Commerce One Holdings Inc.
TSE Growth: 4496

FY3/2025 Q1

Financial Results
August 14, 2024

Today's
AgendaCommerce One Holdings Inc. All Rights Reserved.

1.

Company Overview

P.03

2.

FY3/2025 Q1 Highlights

P.09

3.

Growth Strategy

P.23

4.

Overview of Our Business

P.32

5.

Group Companies

P.55

2

1

Company Overview

Commerce One Holdings Inc. All Rights Reserved.

3

4. Growth Strategy

Corporate Philosophy

Our Vision

To be an e-commerce platform that maximizes
the power of people who leverage technology

A Society We Aspire to Build

We aspire to build a society that is fair and empowers
anyone to pursue self-realization

Commerce One Holdings Inc. All Rights Reserved.

44. Growth Strategy

Our Business

Future Shop Co., Ltd

Softel Inc.

TradeSafe Inc.

Provides a SaaS-based platform
for developing e-commerce sites

Offers e-commerce sales andinventory management
systems tailored to eachclient’s needs

Provides certification services for
e-commerce sites andmanagement support tools thatvisualize order trends based ondata analysis

Commerce One Holdings Group
provides SaaS-based e-commerce
platform services to small andmedium sized companies
operating e-commerce sites inJapan.

As explained at left, our Group operates under a single
segment of e-commerce platform business.
SOLAIRO, INC.

SAMUR AI TECHNOLOGY Co., Ltd

Provides web-based customer service
solutions to increase repeat rate, create
conversion opportunities, and improve
Life Time Value (LTV).

Provides optimal solutions based on its
system development track record that has
built over 20 years

Commerce One Holdings Inc. All Rights Reserved.

5

4. Growth Strategy

Our Product Portfolio Provides Total E-Commerce Support

Enhance enterprise DX and productivity
through e-commerce support
DX (digital transformation)

Front-end products

Back-end products

SaaS-based e-commerce platforms

Sales & inventory software

Tsuhan-Suruzo

Web-based customer service solution

Technology
and data
owned byeach productConsulting services
that bring together
each company’s

know-how

Database support

Safe transactions
Symbol of trust and security
TradeSafe Trustmark

Commerce One Holdings Inc. All Rights Reserved.

6

4. Growth Strategy

Business Model of Our Group
FRONT

BACK

ONLINE

Social media

CRM*

≠

SupportTsuhan-Suruzo≠

Hub System

Centralized
management

Sales and inventory
management system

Apps

OFFLINE
Point-of-sale(POS)

Return information to each environmentｚ
Settlement

Brick-and-mortar
store
E-commercesite building

Shop operation &management support

Commerce One Holdings Inc. All Rights Reserved.

Promotion to
attract customersCoresystemE-commerce mallbranchPayment processing &transmission oforder information

Order capturing &product-linked
processing

Warehouse/
Logistics

Processing statusmonitoring to provide
instruction

POS

Suppliers

Shipping instruction& warehousemanagement

Customercorrespondence& DB linkage*CRM: Customer Relationship Management74. Growth Strategy

The Path from Establishment
2006–20142017–2020

After 2022

Establishment to business launchBusiness expansion,
incorporation ofholding company

Further growth
September 2022
Released live commerce option

September 2018
Future Shop Co., Ltd. released a ne w CMS function“Live cottage ”

branded “commerce creator”

20th anniversary from the launch of
futureshop service

June 2020
Listed on the Mothers market of
the Tokyo Stock Exchange

August 2006
Established TradeSafe Inc. to launch
Trustmark third-party E-Comme rce siteverification business

2006

2007

2008

2009

October 2023

March 2010
Jointly establishe d Future Shop Co., Ltd.
to began E-commerce support service

2010

2011

2012

2013

2014

December 2012
Made Future Shop Co.,
Ltd. a wholly owned
subsidiary
Commerce One Holdings Inc. All Rights Reserved.

_

2015

2016

July 2014
Made Softel Inc. a wholly
owned subsidiary

2017

2018

2019

September 2017
Split the busine ss ofTradeSafe Inc.,
converting it into aGroup company andchanging its name to
TS Holdings I nc.

2020

2021

2022

December 2019
Changed the company
name to Commerce One
Holdings Inc.

2023

2024

November 2022
Made SAMURAI TECHNOLOGY Co., Ltd. awholly owned subsidiary
March 2023
Acquired SOLAIRO, INC.
stock and made it a
SOLAIRO group company.

8

2

FY3/2025 Q1 Highlights

Commerce One Holdings Inc. All Rights Reserved.

92. FY3/2025 Q1 Highlights

FY3/2025 Q1 Summary
Consolidated net
sales

Consolidated
operating profit

Consolidated
operating margin

Profit attributable toowners of parent

JPY 898 mn

JPY 154mn

17.2%

JPY 40 mn

YoY+JPY 33mn(+ 3.8%)EC market
situation

Financialsummary

Commerce One Holdings Inc. All Rights Reserved.

YoY+JPY 35mn(+29.3%)YoY+3.4pts

YoY

JPY (41)mn(-50.5%)The domestic EC market, which had remarkably expanded due to the COVID-19 pandemic, has continued to grow steadily
since FY3/2023 although growth has moderated as economic activity has normalized. The domestic EC market, in which theGroup operates, is expected to grow sustainably at an average annual rate of 10.3% from 2023 to 2027.
* Source: Summary of Report on the Current Status of Information and Communications 2023 issued by the Ministry of Internal Affairs and Communications

Through proactive efforts including growth investments since the previous fiscal year, the Group has achieved stronger operating
performance during FY3/2025 Q1. Specifically, the Group recorded increases in both sales and profits by enhancing services an drevising prices for futureshop, while also having recorded increases in both sales and profits for SOFTEL by deepening the expertiseof SAMURAI TECHNOLOGY, which has allowed for more efficient delivery of projects. Although operating profit increased year on
year as presented above, profit attributable to owners of parent decreased due to upfront investment in Enecycle, an equity method affiliate for the Group.
102. FY3/2025 Q1 Highlights

FY3/2025 Q1 Highlights
Status of each subsidiary in FY3/2025

The number of contracts decreased due in part to theconsolidation of shops, while GMV and ARPU picked up
steadily with the enhancement of functions and alliances.
 Enhanced service for food EC operators
 Expanded the support business domain by strengthening
collaboration with other service providers
Started collaboration with ViSenze in its AI Recommend/Image SearchServiceWas certified as a partner in Line Yahoo Partner Program, which is intended
to recognize partners specialized in each process of promoting the use ofLine Yahoo Marketing solutions, such as their introduction and support
processes
Started collaboration with SB Frameworks in its e-logistics agency service
Started collaboration with Charlla, a platform that provides highly appealing
short-video-based marketing solutionsCommerce One Holdings Inc. All Rights Reserved.

