Mid-term Management Plan
FY 4/2023 (ending April 30, 2023) to FY 4/2025 (ending April 30, 2025)

June 10, 2022

Executive Summary
1. Further Expanding Market
As companies both within and outside Japan reevaluate the importance of DX, the Company projects

that the EC Business and the Financial Business will expand further.
The Company will create sales gains across all businesses by riding this large wave.

2. Expanding Market Share
COVID-19 has greatly increased the number of customer contacts. The Company will expand market
share, improving LTV by ensuring that customer contacts are not transitory and yield continued use.

3. Improving Margin
We will strive for balanced growth that will allow more investment into our businesses on theback of high marginal income ratios while improving operating margin.

2

About Raccoon Group(C) 2022 RACCOON HOLDINGS, Inc.

3

Group Overall

Value Created to Date

Founded in 1993 with 1 million yen, the Company has continued to grow by pioneering new andefficient distribution systems as an alternative to the “information,” “settlement,” and “logistics”
functions of wholesalers.
E-Commerce Business
Excessinventory sales

Financial Business

BtoB
marketplace

Inter-company
credit settlement

Online Receivables
Guarantee

Rent liability
guarantee

First in industry

ListedListed on theTokyo Stock
Exchange

FoundedFY 4/1993 FY 4/1998

FY 4/2002

Net sales(C) 2022 RACCOON HOLDINGS, Inc.

FY 4/2006

Service starts in
May 2009 as SD
Payment

FY 4/2010

FY 4/2017

FY 4/2020* Figures for FY 4/2013 and earlier have been recalculated for reference purposes to conform to current net sales calculations

4

Group Overall

Significance of Raccoon Group’s Existence

Raccoon Group Corporate Philosophy

Making corporate activities more efficient and convenient
Create business infrastructure for SMEs that allows even small new companies tosucceed in the shortest possible time by making the right efforts

Buyingcompanies(retail stores, etc.)

Sellingcompanies(manufacturers, etc.)

Issues for SMEs

RACCOON’s services

Stocking

Close store to attend
exhibitions & wholesalers

Wholesale transactions with 3,000
companies online

Payment

Strict conditions such asadvance payment

Combined credit settlement for
multiple companies at once

Sales

Unable to conductnationwide sales

Branch out to small regional stores

Accounting

Manual invoicing andpayment management

Freed from invoicing work

Creditmanagement

Risk of nonpayment bybusiness partners

Expand business partners with no risk of
nonpayment(C) 2022 RACCOON HOLDINGS, Inc.

5

Group Overall

Raccoon Group’s Strengths

Provide BtoB services suited to the times based on an understanding of customers andthe industry and through use of proprietary data foundations

Deep understanding of thenewest customer needs,
business practices andindustry knowledge

Understanding
customers

Utilizing
technology

Power to utilize technology
suited to the times

3 Strengths
Data assets
Data not found with competitors such as
user data, credit data, transaction data,
proprietary research, etc.
(C) 2022 RACCOON HOLDINGS, Inc.

6

Businesses

Group Overall

E-Commerce Business
Domestic intercompany
marketplace

Annual buying
customers

44,000 businesses

Cross Border EC forinternational
companies

Financial Business
Inter-company
credit settlement

OnlineReceivables
Guarantee

Obligation
Guarantee for
Rental Properties

guarantee balance

Actual guarantee
balance

Number of
suppliers

Annual grossmerchandise value

Annual value oftransactions

3,000 companies

21.6 billion yen

34.7 billion yen

30.6 billion yen

7.5 billion yen

Scale of Businesses (FY 4/2022)(C) 2022 RACCOON HOLDINGS, Inc.

7

Group Overall

Future Vision & Position of the Mid-Term Management Plan

Achieve No.1 in existing businesses & create new future No.1 businesses• Growth in each business due to increase in new customers despite effects of COVID-19• Focus investment into existing businesses during Mid-Term Management Plan period to takeadvantage of newly acquired customer baseBusiness Creation Period

COVID-19

Mid-Term Plan
PeriodFuture Vision

Improve customer

LTV*
Customer expansion
through DX opportunities* Lifetime Value

No.1 in market
for existing
businesses

Creation of business
FY 4/2020

FY 4/2022

Creation of

new No.1
businesses

FY 4/2025

Creating business infrastructure that allows small new companies to succeed in the shortest possible time(C) 2022 RACCOON HOLDINGS, Inc.

