FY2023.6 Q4

Table of Contents

1

FY2023.6 Summary—Highlights

2

Mid- to Long-Term Policy

3

FY2023.6 Financial Overview/Results

4

FY2024.6 Business Objectives

5

ESG

6

Appendix2

1

FY2023.6 Summary—Highlights
Objectives set out at the beginning of FY2023.6
1. Build a lean business foundation and implement management that balances growth and proﬁtability
2. Achieve further growth through synergy created by strengthening collaboration between C2C and B2C, as well as
between Marketplace and Fintech
3. Build a global organization through continued strengthening of our technology base and strengthening andpromotion of ESG

1. Balancing managementof growth and proﬁts

2. Strengthening Groupsynergies

3. Building a globalorganization● Updated investment discipline toprioritize investments in areasthat steadily accumulate results● Achieved consolidated net salesof 172B JPY and consolidated
operating proﬁt of 17B JPY(improved 20.7B JPY YoY)
● Achieved GMV in Japan on thescale of 1T JPY● Launched new services tocontribute to GMV growthand enhancement of
proﬁtability●
Mercard●
Loyalty program●
Bitcoin trading service● Completed a major update of
Mercari’s internal systems tostrengthen the technology
base● Transitioning to a Company
with Three Committees1● Obtained an MSCI ESG ratingof AA

1. Subject to approval at the 11th Annual General Meeting of Shareholders scheduled to be held on September 28, 2023

3

Mid- to Long-Term
Policy42Group Mission

Circulate all forms of value
to unleash the potential in all people
52

Positive Impact of Mercari’s Business (Avoided Greenhouse Gas
Emissions)●●

In select categories1, approximately 530K tons of greenhouse gas emissions were avoided in one year bytransactions on Mercari2
Mercari strives to be a planet-positive company that contributes to solving environmental issues through its
business activities by realizing a society in which all forms of value circulate seamlessly.
CO2eq

3

Approx.

530K tons
Annually

220

covered baseballstadiums

Estimated based on factors such as the greenhouse gas
emissions involved in the product lifecycle and delivery,frequency of use of Mercari, and length of product use
life, under the assumption that items bought on Mercari
are used in place of new items, thus avoiding
greenhouse gas emissions2

Weight of apparel waste avoided thanks to
its listing on Mercari (Japan only)

ApparelSneakers

Electronics
Books,
comics,magazines
CDs, DVDs,
BDs

Greenhouse gas emissions avoided
by transactions on Mercari(by category)

Approx.

Approx.

43K tonsof apparel waste

4,300
10-ton trucks

Approximately

9% of the total
480K tonsof clothing thrownaway yearlyin Japan

1. Target categories: apparel, sneakers, electronics, books/magazines/manga, CDs/DVDs/BDs
2. Calculations done as a joint project between Mercari and the University of Tokyo RIISE’s Value Exchange Engineering Social Research Division. Includes secondhand items that had been sold under thetarget categories for both Mercari JP and Mercari US between April 2022 and March 2023. Estimated based on factors such as the greenhouse gas emissions involved in the product lifecycle (itemproduction, distribution, use, and disposal) and shipping between Mercari users and frequency of use of Mercari and length of product use life calculated from the results of a Mercari user survey,
under the assumption that items bought on Mercari are used in place of new items, thus avoiding greenhouse gas emissions.
3. Greenhouse gas emissions multiplied by their respective global warming potential coefﬁcient and converted to the equivalent amount of CO2

6

2

Transition to a Company with Three Committees, a Global Standard1
Separated supervisory and executive functions of the company to clarify their roles, and built a structure thatrealizes the timely and resolute decision-making and business promotion of the executive function whilestrengthening the supervisory function of the Board of Directors
Implemented highly transparent and effective supervision by establishing a Board of Directors comprising diverse
directors together with a Nomination Committee, Compensation Committee, and Audit Committee for which the
majority of members are independent Outside Directors●●

Supervision
Company with company auditors

Supervision
Board of Directors (ﬁve members)Company
auditors

•
•

Chair

Yamada Koizumi

Nomination andRemuneration
Advisory
Committee

Eda

Two directors
Three indep. Outside Directors
Majority indep. Outside Directors
One female director (20%)

Execution

Shinoda Watanabe Kitagawa••

Senior Executive Committee

Nomination Committee
Chair

ToyamaMajority indep. Outside Directors
Three female directors (30%)

Shinoda Watanabe

YamadaCompensation Committee
Chair

Shinoda

Chair

Performs
auditsTsunodaKitagawa

ToyamaYamadaAudit Committee

Fukushima

Tochinoki

Decides on importantbusiness execution
matters

Execution
Director Outside
Director

Executive Ofﬁcers

Yamada

1. Subject to approval at the General Meeting of Shareholders scheduled
to be held in September 2023

Decides on
candidate fordirectors

Decides on
executive
Tochinoki Tsunoda Toyama Fukushima compensation

Four directors
Six indep. Outside Directors

Decides on importantbusiness execution
matters

New
Structure

Board of Directors

Current

Audit

Chair

Company with nomination committee

Aoyagi

Eda

KawanoJohn

Tamonoki72Medium-Term Milestones to Achieve Our Mission
Working with external partners tocreate a circular economy ecosystem● Create a world that uses technology to seamlessly
circulate all forms of value, not just physical things● Promote collaboration with various external partners towork toward creating an ecosystem

Global expansion● Proceed with expansion into other countries, identifying
the most appropriate business environment and timing,
while prioritizing growth of the US business● Further promote D&I to create a borderless organization
where diverse talent all over the world can thrive

Users

MercariMarketplace

Technologies
Safety andSecurity

External
Partners

Fintech

8

2

Long
term Growth
Imageof Mercari Plans
Group
Medium-TermTargets& Investment
Business
Area

Medium-Term Objectives

Future Major
Investment Areas

Groupwide■ Work with external partners to realize an ecosystemthat leads the move to a circular economy■ Create a borderless organization where talent from allover the world can thrive■ Promote further global expansion● Strengthening AI, LLM, and data
infrastructure● Strengthening safety and security of theservice for users● Maintaining information security● Promoting D&I● Building global business

Marketplace■ Acquire a sturdy position in the C2C market, lead the market as an
essential service to the creation of a circular economy, andaccelerate this by collaborating with external partners■ Expecting three-year GMV CAGR of 15% and an adjusted operating
margin over 40% through the creation of Group synergy● Promoting cross-use by improving the
UX and strengthening AI● Strengthening engagement, centeredaround the loyalty program● Expanding crossborder transactions● Strengthening categories● Expanding B2C business

Fintech■ Contribute to maximizing Mercari’s GMV anddecreasing payment processing fees to drive
Marketplace growth■ Become the second pillar of revenue in Mercari Group● Acquiring Mercard holders andencouraging use● Strengthening credit (AI credit, etc.)● Enhancing UX using blockchain

US■ Engage Gen Z and establish name recognition andthe reputation as "the easiest and safest selling app"

