fy2018 consolidated business results€¦ · zozotown business ( purchased stock & consignment...

FY2018CONSOLIDATED BUSINESS RESULTS

FY2018 HIGHLIGHTS

Overview Gross Merchandise Value : 323,129 million yen ( + 19.4% ,Yoy)

Operating Profit : 25,654 million yen ( 21.5% ,Yoy)

Gross ZOZOTOWN BUSINESS

Merchandise Gross Merchandise Value : 311,351 million yen ( + 18.4% ,Yoy)

Value Consignment Business : 294,230 million yen ( + 19.2% ,Yoy)

Purchased Stock Business : 149 million yen ( 10.1% ,Yoy)

ZOZOUSED Business : 16,971 million yen ( + 6.4% ,Yoy)

Private Brand Business : 2,763 million yen

Average Retail Price : 4,364 yen ( + 3.8% ,Yoy)

Average Purchase Amount per Shipment : 9,454 yen ( + 9.8% ,Yoy)

B to B Business : 9,014 million yen ( + 19.6% ,Yoy)

ProfitabilityOperating profit margin (to the total gross merchandise value)

: 7.9% (12.1% for FY2017

Factors improving profitability : Decrease in the commission regarding payment collection

Factors worsening profitability : Decrease in GPM, Initiation of mass distribution of ZOZOSUIT

Increase in the rate of shipping cost due to the change of shipping charge from the carrier,

Increase in the rate of payroll, Increase in the rate of other expenses,

TopicZOZO Research starts collaborative researches with Doshisha

12 million people (January, 2019)

Conclusion of comprehensive partnership agreement with Chiba City and Chiba University, and construction of a new office in Nishi-Chiba

Area. Expected construction completion is in 2020. (February, 2019)

)

Conclusion of Commitment Line Agreement March, 2019

01

Gross Merchandise Value: The amount is before deduction of discounts attributable to the paid-membership service.

Net Sales: The amount is after the abovementioned deduction.

Paid-Membership Income: Booked in the others segment of net sales.

ZOZOARIGATO Membership

Release date: December 25, 2018

Price: 3,000 yen (excluding tax) per annum,

or 500 yen (excluding tax) per month

Payment method: Credit card or Deferred payment

Members benefits:

1. Application of 10% discount for purchases. Either portion or full of the discounted amounts can be used for donation to the designated Non-Profitable Organizations selected by ZOZO or return to the shops where items were purchased.

First Registration Campaign For those who registered to ZOZOTOWN for the first time, 30% discount will be given to the purchased items during the first month from registration.

Discount limit: 50,000 yen per month

2. Invitation of new-year sales precedential to normal members.

02ZOZOARIGATO MEMBERSHIP SERVICE OVERVIEW

OVERVIEW OF THE FY2018 04

million

Item FY2017 FY2018YoY

Change(%)Target

Progress Rate(%)

Revised Plan

as at Jan 31, 2019)

Progress Rate(%)

Gross Merchandise Value 270,543 323,129 19.4% 360,000 89.8% 327,000 98.8%

Net sales 98,432 118,405 20.3% 147,000 80.5% 118,000 100.3%

Gross profit 90,464 104,962 16.0% - - - -

(%Gross Merchandise Value) 33.4% 32.5% -0.9% - - - -

SG A 57,794 79,308 37.2% - - - -

(%Gross Merchandise Value) 21.4% 24.5% 3.1% - - - -

Operating profit 32,669 25,654 -21.5% 40,000 64.1% 26,500 96.8%

(% Gross Merchandise Value) 12.1% 7.9% -4.2% 11.1% - 8.1% -

Recurring profit 32,740 25,717 -21.4% 40,000 64.3% 26,500 97.0%

Profit attributable to owners of parent

20,156 15,985 -20.7% 28,000 57.1% 17,800 89.8%

05

million

FY2017 FY2018

Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Gross Merchandise Value 59,574 60,082 77,331 73,555 70,406 70,814 93,809 88,098

