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Company Outline
02(C)2014 ENIGMO,INC. All rights reserved.
Company Name Enigmo Inc.
Established February 10, 2004
Business Description Operating “BUYMA.com” The Largest Social e-Commerce Website in Japan
Number of Employees 44
Major Shareholders Executive Officers So-net Corporation (Affiliate company of SONY Corporation)
Audit Firm Ernst & Young ShinNihon LLC
HIGHLIGHTS in FY2014
BUYMAAchieved increase in Revenue and ProfitTrading Volume ¥16,100 MillionRevenue ¥1,800 MillionOperating Profit ¥850 Million
Steady Growth in MembershipMembership 1.69 Million Buyer 55 Thousand in more than 100 countries
BUYMA - GlobalEnglish Version of “BUYMA” - AVENUE・K Launched Beta Version in Jul. Launched to the public in Dec.
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STULIO - Resale Market
Resale Application - Pivot Launch in Oct. ’13
Korean Version of “BUYMA” ‒ BUYMA KoreaLaunched Bata Version in Dec.
FY2014 FY2013 %YoY FY2014Forecast
Transaction Volume 16,057 12,843 125.0% 17,063
Revenue 1,823 1,439 126.7% 1,900
Operating profit 852 597 142.5% 827
Ordinary profit 855 592 144.5% 827
Net profit 523 377 138.8% 509
Corporate Earnings
04(C)2014 ENIGMO,INC. All rights reserved.
Almost achieved the forecast(Unit：¥MM)
Revenue
(Unit：¥MM)
0
250
500
750
1,000
1,250
1,500
1,750
2,000
656
920851
1,439
Jan.2010
Jan.2011
Jan.2012
Jan.2013
1,823
BUYMAAdvertisingBusiness
336
304
281
636804
47
Oct.2013
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YoY126.7%Steadily Increasing
Selling General & Administrative Expenses
YoY 114.8% Efficiently Managed
FY2014 FY2013 %YoY
Personal Expenses 319 332 104.0%
Advertisement 87 117 133.2%
Depreciation cost 11 9 83.7%
Other 112 151 134.2%
Total 532 610 114.8%
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(Unit：¥MM)
Operating Profit, OPM
(Unit：¥MM)
△131
85
205
597
50%
40%
30%
20%
10%
0%
-20%
1,000
800
600
400
200
0
-200
△20.0%
9.3%
24.1%
41.5%
Jan.2010
Jan,2011
Jan.2012
Jan,2013
OPM
46.7%
852
Jan.2014
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Operating Profit : YoY 142.5% Profit Margin: 46.7% : keeping steady increase
Business OverView of BUYMA
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What’s BUYMA.com
C2C fashion e-commerce platform
Registered Membership 1,693,994人
Newly Exhibited Items
More than 7,000items/day
Registered Buyers 55,000
CountriesBuyers reside over
107countries
Registered Members
(Unit：Person)
0
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
463,866
614,834
819,886
Jan.2010
Jan.2011
Jan.2012
Jan.2013
1,190,574
Jan.2014
1,693,994
Increased in the Pace of Membership Acquisition
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※1 Cumulative Membership as of Oct 31,2012※2 Cumulative Membership as of Oct 31,2013
(Unit：Person)
0
100,000
200,000
300,000
400,000
500,000
105,114125,568
174,797
281,104
304,816
Jan.2010
Jan.2011
Jan.2012
Jan.2013
449,620
Active Member : Members who bought items at BUYMA within 1 year
Jan.2014
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Active Members
(Unit：¥MM)
0
3,000
6,000
9,000
12,000
15,000
18,000
3,722
4,952
7,555
Jan.2010
Jan.2011
Jan.2012
Jan.2013
12,843
16,057
Jan.2014
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YoY 125%
Transaction Volume
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(Unit ：Case)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
240,613292,283
402,758
Jan.2010
Jan.2011
Jan.2012
Jan.2013
693,099
1,004,528
Jan.2014
Exceeded 1 Million (YoY 145%)
Number of Transactions
(Unit：Yen)
0
10,000
20,000
30,000
40,000
50,000
35,409
39,439
43,22442,136
Jan.2010
Jan.2011
Jan.2012
Jan.2013
35,713
Jan.2014
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ARPU
ARPU-> Annual Amount of Purchase per Active Member(annual trade volume)/(Active Membership)
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Factor Analysis
External environment
Rapiddepreciation
of JPY
