FY 8/2023 1st Quarter Results
January 11, 2023

Business Highlights

3Q1 FY8/2023 Highlights• All major KPIs achieved growth over last year
Q1 FY8/2023
KPI Progress• GMV１ : JPY 50.8 billion

YoY 104%• Orders: 19.56 million

YoY 104%• Active Users : 8.46 million YoY 109%
2

StrategyReview

1.
2.

• Fundamental service and product improvements enhancing CVR and delivery experience• New delivery opportunities expanding the delivery market• Gross margin improved 11pts (QoQ) to 18% through cost optimization

GMV (Gross Merchandise Value): item price + delivery fee before discount + other user fees
Active Users: users who placed more than one order within the last twelve months (unique users); as of the end of the quarter4Major KPIs
GMV

Sharing
Delivery start(Billion JPY)

Outbreak ofCOVID-19

Larges-scalecampaign
61.0

00

40.3 42.8

054.2 56.1

50.8

104%

29.7 30.8 30.7000

49.0 48.8

13.7
10.1 12.2 12.0 12.7

16.5 16.5 17.5 17.3

21.1 20.0 21.0 19.7 22.7

(Q1FY23 YoY）

00Q1

Q2Q3Q4Q1FY2017

Q2Q3Q4Q1FY2018

Q2Q3Q4Q1Q2FY2019

Q3Q4Q1FY2020

Q2Q3Q4Q1FY2021

Q2Q3Q4FY2022

Q1FY2023

Active Users(Million)000

5.8200000

3.10 3.20
2.74 2.82 2.90 3.00
2.35 2.45 2.55 2.62 2.69
1.98 2.13 2.24

3.70 3.92

6.52

7.347.73

8.53 8.78 8.73 8.46

109%

4.71

(Q1FY23 YoY）

000Q1Q2Q3FY2017

Q4Q1Q2Q3FY2018

Q4Q1Q2Q3Q4Q1Q2FY2019

GMV (Gross Merchandise Value): item price + delivery fee before discount + other user fees
Active Users: users who placed more than one order within the last twelve months (unique users); as of the end of the quarter

Q3

FY2020Q4Q1Q2Q3

FY2021Q4Q1Q2Q3

FY2022Q4Q1
FY20235Strategic Priorities
ü Enhance service quality and experience; to be the platform of choice from users, riders, and merchants
ü Improve unit economics and achieve profitability in FY8/2025

FY8/2022

FY8/2023~FY8/2024

FY8/2025

Nationwide recognition &service expansion

Maximize user experienceand satisifaction

DAU share No.1

Improve unit economics

Delivery tobe part ofeverydaylifeMarket rationalization

Establish new revenue models

Positiveprofits

6

Q1 FY8/2023 Topics
User• Improved orderingexperience• Improved frequency• New delivery
opportunities

Delivery
加盟店• Improved delivery
experience

Merchant• Expansion of merchantdriven promotion

User

Improved Ordering Experienceü Steady improvement in CVR through ongoing product improvements; such as search and recommendation
ü Focused on improving the ordering experience by enhancing the usability

Improvement of CVR

Key initiatives11Updated search UI &upgraded engine

2Improved recommendation
accuracy utilizing machinelearning00+7pt00000

Q1 FY221.

Q2 FY22Q3 FY22Q4 FY22

Number of app orders per sessions. Monthly figures at the end of the period

Q1 FY23Delivery

Merchant

7

User

Delivery

Improved Frequency
ü Order frequency up 102% YoY
ü Product improvement, effective marketing, additional delivery opportunities, etc. will further increase frequency

Avg. order frequency improvement

Key initiatives

102%GMV
Avg. order frequency(Q1FY23 YoY）

1

Updated search & improved
recommendation accuracy

2Loyalty program3

Enhanced targeted marketing using data

4Additional delivery opportunities

5Longer operating hours

140 ,0 0

120 ,0 0

1 0 ,0 080, 00

60, 0040, 0020, 000

1H FY212H FY211H FY222H FY22Q1 FY23Merchant8

UserMerchant

Delivery

New Delivery Opportunities
ü GMV during early morning hours increased approximately 30x YoY as merchant expand delivery operating hours
ü Non-food categories provides additional delivery opportunity to users. Drugstore orders showing different order trend

GMV expansion in the early morning（7~9AM）

Drugstore & food order trend distribution

1

DrugstoreFoodYoY30x

Q1 FY22

1.