● Expanding the user base and activating
existing users● Enhancing UX, including simplifying listing● Expanding transaction methods

9Mercari's Growth Trajectory and Further Leaps Forward

2▶ 20XX●

We will strengthen the Group’s revenue base byenhancing the proﬁtability of Fintech and US in themedium term as pillars of revenue to follow
Marketplace▶ FY2023.6

Mercard launched
Bitcoin trading service launched▶ FY2022.6

Mercari Shops launchedNow▼▶ FY2019.6

Complete the mission

Circulate all forms of value
to unleash the potential in all people

New Businesses
Global Expansion
US
FintechMerpay launched▶ FY2017.6

Marketplace

Mercari UK launched (Closed)▶ FY2015.6

Mercari US launched▶ FY2014.6

Mercari JP launched1. Comparison of consolidated net sales and MAU (JP and US combined) between FY2018.6 Q4 and FY2022.6 Q4
2. Quarterly average number of users who browsed our service (app or web) at least once during a given monthNote: This diagram of future growth is for illustrative purposes only

10

FY2023.6
Financial Overview/
Results

11

3

FY2023.6 Summary—Highlights
Consolidated●●

Achieved new records for net sales and operating proﬁt by implementing management that balances growth andproﬁtability through disciplined investments with clear priorities and continued cost review for mid-to-long-term growth
Had a solid start in creating Group synergy in support of future growth through initiatives like the launch of new Fintech
services and an associated loyalty program

Marketplace●●●

GMV for the full year grew by 10% toreach 1 trillion JPY; adjusted operating
margin1 grew by 44% realizing
tangible growth and high proﬁtability
MAU grew to over 22 million users as aresult of the impact of accumulated
investment with clear priorities
Completed a major internal update to
the Mercari app, making it possible to
add new features and modify existingones more easily

Fintech●●●2

Achieved an unadjusted operating
proﬁt for the full year due to favorable
growth of existing services mainly for
ﬁxed-amount payments in spite ofaccelerating investment in new services
Exceeded 1.25M Mercards issued
approximately seven months after
launching the service3
Saw the number of bitcoin trading
accounts created exceed 530K
approximately three months after the
product launch3

US● Weathered severe external factors,
including inﬂation, which continued tohave a slowing impact on purchases;
GMV growth rate landed at -11% YoY as
a result● Reviewed various costs for more robust
management, resulting in the
reduction of adjusted operating loss
YoY
● Saw an increase in the number oflistings and signs of a recovery in thefalling number of purchases

1. Adjusted: Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees)
Unadjusted: Figures before adjustment include internal transactions between Marketplace and Fintech (outsourced payment processing fees)
2. Figures before adjustment include internal transactions between Marketplace and Fintech (outsourced payment processing fees)
3. As of June 30, 2023

12

3

FY2023.6—Full-Year KPI SummaryMarketplace

FintechUS

Users3GMV1

984.6 billion JPY
YoY +10%Adjusted Operating
Margin2

44%(YoY +13 ppts)

15.71 million
Credit Balance4

117.8 billion JPY
Collection Rate5

98.7%

GMV1

1.01 billion USD
YoY -11%MAU6

4.77 million(YoY -3%)

1. Aggregate transaction value after adjusting for cancellations; the value for Marketplace aggregates C2C and B2C ﬁgures
2. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fees)
3. As of June 30, 2023, the aggregated number of unique users who had registered for Merpay Electronic Money, set up Virtual Card, applied for Mercard, or had opened an account for exchanging
cryptoassets, or who had used Merpay QR Code Payments, Online Payments, or Merpay Smart Payments (lump-sum payment or ﬁxed-amount payment), etc.
4. Merpay Smart Payments (lump-sum payment or ﬁxed-amount payment) and Smart Money credit balance as of the end of the quarter (excludes debt converted into bankruptcy reorganization debt)
5. Weighted average rate of the quarterly cumulative collections completed within the past 11 months compared to the amount of Merpay Smart Payments (lump-sum payment and ﬁxed-amountpayment) and Smart Money billed in the past 11 months (excludes bankruptcy reorganization debt)
6. Quarterly average number of users who browsed our service (app or web) at least once during a given month13

3

FY2023.6 Q4—Consolidated Net Sales & Operating Income by Business(Billion JPY)

FY2022.6 Q4
Net Sales/
External Net Sales

Segment

FY2023.6 Q4Operating Income/
Adjusted Operating
Income1

Net Sales/
External Net Sales

YoY

Operating Income/
Adjusted Operating
Income1

Net Sales/
External Net Sales

Operating Income/
Adjusted Operating
Income1

Japan Region

25.4

5.5

32.3

8.4

+27%

+52%

Marketplace

21.4

4.9 / 7.3

26.1

9.1 / 12.0

+22%+84%/+63%

6.3 / 3.9

0.6 / -1.8

9.0 / 6.1

-0.6 / -3.5

+42%/+56%

J-GAAP (Billion JPY)

10.6

-2.3

10.3

-1.1

-3%

-

US GAAP (Million USD)

81

-16 / -1375

-9 /-6

-8%

-

Other

1.4

-0.4

1.6

-0.2

+17%

-

Adjustments

-0.1

-1.7

-0.2

-1.5

-

-

Consolidated

37.3

0.9

44.1

5.4

+18%

+466%

FintechUS

1. Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees)

-

14

3

FY2023.6 Full Year—Consolidated Net Sales & Operating Income by Business(Billion JPY)

FY2022.6
Net Sales/
External Net Sales

Segment

FY2023.6

Operating Income/
Adjusted Operating
Income1

Net Sales/
External Net Sales

YoY

Operating Income/
Adjusted Operating
Income1

Net Sales/
External Net Sales

Operating Income/
Adjusted Operating
Income1

Japan Region

100.1

16.6

122.1

34.4

+22%

+107%

Marketplace

85.7

16.6 / 26.5

101.7

33.9 / 44.7

+19%+104%/+69%

24.2/ 14.4 -0.05 / -9.8

31.2 / 20.4

0.5 / -10.2+29%/+42%

Fintech-J-GAAP (Billion JPY)

41.6

-12.1

44.4

-8.8

+7%

-

US GAAP (Million USD)

354

-98 / -87

323

-63 /-48

-9%

-

Other

6.4

-0.2

6.5

-0.5

+2%

-

Adjustments

-1.1

-7.9

-1.1

-8.1

-

-

Consolidated

147.0

-3.7

172.0

17.0

+17%

-

US

1. Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees)15

3

Consolidated Net Sales & Operating Income (Quarterly)●

Generated stable income on a consolidated basis in spite of expanding investment centered on new services in the
Fintech domain owing to a strengthened revenue base due to such things as the update to disciplined investment, theongoing review of costs, and the return to normal levels of impact of fraudulent use

Net Sales(Billion JPY)

Operating Income
Billion
JPY

YoY

+18%

(Billion JPY)