8

Mid-term Management Plan Summary(C) 2022 RACCOON HOLDINGS, Inc.

9

Group Overall

Theme of the Mid-term Management Plan

From Breadth to Depth
Sustainable business growth by
improving LTV
We will strive for sustainable business growth by concentrating
investment into existing businesses and increasing LTV to develop theincreased membership in the midst of COVID-19 into a solid customer base.

(C) 2022 RACCOON HOLDINGS, Inc.

10

Group Overall

Mid-term Business Targets for Key Indices

Sales growth in all businesses. Operating income growth of CAGR+27% by improving margin• Aim to improve operating income margin while investing in growth against backdrop of highmarginal income ratio (over 70%)

• Assertive shareholder returns with a goal of 25% ROE
Fiscal year endedApril 30, 2022
(results)

Net sales
Operatingincome4,789
million yen
1,126
million yen

Fiscal year ending
April 30, 2025
(planned)

Growth
rate

➡

7,700
million yen

CAGR
+17%

➡

2,310
million yen

CAGR
+27%

Operatingincomemargin

23.5%

➡

30.0%

+6.5ptROE

6.7%*1➡

25.0%+18.3pt(13.6% excluding
extraordinary losses)(+11.4pt)*1 Temporary decline in ROE due to impairment of investment securities and goodwill(C) 2022 RACCOON HOLDINGS, Inc.

7.7 billion yen

Breakdownof net sales

CAGR
+17%

Unit: million yen

605
1,511

4.7 billion
yen
FinancialBusiness

427
814

40%

Composition
ratio

986

38%
Composition
ratio

599

60%
Composition
ratio
4,598
62%

EC
Business

2,950 Composition
ratio

Fiscal year endedApril 30, 2022 (results)

Fiscal year ending
April 30, 2025 (planned)

11Group Overall

Profit Structure that Increases Operating Margin

Profit structure in which net sales and SG&A expenses are not in proportionand operating income margin tends to increase• Increase in SG&A expenses such as labor costs are not linked to sales and show moderate rise due tosystemization• Plans to increase operating income margin while making aggressive investment for growth during the MidTerm Management Plan period
30%
25%
20%

OperatingincomemarginNet sales
SG&A(C) 2022 RACCOON HOLDINGS, Inc.

To operating
income margin of

30%

15%
10%
Mid-term
Management
Plan period

5%
0%

12

Continuously Growing Market

Group Overall

Both businesses have low penetration rate despite large market, but
expansion is predicted• Increase in companies preparing for digital shift and credit concerns due to COVID-19• Upward trend is expected to continue, increase in future penetration rates predicted as a result

E-Commerce Business
Wholesale EC ratio
5.1%

Apparel & goods
wholesale market

trillion yen

2019→2022

Old transactions methods(sales/phone/FAX) remain; BtoB EC
ratio is low (5.1%) compared to BtoC
(22.2%)

Digitalization to increase BtoB
transaction efficiency continues,
increase in EC ratio to BtoC levels
predicted

38

Results amid
COVID-19

Financial Business

Buyingcustomers

Number of
suppliers

2.1x

2.2x

(C) 2022 RACCOON HOLDINGS, Inc.