Q2 FY22Q3 FY22Q4 FY22

Trend of orders by hours of the day (10AM to 7PM) during Oct. 1st 2022~Nov. 30th 2022

Q1 FY2310AM

11AM

12PM

1PM

2PM

3PM

4PM

5PM

6PM

9UserDelivery

Merchant

Improved Delivery Experienceü Delivery time continues to average below 30 min. after the release of the new delivery systemü Refining the matching logic and machine learning improved the accuracy of delivery time

Shorter delivery time

Improved accuracy of displayed waiting time
Avg. displayed waiting time
Avg. actual delivery time

Accuracy of delivery time

Consistently averaging

improved 70%

below 30min.

New delivery system released

JanFebMar

AprMayJunJulAug

SepOct

Nov

Jul. 2022

Nov. 2022

10

UserDelivery
Delivery

Merchant

Expansion of Merchant-driven Promotionü More SMB merchants issuing coupons, resulting in 6x increase in GMV
ü Steady growth in advertising sales

GMV via merchant-issued coupon increasing

Expansion of advertising sales
YoY

YoY

1.8x6.1x

Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY2311

Financial Highlights

13

Change of Business Model
1Business
model

Sharing Delivery
Startup Phase (before 2019）

2Delivery Ecosystem
Expansion Phase（2020~2022）

3

Going forward（2023~）

Matching Platform

Expansion ofSharing Delivery Ecosystem

Delivery Platform

Q1 FY17Q1 FY21Q1 FY23GMV
by delivery
model

Delivery by Merchant 100%Sharing
DeliveryRiders• In-house Riders (part-timer) andpartners(Initial phase of Sharing Delivery)

Merchant 80%

Sharing
Delivery20%• In-house Riders• Outsource Riders (outsourcing)

Merchant
45%

Sharing Delivery(Delivery by Demaecan)

55%

All delivery bases to be closed
within this fiscal year
• Outsource Riders only

14

Change of P&L Model
1

Merchant

RevenueCommission

Category

1

Sharing Delivery
Startup Phase (before 2019）2（2023~）

SDMerchantSD

Merchant

SD

5%

N/A

10%

10%+25%10%35%

Demae-can Service Fee

Demae-canService Fee

DeliveryCommission
Ecommerce Sales Delivery Sales

Demae-can Service Fee(consolidated)
3Delivery Cost

In-house Riders

In-house Riders

Outsource Riders

Outsource Riders only

SG&A

SG&A

Cost of Sales

Cost of Sales（Labor cost for part-timers）（Outsourcing cost）

Delivery Cost
KPI

1.
2.
3.

Going forward

Merchant

2

Riders・Cost Item

3

Delivery Ecosystem
Expansion Phase（2020~2022)

OrdersFace value offered to merchants
In addition to Demae-can Service fee, other sales (advertising, payment agency fees, etc.) are included
Includes user delivery fee in addition to delivery commission

Ecommerce / Delivery P&L

Gross Profit15

Revenue/Operating Costü Revenue grew 118% YoY due to an increase in Sharing Delivery orders
ü Operating cost declined 85% YoY due to optimization of cost per delivery and control of advertising expenses

Revenue

Operating Cost

(Million JPY)