To promptly get SAMURAI TECHNOLOGY, a newly
acquired subsidiary, work-ready for SOFTEL’s business,
we are making on-going efforts to dispatch engineersfrom SOFTEL and to develop an OJT* program. In somecases, some of SAMURAI TECHNOLOGY employees
have been assigned to new implementation projects of
Tsuhan-Suruzo as key personnel, progressing smoothly
toward getting work-ready at an early stage.
• Gross Merchandise Volume (GMV) via Tsuhan-Suruzo
reached more than JPY360.0 bn• The subsidiary has made efforts to help obtain Rakuten
SAIKYO delivery service labels by building an environment inwhich each mall labels shops that are quick in shipping

OJT stands for “On the Job Training,” a training method to acquire business knowledge
through practice in the workplace.

112. FY3/2025 Q1 Highlights

FY3/2025 Q1 Highlights
Consolidated

Commerce One Holdings(Thousands of yen)

FY3/2024 Q1

FY3/2025 Q1

YoY Change

YoY % Change

Net sales

865,862

898,956+33,094+3.8%

Operating profit

119,611

154,688+35,077+29.3%

Ordinary profit

137,955

107,367(30,588)–22.2%

Profit before income
taxes

137,955

107,367(30,588)–22.2%

Profit attributable toowners of parent

81,99940,599(41,400)–50.5%

Commerce One Holdings Inc. All Rights Reserved.

122. FY3/2025 Q1 Highlights

Achievement Against FY/3 2025 Budget
Consolidated

Commerce One Holdings(Thousands of yen)

FY3/2025 Q1
Results

FY3/2025 Full-year
BudgetAchievement vs.
BudgetNet sales

898,956

3,815,446

23.6%

Operating profit

154,688604,956

25.6%

Ordinary profit

107,367

683,343

15.7%

Profit attributable toowners of parent

40,599454,730

8.9%

Commerce One Holdings Inc. All Rights Reserved.

These are mainly due to the inclusion oflosses from Enecycle, an equity-method
affiliate. Progress has been delayed dueto the recording of non-operating
expenses which is worthy of theCompany's investment amount. Enecycle
plans to record sales as each projectprogresses during the current fiscal year,
but as of 1Q, the Company has made an
upfront investment, resulting in anegative booking.

13

2. FY3/2025 Q1 Highlights

FY3/2025 Q1 Highlights of futureshop
Non-consolidated

futureshop
Net sales

Operating profit

JPY 663 mn
YoY

30.4%

JPY 201 mn
YoY+JPY 16 mn(+8.8%)

YoY+0.8pts

GMV

Number of contracts
as of June 30, 2024

ARPU

JPY 509,0 bn

2,867

JPY 76,984

YoY

Commerce One Holdings Inc. All Rights Reserved.

+JPY 37 mn(+6.0%)

Operating margin+JPY 1,871 mn(+3.8%)

FYTD(14)(-0.5%)

YoY+JPY 5,013(+7.0%)
14

2. FY3/2025 Q1 Highlights

FY3/2025 Q1 Highlights of SOFTEL
Non-consolidated

SOFTEL (SAMURAI TECHNOLOGY combined)
Net sales*1

Operating profit *1

Operating margin *1

JPY 20 mn

9.6%

JPY 216 mn
YoY+JPY 7.6 mn

YoY(+3.7%)+JPY 4.4 mn(+27.2%)

YoY+1.8pts* 1 As SAMURAI TECHNOLOGY ’s SES*2 sales to SOFTEL are expected to continue increasing in the future, the figures above were calcu lated by adding thebusin ess results of SAM URAI TECHNOLOGY from FY 3/2024 Q1 and eliminating in ternal transactions.

Total development
sales

JPY

YoY

Commerce One Holdings Inc. All Rights Reserved.

81 mn+JPY 2.6 mn(+3.3%)Development sales
per customer

JPY

YoY

0.8 mn
JPY (0.1) mn(-12.2%)

Recurring revenue

JPY

YoY

92 mn
+JPY 5.0 mn(+5.8%)

Ratio of recurring
revenue

48.5%
Compared
to averagefor the past
8 years+5.2pts*2 SES stan ds for Syst em Engineerin g Service, a type of contract that mandates engineers to engage in systemdevelopment and ot her act ivities; performance of t he cont ract depends on the capability of system engineers.

152. FY3/2025 Q1 Highlights

Analysis of Change in Operating Profit: FY3/2025 Q1 vs. FY3/2024 Q1
Consolidated

Commerce One Holdings(Thousands of yen)

Fees paid (-)
Gross margin+27,244+10,430

Advertisingexpenses (+)

Amortizationof goodwill (-)(9,835)+7,628Personnel
expenses (+)(390）

Operating profit

154,688

Operating profit

119,611Difference from the previous fiscal year
in which we incurred consulting fees forpost-merger integration following an
M&A transaction, as well as advisory
fees for a group company
Increase in ARPU

FY3/2024 Q1

Commerce One Holdings Inc. All Rights Reserved.

Various marketing
activities, and increasein advertising operation
support costs

Difference from the previous fiscal
year in which we recognizedamortization of goodwill in theprocess of converting SOLAIRO intoa group company

FY3/2025 Q1*FS stands for Future Shop Co., Ltd., a Commerce One group company.

16

2. FY3/2025 Q1 Highlights

FY3/2025 Q1 YoY Analysis of Operating Profit to Profit Before Income Taxes
Consolidated

Commerce One Holdings(Thousands of yen)

FY3/2024 Q1

FY3/2025 Q1

YoY Change

119,611

154,688+35,077

18,394

16,298(2,096)51

63,619+63,568

137,955

107,367(30,588)

Extraordinary income

-

-

-

Extraordinary loss

-

-

-

Profit before income
taxes

137,955

107,367(30,588)

EBITDA*

158,111

183,642+25,530

Operating profit
Non-operating income
Non-operating expenses

Ordinary profit

Commerce One Holdings Inc. All Rights Reserved.

This is mainly due to the inclusionof losses of Enecycle, an equitymethod affiliate, which is worthy of
the Company's investment amount.
Enecycle plans to record sales
during the current fiscal year as
each project progresses, but as of
1Q, the Company has made an
upfront investment, resulting in anegative booking.

*EBITDA: Operating profit + Depreciation + Amortization of goodwill

17

2. FY3/2025 Q1 Highlights

FY3/2025 Q1 Balance Sheet: Flux Analysis Compared to March 31, 2024
Consolidated

Commerce One Holdings(Thousands of yen)March 31, 2024

June 30, 2024

2,305,885

2,242,290(63,595)

1,733,879

1,770,688+36,809

129,890

49,655(80,235)

This is attributable mainly toadvance payments for

：

：

：

1,576,802

1,501,124(75,678)

1,002,854

932,709(70,145)

receiving discount on server
usage fees during theprevious fiscal year,
recognized at cost.

：

：

：

Current liabilities

915,574

817,755(97,819)

Non-current liabilities

122,138

124,129+1,9912,844,974

2,801,530(43,444)2,465,794

2,427,267(38,527)

379,180

374,263(4,917)

Current assets
Cash and deposits

Other：
Non-current assets
Investment securities：

Net assets
Shareholders’ equity

Other, and valuationdifference on availablefor-sale securities
Commerce One Holdings Inc. All Rights Reserved.