YoY

Billion
+466%
JPY

16

3

Consolidated Net Sales & Operating Income (Full Year)Net Sales(Billion JPY)

Operating Income
Billion
JPY

YoY

+17%

(Billion JPY)

Billion
JPY

17

3

The Talent Supporting Mercari’s Growth●●

Headcount decreased QoQ due to such things as continuing a selective hiring policy and reviewing ﬁxed costs including
personnel expenses in the US
Will continue balanced hiring mainly of engineers to invest in growth for FY2024

Number of Employees183Marketplace—FY2023.6 Summary●●

Succeeded in achieving steady growth and high proﬁtability by applying disciplined investment ininitiatives that accumulate results; MAU exceeded 22 million, GMV for the full year grew by 10%, andadjusted operating margin landed at 44%
Focused on updates to the product and launched a loyalty program to maximize group synergies throughcollaboration with Fintech

Product Initiatives● Completed a major internal update to the Mercari app, allowing
for the rapid addition and modiﬁcation of features● Focused on improving the accuracy of personalization features
such as recommendations▶ GMV

billion JPY

10%)(YoY ＋

Marketing Initiatives● Focused on measures like invitation campaigns to acquire newusers, as well as measures to promote listings after acquisition● Promoted ofﬂine initiatives such as Mercari Workshop together
with online initiatives

984.6▶ Adjusted Operating
Margin1

1. Total transaction volume after taking cancellations, etc. into account; total of C2C and B2C
2. Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees)

44%

19

3

Marketplace—GMV/MAU/Net Sales/Adjusted Operating Income (Full Year)

GMV/MAU(Billion JPY)
(Million users)

Net Sales

Millionusers
Billion
JPY

Mercari JP

Marketplace1

YoY
+11%
YoY
+10%

(Billion JPY)

Adjusted Operating
Income/Margin3
YoY
+19%

Adjusted operating income
Adjusted operating margin(Billion JPY)

Mercari JP

1. Mainly Mercari JP and Souzoh (Mercari Shops)
2. Mainly deducting company-wide expenses from the results of Mercari JP and Souzoh (Mercari Shops)
3. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fees)

Marketplace1

Mercari JP

YoY+13ppts
YoY+69%

Marketplace220

3Marketplace—GMV/MAU (Quarterly)●●

MAU remained strong due to the success of new user acquisition measures such as joint
promotions with Fintech
GMV growth in Q4 was +15% YoY due to the ARPU boost from Mercard and strong
performance of the Entertainment and Hobbies category

YoY
+11%

Million users

GMV1/MAU2

1(Billion JPY)

2

(Million users)

1. Total transaction amount after taking into account cancellations; totals include ﬁgures for both C2C and B2C
2. Quarterly average number of users who browsed our service (app or web) at least once during a given monthBillion JPY

YoY
+15%

21

3

Marketplace—Net Sales/Adjusted Operating Income (Quarterly)
Adjusted Operating
Income/Margin1

Net Sales
YoY+22%(Billion JPY)

YoY
+12ppts
YoY+63%

Billion
JPY(Billion JPY)
Adjusted operating income
Adjusted operating margin

1. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fees)223Marketplace—FY2023.6 Cost Composition (Quarterly)●Continued to achieve high adjusted operating income, despite a slight QoQ increase in promotion cost
ratio, due to efforts such as increased investment in joint promotions with Fintech

12

1. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fee
2. Outsourcing expenses, land rent, taxes and public dues, etc.

23

3Fintech—FY2023.6 Summary
Launched Mercard and a bitcoin trading service to make progress on creating Group synergy
Recorded an unadjusted operating proﬁt for the full year due to favorable growth of credit services inspite of investing in the new services●●

Credit/Payment●●●

Saw growth mainly of ﬁxed-amount payments and credit balance of 117.8B
JPY
Year-on-year collection rates increased by 0.6 ppts to 98.7% due to strict
credit controls that leverage Mercari’s unique AI credit system and thestrengthening of collection actions
The number of issued Mercards surpassed 1.25M. Mercari usage ARPU byusers of the Mercari marketplace in the three months after their card wasissued increased to roughly 10–60%1, demonstrating Group synergy

Crypto●The number of accounts for trading cryptoassets surpassed 530K,
contributing to stimulating the cryptoasset market in Japan. In a Mercari
survey, 80% of users stated they had no previous experience in trading
crypto, demonstrating growing penetration among the target group of
casual users.

➢

Achieved a full-year
unadjusted2 operating proﬁtin spite of accelerating investment in
new services➢

Mercari usage ARPU rose by 10-60%
among Mercard holders in the ﬁrst
three months after they were issued a
Mercard

1. Based on reference values for actual initial action seen in the analysis of trends among users issued a Mercard in the period from November 2022 to April 2023 following the release of the card inNovember 2022
2. Figures before adjustment include internal transactions between Marketplace and Fintech (outsourced payment processing fees)24

3Fintech—Net Sales and Adjusted/Unadjusted Operating Income (Full Year)●●

Saw growth mainly in the credit business where we broke records for total sales and sales outside of Mercari
Achieved full-year unadjusted2 operating proﬁt due to the growth of credit in spite of investing in new services

Net Sales

Billion JPY

YoY
+29%

1

(Billion JPY)

Adjusted/Unadjusted Operating Income2
Billion JPY(Billion JPY)

Billion JPY

YoY
+42%
Billion JPY

MerpayFintech3

MerpayFintech3

1. Net sales and operating income after deduction of internal transactions between Marketplace and Fintech (outsourced payment processing fees)
2. Adjusted: Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees); unadjusted: Figures before adjustment include internaltransactions between Marketplace and Fintech (outsourced payment processing fees)
3. Mainly reﬂects the results of Merpay, Inc. and Mercoin, Inc.

25

3

Fintech—Net Sales and Adjusted/Unadjusted Operating Income(Quarterly)●●

Net sales grew due to a favorable trend in the usage of Mercard and ﬁxed-amount payments
Although proﬁtability improved, recorded an unadjusted2 operating loss of 600M JPY as a result of aggressive
investment in Mercard

Net Sales

Billion
JPY
1(Billion JPY)

Adjusted/Unadjusted
Operating Income2

Breakdown of
unadjusted operating
proﬁt3(Billion JPY)

YoY

+42%
(Billion JPY)

Billion
JPY

YoY

+56%
BillionJPY

Billion JPY
1. Net sales and operating income after deduction of internal transactions between Marketplace and Fintech (outsourced payment processing fees)
2. Adjusted: Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees); unadjusted: Figures before adjustment include internaltransactions between Marketplace and Fintech (outsourced payment processing fees)
3. Investment in new services: For management accounting purposes, total of costs related to the promotion of Mercard and bitcoin trading services, and point returns related to Mercard usage; proﬁt excluding
investment in new services: Unadjusted operating proﬁt minus the amount invested in new services