Price IncreaseBuyers priced
in furtherprogress of“weak JPY”
Average Price Increase
× ・Release of Smartphone Application・Expansion of items for younger generation・Increase attractive items not influenced by exchange rate・Increase efficiency of bulk purchase・Enforce “BUYER POST” for closer communication
Improvement of ARPURisk diversification by globalization
(currently, recovering due to theprice increase in Japan)
Events occurred in FY2014 Result
Sense of expensive especially
luxury items*
Steady sales oflow-price items
decline of ARPU
Countermeasures
Raise Frequency・Enforcement of compensation program・Expansion of Hot/Rare items・Revitalization of premium buyers・Expansion of luxury items competitive in price
Countermeasures for depreciation of JPY and ARPU
For Accomplishment of Medium Term Business Plan
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Social Commerce No.1・e-Commerce is the market for an extraordinary growth
prospect
・Establish a unique position in the e-commerce market by providing our own values in regard to social networking
CORPORATE VISION
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New
Aiming to achieve ¥100 billion of transaction in Japan and ¥x0 billion in overseas in 5 years
Existing
Existing New
Category Expansion
Services
Customers
Resale
KoreaAVENUE・KGlobal Expansion
Medium Term Target
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Boost Convenience
INNOVATOR2.5％
EARLY ADOPTER13.5％
EARLY MAJORITY34.0％
LATE MAJORITY34.0％
CORE PRODUCT WHOLE PRODUCT
BUYMA is required to be a “WHOLE PRODUCT” and raise awareness for acquiring wider range of CUSTOMERS
Whole Product：
A whole product is a generic product augmented by everything that is needed for the customer to have a compelling reason to buy.(With regard to BUYMA, the reason to use the service.) The core product is the tangible product that the customer experiences. The whole product typically augments the core product with additional elements required for the product to have compelling value to a customer.
KoreaAVENUE・K
RaiseAwareness
Medium Term Target
Current Customers
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Proceed multifaceted expansion for higher awareness
・Proceed active SEM operation with an awareness of ROI・Strengthen alliance・Utilize iPhone application for further awareness・Increase targeting advertisement / sales promotion
Alliance iPhone App.
TV
Radio
publication
Targeting Ad./SP
KoreaAVENUE・K
budget is doubled in FY2015
Raise Awareness
Launched in 27th Feb.hovers ¥100 MM/month level
Sony Mobile Communication
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Buyers
Market Trend
Market TrendResearch
+
KoreaAVENUE・K
For the web site with large selections users really want to buy
・34,000 brand names / 3 million items as of now・Enforce market research function for deeper trend information・Enforce Buyer finding/communication function・Expand selections by enhancement of “BUYER POST”
BUYMADate
Individual NeedsBUYER POST
Purchasers
Product Line Enforcement
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AuthenticityGuarantee
ANSHIN (relief) Compensation Program
KoreaAVENUE・KFor the most reliable place to buy
・Added “Initial Failure Compensation” to “ANSHIN (relief) Compensation Program” ・Eliminated Upper Limit for “Lost Package Compensation”・Modified optional fee structure (1.05%→1.4%)・Effective in acquiring new customers・Proceed further improvement for user-safety
SEARCHHESITATE PURCHASE DELIVER REVISIT
Lost PackageCompensation
Initial FailureCompensation
Enforcement of Compensation System
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KoreaAVENUE・KResale × SNS Application
“STULIO” launched in Oct. ‘13
Resale × SNS Application “STULIO”, targeting teenager and F1 (20 to 35 female) users.Participation of numbers of celebrities (e.g. fashion models, artists, entertainers) results in the increase of awareness and successful enclosure of hi-end users.
