (%) 34.2% 70.2% 83.8% 16.3% 59.3%

(% Transaction Value) 11.9% 12.6% 14.1% 10.9% 13.4%

05

Efficiency in fixed cost burden +0.7

Others ｰ0.2

Operating Profit7.9

Improvement in gross margin ratio+0.4

･HR expenses･Amortization of goodwill

Total Transaction value increase effect

＋2.0

･Increased in other revenues

Operating Profit5.0

Transaction ValueFY2016 1Q：42.2

FY2017 1Q：59.5

FY2016 1Q FY2017 1Q

（¥billion)

06

(million￥）

FY2016 (as of March 31,

2017)

FY2017 1Q (as of June 30,

2017)

FY2016 (as of March 31,

2017)

FY2017 1Q (as of June 30,

2017)

Current assets 45,641 42,885 Current liabilities 23,906 21,255

Cash and deposits 22,068 16,730 Deposit received for consignment sales 11,536 12,972

Merchandize inventory 1,177 1,479 Noncurrent liabilities 1,945 1,999

Noncurrent assets 10,079 10,860 Total liabilities 25,851 23,255

Tangible assets 3,364 3,429 Shareholders' equity 29,461 30,007

Intangible assets 1,075 1,023 Treasury stock -11,758 ‐

Investments and other assets 5,639 6,406 Total net assets 29,868 30,489

Total assets 55,720 53,745 Total liabilities and net assets 55,720 53,745

34.8%

26.3%30.4%

37.8%40.4%

41.5%

50.0%

40.4%

55.5%

72.7%

61.4%

6.2%

5.9%

5.1%

5.5%5.8%

5.6%

6.8%7.0%

7.5%

8.0%8.2%

5%

6%

7%

8%

9%

10%

0%

10%

20%

30%

40%

50%

60%

70%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017（Plaｎ）

ROE Net Profit Margin（to the total transaction value）

07

Gross transaction value of new shops opened in FY2017 1Q ZOZOTOWN Business ( purchased stock & consignment sales ) : ¥ 0.6 billion (accounts for 1.1% of the total transaction value)

ZOZOUSED

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

08

80.2 95.8

114.6 129.0

159.5

212.0

59.5

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

3000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 1Q

78.1%

12.8%9.1%

79.1%

8.5%

11.8%0.6%

79.9%

4.7%

13.4% 2.0%

82.2%

0.6%

13.7%3.4%

0.4%

86.2%

8.3%5.0%

0.1%

0.1%90.5%

2.9%6.1%

0.4%

0.1%

91.6%

2.7%5.5%

0.1%

（¥billion)

YOY+40.9％

ZOZOUSED

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

09

33.2 34.1

44.5 47.5

42.2 44.2

61.5 64.0

59.5

0

40

80

120

160

200

240

280

320

360

400

440

480

520

560

600

640

680

FY2015 1Q FY2015 2Q FY2015 3Q FY2015 4Q FY2016 1Q FY2016 2Q FY2016 3Q FY2016 4Q FY2017 1Q

13.2%

82.4%

3.9%0.5%

9.5%

85.8%

4.2%0.6%

6.7%

87.3%

5.7%0.3%

5.7%

88.0%

5.7%0.4%

0.2%

0.1%

89.2%

4.0%6.2%

0.5%

0.1%

91.0%

2.8%5.8%

0.4%

0.1%

90.2%

2.6%

6.7%

0.4%

0.1%

91.2%

2.7%5.6%

0.4%

0.1%

91.6%

2.7%5.5%

0.1%

（¥billion)

ZOZOUSED

Purchased stock

Consignment sales

B to B Business

Others

ZOZOFURIMA

10

16,943 20,968

25,324 29,725

39,313

55,253

15,716

10,282 8,139

5,381 766

693

193

48

577

2,285 4,446

7,958

12,875

3,301

1,917 2,976

4,016 4,477

3,256

1,338

330

6

0

0

2,662 2,389

1,573 1,766

3,192

6,731

2,054

31,806 35,050 38,580 41,182

54,422

76,393

21,451

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000


（million¥）

ZOZOUSED

Purchased stock

Consignment sales

B to B Business

Others

ZOZOFURIMA

11

YOY+39.4％

7,798 8,360

11,162 11,992

10,812 11,641

15,951 16,848 15,716 170

197

146 178

63

42

39

48

48

1,307 1,417

2,518

2,716

2,601 2,554

4,114 3,605

3,301

1,093 814

706

642

387 274

325 350

330

0

5

00

00

0

487 770

799

1,136

1,521 1,666

1,697 1,846

2,054

10,856 11,560

15,333

16,671

15,386 16,180

22,127 22,699

21,451

0

5,000

10,000

15,000

20,000

25,000


（million¥）

Operating Profit Margin (% Transaction Value)