26

3

Fintech—Credit Balance and Collection Rate of Credit Services (Quarterly)●●

Expanded credit balance due to the favorable growth of existing services and Mercard
Amid the growth of credit balance, the effects of the credit logic update implemented last year began to show in Q4,
which improved collection rates signiﬁcantly; going forward, we will strive to maintain and further improve on highcollection rates

Billion
JPY

1
2(Billion JPY)

1. Merpay Smart Payments (lump-sum and ﬁxed-amount payment) and Merpay Smart Money credit balance as of the end of the quarter (excludes debt converted into bankruptcy reorganization debt, etc.)
2. Average aggregated rate of the quarterly cumulative collections completed within the past 11 months compared to the amount of Merpay Smart Payments (lump-sum payment and ﬁxed-amountpayment) and Merpay Smart Money billed in the past 11 months (excludes bankruptcy reorganization debt)

27

3

Fintech—Number of Users/Veriﬁed Users (Quarterly)●●

The numbers of both users1 and veriﬁed users continued to increase
In addition to building an environment for safe and secure transactions, increasing the percentage of veriﬁed users also
contributes to business growth since being veriﬁed allows users to start using credit and crypto services seamlessly
Million users
1

Million users(Million users)

Identity
Veriﬁcation Rate

88.8%
(QoQ +0.5ppts)

1. As of June 30, 2023, the aggregated number of unique users who had registered for Merpay Electronic Money, set up Virtual Card, applied for Mercard, or had opened an account for
exchanging cryptoassets, or who had used Merpay QR Code Payments, Online Payments, or Merpay Smart Payments (lump-sum payment or ﬁxed-amount payment), etc.

28

3

US—FY2023.6 Summary
The number of listings increased YoY as a result of product initiatives such as the simpliﬁcation oflistings and improvement of personalization features; we are beginning to see signs of a recovery in
the falling number of purchases as well●

Marketing●

Conducted efﬁcient and targeted marketing, mainly forexisting users, by leveraging brand recognition that hasreached a level that is on par with some of ourcompetitors.

Product●▶ GMV $1.01 billion (YoY -11%)▶ MAU 4.7 million (YoY -3%)

Implemented various measures to promote purchases
and reduce the burden on buyers, including the
introduction of a new plan to reduce shipping costs forsmall packages and new bundle options. These areshowing a positive impact on buying behavior.
29

3

US—Net Sales/Adjusted Operating Income (US GAAP/Yearly)(Million USD)

Adjusted Operating Income1

Net Sales

GMV/MAU
YoY-3%(Million USD)(Million USD)

Million USD(Million users)

Million USD

YoY
-11%

YoY
-9%
Million USD

1. Adjusted operating proﬁt after non-cash items (i.e., stock-based compensation and depreciation) are deducted30

3

US—FY2023.6 Q4 GMV/MAU●●

Inﬂation and other external factors continued to slow purchases, with Q4 GMV growth landingat -14%On the other hand, the number of listings continued to increase and the number of purchases
has recently begun to pick up
Million users

1

2

GMV /MAU

YoY-3%Million USD(Million USD)(Million users)

1. Aggregate transaction value after adjusting for cancellations
2. Quarterly average number of users who browsed our service (app or web) at least once during a given month

YoY
-14%

31

3

US—Net Sales/Adjusted Operating Income (US GAAP/Quarterly)●

Adjusted operating loss improved signiﬁcantly YoY due to the realization of more robust
management, which included a review of expenses throughout the year and the execution of
disciplined investments

Adjusted Operating Income1

Net Sales(Million USD)(Million USD)

Million USD

YoY
-8%

1. Adjusted operating proﬁt after non-cash items (i.e., stock-based compensation and depreciation) are deducted

Million USD

32

FY2024.6
Business Objectives

33

4

FY2024.6 Business Objectives
Consolidated● Continue implementing management that balances growth and proﬁtability, and looking ahead to the next 10 years, takeon the creation of new businesses while accelerating the growth of existing businesses● Make progress on building a foundation for a global organization where diverse talent can thrive, while also further
strengthening governance● Transition to global standard IFRS beginning FY2024.6 Q1. Expecting negligible impact from the differences with GAAP
(See p. 57 for more information on the changes)

Marketplace

FintechUS● Focus on top-line growth and aim
for GMV growth rate of 10% or
higher by accelerating productdevelopment and carrying out
effective marketing investments● Expecting adjusted operating
margin1 of 30–40% as a result ofcontinued disciplined investments● Create further Group synergy
by increasing Mercard holders● Strengthen existing credit
services to further strengthen
the revenue base
● Continue initiatives to stabilize
long-term ﬁnancing● Focus on updating the
product to strengthen
retention of existing users andaim to get back on track for
growth● Focus on engaging Gen Z for
future growth

1. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fees)344Japan Region—FY2024.6 Group Synergy Overview●

Aiming to create synergy with Marketplace and Fintech working together to enhance UX and carryout marketing

Japan Region

MAU: over 22M
GMV: approx. 1T JPY

Sales balance, points, data, MAU

Marketplace

Identity-veriﬁed users: approx. 14M
Mercards issued: over 1.25M
Crypto trading accounts: over 530K

FintechMercard (loyalty program), credit,
payment features, identity veriﬁcation

Japan Region proﬁtability
enhancements
Increased GMV as aresult of higher ARPU

Decreased payment
processing fees

Expanded use of credit
services35

4Marketplace—FY2024.6 Business Objectives
Medium-Term Objective
Lead the market as an essential service to the creation of a circular economy,
and accelerate collaboration with external partners
FY2024.6 Business Objectives

Focus on top-line growth while continuing disciplined investments.
Aim to achieve GMV growth of 10% or higher and adjusted operating margin of 30–40% by focusing
on areas to enhance in addition to marketing investments and product developments.
Initiatives for GMV growthMarketing● Loyalty program

Product● Web● UX

Areas to enhance● Crossborder transactions● Category growth● B2C (acquiring large-scale
merchants)36

4

Marketplace—Areas to Enhance in FY2024.6●

Enhance areas such as crossborder transactions, category growth, and B2C and also continue
product development and effective marketing investments

Crossborder Transactions● Select focus regions and expand
partners to act as proxy services forbuyers● Begin crossborder sales for Mercari
Shops

Category Growth● Select focus categories and improve UX● Carry out marketing initiatives timed tocoincide with increased demand forspeciﬁc categories, such as seasonality

B2C● Acquire large-scale reuse/outlet
merchants● Strengthen functionality in areas
such as API connections

Activate transactions with UX enhancements using technology such as generative AI/LLM
37

4

Marketplace—Our Approach to FY2024.6 Targets
GMV growth rate of 10% or higher;
adjusted operating margin of 30–40%●●

Continue management that balances growth and proﬁtability, but prioritize
accelerating GMV growth
Carefully examine effects of investments, but make aggressive investments if
we determine that it will contribute to large GMV growth

GMV
growthrate

1. Proﬁt after deduction of internal transactions with Fintech (outsourced payment processing fees)

Adjusted1
operatingmargin38

4Fintech—FY2024.6 Business Objectives
Medium-Term Objective
Contribute to maximizing Mercari’s GMV and become the second pillar of revenue in
Mercari GroupFY2024.6 Business Objectives
Focus on acquiring Mercard holders and aim to enhance Group synergy.
While we expect to strengthen investments related to new services, we have a sturdy
revenue base thanks to the strong growth of mainly existing services, and we do not
expect large unadjusted operating losses.

