ZOZO : Notice concerning announcement of consolidated business forecast and dividends forecast for fiscal year ending March 31, 2021

July 30, 2020

Dear All,

Notice concerning announcement of consolidated business forecast and

dividends forecast for fiscal year ending March 31, 2021

In the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 [JGAAP]", which was announced on April 28, 2020, ZOZO, Inc. (hereinafter, referred to as the "Company") announced that the consolidated business forecast for the fiscal year ending March 31, 2021 is yet-to-be determined. The Company is now announcing the consolidated business forecast and dividends forecast for the fiscal year ending March 31, 2021 as follows.

1. Consolidated business forecast for the fiscal year ending March 31, 2020 (April 1, 2020 to March 31, 2021)

Profit attributable

Per share

Net sales

Operating profit

Ordinary profit

to owners of

Net Profit

parent

Previous forecast (A)

Million yen

Million yen

Million yen

Million yen

Yen

―

―

―

―

―

Forecast announced today (B)

143,700

39,500

39,500

27,600

90.40 yen

Variance in amount

―

―

―

―

―

(B-A)

Variance in percentage (%)

―

―

―

―

―

(Ref.) Results for the previous

fiscal year

125,517

27,888

27,644

18,056

61.60 yen

(FYE March 31, 2020)

(Reason for disclosure)

The business forecast for the fiscal year ending March 31,2021 has been yet-to-be determined because it was difficult to calculate appropriately and reasonably the impact of the spread of COVID-19 on our business. However, the Company is announcing the business forecast based on the information available at this time and the forecast.

The above projections do not assume a large-scale slowdown in consumption activity caused by the relapse of COVID-19. Actual results may differ materially depending on future trends.

(Reference)
[TABLE 1] Consolidated business forecast					(Unit: million yen)
		Previous consolidated	Current consolidated
		fiscal year		fiscal year		YoY
		(April 1, 2019 to March 31, 2020)	(April 1, 2020 to March 31, 2021)
Gross merchandise value		345,085	(100.0%)	387,300	(100.0%)	12.2%
Net sales		125,517	(36.4%)	143,700	(37.1%)	14.5%
Operating profit		27,888	(8.1%)	39,500	(10.2%)	41.6%
Ordinary profit		27,644	(8.0%)	39,500	(10.2%)	42.9%
Profit attributable to owners of parent		18,056	(5.2%)	27,600	(7.1%)	46.8%

Figures in parentheses are percentages to the gross merchandise value.

[TABLE 2] Merchandise value plan by the Company by business segment

	Previous consolidated fiscal year	Current consolidated fiscal year
Business segment	(April 1, 2019 to March 31, 2020)	(April 1, 2020 to March 31, 2021)	YoY
Merchandise value	Ratio	Merchandise value	Ratio	(%)
	(million yen)	(%)	(million yen)	(%)
Consignment shop	308,888	89.4	331,000	85.4	7.2
Purchased stock shop	204	0.1	-	-	-
ZOZOUSED	15,753	4.6	14,900	3.8	-5.4
PayPay Mall	6,199	1.8	20,000	5.2	222.6
PB business	1,255	0.4	200	0.1	-84.1
MSP business	752	0.2	1,200	0.3	59.6
B2B business	12,032	3.5	20,000	5.2	66.2
Total	345,085	100.0	387,300	100.0	12.2

2. Dividends forecast for the fiscal year ending March 31, 2021

					Annual dividends
			End of Q2		Year-end		Total
	Previous forecast		Yen		Yen		Yen
		―		―		―
	Forecast announced today		15.00 yen		22.00 yen		37.00 yen
	(Ref.) Results for the previous
	fiscal year		12.00 yen		18.00 yen		30.00 yen
	(FYE March 31, 2020)

(Reasons for Dividend Forecast)

In line with the announcement of the consolidated business forecast for the fiscal year ending March 31, 2021, the Company announces the dividends forecast as above.

The Company has the basic policy of deliberating and implementing profit return by balancing internal reserve through comprehensive consideration of business performance, financial status, future plans of business and investment. Specifically, the Company sets a consolidated payout ratio target of approximately 40%. For the fiscal year ending March 31, 2021, the Company plans to pay 37 yen per share as full year dividends (15 yen for the interim dividends).

(NOTE) Forecast figures in this document are based on judgments from information available as of the date of the announcement of this document. Actual results may differ from these forecasts due to various uncertainties.

DISCLAIMER:

This document is summary translation of Japanese version. All readers are recommended to refer the original Japanese version for complete information. In the event of any discrepancy, errors and/or omissions, the Japanese version shall prevail.