Change18

2. FY3/2025 Q1 Highlights

YoY Analysis of Cash Flows: FY3/2025 Q1 against FY3/2024 Q1
Consolidated

Commerce One Holdings(Thousands of yen)

FY3/2024
1 Q1

FY3/2025 Q1

YoY Change

Cash flows from operating activities

241,977

128,556(113,421)

Profit before income taxes

137,955

107,367(30,588)

Share of profit (loss) of entities
accounted for using equity method-

63,14963,149Decrease (increase) in deposits paid

109,883

230(109,653)

Other

121,691

88,195(33,496)：：：

Income taxes paid

(154,653)(175,264)(20,611)

Cash flows from investing activities(24,118)(27,169)(3,051)(19,642)(26,982)(7,340)：：：Cash flows from financing activities(110,700)(78,547)

32,153Purchase of treasury shares(109,797)-

109,797

Dividends paid-

(77,644)(77,644)

：

：

：

：

123,753

36,808(86,945)：

Purchase of intangible assets：

Net increase (decrease) in cash and cash
equivalents
Commerce One Holdings Inc. All Rights Reserved.

Recognition of share of loss of
Enecycle, an entity accounted forusing equity method
Repurchase of treasury shares undera discretionally trading contract
completed in FY3/2024 Q1

Share repurchase implemented
during FY3/2024
Year-end dividends paid for FY3/2024

19

2. FY3/2025 Q1 Highlights

Changes in Consolidated Operating Results for the Past 5 Years
During FY3/2025 Q1, the Group did not incur any M&A related expenses, such as M&A related compensation and amortization of go odwill. In
addition, supported by consistent increases in net sales and gross profit since prior years, as well as the organic growth of existing businesses,
operating profit increased year on year.
(Thousands of yen)

Net sales

Gross profit

Operating profit

Operating margin

1,000,000

25.0%

898,956

900,000

800,000

17.2%

20.0%

700,000
600,000

15.0%

500,933

500,000
400,000

10.0%

300,000

154,688 5.0%

200,000

100,000
0

0.0%
FY3/2020 Q1

Commerce One Holdings Inc. All Rights Reserved.

FY3/2021 Q1

FY3/2022 Q1

FY3/2023 Q1

FY3/2024 Q1

FY3/2025 Q1*PMI stands for Post Merger Integration, a process of consolidating two companies into one after M&A

20

2. FY3/2025 Q1 Highlights

Financial Strategy

Working to maximize corporate value

Shareholder Returns
Div idends

Share
buy bac ks
Int ernal
reserves

Capital Structure

Dividend payout ratio of 30％*

Carry out in a flexible manner
Actively invest in growth, andexpand shareholder returns byaccelerating EPS growth in themedium to long term

Growth InvestmentsCore businesses

Build optimal capital structure forincreasing business growth andcorporate value

Enhance capabilities, products, andbusiness domain based on humanresources investments
New businesses

Implement proactively andstrategically* Dividend payout ratio 30％ for profit attributable to owners of parent

Achieve sustainable growthTargeting 20％ ROE
Commerce One Holdings Inc. All Rights Reserved.

21

2. FY3/2025 Q1 Highlights

Acquisition of Treasury StockIn keeping with the financial strategy set out in the medium-term business plan (from the fiscal year ending March2025 to the fiscal year ending March 2027), the Company repurchase of its own shares in consideration of acomprehensive array of factors, including strategic investment opportunities, the Company’s financial position, andthe price of its common stock.

【Details of matters relating to the acquisition of treasury stock】(1) Class of shares to be acquired

Common stock(2) Total number of shares that may be acquired

Up to 100,000(1.4% of total number of shares outstanding[excluding treasury stock])(3) Total value of acquired shares

Up to 75,000,000 yen(4) Acquisition period

From August 15, 2024 to November ８, 2024

(5) Method of acquisition

Market purchases based on a discretionary trading contract

Commerce One Holdings Inc. All Rights Reserved.

22

3

Growth Strategy

Commerce One Holdings Inc. All Rights Reserved.

23

4. Growth Strategy

Policies for Achieving Growth
Actively invest in functional
expansion and enhancement

Support marketing and consulting

Provide finance and risk
management services

Support inventory
optimization

Enhance efficiency
functions with AI

Performdemonstration testsof new business areas

SOLAIROSOLAIRO
Support marketing by
web-based customer
services and UGC*

Commerce One Holdings Inc. All Rights Reserved.

Recruit and train development
engineers*UGC: User Generated Content

24

4. Growth Strategy

Medium-term Policies for Achieving Growth
Incorporate Group companies’ highly specialized services into futureshop to create a stronger platform,
while allowing Group companies to use the futureshop’s customer base.
Enhance e-commerce-specific low-code CMS*1

Enhance omni-channel solutions

Provide learning curriculums and consulting

Enhance shopping cart
settlement functions

Support marketing and consulting

Fan-based marketing*2

SaaS-based
e-commerce
platform

SOLAIRO
Web-basedcustomer services

E-commerce back-end

Tsuhan-Suruzo
Automatic data
linkage & inventory
optimization

UGC※3

e-commerceusers

Commerce One Holdings Inc. All Rights Reserved.

e-commercemall branches

Brickandmortar
stores*１Low-code CMS：Content management system using the minimum necessary source code *３UGC: User Generated Content*２Live cottage：A service that can deploy live commerce to customers by setting up a live-streaming venue within the company’s own e-commerce site25

4. Growth Strategy – futuershop

Policies and Initiatives for FY3/2025 Q2 and Beyond
Product development policy⚫

⚫

Enhance shipping cost calculation and delivery date/time control
functions (to enhance support for food-related EC)

Enhance site production support functions (for production companies,
especially by enhancing commerce creator functions

Enhance functions for shipping cost calculation by temperature range
and displaying an estimated delivery date

Improve convenience when creating EC sites with commerce creator（CMS）

Shipping cost calculation for 3 temperature ranges, bundled packaging control, anddelivery lead time control, etc.
Phase one update: Completed in January 2024
Phase two update: Completed in June 2024
Phase three update: To complete in Spring 2025

Implement template import/export functionality
Phase one update: Completed in January 2024
Phase two update: To complete in Fall 2024＿⚫

Improve convenience for subscription users

Customer success policy
Improve GMV and LTV by expanding store support services
Prepare to launch a practical group consulting business on EC
Provide optional one-to-one practical workshops on how to increase sales.
Expanding customer growth base.

Commerce One Holdings Inc. All Rights Reserved.

Strengthen Live Commerce products
Strengthen live commerce

Improve a function for regular sale and sale through a buyer’s club(subscription function)
Improve convenience for delivery date change and cancellation
Phase one update: Competed in July 2023
Phase two update: To complete in Fall 2024⚫

⚫

Develop new services in view of expected growth of the live commerce market⚫

Enhance linkage with external systems (API enhancement)
Enhance services for EC back-end functions
Enhance system linkage with the EC back-end system provided by SOFTELSales and marketing policy⚫

Improve brand awareness by strengthening sales promotions andadvertising
Strengthen marketing efforts
Aggressively invest in marketing to increase lead acquisition and, eventually, thenumber of new contracts won.