Enhancing Groupsynergy● Contribute to increasing Mercari’s GMV by acquiring Mercard holders● Activate transactions with UX enhancements such as enabling users tomake bitcoin payments within Mercari

Strengthening therevenue base

● Grow credit services and maintain/improve their collection rate bycontinuing to enhance the accuracy of our unique AI credit andstrengthening collection actions● Diversify ﬁnancing methods to maintain a sound ﬁnancial foundation
39

4

Fintech—Approach to Financing for Credit Services in
FY2024.6●●

From FY2023.6, we have introduced non-recourse ﬁnancing1, which allows us to ﬁnance based on conﬁdence in thereceivable credit itself rather than company credit, enabling us to expand our ﬁnancing alongside the growth of ourcredit services
Going forward, we will continue to diversify our ﬁnancing methods centered around non-recourse1 receivable
As of June 30, 2023
liquidation

Liquidation of receivables● We have liquidated receivables for Merpay Smart
Payments with speciﬁc ﬁnancial institutions, withthe maximum amount set to 50.0B JPY for
lump-sum payment and 60.0B JPY for
ﬁxed-amount payment.
● Additionally, we received an external rating for a
portion of ﬁxed-amount payment receivables andcarried out non-recourse1 long-term ﬁnancing fora total of 24.0B JPY in FY2023.6 (December 2022,
June 2023). We also carried out an additional
20.0B JPY of non-recourse ﬁnancing in July 2023.
● We plan to carry out non-recourse1 ﬁnancing asnecessary to match the growth of our credit
services going forward.

Other funds used

Liquidation of ﬁxed-amountpayment receivables (withexternal rating)Round 2: 14.0B JPY

ReceivablecreditLiquidation of ﬁxed-amountpayment receivables (withexternal rating)Round 1: 10.0B JPY

Liquidation ofﬁxed-amountpayment receivables
Max. 60.0B(Recourse)
Liquidation of
lump-sum payment
receivables
Max. 50.0B(Non-recourse)

Financed 20.0B JPY(non-recourse) in July
2023
Plan to carry out
non-recourse1 ﬁnancing(with external ratings) as
credit increases going
forwardFinancing amountﬂuctuates per month (upto the maximum) basedon credit balance(recourse1 ﬁnancing used
for ﬁxed-amountpayment)

1. Non-recourse ﬁnancing: A method of ﬁnancing in which the amount collected from the credit is the only source of repayment, and the repayment obligation is not borne by Mercari
Recourse ﬁnancing: A method of ﬁnancing in which, in the event that the full amount of the loan cannot be collected from the credit, the repayment obligation for the remaining loan amount is borneby Mercari

40

4

US—FY2024.6 Business Objectives
Medium-Term Objective
Engage Gen Z to establish recognition and reputation as"the easiest and safest selling app”
FY2024.6 Business Objectives

Focus on reﬁning the product to strengthen retention ofexisting users and aim to get back on track for growth
Focus on engaging Gen Z for future growth
Measures to involve Gen Z

Ease of use

Building
interest-based
communities

New
transaction
methods
41

US—Strengthen Approach to Generation Z

4●●42% of Gen Z consumers prefer secondhand as their primary shopping method, which is far higher
than any other generation1
The percentage of Gen Z users who use major reuse sites is lower compared to users of othergenerations, so we will aim to acquire more users through a UX that focuses more on Gen Z
Ease of use●

Promote hassle-free selling,such as features to list multiple
items at once

Interest-based communities●

Aim to increase transaction
frequency by building
interest-based communities
where users can interact basedon their interests

1. According to our own research
Note: All product images are for illustration purposes only, not the ﬁnal product.

New ways to transact●

Aiming to attract new users,
consider expanding delivery
options including meet-up
options, which are in highdemand in the US

42

ESG

43

5

ESG—Materiality Update●

Mercari deﬁnes our materiality as important topics that relate to creating value to contribute to resolving social andenvironmental issues through our business, and creating the management foundation necessary for continuous growth. In
FY2023.6, we updated our materiality.

MISSON

Circulate all forms of value
to unleash the potential in
all people
SocialImpactBusiness Value
Created ThroughOur Products andServices(1) Empowerment of Individuals and Society
By creating opportunities for anyone to realize their dreams and contribute to society and the people
around them, we will achieve a world that unleashes the potential in all people.

(2) Creating a World That Circulates All Forms of Value
We strive to be a planet-positive company that contributes to solving environmental issues through its
business activities by realizing a society in which all forms of value—not just physical goods andmoney—circulate seamlessly.

(3) Creating a New User Experience Through Technology
We utilize data, AI, and other innovative technologies to constantly evolve our products and create new user
experiences through the seamless exchange of value.

(4) Building Long-Term Public Trust
Organizational andManagement Foundations
Supporting the Creation of Value

We fulﬁll our responsibilities as a public entity and build public trust by establishing a robust and highly
transparent decision-making process, and through more effective corporate governance and thoroughcompliance.
We contribute to the realization of healthy internet services around the world by achieving a safe, secure,and fair transaction environment, and also by educating and sharing information throughout the industry.

(5) Unleashing the Potential in Diverse Talent Worldwide
We will aim to be a company that can continue to grow sustainably by creating an environment in whichpeople from diverse backgrounds all around the world can reach their full potential.

44

5

ESG—FY2023.6 Summary
Environment
530 tons of greenhouse gas
emissions avoided as a resultof Mercari’s business1
Published TCFD disclosures

Scope 1/2/3: 43K tons
Good progress toward our2030 targets for scope 1, 2,
and 3 emissions(2030 Targets)● Scope 1+2: Reduce emissions by a totalof 100%● Scope 3: Reduce added-value-related
emissions by 51.6%

GovernanceTransition to a Company withThree Committees2
Percentage of Outside
Directors: 60%2

SocialPercentage of women
directors: 30%2
Became the ﬁrst Japanesecompany to receive EDGE Assess
certiﬁcation3
1.「Build@Mercari」の説明
Formulated a Basic Human
Rights Policy

Ranked as the top company in perceived
developer experience as chosen byengineers4
Reduced the monetary impact offraudulent use by 89.3%5