GMV

1.9x

Receivables guarantee
penetration rate
1.0%

BtoB accountreceivable balance182
trillion yen

Results amid
COVID-19
2019→2022

Majority of BtoB companies conduct
account receivable transactions, butawareness of receivables guarantee
services is low, 1.0% penetration rate
Awareness rose due to credit
concerns during COVID-19 & workDX, rise in penetration rate willcontinue

Paid transaction
Receivables
Rent guarantee
volumeguarantee balancebalance
1.6x
2.3x
1.3x

13

Over-all View of Mid-Term Management Plan

Group Overall

Sustainable growth by improving LTV

ThemeE-Commerce Business
Domestic
1 EC

Improve value of transactions
per customer

Business
StrategyInternational

2 EC

Realizing the ability to purchase wanted
products at a low priceCategory specialization
Changing strategies from by country to
by category

Financial Business
3 PaidIncrease transaction value
per member company

Strengthen functions to meet efficiency needs
4 URIHO

Increase number ofregistered companies
Strengthen important adoption criteria for companies

Rent

5 guarantee

Promotion of bilateral contract
products
Expand to landlords/ property management companies

Enhancing our 3 strengths
Business
Foundation

Understanding customers, utilizing technology and growth of data foundation

Increasing development resources
Doubling potential developmental resources(C) 2022 RACCOON HOLDINGS, Inc.

14

Business Strategy(C) 2022 RACCOON HOLDINGS, Inc.

15

1 Domestic

EC Business:

Improve value of transactions
per customer

2 International

Domestic

Category specialization
strategySUPER DELIVERY (SD)

BtoB marketplace for wholesale transactions between
manufacturers, retailers and service industry, etc.
46%

Net sales composition: FY 4/2022(ended April 30, 2022)(C) 2022 RACCOON HOLDINGS, Inc.

16

EC Business: Domestic

Summary of Business Structure and Environment

Pursuing sales growth by increasing value of transactions per customer backed by growing market
due to the progression of digital shift
Business Structure

Business Environment
Wholesalemarket scale

×
Value oftransactions
EC ratioGrossper buying
merchandise
customer×
value
Priority
Fluctuating(GMV)
Share among
revenuecustomers

×

Net sales

No. of buying
customers

×Take rate+
Fixed
revenue(C) 2022 RACCOON HOLDINGS, Inc.

OutlookDomestic market is level
Increase due to digital shift
Value of transactions per
buying customer is level
Aim for rise in proportion of purchases from SD

Increase due to digital shift
Shift due to change in registration
plan fees
Current plans have free basic fee +10~15% commission

Take rate increasing,while fixed revenue is decreasing17

EC Business: Domestic

Target Market (EC Wholesale for Small Enterprises)

EC ratio of in-house EC and malls combined in 5.1% for BtoB wholesale, withmore potential for growth• With the digital shift, BtoB’s EC ratio estimated to grow 20+%, on par with BtoC
• The EC wholesale market is expected to grow into a 1 trillion yen market
Current EC Wholesale
Market Size *1
Apparel & general goods
38
wholesale market
trillion yen

×Percentage forsmall enterprises(4 persons or less)13%

Wholesale EC ratio

5.1%

×

250.0 billion yen

Driver of Market Growth: EC ratio

BtoB wholesalemeans of sale *2
Exhibition
orders
EDI

EC
5.1%

Phone, e-mail, FAX

In-person
sales

Outlook for EC ratio andthe market

EC ratio

EC wholesale market

20+% to 1 trillion yen
Reference: BtoC EC ratio *3 forApparel & goods

22.2%（ 2020 ）*1 Wholesale market size: Market size calculated based on amount of purchased good by retail trade industry, from 2020 Economic Conditions Survey, 2016 Economic Census, Basic Survey on Commercial and Manufacturing
Structure and Activities (all by the Ministry of Economy, Trade and Industry); “small” pertains to “less than 4 employees”*2 Means of sale: Based on the sales proportion by wholesale means of sale in in “BtoB-EC Market: Current Situation & Future Prospects 2022” (survey by Impress Corporation). EC includes in-house EC, BtoB malls and wholesalepurchases through BtoC malls*3 BtoC EC ratio: Calculated by the Company based on BtoC EC ratio for relevant genres in “FY2020 E-Commerce Market Survey ” (Ministry of Economy, Trade and Industry)(C) 2022 RACCOON HOLDINGS, Inc.