26

4. Growth Strategy – SOFTEL

Commerce Connect
Provides SaaS-based multi-shop management functions.
Helps boost business growth by increasing expandability through modularization of functions with highdemand for customization.

FRONT

Grow GMV

BACK

Order management system (OMS)

Seller’s own
e-commerce sites“Aggressive”
EC strategy

Continued growthof user companies

Systeminvestment for“higher
efficiency”

Stock management system (SMS)

e-commercemall branches

Warehouse management system (WMS)
Brick-and-mortar
storesCommerce One Holdings Inc. All Rights Reserved.

Maximize customers’ profit

Item management system (IMS)27

4. Growth Strategy – SOFTEL

Commerce Connect
Transforms the e-commerce industry’s business model from “labor-intensive” to “data-intensive.”
Expands business through AI-based demand forecasting.
Different e-commerce sites are managed separately
as channels are not integrated

Seller’s own
e-commerce sites

Integrate channels to improve sales/management functions
while driving business performance with big data

E-commerce mall branches

e-commercemall branches
Brick-and-mortar stores

Seller’s own
e-commerce sites

Demandprediction

Labor-intensive model
Purchase

Stock

Sales

AI

Brick-and-mortar
storesData-intensive
model

Integrated
management

ERP

OrdersSales

Commerce One Holdings Inc. All Rights Reserved.

Stock

Purchase*

Orders*ERP: Enterprise Resource Planning28

4. Growth Strategy – SOFTELStarted implementation phase in generative AI projects for Commerce Connect and Tsuhan-Suruzo
Generative AI
Item management
and customer support functions

Improved productmanagement efficiency
Tools for product description writing,communications

Captures purchase data and customer needs
and turning them into knowledge
Improves efficiency of customers’ entire
back-end operations

Optimize human resources

Integrated management

All tasks can be completed
within the product

Maximum customer benefit
Support GMV growth

Image generation

GenerativeAI

Original image

Commerce One Holdings Inc. All Rights Reserved.

Deliverables※ ERP：Enterprise, Resource, Planning29

4. Growth Strategy – SOFTELPolicies and Initiatives for FY3/2025 Q2 and Beyond
Product development⚫

⚫

DX Solution for commerce “Commerce Connect”⚫

Resumed development in April, after the projects to make major specification changes by amajor mall customer were largely completed. Specifically, resumed development of a productinformation linkage function with improved processing and development efficiency as well as
operation verification of the already-developed functions and a function to specify multipledelivery destinations. Also, a pilot development of a function to support product information
creation powered by AI has progressed steadily.

⚫

Strengthening of sales and development structure

Responses to RSL(Rakuten Super Logistics)

Major malls are striving to improve the delivery quality of the warehouses they
provide, which will result in improved marketability of products stored in theirwarehouses. We expect the utilization rate of mall warehouses to increase, thus
proposing collaborative functions aggressively.

Responses to Rakuten SAIKYO delivery*
Satisfy configurations to be qualified as Rakuten SAIKYO delivery label.
*Rakuten SAIKYO delivery: Delivery quality enhancement project implemented by
the Rakuten Group, Inc., a major Japanese EC mall, from 2024.

Provision of backyard options for futureshop
Resumed development and specific discussions on identifying customer needs, identifying
necessary functions, and developing support structure for futureshop in line with the progressof developing Commerce Connect.

⚫

Focusing on proposals including cases with high customer needs
related to the EC logistics⚫

Reinforcement of collaborative functions with Mercari Shops

Strengthen a sales and development base in Kanto region

Accumulated knowledge and improved development efficiency by assigning key development personnel in the Kanto region to a new project, Tsuhan-Suruzo.
Continue to dispatch SOFTEL engineers and conduct OJT*-based development with an aim for developing a technical team capable of implementing the same level ofcustomization as the Head of Office Development Team.

⚫

Effectively use product introduction videos and customized case studies
Release a series of product introdu ction videos using YouTube and other media t o target new potential customers. The aim is t o acquire leads by providin g easy-to-understand explanations of customizat ion,
which is one of the st rengt hs of Tsuh an-Suruzo. For existin g customers, we will make a proposal using a collection of cust omiz ed case studies we h ave developed to dat e. Th is will transform our passive sales
system into a more product ive one.

⚫

Accelerate branding and problem solving by holding Tsuhan-Suruzo seminars
Continued to actively conduct joint seminars with external service vendors that have a high affinity with Tsuhan-Suruzo to improve product awareness and acquire leads. Regular study session seminars withexisting customers are being h eld on an on going basis, which benefits finding issu es related to products.

⚫

Reinforcement of proposals of Logi-Suruzo
Logi-Suruzo is a logistic management option that manages the warehouse system in alignment with Tushan-Suruzo. Everyone can operate it using a mobile phone, enabling themto customize their operations, such as inventory and shipping management at multiple sites.

Commerce One Holdings Inc. All Rights Reserved.

※OJT stands for “On the Job Training,” a training method to acquire business knowledge through practice in theworkplace.

30

4. Growth Strategy

Product Development Schedule
FY3/2024
H1

FY3/2025
H2

H1

FY3/2026
H2

H1

H2

Reinforcement of shipping cost calculation/delivery date display functions (functional improvement for food e-commerce sites)

Reinforcement of regular purchase/buying club functions (subscription)

Enhancement of omni channel functions through OMO*1

Development of UGC*2 solution

Release of*1 OMO：Online Merges with Offline*2 UGC ： User Generated Contents, or content created and generated by general users

Commerce One Holdings Inc. All Rights Reserved.

31

4

Overview of Our Business

Commerce One Holdings Inc. All Rights Reserved.

32

33

Future Shop Co., Ltd.

5. Overview of Our Business – futureshop

ARPU（Average Revenue Per User）
Monthly sales per store

ARPU（Average Revenue Per User）(Yen)

80,00074,25475,00076,98469,56470,00064,12265,00058,30360,00055,000With the expansion of the ecommerce market, the functions
required for the growth of EC
business are expanding.
Given the situation above, ARPU

51,496will steadily increase due to the
expanded use of optional
functions and alliance tie-up
services.

50,00045,00040,00035,00030,000FY3/2020

Commerce One Holdings Inc. All Rights Reserved.

FY3/2021

FY3/2022

FY3/2023

FY3/2024

FY3/202534

5. Overview of Our Business – futureshop

Changes in GMV
FY 3 /2 0 2 5 Q1 r esu lts
GM V: JP Y50 .9 0 bn (up 3. 8 % YoY)
GM V p er s t o r e: JP Y17 ,7 26 tho usand (up 4. 7% YoY)
GMV
(Billions of yen)

GMV per s tore
(Thousands of Yen)

2,500
250

70,000

GMV for FY3/2025 Q1
totaled JPY50.90 billion,
up 3.8% YoY

60,0002,000
200
50,0001,500
150

40,00030,0001,000
100

16,602

16,272

16,182

16,924

17,726

436

465

472

490

509

FY3/2021

FY3/2022

FY3/2023

FY3/2024

FY3/2025

12,39720,000

500
50

303
0

10,000

GMV pe r s tore i nc rea se d by 4 .7 %YoY, sho wi ng ro bus t c usto me r
gr ow th, a lth oug h a c qui ri ng ne w
c on trac ts w i th sto res wa s s til lc ha ll e ngi ng . Al so , th e i mp ac t o f
the ra te r evi si on fro m J une i s
c urre ntl y m ini ma l , wh il e the c hurnra te i s d e cl i ni ng co mp are d to thepr evi ou s f is ca l ye ar.