YoY (%) 40.9% 35.9% 25.5% 14.9% 18.2% 17.9% 21.3% 19.8%

Net sales 21,451 21,242 28,220 27,517 26,552 27,212 36,010 28,630

SG&A 11,863 13,684 16,476 15,770 18,376 20,559 21,490 18,882

YoY (%) 35.0% 48.3% 45.2% 16.3% 54.9% 50.2% 30.4% 19.7%

(%Gross Merchandise Value) 19.9% 22.8% 21.3% 21.4% 26.1% 29.0% 22.9% 21.4%

Operating profit 7,981 5,850 9,720 9,118 5,874 4,178 10,577 5,023

YoY (%) 59.3% 4.9% 11.7% 30.4% -26.4% -28.6% 8.8% -44.9%

(%Gross Merchandise Value) 13.4% 9.7% 12.6% 12.4% 8.3% 5.9% 11.3% 5.7%

Operating Profit

32.6

Gross Merchandise

Valueincrease effect

+6.3

FY2017 FY2018

Change in thecomposition of settlement manners

Decrease in the rate of commission

regarding payment

collection +1.1

06

bn

Increase in the rate of payroll

-1.9

Others

-1.6

Operating Profit

25.6

Change in shipping charge from the carrier

Initiation of mass distribution of ZOZOSUIT

PB-related advertisement

Increase in the number of employees on consolidated basisIncrease in expenses due to the increase in the number of logistics centers

Increase in shipping cost

-3.5

Increase in promotion expenses

-4.2

Decrease in GPM

-3.0

Valuation loss on PB inventoryDiscounts from ARIGATO Program

07

million

FY2017 (as of March 31, 2018)

FY2018(as of March 31, 2019)

FY2017(as of March 31, 2018)

FY2018 (as of March 31, 2019)

Current assets 53,574 57,904 Current liabilities 27,243 52,245

Cash and deposits 24,571 21,560 short-term borrowing - 22,000

Merchandise andfinished products 2,194 4,533

Noncurrent liabilities 2,659 4,059

Noncurrent assets 17,138 21,056 Total liabilities 29,902 56,304

Tangible assets 5,668 6,318Shareholders'

equity 40,892 22,528

Intangible assets 3,222 3,112 Treasury stock - -24,412

Investments and other assets 8,247 11,626 Total net assets 40,810 22,656

Total assets 70,712 78,961Total liabilities and

net assets 70,712 78,961

08CASH FLOWS

(million

Item FY2017 FY2018 YOY Reasons for change

Cash flows fromoperating activities 19,882 14,807 -5,074

Cash flows frominvesting activities -8,219 -6,125 2,093 FY2018 Expenditure from warehouse expansion

Cash flows from financing activities -9,215 -12,059 -2,843

FY2018 Increase in short-term borrowingsFY2018 Expenditure of purchase of treasury stock

Cash and cash equivalentsat the end of the year 24,571 21,560 -3,010

ROE Net Profit Margin to the Gross Merchandise Value

09

34.8%

26.3%

30.4%

37.8%40.4%

41.5%

50.0%

40.4%

55.5%

72.7%

57.4%

50.5%

73.9%6.2%

5.9%

5.1%

5.5%5.8% 5.6%

6.8%

7.0%

7.5%

8.0%

7.5%

4.9%6.1%

1%

2%

3%

4%

5%

6%

7%

8%

9%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Plan)

Gross merchandise value of new shops opened in FY2018 ZOZOTOWN Business ( purchased stock & consignment sales ) : ¥8.5 billion (accounts for 2.7% of the total gross merchandise value)

10

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

ZOZOUSED

Private Brand Business

GROSS MERCHANDISE VALUE

95.8 114.6

129.0

159.5

212.0

270.5

323.1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

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%91.2%

2.8%

5.9%0.0%

0.9

91.0%

2.8%

5.3%

0.0%

0.0%0.0%

bn¥

11GROSS MERCHANDISE VALUE(QUARTERLY)