18

EC Business: Domestic

Business Conditions of Super Delivery (Domestic)• Steady increase in number of buying customers as a result of expanding needs due to COVID-19
and aggressive investment into advertising• Average sale per customer remains level when excluding special demand for masks, etc. due to
COVID-19, however there is much potential for expanding purchases from SD
Number of Buying Customers

Number of buying customers
Both new and repeat customers
increased in the midst of COVID-19
New customers

Value of Transactions per Customer

Value of transactions per customer
Level trend continues
Retail trade

Purchasing ratio by SD
customers
At 20%, there is growth potential
SD
20%

Other

Repeat customers

Other ECs

Other than retail trade
Wholesale stores

Manufacturers* Survey for SD members(conducted FY 4/2022, n=602）(C) 2022 RACCOON HOLDINGS, Inc.

19

EC Business: Domestic

Priority Measures

Increase rate of SD purchases by customers and aim to improve value oftransactions per customer• Double promotional investment and use points systems and coupons to increase value oftransactions per buying customer• Assign a merchandiser (MD) for each product category to increase in-demand products• Utilize AI based on behavioral data to promote website personalization
Responding to Cost Needs

Responding to Product Needs

Realize low costs through promotional investment

Find products you want

Increase return
rate of points
programDistribute shipping
coupons toincrease newpurchases

Increase indemand products
by assigning MDs

Personalizing
websiteTOP 5 Customer Needs Requests to improve SD
Cost
needs

Shipping

32%

Sales/campaigns

19%

Product prices

17%

Product
needs

Product findability

15%

Product information

14%* Based on survey of SD members (conducted 4/2022, n=929）(C) 2022 RACCOON HOLDINGS, Inc.

20

1 Domestic

EC Business:

Improve value of transactions
per customer

2 International

International

Category specialization
strategy

SD export

BtoB marketplace for hassle-free, risk-freewholesale transactions between manufacturers andinternational businesses

16%

Net sales composition: FY 4/2022(ended April 30, 2022)(C) 2022 RACCOON HOLDINGS, Inc.

21

EC Business:
International

Business Structure and Strategic Priority Measures

The Company implemented a category strategy to increase buying customers and SD ratio one
category at a time
OutlookBusiness Environment
Business Structure
Global trade
market×
Value ofRatio oftransactions
exports fromGross
per buyingJapanmerchandise
customer× Priority
value
Fluctuating(GMV)
SD market
revenueshare
×Net sales

Priority

No. of buying
customers+
Fixedrevenue(C) 2022 RACCOON HOLDINGS, Inc.

Repeated increase/decrease inmulti-year cycles
Varying increase/decrease by
category
Differs by category
Increase share starting from stronger
categories

Upward trend of borderless
EC users×

due to travel restrictions

Take rate

Affected by change in businessregistration plan
Take rate is increasing, fixed revenue
on downward trend
22

EC Business:
International

Target Market

Japan’s export market is 1.4 trillion yen, even when only accounting for
products handled on SD• The Company previously strategized by country, but will shift to a categoric strategy inconsideration of country risks• Become No.1 one category at a time, aiming to become the future No.1 service in exports
Target Market for
SD International *1
Export market size of
global consumer goods
Export market size of
consumer goods from Japan

Ratio of current SD
item categories

856

Strategy by Category to increase SD’s Sharetrillion yen

×

2.8%
×

5.8%

1.4 trillion yen

Roadmap toincrease SD’s share

Export amount by category *2
Other general goods
Books
Dishes andkitchen area
Electronics

Health &cosmetics

1.4

No.1 in exports from
Japan
No.1 in exports inmany categories

trillionyen
FashionStationary/crafts
Hobby, leisureFurnitureand sports

No.1 in exports
in specificcategories*1 Export market size: Calculated by the value of Consumer Goods exports in 2019 from WITS (World Integrated Trade Solution). Converted at 130 yen to the U.S. dollar.
*2 Export amount by category: Estimated value calculated as the ratio of export value excluding “Export to affiliates” out of “Value of goods exported international” in “Ministry of Economy, Trade and Industry Basic Survey ofJapanese Business Structure and Activities” (2021)(C) 2022 RACCOON HOLDINGS, Inc.