Operating Profit

12

7,704 8,529

12,388

15,084

17,756

26,284

7,981

9.6%8.9%

10.8%11.7%

11.1% 12.4%

13.4%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000


（million¥）

13

(million￥）

ItemFY2016 1Q FY2017 1Q YoY change

Increase decrease factorsAmount %Transaction

value Amount %Transactionvalue

%Transactionvalue

Payroll(*) 2,472 5.8% 2,896 4.9% -0.9%The number of employees in our group has grown from 819 as of June, 2016 to 832 as of June, 2017Operational efficiency and partially shifted and allocated to outsourcing expenses item

Shipping 1,837 4.3% 2,616 4.4% 0.1%Commission of Payment collection 1,043 2.5% 1,953 3.3% 0.8% Changes in the composition ratio of settlement means

Promotionrelated expenses 650 1.5% 899 1.5% 0.0%Advertising 223 0.5% 345 0.6% 0.1%

Reward pointsrelated expenses 427 1.0% 554 0.9% -0.1%Outsourcing 807 1.9% 1,384 2.3% 0.4% Shifted and allocated from payroll item

Rent expense 478 1.1% 597 1.0% -0.1%Depreciation 194 0.5% 197 0.3% -0.2%Amortization of goodwill 214 0.5% 56 0.1% -0.4% Impairment of goodwill in the end of last fiscal year (aratana Inc)

Others 1,089 2.6% 1,259 2.1% -0.5%Total SG&A 8,788 20.8% 11,863 19.9% -0.9%

※Payroll includes director’s remuneration, employee salaries, bonus, legal welfare expenses, welfare expenses, retirement benefits cost, provision for employee bonus, provision for directors' bonus, and subcontracting payroll.

Operating Profit Margin (% Transaction Value)

Operating Profit

14

YOY+59.3％

3,733 3,276

4,735

6,011

5,011 5,576

8,703

6,992

7,981

11.2%9.6%

10.6%12.6%

11.9%

12.6%

14.1%

10.9%

13.4%

0%

5%

10%

15%

20%

25%

30%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000


（million¥）

Promotion related expenses（% Transaction value）

SG&A (Quarterly)

15

6,453

7,444

9,193 9,236 8,788

9,228

11,350

13,561

11,863

1.8%2.6%

3.7%

1.9%1.5%

2.3% 2.0%

4.5%

1.5%

0%

4%

8%

12%

16%

20%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


（million¥）

（QUARTERLY）

※Payroll includes director’s remuneration, employee salaries, bonus, legal welfare expenses, welfare expenses, retirement benefits cost, provision for employee bonus, provision for directors' bonus, and subcontracting payroll.

16(million ￥）

FY2016 FY2017

Item1Q 2Q 3Q 4Q 1Q

Amount %Transactionvalue Amount %Transaction

value Amount %Transactionvalue Amount %Transaction

value Amount %Transactionvalue

Payroll(*) 2,472 5.8% 2,383 5.4% 2,935 4.8% 2,845 4.4% 2,896 4.9%

Shipping 1,837 4.3% 2,073 4.7% 2,321 3.8% 2,684 4.2% 2,616 4.4%Commission of Payment collection 1,043 2.5% 1,108 2.5% 1,578 2.6% 1,726 2.7% 1,953 3.3%Promotion

related expenses 650 1.5% 1,006 2.3% 1,216 2.0% 2,902 4.5% 899 1.5%

Advertising 223 0.5% 454 1.0% 551 0.9% 1,770 2.8% 345 0.6%Reward pointsrelated expenses 427 1.0% 551 1.2% 665 1.1% 1,131 1.8% 554 0.9%