42.2 44.2

61.5 64.0

59.5 60.0

77.3 73.5

70.4 70.8

93.8

88.0

0

200

400

600

800

1,000

FY2016 1Q FY2016 2Q FY2016 3Q FY2016 4Q FY2017 1Q FY2017 2Q FY2017 3Q FY2017 4Q FY2018 1Q FY2018 2Q FY2018 3Q FY2018 4Q

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%

0.1%

91.9%

5.4%

0.0%

2.6%

0.0%

90.8%

6.2%

0.0%

2.9%

0.1%

90.8%

6.2%

0.0%

2.9%

0.1%

91.2%

5.7%

0.0%

2.8%

0.2%

0.1%

91.4%

5.1%

0.0%

2.6%

0.8%

0.0%

89.9%

5.4%

0.0%

3.0%

1.7%

0.0%

91.8%

4.9%

0.0%

2.7%

0.6%

bn¥

YoY

+19.8%

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

ZOZOUSED


12

Others

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

ZOZOUSED


Advertisement business

20,968 25,324

29,725

39,313

55,253

71,192

82,670

8,139 5,381

766

693

193

166

148

577 2,285

4,446

7,958

12,875

15,931

16,372 0

2,746

2,976 4,016 4,477

3,256

1,338

1,642

2,056

6

0

0

0

1,426

2,389 1,573

1,766

3,192

6,731

9,498

12,984

35,050 38,580 41,182

54,422

76,393

98,432

118,405

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

million¥

13

Others

Purchased stock

Consignment sales

BtoB Business

ZOZOFURIMA

ZOZOUSED


Advertisement business

10,812 11,641

15,951 16,848 15,716 15,832

20,163

19,479 18,976 19,272

24,829 19,591

63 42

39 48 48 43

37 37

44 49

34

20

2,601 2,554

4,114 3,605 3,301 3,257

4,812 4,560

3,968 3,539

4,919

3,944

0

113 545

1,601

486

387 274

325 350

330 336

494 481

460 438

617

540

0 0

0 0 0

0

0 0

0 0

0

0 45 191

620

569

1,521 1,666

1,697 1,846 2,054

1,772

2,713 2,957 2,942 3,176

3,387

3,478

15,386 16,180

22,127 22,699 21,451 21,242

28,220 27,517

26,552 27,212

36,010

28,630

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000


million¥

YoY

+4.0%

14

Operating Profit Margin (% Gross Merchandise Value)

Operating Profit

8,529

12,388

15,084

17,756

26,284

32,669

25,654

8.9%

10.8%

11.7%11.1%

12.4%12.1%

7.9%

0%

4%

8%

12%

16%

20%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

million¥

15

efits cost, provision for employee bonus, expenses of companypension premium, subcontracting payroll, a portion of expenses at logistics centers operation.

- -timers, dispatched workers(subcontracting payroll) and substantial personnel expenses within outsourcing commission of staff working for logistics operations.

(million

item

FY2017 FY2018 YoY

Increase decrease factorsAmount

%Gross Merchandise

ValueAmount

%Gross Merchandise

Value

%Gross Merchandise

Value

Payroll and staff costs( ) 15,854 5.9% 20,874 6.5% 0.6%

Payroll costs for employee 5,659 2.1% 8,016 2.5% 0.4%Increase due to an increase in the number of employees on consolidated basis:

Actively hiring employees for PB business and engineer / Increase in the number of consolidated subsidiaries

Logistics-Related Expenses(Including Outsourcing) 10,194 3.8% 12,857 4.0% 0.2%

Increase in proportion of outsourced workers with higher unit price due to changes in logistics Centers Increase in Shipping expenses between logistics centers

Outsourcing Commission (Excluding Logistics-Related Expenses) 3,958 1.5% 4,560 1.4% -0.1%

Increase in operation expenses due to the increase in the number of logistics centers Increase in expenses of trademarks registration (FY2017) Outsourcing of development of ZOZOSUIT 1 and PB branding

