MonotaRO Co., Ltd. · 2017. 6. 15. · -Kitchen equipment & supplies (May 2014-)-Agricultural equipment & supplies (May 2014-)-Medical & Nursing care equipment & supplies (May 2015-)

MonotaRO Co., Ltd.Masaya SuzukiPresident & CEO

February 28, 2017

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Contents

1: About US

2: Our Business

-1 Domestic Direct Marketing Business

-2 Procurement Management Solution Business

for Large Accounts

-3 Oversea Business

3: Appendix

2

1-1: About US

• Founded in 2000

• Listed on TSE Mothers in 2006

• Listed on TSE 1st section in 2009

• Head office is located in Amagasaki, Hyogo

• New distribution center starts in Ibaragi Pref.

• Selling Indirect Material (Maintainace, Repair,

and Operation) products to business users

through Internet

• Major shareholder: W. W. Grainger, Inc. 50.46%

3

Overview

-Safety

-Packing, Material handling, Cleaning

-Cutting Tools, Abrasives

-Measuring & Surveying tools

-Hand tools, Power tools, Pneumatics

-Chemicals, Adhesive, Welding

-Hydraulics, Pneumatics, Hose

-Bearing, Mechanical Parts, Caster

-Electrical

-Construction, Painting/Interior

-Air conditioning/Electric Facilities, Piping, Plumbing

-Fasteners

-Auto/Cargo Truck Maintenance & Parts (May 2008-)

-Motor Bike/Bicycle Maintenance & Parts

-Laboratory (Oct. 2010-)

-Kitchen equipment & supplies (May 2014-)

-Agricultural equipment & supplies (May 2014-)

-Medical & Nursing care equipment & supplies

(May 2015-)

-Office supplies

1-2: About US

4

MRO Product Categories

1-3: About US

5

Million JPY

• Consolidated basis including Domestic Direct Marketing Business, Procurement Management Solution Business for Large Accounts,Royalties, and Oversea Business

Our Progress of Growth

1-4: About US

Fragmented demand

More cost for process than

products

Scale & Aggregationthrough the Internet

Efficient & Simple Purchase Platform

6

Factory

QuoteQuoteQuote

QuoteQuotePurchaseOrder

QuoteQuoteAccountingRecord

QuoteQuoteSettlement

Our Solution for the Current Inefficient Market

AutomobileMaintenanceFactory/Shop

ConstructionSite

1-5: About US

Most Efficient MRO procurement platform

Big dataCustomerProductTraffic

TechnologySearch EngineData mining

Domestic Direct Marketing Business

Procurement Management Solution

for Large AccountsOverseas Business

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SupplyChain

NB/PB

Scale Scale Advanced

Our Differentiation

Contents

1: About US

2: Our Business

-1 Domestic Direct Marketing Business

-2 Procurement Management Solution Business

for Large Accounts

-3 Oversea Business

3: Appendix

8

2-1-1:Domestic Direct Marketing

No. of customer/Thousand accounts Sales/Million Yen

Continuous Growth of Customer Base and Sales

9• Non-consolidated basis including Domestic Direct Marketing Business, Procurement Management Solution Business for Large

Accounts, and Royalties

2-1-2:Domestic Direct MarketingOur Growth Cycle

More Products

More Customers

More TrafficMore Order

Scale↑⇒Convenience↑

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10 million

2.2 million JPY 80 billion Sales

2-1-3:Domestic Direct Marketing

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-Safety

-Packing, Material handling, Cleaning

-Cutting Tools, Abrasives

-Measuring & Surveying tools

-Hand tools, Power tools, Pneumatics

-Chemicals, Adhesive, Welding

-Hydraulics, Pneumatics, Hose

-Bearing, Mechanical Parts, Caster

-Electrical

-Construction, Painting/Interior

-Air conditioning/Electric Facilities, Piping, Plumbing

-Fasteners

-Auto/Cargo Truck Maintenance & Parts (May 2008-)

-Motor Bike/Bicycle Maintenance & Parts

-Laboratory (Oct. 2010-)

-Kitchen equipment & supplies (May 2014-)

-Agricultural equipment & supplies (May 2014-)

-Medical & Nursing care equipment & supplies

(May 2015-)

-Office supplies

MRO Product Categories

Product lineup & Inventory2-1-4:Domestic Direct Marketing

Product Lineup/Thousand skus Inventory/Thousand skus

12

10,000

298

2-1-5:Domestic Direct MarketingEfficient New Customer Acquisition

10 million products

Potential customers’ search

Our Service13

Expandingnumber of keywords for SEM

Namerecognition

Number of Customers acquired in a year2-1-6:Domestic Direct Marketing

Thousand accounts

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Leverage Big Data to search next demand2-1-7:Domestic Direct Marketing

Sophisticated Search Engine

Well targeted promotion

2.2 million customers

10 million products

298,000 SKU Inventory

Private Label Brand products

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“Monotaro” “Otokomae Monotaro” “Osaka Spirits”

NB Quality at

Lower PriceOne-up in Quality

Seeking Lower

Price

Expanding Private Label Brand Products2-1-8:Domestic Direct Marketing

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Catalog for PB “Cost-cut Catalog Vol. 4” issued in June 2016

Containing about 13,000 skus of PB products selected

No. of Private Label Brand skusThousand

2-1-9:Domestic Direct MarketingNew Distribution Center in Kasama, Ibaraki Pref.