23

EC Business:
International

Priority Measures

First, strive for No.1 in exports from Japan in specific product categories• Expand range of “Japan brands” through cooperation with local governments• Adopt DeepL for translation to display the correct language for each country• Realize low prices and shipping costs through promotional investment and cooperation withinternational logistics companies

Strengthening specific categories

Responding to need for low prices

Show the world the attractiveness of Japanese products

Becoming a low-price, easy-to-use website“Japan Brand”
Cooperation with local
governments

Improve translation
accuracy
Adopt DeepL

Reduce shipping
costs
Cooperation withinternational logistics
companies

Doubling
promotional
investment
Use of points/coupons

Top 5 Criteria by international Customers for Selecting Suppliers
Reliability

79%

Low purchase price73%

Low shipping costs

70%

Fast delivery time

58%

Many product types

53%* Based on survey of SD international members (conducted FY 4/2022, n=210）(C) 2022 RACCOON HOLDINGS, Inc.

24

EC
Domestic +Business: International

Main KPIs

GMV Growth target of +20% CAGR
• Continue advertising investment and expanding range of products to maintain growth of buying customers• Aim for improving value of transactions per buying customer by realizing low cost of sales promotion, etc.
• GMV growth rate is higher for International, gradually expanding International share within SD
FY 4/2022

FY 4/2025(results)(plan)CAGR

Gross
Merchandise
Value (GMV)

21,687 million yen

Domestic

16,033 million yen➡

26,500 million yen+19%International

5,654 million yen➡

11,000 million yen+25%

Buyingcustomers

26,294 stores

Value oftransactions
percustomer(Q4)

221,389 yen(Q4)(C) 2022 RACCOON HOLDINGS, Inc.

➡ 37,500 million yen➡
➡

40,000 stores(Q4)

257,000 yen
(Q4)

+20%

+15%
+5%

Gross Merchandise Value (GMV)International

International

26%

29%

21.6

37.5

billionyenbillionyen

Domestic
74%

FY 4/2022(results)

Domestic
71%

FY 4/2025(planned)25

3 Paid

Financial Business:

Paid

Increase transaction value permember company

4 URIHO

Increase number ofregistered companies

5 RentPromotion of bilateralcontract products

guarantee

Paid

A deferred payment service between enterprisesthat can eliminate the time and energy used tocollect bills and the risk of uncollected bills

12%

Net sales composition: FY 4/2022(ended April 30, 2022)(C) 2022 RACCOON HOLDINGS, Inc.

26

Financial Business:
Paid

Business Structure & Strategic Priority Measures

The Company already has No.1 in shares of registered companies. We will continue to strengthen
our position as the value of transactions by member companies continues to rise.
Business StructureMarket & Business Environment
OutlookTransaction
volumeNet sales

Transaction
volume ofcustomers
guaranteed byPaid

Number ofmembercompanies

×

Cost ofsales(C) 2022 RACCOON HOLDINGS, Inc.

BtoB credit
settlement

Penetration
rate

Paid
Marketshare
Priority

Value oftransactions bymembercompany

Guarantee
rate

engaged in accts
receivable transactions

××

No. of SMEs

Number ofenterprises
using

Level trend×of BtoB credit
settlement

Priority

Penetration rate growing
due to Act on Book & Record Keeping throughElectronic Methods and need to adapt to DX

Currently No.1 in shares ofregistered companies
Continue acquiring member companies

Value of transactions by member
companies on the riseStrengthen company membership with potential highvalue transactions

Guarantee rate of industry companies falling
due to automation andcompetition with other companies

Control risk by advanced screening
for performance-related expenses which
account for the majority of cost of sales

27

Financial Business:
Paid

Market & Business Environment

Inter-company accounts receivable transactions among small and medium
enterprises (SMEs) are large at 116 trillion yen with large potential for growth• We lead the industry in member companies with a 48% share of the market• Value of transactions per member company are high and growing in certain business types with ahigh proportion of Paid customers
Inter-company accounts receivabletransaction volume by SMEs*1

Market share of member
companies for BtoB
credit settlement*2(2020)(September 2021)