YoY

万件

25,845

118%
12,394710

10,342582

4,097

12,136907

3,645

12,440668

Q1 FY22

19,315
1,982

3,707

5,996

2,128

7,586

7,584

8,063

Demae-canServiceFee
11,516Q3 FY22Q4 FY22Q1 FY23

19,376

19,219

85%

1,872

2,509

16,438

2,032

3,522
1,670

2,391

SG&A Other

2,348

Marketing2,854

Labor 1,291
16,321
11,5799,805

Q2 FY22

YoY

3,892

5,135

3,389

6,371

1,398

12,193
Other 678

万件

(Million JPY)

Q1 FY22Q2 FY22Q3 FY2211,517

Cost of Sales

Q4 FY22Q1 FY23

9,943

16

Gross Margin Improvement
ü Shortened delivery time and sufficient riders improving delivery efficiency
ü Gross profit margin improved significantly due to optimization of delivery compensation

Gross margin improvement

Cost per delivery
18%

5%

5%

Orders delivered by outsource riders
Compensation per delivery

7%

Current Initiatives

Next Initiatives• Sufficient riders• Reduce idle time

• Shortened time

• Dynamic pricing• Multiple picks, etc.

Improved delivery efficiency,Optimization of delivery compensation-32%
Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23

17

Other Cost Details
ü Advertising expenses are controlled at 8% of GMV. Optimizing investment efficiency while focusing on repeat and retention
ü Reduce fixed costs relating to in-house delivery during this fiscal year

Breakdown of marketing related expenses (% of total GMV)

Reduction of fixed costs byclosing delivery bases

Coupons for new acquisition, marketing costs for recognition, user attraction, etc.

Part-time labor costs, equipment, and rent, etc.

1Coupons for existing users, promotion and campaign etc.

Approx.

5bn JPY

15%• Customer support renewal
7%

11%

7%
5%

10%
3%

8%
Approx.

3%

Q1 FY221.

Initial investment area
for this fiscal year
• Product/system revamp

16%

7%

Other costs

9%
6%

Q2 FY22Marketing + Delivery fee discount

Q3 FY227%

Q4 FY22

1.5bn JPY5%Q1 FY23FY22Q1 Actual0

FY23

FY240Appendix

19

Summary of Consolidated Income Statement
FY 8/2022

FY 8/2023(Million JPY)
Q1Net Sales
Demae-can Service Fee
Delivery Commission

Q2

Q3

Q4

Q1

10,342

12,394

12,136

12,440

3,389

4,097

3,645

3,707

YoY

QoQ

12,193117.9%

98.0%

11,516--6,371

7,586

7,584

8,063

582

710

907

668

678

116.5%

101.4%

Cost of Sales

9,805

16,321

11,57911,517

9,943

101.4%

86.3%

SG&A

9,509

9,523

7,796

7,702

6,494

68.3%

84.3%

Labor2,391

2,128

2,032

1,670

1,291

54.0%

77.3%

Marketing

5,135

5,996

3,892

3,522

2,854

55.6%

81.0%

Other

1,982

1,398

1,872

2,509

2,348

118.5%

93.6%(8,972)(13,450)(7,239)(6,779)(4,244)--

Other

Operating Profit

1.

Accounting treatment of part of sales promotion expenses for users, etc., which were recorded in selling, general and administrative expenses, has been changed to reduce from the transaction price since Q1 FY22

20

Major KPIs（Quarterly）
GMV / Orders
GMVOrders
70, 00164%18.87

162%
24.06

Active Users

134%

121%

21.13

21.97

YoY104%19.56M

8.53

8.78

8.73

8.46M

7.73

61.060, 00

54.2

56.1

50.8B

48.850, 00

40, 0030, 0020, 0010, 00

159%

152%

127%

115%

YoY
104%

Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23164%

147%

135%

119%

YoY109%Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY230

GMV (Gross Merchandise Value): item price + delivery fee before discount + other user fees
Active Users: users who placed more than one order within the last twelve months (unique users); as of the end of quarter

Thank you

Please note that the future forecasts contained in this presentation material are based on the information available as of the datehereof and actual business results may differ significantly due to various factors. Please refrain from using this presentationmaterial or data without prior permission.