STULIO
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KoreaAVENUE・KDeveloped US and Korean
version of BUYMA
US version “AVENUE・K”Jul., ‘13 Launched Beta VersionOct., ’13 Opened to the public
Korean version “BUYMA Korea”Dec., ‘13 Launched Beta VersionMar., ‘14 Set to open to the public
Global BUYMA : “AVENUE・K” and “BUYMA Korea”
Name of Service BUYMA
※1 37.2%
United States (Los Angels)
Image Network,Inc.
24 / 12 / 2012
Avenue K
% of share
Nation (City)
Company Name
Date of Investment
Name of Service
※1US$1,200,000 in Preferred StockUS$201,574 in Senior Stock
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Shareholding Structure
※2 14.53% (88.24%)
Republic of Korea (Seoul)
Enigmo Korea
13 / 6 / 2013
BUYMA Korea
% of share
Nation (City)
Company Name
Date of Investment
Name of Service
※2KRW 1,200,000 in Common StockKRW 733,000,000 in Convertible Bond(convertible into Common Stock)
※3 14.00% (98.84%)
Japan (Tokyo)
STULIO, Inc.
19 / 7 / 2013
STULIO
% of share
Nation (City)
Company Name
Date of Investment
Name of Service
※314% in Common Stock¥50,000,000 in Preferred Stock(convertible into Common Stock)
e-Book global distribution platform utilizing Crowd Sourcing to translate the world-wide books
①Data Registration
⑧Royalty Payment
②Registration③Translator Selection
④Translated Data⑤Translation Check
⑦Purchase&Review
⑥Distribution
⑧Royalty Payment
・English・Japanese・Other languages
・English・Japanese・Other languages
・English・Japanese・Other languages
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KoreaAVENUE・K
New Business : BUYMA Books
“BUYMA Books” to be launchedin April 2014
Forecast of FY2015
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Global OperationsNew Business
FY2014 FY2015
Orientation of FY2015
・Fulfillment of Operating Staff
・Increase Organizational Power
・Entrenchment of the operation
・Capture the Achievements・Take Actions for Further growth
・Strategic Investment to achieve medium term term business plan
・Identify Business Field to penetrate・Commercialization of each business
・Monetization
・Strategy Assessment
FY2015Forecast
FY2014 %YoY
Transaction Volume 20,518 16,057 127.8%
Revenue 2,379 1,823 130.5%
Operating profit 1,000 852 117.4%
Ordinary profit 1,000 855 116.9%
Net profit 616 523 117.8%
Earnings per share 150.90 129.71 -
Dividend Per Share - - -
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Earnings ForecastTrading Volume: ¥20.5 BillionAdvertisement Costs: strategically increased aiming to raise awareness for the achievement of Medium Term Business Plan
(Unit：¥MM)
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Operating Profit (Unit : ¥ MM)
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
¥5,000 MM
336
281
CAGR 43.32%
Jan.2010 Jan.2011 Jan.2012 Jan.2013 Jan.2014 Jan.2015 Jan.2016 Jan.2017 Jan.2018 Jan.2019
Medium Term Profit Plan
¥3,000 MM
¥827 MM ¥1,000 MM
This material is prepared to gain the understanding of the investors by Enigmo Inc. This material is based on the generally accepted social and economic conditions ,and on the presupposition that we consider its rational as of February 19,2014. But it is subject to change without notice for the change of the situation.
Please read through our prospectus and make investment based on investors` own judgements.
The forward-looking statements are included in these materials and information we announced.These are based on forecast involving risks , and contain the uncertainty of the outcome.The general conditions of industry and market ,interest rate and change in foreign exchange rates are included in these risks or uncertainty.
We will not assume an obligation to update of the forward-looking statements , even if there are events or new information in the future.
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32(C)2014 ENIGMO,INC. All rights reserved.