0
FY3/2020
Q1

Q2

Commerce One Holdings Inc. All Rights Reserved.

Q3

Q4

Q1 GMV per store

Annual GMV per store
35

5. Overview of Our Business – futureshop

Omni-Channel Transition

Brick-and-mortar stores(shops)Number of brands(brands)

130

4500

4000

140

120

3500
100
3000

2474
2500

80

2000

60

1500

Companies continue to invest
aggressively in OMO* and omnichannel.

40
1000

20

500

0

0
Q1

Q2

Q3

FY 3 /2 0 2 2

Commerce One Holdings Inc. All Rights Reserved.

Q4

Q1

Q2

Q3

F Y 3 /2 0 2 3

Q4

Q1

Q2

Q3

FY 3 /2 0 2 4

Q4Q1
FY 3 /2 0 2 5*OMO stands for Online Merges with Offline, meaning the fusion of online and offline.

365. Overview of Our Business – futureshop

Service Features
Sales of customers who havefutureshop achieved overwhelmingly high GMV per store
even as a provider of non-customized services
GMV per store ofmajor SaaS-based EC platforms

been under contract for morethan two years increased by

futureshop customers by shop category(As of Q1 FY3/2025)

25.6% on average

Other

For FY3/2025 Q1:
Average YoY growth rate*1(Thousands of yen )A

Brand-nameproducts,
sports, DIY

B+ 25.6%
Apparel andfashionCD

68,832

futureshop

0

15,00030,00045,000Cosmetics,
healthfoods,
fitness Daily necessities,
sundries andinterior
decoration

Foods andsweets60,000 70,000* The above graph is based on estimated GMV per store of major SaaS-based EC platforms in Japan in FY2023
researched by the Company (excluding industry/subscription commerce-specific and customized models)Commerce One Holdings Inc. All Rights Reserved.

For FY3/2025 Q1:
Overall average YoY
growth rate

*1

+22.3%

Average growth rate of customers who have been undercontract for more than 2 years=Average sales growth rateof stores that have been under contract for more than 2
years and have monthly sales of at least JPY 1. Value of
rapid sales growth in the initial stage is omitted bydisregarding customers who have been in business for lessthan two years since start-up or renewal.

37

5. Overview of Our Business – futureshop

Service Features – Customer Satisfaction and Brand Awareness ofReceived the “Leader” badge in the e-commerce site
construction category at the ITreview Grid Award 2024

20th

Summer for theconsecutive period(five consecutive years).
Awaren ess“Leader” Badge:
Indicates that our product is highly rated in both customer satisfaction

and brand awareness on ITreview, a review site for business IT products
and cloud services.

Commerce One Holdings Inc. All Rights Reserved.

Satisfaction

E-commerce site construction category at the ITreview Grid Degree of satisfaction(relative value) as of July 2024

38

5. Overview of Our Business – futureshop

Highly Economically Rational, Multi-tenant, Non-customized SaaS-type Business Model

A SaaS model in which software and server environment are shared by all customers
All customers, fromthose at a startup phaseto those with annual
sales of several billion
yen, run the same
software in the sameenvironment.

3 advantages of the SaaS model

Highly reliable security

Speedy version upgrades

Provides user-friendly system
updates and up-to-date secureenvironment

Enables efficient function
development and version
upgrades without user-specificdevelopment and operation

Highly satisfactory support
Provides highly satisfactory
support without customerspecific specifications

Backed by these advantages, futureshop’s business model can maximize the monetization of development resources.
Engineers can focus on product development, resulting in low turnover rates. As all users are in the same environment,
knowledge of successful cases is easy to accumulate and share and highly reproducible.
Commerce One Holdings Inc. All Rights Reserved.

39

5. Overview of Our Business – futureshop

Service strengths
While being a non-customized service, our service strengths lie in product technology and expandability to ensure
its customizability and Customer Success Team that supports the sales growth of users.

Expandability(Patent registered, Patent No. 6619478)

Provides a CMS tailored for
e-commerce that offers bothdesign customizability andupdatability

Connecting e-commerce andbrick-and-mortar storesTechnology

How to Improve
User’s Sales

Commerce One Holdings Inc. All Rights Reserved.

Integrates web andbrick-and-mortar sales
channels

From "I don't know what todo" to "I know what to do!"Support by
Customer
Success
Team

Provides informative
programs, day-to-day
telephone/email support andconsulting services that help
expand e-commerce business40

5. Overview of Our Business – futureshop

Linkage with more than 100 EC support services

As a platform on which many excellent EC sites operate, futureshop is always linked quickly with trendy EC support services andpayment services
Store operation management(order management)⚫

Web-based customer service/Web-based chat⚫

⚫

CR OSS MALL
通販 する蔵⚫ NEXT ENGINE⚫ TEMPOSTAR⚫ コマ ースロ ボ⚫ Robot-in⚫ za iko Robot⚫ item Robo t⚫ eシェ ルパモ ール2.0⚫ fun order⚫ GoQSyste m⚫ 店舗 アップ ♪
⚫ 頑張 れ♪店 長！
⚫ まと まるEC店長⚫ 助ネ コEC管理 システ ム⚫ One'sCloset⚫ アパ レル管 理自動 くん⚫ 特攻 店長⚫ マイ ティ通 信販売⚫ TATEMPO GUIDE⚫ Simplex⚫ 受注 応援⚫ 速販UX⚫ タロ スPOS⚫ dアプ リ⚫ Flipde sk⚫ i-DESIGNER
KARTE⚫ unisize⚫ wea rcoord⚫ Sprocket⚫ チャ ネルト ーク ⚫ skinsense ⚫ Charlla⚫ WhatYa⚫ AiDeal lite
⚫ CODE Marketing Cloud for futureshop⚫ MATT RZ CX for futureshop⚫ PUSH ONE for futureshop＿

MA/CRMカス タマー リング ス⚫ b→ dash
うち でのこ づち⚫ WazzUp!
⚫ LTV-DB⚫ LOYCUS⚫ LTV-Lab for futureshop⚫ WEBCAS⚫ LTV-Omni for futureshop⚫ アク ション リンクfor futureshop⚫ DATA CAST for futureshop⚫ EC Intelligence for futureshop⚫
⚫