1. Estimated based on factors such as the greenhouse gas emissions involved in the product lifecycle and delivery, frequency ofuse of Mercari, and length of product use life, under the assumption that items bought on Mercari are used in place of new
items, thus avoiding greenhouse gas emissions
2. Subject to approval at the 11th Annual General Meeting of Shareholders scheduled to be held on September 28, 2023
3. A global certiﬁcation that recognizes efforts to achieve gender equality in the workplace
4. From Japan CTO Association’s Developer eXperience AWARD 2023 rankings
5. YoY comparison of FY2022.6 Q4 (as of June 30, 2022) and FY2023.6 Q4 (as of June 30, 2023)
6. A nonproﬁt organization that promotes the standardization of online authentication technology to replace passwords

Partnerships with approx. 50
local governments
Reached a total of 55,000 donations
through Mercari Donation
Joined the FIDO Alliance645

45

ESG—FY2024.6 Focus Areas and Objectives

5

We will carry out action plans for each material topic in our materiality, which we revised in FY2023.6●

Material Topic

Focus Areas

FY2024.6 Objective

1

Empowerment of
Individuals andSociety2

Creating a World That
Circulates All Forms
of Value● Achieving sustainable business growth● Fostering culture to support the creation of acircular economy● Mitigating climate changeWork across the Group to maximize Marketplace GMV growth, expand
the B2C reuse market, expand the crossborder market, and collaborate
with external partners to strengthen our market share in the C2C
market3Creating a New User
Experience ThroughTechnology● Providing a seamless user experience using
data and AI● Promoting circular ﬁnance● Creating innovation through R&D on value
exchange

Marketplace: Provide an advanced user experience leveraging generative AI/LLM.
Enhance the user experience and strengthen marketing to acquire new users andencourage listing.
Fintech: Create Group synergy by acquiring Mercard holders and by enhancing the UX
through such things as enabling users to make bitcoin payments within Mercari
US: Focus on reﬁning the product to strengthen retention of existing users andengaging Gen Z for future growth.

4

Building Long-Term
Public Trust● Realizing safe, secure, and fair transactions● Enhancing the effectiveness of corporate
governance and ensuring compliance● Earning the trust of users and stakeholders(society, investors, media, etc.)

Strengthen our internal audit structure in advance of the transition to a
Company with Three Committees
Strengthen our structures for data and privacy governance andcybersecurity
Strengthen collaboration with external partners (local governments,
primary distribution companies, universities, NPOs)

5

Unleashing the
Potential in Diverse
Talent Worldwide● Acquiring and developing professional talent from allover the world● Building a company culture and environment thatallows us to take on bold challenges in pursuit of our
mission● Embodying diversity & inclusion

Promote D&I
Strengthen new grad hiring to secure diverse talent
Build a work environment and prepare a compensation system to expand
the India Center of Excellence
Update and ensure understanding of our culture, which encourages
members to demonstrate Mercari’s values

Realize a world where all people’s potential
is unleashed46

Appendix

47

6

Investment Policies
Through FY2022.6 H1

FY2022.6 H2–FY2023.6

FY2024.6

Mid-term
objectives■ Work with external partners to create an ecosystem that leads the move to a circular economy■ Establish a borderless organization where talent from all over the world can thrive■ Promote further global expansion

View ofproﬁtability■ Prioritize strong top-line
growth■ Aim to balance growth andproﬁtability■ Invest aggressively in areasthat contribute to mid- tolong-term growth■ Clarify priorities and makeinvestments in areas that will
have steadily accumulating
results in order to achieve
mid- to long-term growth■ Consider necessary
investments in Fintech tomaximize future proﬁts

Investment
policy■ Focus on growth while
continuing management thatbalances growth andproﬁtability■ Invest in creating new
businesses and accelerating
growth of existing businesses
with sights set on the nextten years

48

6

FY2024.6—Investment Policy and Details by Business
Investment policy and main investments
Focus on top-line growth while continuing disciplined investments

Marketplace■ Acquiring new users■ Strengthening the loyalty program■ Accelerating GMV growth through UX evolution and areas to enhance such as
crossborder transactions, category growth, and B2C

Make disciplined investments in Mercard and the credit business,aiming to maximize Group synergy and further enhance proﬁtability

FintechUS■ Acquiring Mercard holders and encouraging use■ Enhancing accuracy of AI credit and strengthening collection ability■ Popularizing the bitcoin trading service on Mercari and providing featuresthat enhance the UX, such as enabling users to make bitcoin payments

Invest in product development and effective marketing to activate
existing users■ Carrying out marketing with the main goal of strengthening retention ofexisting users■ Simplifying listing and expanding transaction methods to engage Gen Z

49

6

New Board of Directors Structure(Subject to approval at the General Meeting of Shareholders)●Appointing Outside Directors with a wealth of knowledge and experience in a variety of areas torealize a transparent and highly diverse organization

10 Directors
Directors (4)Shintaro Yamada

Fumiaki Koizumi

Representative Executive
and CEO

OfﬁcerPresident / CEO of
Kashima Antlers F.C. Co.,Ltd.

Sayaka Eda

Mayumi Tochinoki

Executive Ofﬁcer, Senior Vice Presidentof Corporate, and CFO

Independent Outside Directors (6)Makiko Shinoda

Masayuki
Watanabe

Takuya Kitagawa

Daiken Tsunoda

Kazuhiko
ToyamaFumiyuki
Fukushima

50

6Strong Governance Structure (Independent Outside Directors)(Subject to approval at the General Meeting of Shareholders)

Makiko Shinoda

Masayuki Watanabe

Chair of theCompensation
Committee

•
•
•
•
•
•

Background••••

The Long-Term Credit Bank of Japan, Limited(currently SBI Shinsei Bank, Limited)
McKinsey & Company, Inc.
Novartis Pharma K.K.
Head of Finance of Nestlé Nutrition K.K.
(currently Nestlé Health Science)
Director CFO of Hobonichi Co., Ltd.
Director of YeLL Inc. (current position)

McKinsey & Company, Inc.
Co-founder of DeNA Co., Ltd.
CEO of Quipper Ltd.
Director of FOODCODE, LTD. (current
position)

Reasons for Selection
as Outside Directors•

Professional knowledge and deep experiencein D&I, ESG, ﬁnance, etc.