Shipping 14,172 5.2% 20,463 6.3% 1.1% Change in shipping fees Initiation of mass distribution of ZOZOSUIT

Commission of Payment collection 8,521 3.1% 9,077 2.8% -0.3% Changes in the composition ratio of settlement manners

Promotionrelated expenses

4,347 1.6% 8,731 2.7% 1.1%

Advertising 1,552 0.6% 6,065 1.9% 1.3%Initiation of mass distribution of ZOZOSUIT / Advertising expenses of PB business / Implementation of overseas campaign

Reward pointsrelated expenses 2,794 1.0% 2,665 0.8% -0.2%

Rent expense 3,011 1.1% 4,028 1.2% 0.1%

Depreciation 989 0.4% 1,518 0.5% 0.1%

Amortization of goodwill 312 0.1% 477 0.1% 0.0%VASILY Inc. (Nov. 2017~) and ColorcleInc. (Feb. 2018~) *Both subsidiaries have been merged to ZOZO TECHNOLOGIES Inc. from Apr. 2018

Stock Compensation Expenses - - 110 0.0% 0.0%

Others 6,627 2.4% 9,466 2.9% 0.5% No occurrence of one-time high expenses during this 4Q FY18 accounting period

Total SG&A 57,794 21.4% 79,308 24.5% 3.1%

16

Existing Business Excluding PB OP Private Business OP

OPM (% Gross Merchandise Value)Existing Business Excluding PB OPM (% Gross Merchandise Value)

5,023

YoY

-44.9%

5,011 5,576

8,703

6,992 7,981

5,850

9,720 9,118 8,934

8,162

13,464

9,468

-3,060 -3,984

-2,887

-4,445

12.4%12.7%

11.6%

14.6%

10.8%11.9%

12.6%

14.1%

10.9%

13.4%

9.7%

12.6%

8.3%

5.9%

11.3%

5.7%

-5,000

0

5,000

10,000

15,000


million¥

Promotion related expenses % Gross Merchandise Value

SG&A (Quarterly)

17QUARTERLY

8,788 9,228

11,350

13,561

11,863

13,684

16,476 15,770

18,376

20,559 21,490

18,882

1.5%

2.3%2.0%

4.5%

1.5%

1.9% 1.8%1.2%

3.2%

4.7%

2.2%

1.2%

0%

4%

8%

12%

16%

20%

0

5,000

10,000

15,000

20,000

25,000


million¥

efits cost, provision for employee bonus, expenses of company pension

premium, subcontracting payroll, a portion of expenses at logistics centers operation.

- -timers, dispatched workers(subcontracting payroll) and substantial personnel expenses within

outsourcing commission of staff working for logistics operations.

18(million

FY2018 FY2018

Item

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Amount%Gross

Merchandise Value

Payroll and staff costs *)

3,534 5.9% 3,814 6.3% 4,307 5.6% 4,198 5.7% 4,825 6.9% 5,017 7.1% 5,706 6.1% 5,325 6.0%

Payroll costs for employee

1,423 2.4% 1,465 2.4% 1,469 1.9% 1,299 1.8% 1,988 2.8% 2,060 2.9% 2,018 2.2% 1,950 2.2%

Logistics-Related Expenses (Including

Outsourcing)2,110 3.5% 2,348 3.9% 2,837 3.7% 2,898 3.9% 2,836 4.0% 2,957 4.2% 3,688 3.9% 3,375 3.8%

Outsourcing Commission (Excluding Logistics-Related Expenses)

746 1.3% 1,272 2.1% 1,025 1.3% 913 1.2% 995 1.4% 1,017 1.4% 1,257 1.3% 1,290 1.5%

Shipping 2,616 4.4% 2,931 4.9% 4,282 5.5% 4,341 5.9% 4,665 6.6% 5,076 7.2% 5,631 6.0% 5,090 5.8%