Outsourcing 807 1.9% 798 1.8% 1,003 1.6% 1,231 1.9% 1,384 2.3%

Rent expense 478 1.1% 468 1.1% 565 0.9% 601 0.9% 597 1.0%

Depreciation 194 0.5% 195 0.4% 220 0.4% 232 0.4% 197 0.3%Amortization of goodwill 214 0.5% 256 0.6% 176 0.3% 176 0.3% 56 0.1%

Others 1,089 2.6% 936 2.1% 1,332 2.2% 1,160 1.8% 1,259 2.1%

Total SG&A 8,788 20.8% 9,228 20.9% 11,350 18.4% 13,561 21.2% 11,863 19.9%

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

17

2,401,421 2,401,317 2,522,500 2,686,926 2,844,171 3,059,991 3,421,440

3,893,156 4,181,873

1,201,775 1,296,937

1,512,242

1,790,424 1,988,387

2,192,550

2,361,941

2,430,877

2,552,867

3,603,196 3,698,254 4,034,742

4,477,350 4,832,558

5,252,541

5,783,381

6,324,033

6,734,740

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000


（members）

Purchased stock

Consignment sales

18

658 694

811843 832 865

927 947979

2726

2824 10

7

77

8

685720

839867 842

872934 954

987

0

200

400

600

800

1,000


（shops）

Kyushu/Okinawa 8.8％

Kinki/Tokai 27.7％

Hokuriku/Koshinetsu 5.9％

Hokkaido 3.4％

Tohoku 5.5%

Kanto 41.0％（Tokyo 17.5%)

Chugoku/Shikoku 7.7％

■ Gender ratio ■ Geographical distribution ■ Age distribution

19

Annual purchase amount Annual purchase pieces

20

44,279

46,135 47,140

47,937 48,644 48,556 48,275

46,417

47,119

8.0

8.6 8.9

9.4

9.9

10.4 10.5 10.3

10.7

7

8

9

10

11

12

13

14

30,000

32,000

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000

50,000


（¥）(item）

Annual purchase amount Annual purchase pieces

21ANNUAL PURCHASE AMOUNT AND PIECES PER EXISTING ACTIVE MEMBER

Existing active members：Active members who have passed over 1 year since registration

54,827

55,903 56,567

57,870

58,953

60,106 60,929

61,770

63,004

9.9 10.3

10.7

11.3

11.8

12.6

13.1

13.6

14.1

9

10

11

12

13

14

15

16

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000


（¥） (item）

YoY comparison

Shipment volume

22

3,007,626 3,330,674

3,901,739

4,871,419 4,652,101

5,391,093

5,886,580

6,931,318 6,787,599

26.8%

19.7%

52.5%62.7%

54.7%61.9%

50.9%42.3% 45.9%

0%

20%

40%

60%

80%

100%

120%

140%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000


（shipment）

Average retail price = Transaction value / Number of pieces (ZOZOTOWN Business)

YoY comparison

Average retail price

23

5,041 4,522

5,939

4,922 4,468

3,855

5,236

4,474 4,099

-7.4%

-4.6%

-12.5% -11.1%-11.4% -14.7%

-11.8%

-9.1%-8.3%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


（¥）

Average purchase amount per shipment = Transaction value / Number of shipments (ZOZOTOWN Business)

YoY comparisonAverage purchase amount per shipment

24

9,605 9,277

10,651

9,189 8,680

7,941

10,143 8,955 8,530

-1.9%

2.7%

-12.2%-14.0% -9.6%

-14.4%

-4.8%-2.5%

-1.7%

-25%

-15%

-5%

5%

15%

25%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000


（¥）

Smart PhonesPC Feature Phones

25

38.7% 36.9%33.4% 31.3% 29.7% 28.1%

24.6% 22.3% 20.5%

60.4% 62.3%66.0% 68.2% 69.9% 71.6%

75.2% 77.5% 79.4%

0.9% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.2% 0.1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


FY2017 PLAN Growth Rate(%)