Othertransactions
53 trillion yen

Company C
6％Company B
20％

Company A
26％
Accounts receivable transactions

116 trillion yen

Companies
using suchservices

Value of transactions bymember companies on Paid

No.1

Paid

48% share

Certain business types

Other business types

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 4/2020

FY 4/2021 FY 4/2022*1 The Company s estimated invoiced payment amount out of annual inter-company transactions of small and medium enterprises, based on data from “Basic Survey on Small and Medium Enterprises” (Small and Medium Enterprise Agency) on accounts receivable and notes
receivable, accounting for annual turnover of receivables (Payment Terms Improvement Committee Report), private final consumption expenditure (Cabinet Office) and cashless payment rates (Ministry of Economy, Trade and Industry), etc.
*2 Japan Marketing Research Organization(C) 2022 RACCOON HOLDINGS, Inc.

28

Financial Business:
Paid

Priority Measures

Increase transaction value per member company by capturing certain businesstypes, aim for No.1 in transaction volume in such segments• Strengthen functions to meet efficiency needs such as screening pass rates, speed, efficiency
effects and guarantee limit to attract companies with high LTVStrengthen functions to meet customers’ efficiency & DX needs
Screening
automation
２ days 10 minutes
Average for certain eligible companies

Screening
pass rate+10%
Certain eligible companies

Efficiency
functions
Reduce screening
documents, simplify
registration information

Expand flexibility of

Guarantee limit
Certain business types

Top 5 Criteria to Increase Usage Amount on Paid
High screening pass rate
Fast screening results
High efficiency/ DX effects

43%
34%
30%

Reasonable usage fees
High approved amount

30%
29%

* Based on survey of Paid users and service termination survey (conducted 4/2022, n=185)(C) 2022 RACCOON HOLDINGS, Inc.

29

Financial Business:
Paid

Main KPIs

Aim for +18% CAGR growth in net sales based on growth of transaction volume• Improve transaction volume and net sales by targeting registration of certain business types
with a high value of transactions per member company

Transaction
volume(Member companies ✕Value of transactions per
member company）

Net sales

FY 4/2022

FY 4/2025(results)(planned)

25,600
million yen

598
million yen➡

➡

42,128million yen

985
million yen

CAGR

+18%

+18%

* Transactions within the Group are omitted(C) 2022 RACCOON HOLDINGS, Inc.

30

3 Paid

Financial Business:

URIHO

Increase transaction value permember company

4 URIHO

Increase number ofregistered companies

5 RentGuarantee

Promotion of bilateralcontract products

URIHO

Online receivables guarantee service
for non-payment by business partners
17%

Net sales composition: FY 4/2022(ended April 30, 2022)(C) 2022 RACCOON HOLDINGS, Inc.

31

Financial Business:
URIHO

Integrating Brand Name for Accounts Receivables Guarantee Services

T&G Accounts Receivables Guarantee integrated brand name into “URIHO” in May 2022

Plan B
Plan C
99,800 yen/month, 70 million yen
total guarantee

Currenttransactions

29,800 yen/month, 30 million yen
total guaranteeNew
transactions

9,800 yen/month, 10 million yen
total guarantee

Fixed-ratePertransaction
systemCommon to new &existing transactions

Fixed-rate system

Plan A

Sales guarantee
2% of the invoice amount,guaranteed for the invoice amountThreshold guarantee

N/A for new
contracts

59,800 yen/month, 30 million yen total
guarantee*Continued availability for currently subscribed customers

Brand nameintegrated*

From May 31, 2022
(C) 2022 RACCOON HOLDINGS, Inc.