Commission of Payment collection

1,953 3.3% 2,037 3.4% 2,402 3.1% 2,126 2.9% 2,030 2.9% 2,077 2.9% 2,633 2.8% 2,335 2.7%

Promotionrelated expenses

899 1.5% 1,160 1.9% 1,391 1.8% 895 1.2% 2,228 3.2% 3,331 4.7% 2,091 2.2% 1,079 1.2%

Advertising 345 0.6% 393 0.7% 529 0.7% 283 0.4% 1,548 2.2% 2,741 3.9% 1,240 1.3% 534 0.6%

Reward pointsrelated expenses 554 0.9% 766 1.3% 861 1.1% 612 0.8% 679 1.0% 590 0.8% 851 0.9% 544 0.6%

Rent expense 597 1.0% 757 1.3% 828 1.1% 828 1.1% 856 1.2% 891 1.3% 1,116 1.2% 1,163 1.3%

Depreciation 197 0.3% 211 0.4% 278 0.4% 303 0.4% 290 0.4% 333 0.5% 430 0.5% 463 0.5%

Amortization of goodwill

56 0.1% 56 0.1% 86 0.1% 113 0.2% 119 0.2% 119 0.2% 119 0.1% 119 0.1%

Stock Compensation Expenses

- - - - - - - - - - 179 0.3% -99 -0.1% 30 0.0%

Others 1,259 2.1% 1,442 2.4% 1,874 2.4% 2,050 2.8% 2,365 3.4% 2,513 3.5% 2,603 2.8% 1,984 2.3%

Total SG&A 11,863 19.9% 13,684 22.8% 16,476 21.3% 15,770 21.4% 18,376 26.1% 20,559 29.0% 21,490 22.9% 18,882 21.4%

Number of total buyers = Active members and guest buyers who made at least one purchase within a yearGuest buyers = Total number of guest purchases within a yearActive members = Members who have made at least one purchase within a year

19

Guest buyers

Active members

2,844,171 3,059,991 3,421,440

3,893,156 4,181,873

4,591,017 4,957,861 5,112,861

5,458,643 5,782,227

6,156,837 6,450,686

1,988,387

2,192,550

2,361,941

2,430,877

2,552,867

2,372,969

2,247,916 2,110,366 1,933,483

1,987,319

1,916,835 1,675,838

4,832,558

5,252,541

5,783,381

6,324,033

6,734,740 6,963,986

7,205,777 7,223,227 7,392,126

7,769,546

8,073,672 8,126,524

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


member

Purchased stock

Consignment sales

20NUMBER OF SHOPS ON ZOZOTOWN

832 865 927 947 979 1,009

1,088 1,105 1,134

1,178 1,250 1,240

10

7

77

87

66

5

5

55

842 872

934 954 987

1,016

1,094 1,111 1,139 1,183

1,255 1,245

0

200

400

600

800

1,000

1,200

1,400


shops

Kyushu/Okinawa 8.8

Kinki/Tokai 27.8

Hokuriku/Koshinetsu 5.7

Hokkaido 3.5

Tohoku 5.5%

Kanto 41.2Tokyo 17.3%)

Chugoku/Shikoku 7.5

Gender ratio Geographical distribution Age distribution

21

Annual purchase amount Annual purchase pieces

22

48,644 48,556 48,275

46,417 47,119

46,818 46,707

47,661 46,870

46,120 46,009 46,315

9.9

10.4 10.5 10.3

10.7 10.9 11.0

11.4 11.3 11.2 11.1 11.1

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

23ANNUAL PURCHASE AMOUNT AND PIECES PER EXISTING ACTIVE MEMBER

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

Increase in the proportion of short-termregistered existing active members

as the registered period gets longer, the annual purchase amount also becomes higher

58,953 60,106

60,929 61,770

63,004 64,290

62,761

61,098

59,569

57,563

56,304 55,792

11.8

12.6

13.1

13.6

14.1

14.6 14.5 14.4 14.2

13.8 13.6 13.4

10

11

12

13

14

15

16

17

18

40,000

45,000

50,000

55,000

60,000

65,000

70,000


¥ (item)

24

* The number of shipment is the combined results of the ZOZOTOWN business and the PB business.