Transaction value 270,000 (￥million) 27.3%

Net sales 100,000 (￥million) 30.9%

Operating profit 32,000 (￥million) 21.7%

Recurring profit 32,000 (￥million) 21.0%

Profit attributable to owners of parent 22,200 (￥million) 30.3%

Earnings per share 71.2(￥) -

Estimated dividends per share 29(￥) -

27

36.6 56.1

80.2 95.8

114.6 129.0

159.5

212.0

270.0

8.8%

10.4%

9.6%8.9%

10.8%11.7% 11.1%

12.4%11.9%

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1000

1500

2000

2500

3000

3500

4000

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017（Target）

（¥billion）

Operating profit margin（to the total transaction value）

Total transaction value

28

Target for Total Transaction Value：270.0 billion yen (+27.3％, Yoy）

Target for Total Transaction Value：264.0 billion yen (+28.8％, Yoy）

Target for Total Transaction Value：6 billion yen（ｰ3.5％, Yoy）

The target ratio of consolidated operating profit：11.9%（12.4％ for FY2016）

Operating Profit Margin(to the total transaction value)

・Consignment Business 246 billion yen (+28.2％, Yoy）・ZOZOUSED Business 18 billion yen (+39.8％, Yoy）

ZOZOTOWN Business

B to B Business

Start Today Group

29

Capital InvestmentDepreciation CostAmortization of Goodwill

30

466 570

1,047

2,162

353

1,174 1,107

2,000

153277

322

586

786765 843 1,080

113150

231

409

744

825230

0

500

1,000

1,500

2,000

2,500

FY2010 FY2011 FY2012 FY2014 FY2013

（million¥）

FY2015 FY2016 FY2017（Plan)

Payout ratio

Dividends per share

31

0.7 0.9 1.4 2.3

5.0 6.6

8.3

11.3

15.6

22.7

29.0

21.5%24.1%

24.9% 24.8%

35.6%

40.3%

34.3%

40.6% 41.8% 41.5%40.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

5

10

15

20

25

30

35

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017（Plan）

（¥）

36.6 56.1

80.2 95.8

114.6 129.0

159.5

212.0

270.0

500.0

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017（Target） FY20XX

（¥billion)

Mid to long-termTransaction value

FY20XXTransaction value ¥500 billionOperating profit ¥50 billion

33

36

6.7

※Changed the definition when we count the number of our handlingbrands from this fiscal year.

※

ZOZOTOWNJapan’s Largest Online Retailer of Apparel and Accessories・987 stores offering 5,859 brands.・At any given time, more than 520,000 items are available with an average of 2,900 new items added each day.

・Systems, design, to fulfillment, all functions are built in house.

ZOZO FURIMA・ By linking with ZOZOTOWN and WEAR, users are able to sell their items easily without having to type in specific details.

・By linking IDs from both services, users are able to select items they would like to sell based on their purchase history or the closet function on WEAR, which adds a whole new convenience compared to the existing flea-market Apps.※ZOZO FURIMA Business ended on June 30, 2017.

WEARJapan’s largest fashion coordination app・When uploading coordinate pics, tag each item worn in the look, using information on our data base. The systems allows anyone to search for coordinates and items by various queries.

・Official users who we call WEARISTAs, include popular models, singers, actors and actresses.

・Over 9.0 million DL・Now available in all geographic areas.

37

38

※ZOZO FURIMA Business ended on June 30, 2017.

CRM,

ZOZOTOWN BUSINESS・Consignment SalesWe operate 979 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

・Purchased StockWe operate 8 stores within ZOZOTOWN, which offer products we purchase from brands. Sales include = Transaction value generated by each store

・ZOZOUSED BusinessWe purchase used fashion products from our users, and resell them as a second hand business.Sales = Transaction value※Total transaction value and Net sales from ZOZOUSED are included in the purchased stock business.

B to B BusinessWe help develop and operate online shops on behalf of various brands, such as “United Arrows”. We currently provide back-end service to 20 stores.Sales include = Transaction value of these online shops x commission rate※Total Sales include, contents written above as well as other sales. (such as shipping fee revenues and fees from shop openings )

ZOZO FURIMA BusinessOur smartphone App where users are able to sell and purchase personal fashion items. Sales = Transaction Value × Take rate for the flea-market business ※Net Sales from the flea-market business is included in “Others”※ZOZO FURIMA Business ended on June 30, 2017.

MAJOR SERVICES 39

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.

fy2017 1q - amazon s3...25% 30% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 fy2015 1q...

Documents