Takuya Kitagawa•

Knowledge of global expansion ofbusiness in tech companies

•

•
•
•
•

•
•

Executive Ofﬁcer, Head of Behavior Insight
Strategy Ofﬁce of Data Intelligence
Supervisory Department of Rakuten Group,
Inc.
Director of Rakuten Data Marketing, Inc.,
Co-founder and Director, Public Interest
Incorporated Association Well-being forPlanet Earth (current position)
Managing Executive Ofﬁcer, CDO of
Technology Division of Rakuten Group, Inc.
Knowledge in technology areas such as AI
and data science
Experience in the use of AI and data forbusiness creation and social issues

51

Strong Governance Structure (Independent Outside Directors)

6(Subject to approval at the General Meeting of Shareholders)

Kazuhiko Toyama

Daiken Tsunoda

Fumiyuki Fukushima

Chair of the Nominating
Committee

Chair of the Audit
Committee

Background••••

Admitted to the Tokyo Bar Association, Partner of Mori Sogo•
Nakamura & Tsunoda (currently Nakamura, Tsunoda & Matsumoto) •Outside Corporate Auditor of INES Corporation
Outside Corporate Auditor and Outside Director of Mitsui Sumitomo •Insurance Group Holdings, Incorporated (currently MS&AD InsuranceGroup Holdings, Inc.)•• Outside Director of Culture Convenience Club Co.,
Ltd. (current position)•• Outside Director of Eisai Co., Ltd. (Audit Committee Member)• Outside Director (Member of the Audit and Supervisory Committee) of•
Sumitomo Mitsui Banking Corporation (Audit & Supervisory
Committee Member) (current position)•• Established Daiken Tsunoda Law Ofﬁce (current position)

Boston Consulting Group
Representative Director and President of Corporate
Direction Inc.
Representative Director, CEO of Industrial Growth Platform,
Inc.,
Outside Director of Panasonic Corporation (currently
Panasonic Holdings Corporation) (current position)
Outside Director of Tokyo Electric Power Company Holdings,
Inc.
Chairman of Industrial Growth Platform, Inc. IGPI Group(current position)
Chairman of General Incorporated Association Japan
Association of Corporate Directors••

Koyo Audit Firm
KPMG AZSA & Co. (currently KPMG AZSA
LLC)
Audit & Supervisory Board Member ofFindy Inc. (current position)
Outside Audit & Supervisory Board
Member of Kashima Antlers F.C. Co., Ltd.
(current position)
Outside Director (Member of the Audit andSupervisory Committee) of Chatwork Co.,
Ltd. (current position)•••

Reasons for Selection
as Outside Directors•

Strong insight in the areas of corporate
law and corporate governance••

Extensive knowledge and deep insight in
the areas of management and corporate
governanceDeep experience in promoting innovation
to solve social issues•

Experience in auditing and extensive
knowledge of accounting and internal
controls

52

6

Business Segments●●

As of FY2023.6, we have changed the reporting segments to Japan Region and US
Going forward, we will use the Marketplace and Fintech domains to explain and disclose businessresults for Japan Region

Japan Region

Marketplace

FintechUS

OthersAdjustments1

Mercari JP

MerpayMercari US

Kashima Antlers

Company-wide
expenses

SouzohMercoinIndia Center of
Excellence

Consolidated
adjustments

1. Company-wide expenses, which were previously included in Mercari JP, will be displayed as a separate item from FY2023.6

53

6

Transitioning to IFRS●●With the objective of enhancing international comparability, we will be transitioning to using IFRS from FY2024.6 Q1
Japan Region will use core operating proﬁt (other income/expenses added to operating proﬁt in IFRS; similar to operating
proﬁt in JGAAP) as a KPI

JGAAP
Net sales
Cost of sales
Gross proﬁtt
SG&A
Operating proﬁt
Non-operating income
Interest income/Dividends received
Other non-operating income
Non-operating expenses
Interest expense
Other non-operating expenses
Ordinary proﬁt
Extraordinary income
Extraordinary losses
Net proﬁt before income taxes
Income taxes
Net proﬁt attributable to owners of parent

IFRS
Sales revenue
Cost of sales
SG&A
Other income
Other expenses
Operating proﬁt
Financial income

IFRS operating proﬁt +other income/expenses= Coreoperating proﬁt(≒ Operating proﬁt in
JGAAP)

Financial expenses
Proﬁt before income tax
Corporate income tax expenses

Proﬁt attributable to owners of parent54

6

Consolidated BS

1

1. Includes long-term borrowings planned to be repaid within 1 year55

6

Major Itemization of Consolidated BS●●

We will continue to leverage various methods of ﬁnancing and appropriately control our balance sheet to maintain a sound ﬁnancial
foundation
Our basic policy for ﬁnancing our credit services is to primarily carry out ﬁnancing by liquidating receivables○
In particular, we will aim to enhance our ﬁnancial stability by expanding non-recourse receivable liquidation

Mainly deposits
related to user
fundsWith regard topreservation of user
funds, we act inaccordance with laws
regarding funds transfer
services, etc., bydepositing funds to theauthorities andconcluding a Guarantee
Contract for Security
Deposits for Providing
Funds Transfer Service
with ﬁnancial institutions

Receivables from
Merpay Smart
Payments(lump-sum andﬁxed-amountpayment) andtransactions
within Mercari

CB1 + borrowings

Cash on hand andin banks
196.2B JPY(excluding funds ﬁnanced byliquidating receivables)

78.4B JPY

Deposits received
163.4B JPY
Guarantee deposits
61.6B JPY

Other receivable
115.7B JPY
Other: 41.6B JPY

Borrowings from liquidatingreceivables
79.1B JPY
Of borrowings,
non-recourse ﬁnancing
40.9B JPY
Other: 39.1B JPY

Net assets
55.2B JPY

50.0B JPY in CB1
and 28.4B JPY in long-termborrowings (including 15.8B
JPY in long-termborrowings of less than one
year)

Mainly Mercari sales
balance (including US)
and wallet balance fromusers adding funds frombanks
Funds ﬁnanced byliquidating receivables

Liquidated lump-sum payment
and ﬁxed-amount payment
receivables for Merpay Smart
Payments. In FY2023.6, received
an external rating for a portion ofliquidated ﬁxed-amount payment
receivables and carried out new
ﬁnancing (non-recourse) frommultiple institutional investors.

Total assets at end of FY2023.6: 415.2B JPY
1. Convertible bond-type bonds with stock acquisition rights issued in July 2021 (due in 2026: 25 billion JPY, due in 2028: 25 billion JPY)

Financing policy going forward

Expand non-recourse receivableliquidation
Non-recourse ﬁnancing is a method of ﬁnancing inwhich the amount collected from the credit is the only
source of repayment, and the repayment obligation
does not return to Mercari. Thus, we subtract the
portion corresponding to non-recourse ﬁnancing fromthe denominator and use the result to calculate oureffective capital-to-asset ratio.
Capital-to-asset ratio at the end of FY2023.6: 12.9%

Effective capital-to-asset ratio (subtracting
amount of non-recourse ﬁnancing from net assets)

14.3%

Effective capital-to-asset ratio(subtracting the 20.0B JPY of non-recourse ﬁnancing
carried out in July 2023 from the denominator of the
14.3% ﬁgure above)

15.1%

We expect to increase non-recourse ﬁnancing as thebusiness expands going forward.