＿

Contact center support⚫

Re:lation

Smartphone apps
⚫

MGR e

＿

EFO
⚫

Extension guarantee

EFOcats for futureshop⚫

proteg er＿

Gift support⚫
⚫

giftimize for futureshop
AnyGift⚫

ECコネ クター®

Criteo⚫
⚫

Logicad
KANADE DSP⚫

EC Boo ster⚫

Amazon Pay⚫ au P AY
楽天 ペイ(オン ライン 決済) ⚫ d払い⚫ LINE連携(ログ イン）⚫ NP後払 い決済⚫ Apple Payオプ ション⚫ あと 払い (ペイディ)⚫ PayPay (オン ライン 決済) ⚫ エフ レジ⚫ SBペイ メント サービ ス⚫ GMO後払 い⚫
⚫

to ridori

Ads/EC operation support

Logistics

エフ カフェ 運用支 援⚫ SupershipECコン サルテ ィング サービ ス⚫

Linkage with SNS / Video platforms⚫

⚫

YouTubeショ ッピン グ
TikTok for Businessmylog i⚫ ロジ レス⚫ はぴ ロジ⚫ LogiMoPro⚫ Fulfillme nt by ZOZO
⚫ 富士 ロジテ ックホ ールデ ィング ス⚫

Cross-boarder EC

Recommendation

WorldShopping BIZ⚫ shutto翻訳⚫ Buyee Co nnect⚫ アジ アンブ リッジ⚫

Recommendation engines⚫

アイ ジェン ト・レ コメン ダー⚫

⚫

NaviPlusレコ メンド⚫

awoo AIViSenzeUse of coordination/Styling services⚫

STAFF STAR T⚫

SNAPBOARD
DROBE

Use of UGC
visumo social for futureshop⚫ Letro⚫ Instagram連携 （ショ ッピン グ）

Product image creation⚫

SmartJP EG for De sktop
Package production⚫

canal for futureshop⚫

Web改ざ ん検知 サービ ス for futureshop

Site search⚫

Commerce One Holdings Inc. All Rights Reserved.

dfplus.io⚫ DFOマネ ージャ ー⚫ AdSIST⚫

Influencers/Referral marketing

Narvar⚫ 返品 くん

Security
⚫

⚫

⚫

＿

EAI (data linkage)

Advertisement

Goods return support⚫

Settlement agent / ID settlement

C u s t o me r a t t r a c t i o n

Customer communications

GENIEE SEARCH for EC

Data analytics/ MD support
ra dia l⚫ LTV-Zaiko⚫

※for futureshop: the services that offer fee plans exclusively for futureshop customers.

41

5. Overview of Our Business – futureshop

FY3/2025 Q1 Customer Success Activities
Academy programs/seminars and one-to-one consultations available online
CS activities through customer-only seminars and open events
User-only small-group EC courses

Open seminar events# of programs held: 65# of events held: 10# of participants: 1,282# of viewers: 464

One-to-one onboarding sessions &free spot consulting sessions# of consulting services offered:87

We developed eight more user-only small-group EC courses YoY, resulting in 31 courses being run regularly.

The rich curriculum helps reinforce the EC business support structure, expand customer sales, and improve operating efficiency.
Commerce One Holdings Inc. All Rights Reserved.

42

5. Overview of Our Business – futureshop

FY3/2025 Q1 Business Highlights
Press releaseA p r il 4, 202 4

Star ted l inking wi th A I re comme nda tions and i mage se arc h se rv ic e s provi ded by ViSe nz e
He lp cu sto me rs f ind sim ilar p ro du ct s th ey w ant , of fe r A I r e co mm end a tio ns o n sty ling , a nd p r ov ide im ag e se ar ch
to fi nd t he mo st r ele va nt ite ms im me d iat ely .

St a r t e d a ll ia n c e w it h V iS en ze P t e. L td (C E O a n d jo i n t fo u n d er : O li ver
Ta n ) , a n A I s o l u t io n p r o v id e r h ea d q u a r t er e d in Si n g a p o r e .
V iS e n ze , a n a d v a n ce d A I r eco m m en d a t i o n a n d im a g e s ea r ch s y s t em
p r o v id ed b y V iS en ze , w i ll e n a b le fu t u r es h op t o o f fer f u r th er v a l ue .
Th i s a ll ia n c e w il l a l lo w fu t u r es h op u s er s t o en j o y a ne w s ho p p in g
ex p er i en ce b y f in d i n g n ew fa v o r i te p r o d u ct s a n d c o o r d i na te s us i n g A I d r i ve n p r o d u ct r ec o mm e nd a ti o n s .
A ls o , us e r s ne ed o n l y u p l o a d i m a g es o f th e p r o d u ct s t h ey w a n t s o t h a tt h e r el ev a n t p r o d u ct s a r e i mm e d ia t el y a n d p r ec is el y d is p l a y ed .

Commerce One Holdings Inc. All Rights Reserved.

43

5. Overview of Our Business – futureshop

FY3/2025 Q1 Business Highlights
Press release

M a y 22, 2024

Ce rtifi ed as a q uali fie d p artne r of the LY Corporation Partner Program, whic h rec ogni ze s partn er
co mp ani es b y eac h spe ci fied fie ld, such as in in troduc ing and supp orti ng LY Cor pora tion 's mark eti ng
sol ution s.
C er t if ied a s a n “A d v a n ced T ec hn o l o g y P a r t ne r ” in t h e c o m mu n ic a t io n
ca te g o r y fo r t h e F Y 20 24 un d e r th e LY C or p or a ti o n P a r tn e r P r og r am , w h ic hr ec o g n iz es p a r t n er co mp a n ies , s u c h a s i n in t r o d u ci n g a n d s u p p o r t in g
m a r k et in g s o lu t io n s p r o v id e d b y t he LY C o r p o r a t io n ( he a d q u a r t er ed in
C hi y o d a - k u , To k yo ; Pr e s id e nt a n d R ep r es e nt a t i ve D i r ect o r T a k es h i I d ez a w a).
A Te ch n o lo g y P a r t n er i s a p a r t n er co m p a n y t h a t p r o vi d es t ec h n ica l s u p p o r t
in i n tr o d uc in g m a r k et i n g s o lu t io n s a n d A P I - r el a t ed s er v ic es c en t er ed o n t h e
LI N E off ic ia l ac c o u nt , L I NE A ds , Ya h oo Ad v er t i si n g , LI NE S a le s P r om o ti on , a n d
LI N E M IN I Ap p .
I n th e c o m m u ni ca t i o n ca t eg o r y w h er e fu t u r es h op w a s c er t if ied a s a n
A d v a n ced Tec hn o l o g y P a r t n er , co mp a ni es a r e eva lu a t ed : w h et h er t h ey c a n
s h a r e s p e ci fic a t io ns o f t o o ls l in k ed wi t h th e L Y Co r p o r a t io n a s a p p lic a b l e;
w h et h er t h ey ha ve sk i ll s /r e s o u r ces t o r es p o nd to th e L Y Co r p o r a t io n ’ss p ec if ic a t io n c ha ng e s ; a n d w h et h er t h ey ca n m a in t a i n r e q u ir ed te ch n ic a ls p ec if ic a t io n s . C o m p a n ie s th a t a r e in cr e d ib l y exc el len t in t h es e a r ea s a r e
ce r t if ied a s P r e mi er o r A d v a n ce d co m p a n i es . F u r t he r mo r e, p a r t n er c o m p a n ies
t h a t a ch ie ve s p ec ifi c p er fo r m a n c e r ec eiv e r e co g n i t io n b a d g e s fo r v a r io us
s o l ut i o n s .
Commerce One Holdings Inc. All Rights Reserved.