* Changed service name of32

Financial Business:
URIHO

Business Structure and Strategic Priority Measures

BtoB account receivable guarantee penetration rate is expected to grow; we will capture these needs
through proactive contract acquisition
Business StructureMarket & Business Environment
No. of SMEs

No. ofEnterprises
guaranteebalance

Net sales

Registeredenterprises

total balance ofobligations
guaranteed by
URIHO

×

×
Guarantee
amount×
Rates

using BtoB
account
receivables
guarantees

conducting accounts
receivabletransactions

×

BtoB accounts
receivable guarantee

penetration
rate

URIHO Priority
Marketshare

Outlook

Level trend
Due to increase in IT companies that conduct manytransactions and the diversification of risks,

penetration rate is rising

Assertive expansion of customer
base
to meet the growing needs of a growing market

By capturing need for robust guarantees,

Guarantee amount on the rise
Rate for industry companies falling
due to automation andcompetition with other companies

Control risk by advanced screening
Cost of sales(C) 2022 RACCOON HOLDINGS, Inc.

for performance-related expenses which
account for the majority of cost of sales

33

Financial Business:
URIHO

Market Environment

Both the Japan and global market is growing due to an increase in IT enterprisesthat conduct many transactions and the diversification of risk
• Japan’s BtoB account receivable guarantee penetration rate is small at 1% with great growth potential• With URIHO’s guarantee balance at 1% of the market, there is significant room for market share
expansion
Global transaction credit
insurance premium market
projection*1(million USD)CAGR +8.6%

18,140

Domestic BtoB accountreceivables transactions*2(2020)

Domestic BtoB accountreceivables companies
guarantee balance*3(2020)

BtoB accounts receivableguarantee penetration rate
1.0%(1.9 trillion yen)

1.0% (18.9 billion yen)

BtoB accounts
receivable balance

Guarantee balanceof leading companies

URIHO

9,390

182
trillion yen

2019

1.9

trillion yen

2027* 1 Allied Market Research, “Trade Credit Insurance Market 2020-2027”* 2 Estimated by the Company based on data on bills and accounts receivable from the “Financial Statements Statistics of Corporations by Industry” (Ministry of Finance), private final consumption expenditure (Cabinet Office) andcashless payment rates (Ministry of Economy, Trade and Industry), etc.
* 3 Estimated by the Company based on the Nikkei, “Total obligation of major accounts receivable guarantee companies” (December 11, 2020) and the General Insurance Association of Japan, “Statistics by line.”(C) 2022 RACCOON HOLDINGS, Inc.

34

Financial Business:
URIHO

Priority Measures

Aim for No.1 in contracts by capturing increasing needs by market growth• Strengthening screening pass rate, guarantee limit and screening speed to become the service ofchoice when starting• Improve customer satisfaction by providing risk information
Strengthening Important Starting Criteria

Screening
pass rate+10%
Certain eligible companies

Guarantee limit
Increase limit forsole proprietors, etc.
Certain eligible companies

Providing risk information

Guarantee rate
Screening speed
Providing reminder functions

69%
69%
68%
65%
63%

* Based on survey for BtoB accounts receivable guarantee users(conducted 4/2022, n=301)(C) 2022 RACCOON HOLDINGS, Inc.

1.5 days

Provide risk
information

0.5 daysStrengthen functions

Average for certain
eligible companies

TOP 4 gaps in URIHO
satisfaction and importanceTop 5 purchasing criteria
Scope, content of guarantee

Screening
automation

URIHO
URIHO

Scope, content ofguarantee-14pt

Guarantee rate

-14pt

Guarantee limit

order-made plan Screening pass rate

-5pt
-4pt

* Based on survey for guarantee service users(conducted 4/2022, n=33)

35

Financial Business:
URIHO

Main KPIs

Aim for growth of +32% CAGR for guarantee balance and +23% CAGR
for net sales• Increase guarantee balance by adding more member companies, leading to growth in net
sales

Guaranteebalance(Number of member
companies X
Guarantee amount)

Net sales(C) 2022 RACCOON HOLDINGS, Inc.

FY 4/2022

FY 4/2025(results)(planned)

30,755
million yen

814
million yen➡

➡

70,000
million yen

1,511
million yen

CAGR

+32%

+23%

36

3 Paid

Increase transaction value permember company

4 URIHO

FinancialBusiness :Rent Guarantee

Rent

5 Guarantee

Increase number ofregistered companies
Promotion of bilateralcontract products

Raccoon RENT

Rent guarantee service to prevent risk ofdelinquent rent for residential and business rental
properties
9%

Details omitted as business accounts for less than 10% of net sales(C) 2022 RACCOON HOLDINGS, Inc.