56

6

Consolidated PL (Full Year)1

1. Operating income + Depreciation and Goodwill amortization57

6

Consolidated CF (Full Year)

58

6

Marketplace PL (Quarterly)1

1. After deduction of internal transactions with Fintech (outsourced payment processing fees)596

Fintech PL (Quarterly)11

1. Adjusted: Figures after adjustment exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees)
Unadjusted: Figures before adjustment include internal transactions between Marketplace and Fintech (outsourced payment processing fees)60

6

US PL1 (Quarterly)

2

1. Based on US GAAP. Different in booking method from the ﬁgures of Mercari US included in Consolidated PL (J GAAP)
2. Adjusted operating proﬁt after non-cash items (i.e., stock-based compensation and depreciation) are deducted61

6Marketplace—Q3 Cost Structure (Quarterly)(Billion JPY)

11

1. Outsourcing expenses, rent, taxes & dues, hiring fees62

6

Q4 (Apr–Jun)—Category Shift●●

In the Marketplace domain, Toys categories like trading cards and toys led to YoY growth
In the US domain, the Men’s Fashion and Beauty categories grew slightly, but there were no majorchangesUS

Marketplace

FY2022.6
Q4

FY2023.6
Q4

FY2022.6
Q4

FY2023.6
Q4

63

6

Marketplace—Crossborder Sales●●

Launched crossborder sales through collaboration with e-commerce businesses in 2019
Popular categories include anime, idol merchandise, and apparelTop 10 categories1
No.

Category

Partner companies
Company nameStart date1.

Toys > Character Merchandise

BEENOS Inc. (Buyee, Shopee)2.

CDs > K-Pop & Asian Music

Buyee: Nov 2019
Shopee: Aug 2020

PChome Bibian Inc. (Bibian)3.

Figurines & Action Figures > Comics & Animation

Oct 2021

4.

Trading Cards > Pokémon Trading Card Game

Inagora Inc.

Apr 2023

5.

Celebrity Merchandise > Idols

MEITO,INC.

Apr 2023

6.

Women’s Fashion > Shoulder Bags

Leyifan Inc.

Apr 2023

7.

Men’s Fashion > Sneakers

Corporation Triple-art

Apr 2023

8.

Trading Cards > Yu-Gi-Oh!

Bless International co.,ltd

Feb 2023

9.

Men’s Fashion > Analog Watches

FROM JAPAN Limited

Feb 2023

10.

Comics/Animation Merchandise > OtherSIG Service INC.

Feb 2023

ZenGroup Inc.

Feb 2023

1. Categories with the highest number of transactions through Mercari’s proxy services Buyee, Bibian, and Shopee between January 1, 2022
and December 20, 202264

6Marketplace App Market Data●

Mercari holds an approximate 70% GMV share in the expanding marketplace app market in Japan

Estimated value of
unneeded items1
Online C2C market2
Approx. 2.2 trillion JPY
Marketplace app market2
Approx. 1.2 trillion JPY

Annually

Approx.

7.6

trillion JPY

Mercari GMV3
Approx. 847.2 billion
JPY
1. Source: Ministry of Economy, Trade and Industry (April 2017, April 2018). The total market size of sales of secondhand goods in stores, sales of secondhand goods online, auctions, etc.
Excludes automobiles, motorcycles, and motor scooters.
2. Source: “FY2021 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry (published August 12, 2022). Includes B2B and B2C transactions in addition to C2C transactions.
3. Source: Company materials; C2C GMV from January 2021 to December 2021

65

6

Fintech—Services
AssetManagement

Payment

CreditVarious payment methods available

Various services that utilize unique credit based on
behavior history such as usage history on MercariiD payment

Credit Card

Hold your phone
over a reader

Code payment
Scan the code

Service that allows users
to buy and sell bitcoinfrom within Mercari

Smart Payments
Lump-Sum
Payment

Pay for everyday
purchases all at once
the following month

Fixed-AmountPayment
Pay over several months at aﬁxed amount of your choice;
Interest rate (annual): 15%

VirtualCard
Input anumberSmart Money
Borrow when needed and repay ﬂexibly: interest rates ﬂuctuate
depending on the borrower's usage of Mercari;
Interest rate (annual): 3–15%

66

6

Fintech—Credit Volume of Deferred Payment in the EC Market1●●

The amount of deferred payments in the EC market is growing
A high rate of market growth is forecast for the future

Approx.

2 trillion JPY

1,082

billion JPY

440

billion JPY

Outlook

Forecast

Forecast

1. Source: E-commerce Payment Services (Payment Gateway) Market in Japan: Key Research Findings 2022. Survey by Yano Research Institute(notice: based on the transaction amount of deferred payment service providers)

Forecast

Forecast

67

6

Fintech—Trends in the Cryptoasset Industry●●

The monthly amount of cryptoasset spot transactions in Japan is approximately 500 billion JPY
However, the percentage of Japan’s population that owns cryptoassets is still low compared to othercountries, showing large room for growth
Amount of Cryptoasset
Spot Transactions in Japan1

Approx.

500B JPY per month

Average Number of Accounts
Opened Monthly in Japan2

Approx.

60,000 accounts
per month

Percentage of Population
Owning Cryptoassets by Country3

1. UAE

27.7%

2. Vietnam

20.5%

3. Singapore

13.9%

4. Iran

13.5%

5. USA

13.2%

69. Japan

1.7%

1. Source: Japan Virtual and Crypto assets Exchange Association, Monthly Cryptoasset Transaction Data (January 2023)
2. Source: Japan Virtual and Crypto assets Exchange Association, Monthly Cryptoasset Transaction Data (average of February 2022–January 2023)
3. Source: TripleA: Cryptocurrency Ownership Data (as of April 3, 2023)

68

6

US—US Reuse Market●

The US online reuse market is expected to grow at a pace approximately triple that of the ofﬂine market
between 2022 and 2031 and overtake the ofﬂine market in size in 2026

2030 Forecast$180 billion

US Reuse Market
Ofﬂine market
Online market(Billion USD)

2022
$74 billion

1. Source: Mercari 2023 Reuse Report696

Other Businesses—FY2024.6 Business Objectives

Kashima Antlers

India Center of
Excellence

Soccer business:● Strengthen admission fee and advertising revenue
streams● Expand merchandise sales using e-commerce, etc.
Non-soccer business:● Use the stadium effectively and strengthen soccer
school operations● Hire at the same levels as FY2023.6 (approx. 40
people) and expand scope of development
support for Japan Region70

6

For Investors New to Mercari●

Materials that cover basic information regarding Mercari Group

Fact Book link
https://speakerdeck.com/mercari_inc/mercari-fact-book-en

Overview link
https://speakerdeck.com/mercari_inc/merpay-overview-en

71Disclaimer
This material has been prepared based on information gathered at the time of its
preparation and is not in any way intended as a commitment to future implementation.
Also note that information contained herein has not been audited or reviewed by anindependent certiﬁed public accountant or audit corporation, and includes ﬁnancial
information based on past ﬁnancial statements or accounting documents as well as
management ﬁgures not based on ﬁnancial statements or accounting documents.
This document is an English translation of the original Japanese language document andhas been prepared solely for reference purposes. No warranties or assurances are given
regarding the accuracy or completeness of this English translation. In the event of any
discrepancy between this English translation and the original Japanese language
document, the original Japanese language document shall prevail in all respects.

The FY2024.6 Q1 ﬁnancial results are scheduled to be released at 15:00 or later on
November 13.

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