YoY comparison

Shipment volume

4,652,101

5,391,093

5,886,580

6,931,318 6,787,599

7,148,647

8,303,595 8,293,761 8,425,033

8,865,330

9,512,052

9,065,816

54.7% 61.9%

50.9%42.3%

45.9%

32.6%41.1%

19.7%24.1%

24.0%

14.6% 9.3%

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

9,000,000

10,000,000


item

Average retail price = Gross Merchandise Value / Number of pieces (ZOZOTOWN Business)

YoY comparison

Average retail price

25

* The numbers of average retail price are averages calculated from combined results of the ZOZOTOWN business and the PB business.

4,468

3,855

5,236

4,474

4,099 3,664

4,858

4,203 3,953

3,655

4,759

4,364

-11.4%

-14.7%

-11.8%-9.1%

-8.3%-5.0%

-7.2%

-6.1%

-3.6%

-0.2% -2.0%

3.8%

-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


¥

Average purchase amount per shipment = Gross Merchandise Value / Number of shipments (including PB)

YoY comparison

Average purchase amount per shipment

26

* The numbers of average purchase amount per shipment are averages calculated from combined results of the ZOZOTOWN business and the PB business.

8,680 7,941

10,143

8,955 8,530 8,186

9,043 8,611

8,122 7,777

9,560 9,454

-9.6%

-14.4%

-4.8%

-2.5%

-1.7%

3.1%

-10.9%

-3.8%-4.8% -5.0%

5.7%

9.8%

-25%

-15%

-5%

5%

15%

25%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000


¥

Smart PhonesPC Feature Phones

27

29.7%28.1%

24.6%22.3%

20.5% 19.5% 17.8% 16.7% 15.7% 14.7% 13.4% 13.4%

69.9% 71.6%75.2%

77.5% 79.4% 80.4% 82.1% 83.2% 84.2% 85.3% 86.6% 86.6%

0.4% 0.3% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


29FY2019

FY2019 Plan Growth Rate(%)

Gross Merchandise Value 367.0 billion yen +13.6

Net Sales 136.0 billion yen +14.9

Operating Profit 32.0 billion yen +24.7

Operating Profit Margin ( to the Gross Merchandise Value)

8.7 -

Recurring Profit 32.0 billion yen +24.4

Profit attributable to owners of parent 22.5 billion yen +40.8

Earnings per share 73.7 yen -

Estimated dividends per share (Plan) 30.0 yen -

30FY2019 TARGET BY BUSINESS SEGMENT

Target for Total Gross Merchandise Value Yoy

ZOZO Group 367.0 billion yen +13.6

ZOZOTOWN Business 355.4 billion yen +14.4

Consignment Business 338.5 billion yen +15.0

ZOZOUSED 16.9 billion yen -0.4

BtoB Business 8.9 billion yen -1.3

Private Brand Business 1.7 billion yen -38.5

MSP Business 1.0 billion yen

Target for Net Sales Yoy

Advertisement Business 2.1 billion yen +47.2

31GROSS MERCHANDISE VALUE

36.6

56.1

80.2 95.8

114.6 129.0

159.5

212.0

270.5

323.1

367.0

8.8%

10.4%

9.6%

8.9%

10.8%

11.7%11.1%

12.4% 12.1%

7.9% 8.7%

0%

2%

4%

6%

8%

10%

12%

0

50

100

150

200

250

300

350

400

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Target

bn

Operating profit margin to the Gross merchandise value

Gross merchandise value

Capital Investment

Depreciation Cost

Amortization of Goodwill

32

466 570

1,047

2,162

353

1,174 1,107

4,565

3,635

7,700

153 277 322 586

786 765 843 989 1,518

2,000

113 150

231

409 744

825312

477

365

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY2010 FY2011 FY2012 FY2014 FY2013

million¥

FY2015 FY2016 FY2017 FY2018 FY2019Plan

Oct, 2018

Name Total floor area( )

