Newly Listed Company Introduction Report (Issued by The Stock Research Center)

Petgo (7140 TSE Growth) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - May 10 ,2022
Aims for growth by promoting regular purchases and enhancing its D2C brandThis report is an English translation of part of the report issued on May 2, 2022.
For inquiries concerning the report, please contract info@stock-r.org【7140 Petgo Sector：Retail Trade】
Fiscal Year
Mar. 2020
Mar. 2021
Mar. 2022

fNet sales

YoY

Operatingprofit

YoY

Ordinaryprofit

YoYProfitYoY

EPSBPSDPS(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

8,131

1.6

9,455

16.3

9,613

1.7

-3-

22-60.1

99-

112

164

64.4

151

15-67.2

9.1

223.3

0.0

394.1

71

366.8

59.5

275.5

0.0

34.5

104

46.9

87.3

-0.0

Note: Consolidated basis. Figures for the fiscal year ending March 2022 are the company's forecasts.
It conducted 1-to-200 stock split on December 4, 2021. Per share indicies are adjusted retroactively.

Engaged Mainly in E-Commerce Business of Pet Healthcare Products
Petgo is engaged in the e-commerce business specialized in veterinary drugs, dieteticfoods, supplements and other pet healthcare products. In the fiscal year ended March
2021, dietetic foods accounted for about 75% of net sales, veterinary drugs for most of theremainder and other pet healthcare products for a few percent. The company handles
national brands as well as a D2C brand VETSOne, which was launched in April 2020.
Most of net sales of dietetic foods are comprised of products under brands owned byROYAL CANIN (France) and Hill’s Pet Nutrition (U.S.).
Veterinary drugs include flea and tick repellents, eye drops, medicine for skin, medicinefor otitis externa and gastrointestinal drugs.

Sales Format
The sales composition by sales channel in the fiscal year ended March 2021 was about
90% from online stores and about 10% from offline stores. Of the net sales from online
stores, 20% is through its online site “petgo” and 80% is through online malls of othercompanies. As for offline stores, the company started wholesale of products to home
improvement retailers in September 2014 to improve awareness.
The company enabled regular purchases at its online site in April 2013. The sales amountof regular purchases has largely increased with the impact of the spread of COVID-19.
The ratio of regular purchases to net sales on its online site has increased from 29.3% in
the fiscal year ended March 2020, to 33.1% in the fiscal year ended March 2021 and to40.7% in the first three quarters of the fiscal year ended March 2022.

Newly Listed Company Introduction Report

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makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
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not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

Petgo (7140 TSE Growth) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - May 10 ,2022
Financial Statements

Statement of income

Fiscal Year

Jun.2020(mn yen)Nine months toDec. 2021

Jun.2021(%)(mn yen)(%)(mn yen)(%)

Net sales

8,131

100.0

9,455

100.0

7,127

100.0

Cost of sales

6,076

74.7

6,872

72.7

5,231

73.4

Gross profit

2,054

25.3

2,583

27.3

1,896

26.6

Selling, general and administrative expenses

2,058

25.3

2,483

26.3

1,776

24.9

Operating profit

-3

0.0

99

1.1

119

1.7

Non-operating income

58-

42-

20-

Non-operating expenses

31-

29-

30-

Ordinary profit

22

0.3

112

1.2

109

1.5

Profit before income taxes

220.3

112

1.2

109

1.5

Profit attributable to owners of parent

150.2

71

0.8

74

1.1

Balance sheet

Fiscal Year

Mar.2020(mn yen)Current assets

Mar.2021(%)(mn yen)Dec. 2021(%)(mn yen)

(%)

2,040

95.6

2,202

96.0

2,320

97.1

Cash and deposits

851

39.9

861

37.6

850

35.6

Accounts receivable-trade

515

24.2

612

26.7

632

26.5

Inventories

637

29.9

686

29.9

790

33.1

93

4.4

91

4.0

69

2.9

Property, plant and equipment

57

2.7

45

2.0

39

1.7

Intangible assets

110.5

50.3

40.2

Non-current assets

25

1.2

40

1.7

251.1Total assets

Investments and other assets

2,134

100.0

2,293

100.0

2,389

100.0

Current liabilities

1,551

72.7

1,800

78.5

1,674

70.1

Accounts payable - trade

623

29.2

825

36.0

636

26.6

Short-term borrowings

419

19.7

457

20.0

573

24.0

Current portion of long-term borrowings

253

11.9

159

6.9

196

8.2

304

14.3

144

6.3

290

12.1

275

12.9

116

5.1

262

11.0

278

13.0

349

15.2

424

17.8

278

13.0

349

15.2

424

17.8

Non-current liabilities
Long-term borrowings
Net assets
Owners' equity

Mar.2020Mar.2021(mn yen)(mn yen)

-58

242

1722

Cash flows from investing activities

14-15

Cash flows from financing activities

-313

-216

--Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation

Dividends paid
Net increase in cash and cash equivalents

-357

10

Cash and cash equivalents

851

861

Note:Consolidated basis.
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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