Exterior view of Kasama DC (Jan. 2017)

• Construction completed on February 7• Operations to start late March• Automated operations to realize higher productivity (improving

picking operation by self-directed delivery robots)• With Amagasaki DC and Kasama DC, MonotaRO capable to

handle shipments up to 150 billion sales

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Amagasaki,Current distribution center

Kasama,New distribution center

Tokyo

Within 100km from downtown Tokyo

Location of Kasama DC

2-1-10:Domestic Direct MarketingSG&A Expense related to Distribution Operation

• In preparing for Kasama DC in 1st

Half, 2017, incurring higher costs related to distribution operation

• Kasama DC’s higher productivity enables to lower Labor & Outsourcing Expenses in 2nd Half, 2017, and thus Sales ratio of distribution cost to be lowered to 5.4%

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Launch ofOperation at Kasama DC

Sales Ratio of Cost of SG&A Expense

related Distribution Operation

Self-directed

Delivery Robot

写真追加

Inside view of

Kasama DC

Contents

1: About US

2: Our Business

-1 Domestic Direct Marketing Business

-2 Procurement Management Solution Business

for Large Accounts

-3 Oversea Business

3: Appendix

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2-2-1:Procurement Management Solution for Large Accounts

Sales /billion Yen No. of companies

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Sales and Number of Companies

Scattered procurements & difficult to administrate at HQ

Flexible procurement with centralized administration at HQ

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Retailer Retailer Retailer

HQ HQ

Factory

No detailed

information for MRO Procurement

Detailed information for

MRO Procurement

FactoryFactory

Order

Invoice

Sales Person

Retailer

Factory

Order

Invoice

Sales Person

Factory

Order

Invoice

Sales Person

Factory

Order

Invoice

Sales Person

Factory Factory

SystemOrder Order

Invoice

Payment Payment PaymentPayment

Order

Payment

2-2-2:Procurement Management Solution for Large AccountsConvenience MonotaRO Provides with

Contents

1: About US

2: Our Business

-1 Domestic Direct Marketing Business

-2 Procurement Management Solution Business

for Large Accounts

-3 Oversea Business

3: Appendix

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2-3-1:Overseas Business

We know website management

Efficient new customer acquisition

Product lineup developmentSupply chain development

Own Local business business

Advisory business Export business

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NaviMRO Sales(South Korea)

2-3-2:Overseas Business

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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014 2015 2016 2017 (Plan)

0

5,000

10,000

15,000

20,000

25,000

30,000

2016 2017 (Plan)

MONOTARO INDONESIA Sales

Million Won Million IDR

• Planning to reach break-even on a single month basis in latter half in 2017 and exceed annual break-even in 2018

• Consolidated in 4th Quarter, FY2016

Contents

1: About US

2: Our Business

-1 Domestic Direct Marketing Business

-2 Procurement Management Solution Business

for Large Accounts

-3 Oversea Business

3: Appendix

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Appendix 1:

FY2016 Result FY2017 Plan

million AmountRatio to

SalesAmount Ratio to Sales YonY

Sales 69,647 84,239 +21.0%

Gross Profit 21,895 31.4% 26,182 31.1% +19.6%

SGA Expense 12,401 17.8% 14,585 17.3% +17.6%

OperatingIncome 9,493 13.6% 11,596 13.8% +22.2%

CurrentIncome 9,514 13.7% 11,607 13.8% +22.0%

Net Income 6,349 9.1% 7,840 9.3% +23.5%

Net Income attributable to owners of the parent

6,368 9.1% 7,934 9.4% +24.6%

26※ MONOTARO INDONESIA consolidated since the beginning of 4th Quarter

2016 Result & 2017 Plan

Appendix 2:

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Gross Profit and SG&A Expense Ratios to Sales

• Consolidated basis

※ Charges of credit card payment to be reported asCost of Sales from FY 2017 (-0.4 point /sales)

Registered Customers’ Sales Growth HistoryAppendix 3:

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2008 2009 2010 2011 2012 2013 2014 2015 2016

Purchase growth of customers registered in 2008Purchase growth of customers registered in 2009Purchase growth of customers registered in 2010Purchase growth of customers registered in 2011Purchase growth of customers registered in 2012Purchase growth of customers registered in 2013Purchase growth of customers registered in 2014Purchase growth of customers registered in 2015

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Thank you.

Contact Us

E-mail：[email protected]

TEL: 81-6-4869-7190

Cautionary Statement Concerning Forward-looking Statements

This presentation may include forward-looking statements relating to our future plans, forecasts, objectives,

expectations, and intentions. Actual results may differ materially, for a wide range of possible reasons. In

light of the many risks and uncertainties, you are advised not to put undue reliance on these statements.

IR information: www.monotaro.com/main/ir/english/

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