44

5. Overview of Our Business – futureshop

FY3/2025 Q1 Business Highlights
Press releaseA pr il 1 8 , 2 0 2 4Star ted a n a lignme nt with th e thi rd -par ty logisti cs se r vi ce s for E C prov ide dby SB F ram eworks C orp.
En ab le u til izin g 3 P L se rv ice s t ailo re d t o E C, e ve n w it h a s ma ll va lue , and fo r a sho r t - te r m p er iod , an d p r ov ide
p ro ce ss o pt imiz a tio n p ro po sal s.

fu tu res ho p sta rte d a li gn in g w ith the thi rd - pa rty l og i stic s se rvic e s ( 3 PL) f or EC p rovi de d by S B Fram ew ork Corp .
(H ea dq ua rter ed in Ko to-ku , T o kyo; R ep res en tati ve Dire c tor Hi rosh i Wa tan uki ).
T he al ig nm en t al lo ws fu tu res ho p us ers to u til i ze 3 PL se rvi c es tai lo re d to EC, eve n w ith a s ma ll val ue , a nd fo r ash ort -te rm p eri o d.
Press releaseJu ne 2 0 , 2 0 2 4Star ted a n al ign men t wi th Ch a rlla th at ena ble s hi gh ly effi cie nt ma rketi ng usi ng attra c tive
sh ort movi es
C har ll a en ab le s em be dd ing hig h - q ual ity mo vie s qu ick ly on the ir use r sit es . S h or t m ov ies e xc lu sive ly f oc use d o n E C
sit es w il l inc re as e se ssion du ra tio n a nd enh anc e co nve r sion .
St a r t e d a n a li g n me nt w i t h C h ar l l a, a s h o r t m o vi e p l a t fo r m p r o v id ed b y C a te n o id ., In c .(h ea d q ua r te r ed i n C h u o - k u , To k yo ;C E O 李 亨九 )Th e a lig nm e nt a l lo w s fu t u r es h op u s er s t o s h o w ca s e th e ir p r o d u c t s e a s il y us i n g s h o r t m o v i es o n th e ir E C s it es .

Commerce One Holdings Inc. All Rights Reserved.

45

5. Overview of Our Business – futureshop

Synergy between futureshop and SOLAIRO

Deployment of AI solutions anddevelopment and provision of UGC*
solutions, leading to an improved
purchase rate of e-commerce sites,

SOLAIRO

Utilizing the natural language processing technology
cultivated through the operation of SOLAIRO’s
AI-powered web customer service solutions, thesynergy further evolves and accelerates marketing
communication support for customers.
Going forward, through collaboration between
SOLAIRO and futureshop, which operate a SaaS typee-commerce platform, we will proceed with the
deployment of AI solutions and development andprovision of UGC* solutions, leading to an improved
purchase rate of e-commerce sites.

Evolve and acceleratemarketing communication support for customers
Commerce One Holdings Inc. All Rights Reserved.

We aim to further enhance corporate value byachieving further synergies across the group.

* UGC: User Generated Content, or content created and generated by general users46

5. Overview of Our Business – futureshop

UGC*1 Solution developed by SOLAIRO
Accelerate OEM development for futureshop to increase the Group’s GMV and ARPU, as well as increase thecompetitiveness of the solution and expand to other companies’ e-commerce platforms.

Promote_UGC
User Generated
Content

posting

Abundant reviews
Rich content

Collect

Utilize

Diverse word-of-mouth
content

Development intoadvertising use
Purchaserate
Ability to
attract
customers

SOLAIRO
Easy-to-post UX*2
Customer loyalty program
Commerce One Holdings Inc. All Rights Reserved.

AD

Company’s own EC*1 UGC: User Generated Content, or content created and generated by general users*2 UX: User Experience, or experience that users gain through products and services

47

48

株式会社ソフテル

5. Overview of Our Business – SOFTEL

Amount of Development Sales *1 / Development Sales per Customer *2(Thousandsof yen)
単位：千円(Thousands of yen)

350,000

1,200

300,000

1,000

250,000
800
200,000600
150,000
400

100,000
200

50,00066,16775,53575,094

79,24581,872FY3 / 2021

FY3 /2022

FY3 / 2023

FY3 / 2024

FY3 / 2025

0

Due to stable growth in customizationand enhanced efficiency of SAMAURAITECHNOLOGY, the company acquired
via M&A, development orders
increased, resulting in increased
development sales YoY.
Meanwhile, development sales per
customer decreased due to therelatively large number of low-unitprice projects.
From FY2022/3 1Q, SOFTEL adopted percentof completion method. Therefore, except forsmall amounts or short-term development
orders, sales of orders in progress also canbe booked.

0

Amount of Development Sales *1

Commerce One Holdings Inc. All Rights Reserved.

１Q

２Q

３Q

４Q

Development Sales per Customer *2*1 Sales amount of initial cost and customizing fee of
Tsuhan-Suruzo*2 Quotient of Amount of development sales / numberof the companies installed or customized TsuhanSuruzo during the said period49

5. Overview of Our Business – SOFTEL

Recurring Revenue*1(Thousands of yen)

Recurring revenue *1

ratio
of of
recurring
revenue*2*2
Ratio
recurring
revenue

160,000

60.0%

48.5%

140,000

50.0%

120,000

92,859100,000
80,000

40.0%

30.0%

60,00020.0%

40,000
10.0%

20,000
0

0.0%

Q1

Q2

Q3

F Y 3 /2 0 2 3

Commerce One Holdings Inc. All Rights Reserved.

Q4

Q1

Q2

Q3

F Y 3 /2 0 2 4

Q4

Revenues increased steadily due tothe increase in the number oflarge clients and the sophisticationof projects. In general, recurring
revenue remained stable at 40% or
more, which is a robust businessfoundation.
In Q2 and Q4, the ratio of recurring
revenue tends to be lower due tocustomized sales growing as a result of
increased deliveries due to seasonal
factors.

Q1
F Y 3 /2 0 2 5*1 Monthly maintenance sales of Tsuhan-Suruzo*2 Value of recurring revenue divided by net sales of eachquarter50

5. Overview of Our Business – SOFTEL“Tsuhan-Suruzo” Concept

Customized
centralized management system

Seller’s
own EC

Brick-andmortar stores

あWhile non-customized ASP cannot
support e-commerce operators in
the field of backyard systems suchas inventory management, TsuhanSuruzo can reduce humanresources and costs by centrally
managing e-commerce operations
through customization, thereby
creating resources required forbusiness growth.

Tsuhan-Suruzo

Customized ASP

EC mall
Branch A
Commerce One Holdings Inc. All Rights Reserved.