Net sales composition: FY 4/2022(ended April 30, 2022)

37

Investment & Shareholder Return Policy(C) 2022 RACCOON HOLDINGS, Inc.

38

Investment &Shareholder
Return Policy

Investment & Shareholder Returns Policy

The Company’s policy is to actively offer shareholder returns while securing funds forinvestment in future growth.

Operatingcash flow
Future growthinvestments

Shareholder
returns(C) 2022 RACCOON HOLDINGS, Inc.

Approx. 4.0 billion yen*Cumulative total during period of Mid-term Management Plan
(Fiscal year ending April 30, 2023 to fiscal year ending April 30, 2025)

Active investment into businessfoundations for each service

Dividends
Share
repurchases

Dividend payout ratio

45~50％
Flexible execution
depending on share price39

Investment &Shareholder
Return Policy

Investment for Future GrowthBusiness is still in growth phase; increasing investments while balancing
profit growth• Invest into sales promotion to increase customer LTV as well as continued increase inadvertising investment• Invest into environmental development and human capital for acquisition, retainment ofdevelopment resources
AmountInvestment
categories

Investment Details

Costs to attract
customers

Continue investing a certain
percentage into advertising in linewith sales increase(advertising/promotion costs)

1.5x

Sales
promotion
costs

Increase points system & coupons
for improving LTV(advertising/promotion costs)

2.0x

Development
resourceenhancement
costs

Invest into hiring and environment
development, training(labor costs, etc.)

2.1x

FY 4/2022 →FY 4/2025

Plans for future growth investments
against backdrop of high marginal income ratio

Rise in operating income margin expected
30.0%
23.5%
2,310
1,126

FY 4/2022

FY 4/2025(results)(planned)

Operating income* unit: million yen(C) 2022 RACCOON HOLDINGS, Inc.

Operating income margin

40

ESG Information(C) 2022 RACCOON HOLDINGS, Inc.

41

ESG Information

Basic Sustainability Policy

Corporate Philosophy

Making corporate activities more
efficient and convenient
Providing business infrastructure to support a wide range of transactions

Basic Policy

Solving social issues through businessWe will strive to improve corporate value by appropriately managing andminimizing risks inherent in our business operations and maximizing business
opportunities
Furthermore, we will contribute to the realization of asustainable global environment and society together with our stakeholders(C) 2022 RACCOON HOLDINGS, Inc.

42

ESG Information

5 Priority Themes

Identify materiality (important issues) to conduct specific actions and formulate KPIs

SocialEnvironment
Solving Social
Issues ThroughBusiness

Establishment ofPleasant Work
Environment• Actions for climatechange• Fair & equitabletrading environment• Regional
revitalization• Sustainableconsumption

Promotion of Diversity(C) 2022 RACCOON HOLDINGS, Inc.

• Diverse work styles• Ensuring occupational
health and safety• Respect for employees’human rights

Engagement with
Communities/Society• Volunteering• Joining industry
associations

GovernanceFair Business Practices• Compliance• Corporate governance• Risk management• Assuring a reliablebusiness infrastructure• Graduate, mid-career & foreign national
employee ratios• Maternity and childcare leave acquisition rates• Gender ratio of managers, etc.

43

Conclusion
1. Further Expanding Market
Penetration of DX to increase wholesale EC ratio (5%) and receivables guarantees (1%),
resulting in forecast market growth of several times

2. Expanding Market Share
In addition to expansion in number of customers, improve LTV (value per customer andrepeat purchase ratio) to plan for net sales growth of CAGR+17%

3. Improving Margin
While increasing investment in each business that is in the growth phase, plan to improve
operating profit margin to 30% (+6.5pt) and grow operating income by CAGR+27%

44

Regarding handling of this material
Forward-looking statements contained in this document are based on
current information and are subject to change due to macroeconomic
trends, market conditions, trends in industries pertaining to theCompany, and other internal and external factors. The Company
makes no representation or warranty as to the accuracy orcompleteness of the information contained herein.

(C) 2022 RACCOON HOLDINGS, Inc.

45