CHIBA1

CHIBA2

CHIBA3

CHIBA4

IBARAKI1

IBARAKI2

CHIBA5

IBARAKI3

34,000

91,500

65,000

19,500

58,000

65,000

72,000

110,000

Apr, 2020 Oct, 2020Oct, 2019 Nov, 2021

End of Mar, 2020

End of Nov, 2021

End of Sep, 2020

New establishment in Oct, 2019

New establishment in Feb, 2020


and IBARAKI1 are warehouses with shipping function


DISTRIBUTION WAREHOUSE EXPANSION PLAN 33

Payout ratio

Dividends per share

34

0.7 0.9 1.4 2.3

5.0 6.6

8.3

11.3

15.6

22.7

29.0

24.0

30.0

21.5%

24.1%24.9% 24.8%

35.6%

40.3%

34.3%

40.6%41.8% 41.5%

44.8% 46.0

40.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

5

10

15

20

25

30

35

40

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Plan FY2019 Plan

¥

36

7,056 1,094

41,425 812

32.7

ZOZOTOWN

1,245 stores offering 7,056 brands.At any given time, more than 730,000 items are available with an average of 3,200 new items added everyday.Systems, design, to fulfillment, all functions are built in house.

WEAR

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 13.0 million DLNow available in all geographic areas.

37

Sales and manufacture of made-to-order basic items fitting every body uniquely and perfectly, from measurement data extracted from the body measurement device the company developed

26 items 27 items March 2018Sold at ZOZOTOWN

ZOZOTOWN BusinessConsignment SalesWe operate 1,240 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 = Gross merchandise value of each store x commission rate

Purchased StockWe operate 5 stores within ZOZOTOWN, which offer products we purchase from brands.

Sales = Gross merchandise value generated by each store

ZOZOUSED BusinessWe purchase used fashion products from our users, and resell them as a second-hand business.

Sales = Gross merchandise value of purchase stock + Consignment commission of marketplace

Private Brand BusinessThe business model which manufacture and sell order-made basic items with best fit for each customer,

Items are sold at the private brand shop on ZOZOTOWN in Japan, and will be sold at dedicated sales websites at overseas.

Sales = Gross merchandise value of private brand items

BtoB Business

We currently provide back-end service to 23 stores.

Sales = Gross merchandise value of these online shops x commission rate

Advertisement BusinessAdvertisement business will gain advertisement income from client companies including brands by providing advertisement spots utilizing the user base of ZOZOTOWN and WEAR.Sales = Advertisement income

MAJOR SERVICES 39

aid-membership service.

Introduction of IR website ZOZO IR Top

URL https://corp.zozo.com/en/ir-info/

Information below are available at our IR website. Please kindly confirm.

IR News The latest IR information are posted in a timely manner.

URL https://corp.zozo.com/en/ir/

ESG Introducing our initiatives on ESG.

URL https://corp.zozo.com/en/ir-info/management-policy/esg/

Financial Highlights Financials for the past 3 years are available.

Data can be downloaded in both PDF and excel format.

URL https://corp.zozo.com/en/ir-info/financial-highlights/

Introduction of IR Mail

By registering your email address to our IR Mail, we will send you information pertain to our IR such as latest news releases.

If you wish to register, please click here or make access to the following link:

URL https://corp.zozo.com/en/ir-info/mail-magazine/

News and information will be sent through the service provided by Magical Pocket Corporation.

Appendix40

https://corp.zozo.com/en/ir-info/

https://corp.zozo.com/en/ir/

https://corp.zozo.com/en/ir-info/management-policy/esg/

https://corp.zozo.com/en/ir-info/financial-highlights/

https://corp.zozo.com/en/ir-info/mail-magazine/

This material has been created for the sole purpose of introducing the

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.

fy2018 consolidated business results€¦ · zozotown business ( purchased stock & consignment...

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