EC mall
Branch B

51

5. Overview of Our Business – SOFTELBusiness Overview

BACK

FRONT

Core system
POS systems◼ Products
EC mall branches◼ Inventory◼ Orders◼ Customers

Tsuhan-Suruzo

Convert information
to adapt it to eachenvironment
appropriately

Shops
Logistics / Warehouse
Manufacturers(Suppliers)

Seller’s own EC

Commerce One Holdings Inc. All Rights Reserved.

52

5. Overview of Our Business – SOFTELOur Positioning
Expandability/Customizability
High

Customized centralized
management system
Cost advantage

Full scratch EC

Low

High

Non-customized ASP

SOFTEL helps customers improve
efficiency of their bloated
operations through strong
customizability and a wealth of
track records. Also, our system canaccelerate profitability of major
and medium-sized enterprises
through linkage with their coresystem and/or POS system.
SOFTEL has established a highly
expandable and customizable, yetcost-effective, positioning, basedon its accumulated expertise in
updating Tsuhan-Suruzo, the basis
for customization, and in meeting
diverse and sophisticated demands
from clients who regularly use oursystem.

Low
Commerce One Holdings Inc. All Rights Reserved.

53

5. Overview of Our Business – SOFTELRevenue Model
SOFTEL is expected to consistently boost revenue and client LTV, driven by additional customized development 3.7
times per year in average and increased maintenance fee in conjunction with the additional customization.

Consistent increase
in revenue!
Client LTV

Customizing /Maintenancefee

Initialcost

Maintenance of systems
that have become uniquethrough customization

Maintenance of systems
that were customized
upon initial installation

Uniqueness of the systems
Commerce One Holdings Inc. All Rights Reserved.

54

5Group Companies

Commerce One Holdings Inc. All Rights Reserved.

55

5. Group Companies

Background of Capital Contribution to Enecycle Inc. (Approaches to the decarbonization market)
As a business infrastructure company that supports the sounddevelopment of society, the Group aims to contribute to thedevelopment of a sustainable society and enhance its long-term
corporate value through the investment in the business of Enecycle
Inc. (hereinafter, “Enecycle”), which develops a touch point for the
global decarbonization market.
Changes in primary energy consumption by energy source

Oil
Coal

Natural gas
Renewable energy

Nuclear power
Hydraulic power

Source: "World Energy Balances 2023 database“ by IEA
Commerce One Holdings Inc. All Rights Reserved.

Environmental responsibility ofbusinesses

Creation of new industries in global
markets• Job creation• Regional revitalization

Synergies with TradeSafe• Ensuring traceability of raw materials for the
carbon credit market.
• Consideration of certification services forsafety and security

Corporate credibility froman internal perspective
As President Okamoto has been involved as afounder since the company's inception, we see
solid growth potential in the company.

Source: "World Energy Balances 2023 database“ by IEA (Secondary u se: “Tren d of Coal Demand in th e World an d Ch allenges for Japan” issued by Japan Organization
for Met als and Energy Security at ht tps://www.jogmec.go.jp/content/300387654.pdf)

56

5. Group Companies

Carbonization and Gasification Technologies Developed on Our Own
Enecycle efficiently generates and makes use of biochar gas by utilizing a wide rangeof resources with its proprietary patented technology
Generating biochar gas by drawing on Enecycle’s proprietary technology
Companies utilizing biobased materials

Inputting raw
materials

Companies utilizing biobased materials
Combustion gas

Agricultural byproducts

Construction wastes ,etc.

Constr uction /construction materials
industry

Food industry

Energy resourcesindustry

Agricultural and for est ry/ farming indust ry

Gasification
furnace (reforming
reaction furn ace)

Inputt ing raw
materials

Considerat ion

Selling bio-basedmaterials / technologies /electricity

Agricultural wastes

Transforming the input
into bio-based materials

Thinned wood, forest
wastesAutomotive /transportation indust ry

Electricity / gas
industry

Iron / non-fer rous
industry

Materials /chemicals indust ry

Carbide outlet
Carbide outlet
Commerce One Holdings Inc. All Rights Reserved.

* Biochar: charcoal derived from biomass such as wood chips, plant residues, manure, and other agricultural waste

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5. Group Companies

Growth Potential of Our Business｜Utilization of Water Gas/Hydrogen
The size of the hydrogen gas market projected to grow to JPY 54 trillion globally*
Current and future demand for hydrogen
Hydrogen is used inmany industrial
applications

Glass/opticalfiber

Hydrogen is expected to enjoy
greater demand as a sour ce ofenergy in the future

Semiconductor

Solar panel

Home-usefuel cell

Ironwork
Fuel cell bus

Expandinguses ofhydrogenPetr oleum
refining /pet rochemical

Fuel cellvehicleAmmonia
production

Metallurgy
Rocket fuelElectronic
components

Hydrogenpower plant

Our proven track record
Th e G rou p w as s e le cte d to j oin a hy dr oge np rod uct ion de mon s tra ti on p ro je ct b y the M ini s tryof the E nv ir onme nt a nd ha s su cce ed e d i n
p rod uci ng re ne wab le e ne rg y-d er iv ed gr ee nhy d rog en .

High-purity hydrogen is essential
for the production ofsemiconductor wafers, solar cellsilicon, and liquid crystal.
The size of the global hydrogengas market is projected to reach
JPY53,829.7 billion* in fiscal 2040.
At present, the market consists
primarily of applications forindustrial materials/gas, while
applications for fuel cell vehicles is
expected to grow steadily overtime.

※水素製造プラントの完成写真（https://www.shimz.co.jp/company/about/news-release/2022/2022029.html）

Jointly with Shimizu Corporat ion, the Company participatedin th e “project to develop and demonstrate a low-carbon andlow-cost hydrogen production technology using geothermalheat and biomass resources” led by the Ministry of t he

Environment, conducting a demonstration test with the aimof producing green hydrogen using a wealth of biomass
resources in Japan, such as geot hermal heat and wood.

Commerce One Holdings Inc. All Rights Reserved.

*Source: “Survey of global markets relat ed t o hydrogen” by Fuji Keizai Co., Ltd. on its press release at ht tps://www.fuji -keizai.co.jp/press/detail.ht ml?cid=23031&view_type=2&la=ja
Referen ce: Global Hydrogen Market

58

5. Group Companies

Revenue Model
Revenues (from operation, maintenance, sales of biochar andhydrogen) are on the rise with the establishment of a platform built
on our patented proprietary technology
Consistentincreases
in revenue!

Utilization/sale of next-generation energy

Operation/maintenance of facilities

Design of projects using proprietary
technologies, and sale ofcarbonization/gasification technologies

Commerce One Holdings Inc. All Rights Reserved.

59

Disclaimer and Forward-Looking Statements

This presentation material is prepared solely for the purpose of providing information on Commerce One Holdings Inc. (the“Company”) and its subsidiaries and is not intended for soliciting investment.
Business performance forecasts and any other forward-looking statements contained in this material have been determinedby the Company based on information currently available to the Company.
Forecasts are inherently subject to various uncertainties, and actual results may differ materially from these forward-looking
statements.
Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail.

Commerce One Holdings Inc. All Rights Reserved.

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